New Partnership Formed to Bring More Capital to Downtown Development

[KenFSU]

From the Jax Business Journal:

This new partnership wants to bring more capital to Downtown development

Jax Chamber and the Jacksonville Civic Council are teaming up to help redevelop the urban core by creating an independent organization to provide patient capital for real estate investment.

The two organizations announced today their plans to form a private, independent investment entity designed to stimulate Downtown development by getting more money to real estate development efforts in the urban core.

Jax Chamber CEO Daniel Davis said the approach has worked well in other cities and he's confident it will work for Downtown Jacksonville...

A release from the two organizations said many Jacksonville business leaders have agreed to support this due diligence phase, and many have made tentative commitments to invest when the project moves forward. They will lend their expertise in various disciplines to ensure that such a venture can result in projects that provide a much-needed spark to Downtown development.

This effort will be led by Steve Crosby, president of CSX Real Property Inc., who will be loaned to the effort by CSX Corp. Crosby has already started creating the foundation for the organization and will start focusing his attention full time in October.

Full story: http://www.bizjournals.com/jacksonville/news/2014/09/29/this-new-partnership-wants-to-bring-more-capital.html

[CityLife]

Potentially very, very good news. I put a lot more faith in those two organizations ability to make things happen than COJ's, not to mention they will likely have a lot more money to work with.

[benfranklinbof]

Agreed⤴  Yay for team work!

[IrvAdams]

This is great news. It will promote long-term organic growth seeded by local private capital. Downtown is indeed poised and ready.

[Wacca Pilatka]

I hope this bodes well for the Trio project in particular.

[KenFSU]

Here's the story from Jax Daily Record:

Private fund targeted to help finance Downtown projects

By David Chapman, Staff Writer
Downtown projects could soon have a new opportunity to acquire much-needed funding, all without going to the bank.

The Jacksonville Civic Council and JAX Chamber announced Monday plans to form an independent investment entity, one with a focus on Downtown development. The mission is to provide capital for real estate investment in the urban core.

The idea would be for a group of private investors to support the concept, but Civic Council Executive Director Jeanne Miller wouldn't disclose how many already have signed on. She and Daniel Davis, chamber president and CEO, said the idea was still in preliminary stages.

Miller said more would be determined once Crosby comes aboard and creates a task force to further review the plan. Crosby was traveling this morning and unavailable for comment.

The purpose wouldn't be to fully fund a project, but instead to assist when public and other private dollars fall short, Miller said.

"It would be a complement ... we aren't going to be a developer," she said. "The mission is going to be a focus on jumpstarting these catalytic projects for Downtown."

Downtown Investment Authority Chair Oliver Barakat said given funding constraints for real estate projects, the entity could be a "critical piece" for Downtown revitalization.

Full story: http://www.jaxdailyrecord.com/showstory.php?Story_id=543984

[edjax]

I just hope they are not late to the game. I mean this has been discussed for well over a year and now we are just getting to the planning stages.  And that stage always seems to take forever in jacksonville.  So hopefully we see it implemented before the next downturn and see the momentum for downtown come to fruition. 

[spuwho]

Yet another planning, financing, strategy forming, collective interest group for Jacksonville.

We definitely have plenty of these in town.

Actions speak louder than press releases in this case.

[CityLife]

Yet another planning, financing, strategy forming, collective interest group for Jacksonville.

There's a private sector fund for Downtown projects backed by many of the city's wealthiest leaders and the city's Chamber of Commerce?

Having the weight of the Civic Council and Chamber behind something is huge.

Having the collective brain power of the Civic Council dedicated to downtown development would be very beneficial....and if they want to invest even better. There are quite a few people in the Civic Council with a lot of knowledge and experience in real estate development.

[jaxjaguar]

At least this one has private financing already lined up and seems to have a few projects in mind.... Please, please, please be a good group and make something happen.

[Wacca Pilatka]

Certainly there is precedent in Jacksonville with private-public partnerships making major improvements happen before, with several of the large projects downtown in the early 80s.

[Bill Hoff]

Any indication about when this new entity will become active?

[downtownbrown]

Any indication about when this new entity will become active?

Good question.  My guess is after we elect a new mayor.  Every single major project in the Core (shipyards, berkman 2, Landing, trio...) is absolutely dead in the water.   The mayor won't even bother to fund the environmental impact study on the shipyards.  So now it's a game of money vs. politics.

[brainstormer]

I'm not so sure you can point all of the blame on Mayor Brown. Our 19th century city council isn't exactly willing to invest in downtown. Didn't the mayor propose much higher funding for DIA than what was actually given to them? I think if Aundra Wallace had more money to work with we would see more action downtown. Right now multiple projects are competing for a small pot of money.

[Tacachale]

^He proposed more money, based on his incompetent budget that had to be taken away from him. Without real money the result is the same. There's saying you're going to do something and there's doing it. Brown's good at saying things, not so much on doing things. Which is a shame, since we've continued to miss opportunities for real growth.