New "Project Rex" to bring 1,500 jobs, $200 million in improvement

[bast553]

Pardon my ignorance, but is there any particular reason why the city is forking out $13.4 million for this? Amazon's sales are expected to be $29.3 billion this QUARTER. The City of Jacksonville is (allegedly) broke. If Amazon has a need for a distribution center in Jacksonville, they will build one, regardless of tax incentive. So, other than corporate welfare and a resume-enhancer for politicians, what is the purpose of giving Amazon money the city does not have?

I wouldn't think of it as the city "forking out" $13.4 million from its struggling coffers. The money will come in the form of tax refunds and through the city's Recaptured Enhanced Value Grant program, which basically (and temporarily) reduces taxes that result from the massive property value spikes caused by Amazon's investment in the area. In all, the $13.4 million in incentives will be parsed out over 12 years. Plus some roadway improvements.

In return, Amazon brings $200 million in capital investment to Jacksonville, 2.4 million sf in bleeding edge warehouse space, and 1,500 new jobs totaling over $50 million in annual salary.

I understand the push-back against incentives, but zero chance this doesn't ROI for the city in very short time.

Okay, all of that considered, what is the investment given to small businesses that open in Jacksonville?

If Amazon was a small business - "Bob's Drones" - the City sends him a welcome card with a tax bill. If a person moves to Jacksonville, they get a Welcome to Jacksonville tax, whether that tax be direct property tax or indirect through rent. It seems that this deal was made as most deals are made, based on the hypothetical future value of the property, and I would like to know what is in it for the city other than hypothetical ROI.

I am not against deals like this when they are needed to compete. If this were a Boeing plant, for example, that could go anywhere, my mind would be more open to this idea, though I would still remain skeptical. My major problem is that Amazon has to build a distribution center here to distribute their crap to a massive market in Jacksonville. They would eventually build the center here, regardless of whether they got a dime. They couldn't get a deal like this in Nassau County, and it makes no sense logistically to build in Clay or St. Johns.

The only thing this deal does is move this project three months closer to completion, if that, because it was inevitable. On the other hand, the departmental expenses of the city are up 4.5% this year, almost all attributable to the Office of the Sheriff, Fire and Rescue, and Public Works. The mayor, who I assume is ideologically opposed to tax increases, wants a tax increase. (Yes, even a 1/2 cent tax that is law until 2030 is a tax increase, when the tax can then be used to shore up pension debt before 2031.)

This mayor promised austerity and responsible government when he was elected. Remember when he said a billion dollars is enough money? The problem with Mayor Curry - and the entire city government, for that matter - is that the moment Shad Khan wanted a practice field for the Jaguars, the city found $45 million. The moment Khan wants a roof on the stadium, City Council will approve it, 19-0, regardless of whether we have the money or not.

I have a hard time approving any big tax break like this for any person or business when our city cannot afford it, and when the recipient needs that money less than the citizens who paid those taxes. Furthermore, I cannot extend a tax, raise a tax, create a tax, or endorse a tax to keep us from turning into a third-world country while we are giving our tax dollars away so willingly.

[thelakelander]

Amazon typically asks for and receives incentives from most communities vying for their distribution centers.  However, it does make you wonder if they would have came on their own eventually without them. Like you mentioned, they have to have a facility in the vicinity to serve the market. On the other hand, one could argue that they could have went to Baker or Nassau County and served the same market without paying taxes in Duval. Wal-mart did this a few years ago.

[Tacachale]

Amazon typically asks for and receives incentives from most communities vying for their distribution centers.  However, it does make you wonder if they would have came on their own eventually without them. Like you mentioned, they have to have a facility in the vicinity to serve the market. On the other hand, one could argue that they could have went to Baker or Nassau County and served the same market without paying taxes in Duval. Wal-mart did this a few years ago.

Yes, I think may be what's happening. Previous distribution centers in FL went to Lakeland and Ruskin rather than Orange County and Tampa. Also there may be some office jobs in play that could have gone to another area.

[Jim]

855,000 sf
2,131,242 sf
2,300,000 sf
2,400,000 sf

Which is it?  I've seen all 4 numbers used to describe the size of the building.  If it's any of the 2+ million figures, that would make it the largest Amazon fulfillment center in the US (possibly word...I couldn't get numbers on most of them).

[thelakelander]

It's +800k square feet. It's pretty much a carbon copy of what they've been building in various cities across the country.

[jaxlongtimer]

In most warehousing, cubic feet is a better indicator of building size and capabilities.  A million square feet at 20 feet high is essentially half the size of the same square feet built 40 feet high.  Actually, the latter might be even more than double the capability due to having the same standard level of clearance over the top pallets (literally, the overhead associated with the vertical stack) now supporting double the height.

I guess Cecil Field is next on Amazon's list.  Another airport location  .

[marcuscnelson]

Gramercy's bought the center.

https://www.jaxdailyrecord.com/article/amazons-cecil-fulfillment-center-sold-for-dollar96-million