The District wants $26 million in public incentives

[jagsonville]

https://mobile.twitter.com/Davidcawton/status/978303752976379904

Update from jax daily record reporter

[Steve]

I'm more okay if the funds are going to infrastructure (water/sewer, roads, electrical, etc.). CDDs certainly aren't uncommon. I'm not as familiar with the REV grants though as that's the critical piece (The payback).

[Steve]

David Cawton's twitter has more info. This seems to be making more sense now, but still not sure as I'd like to see the full report and read it.

[KenFSU]

David Cawton's twitter has more info. This seems to be making more sense now, but still not sure as I'd like to see the full report and read it.

I think most of what he reported was a bit off, actually.

[jagsonville]

http://www.jacksonville.com/news/20180326/new-deal-for-district-has-56-million-in-property-tax-rebates

Another updates. Looks like they are being a bit more specific about the project. 725 apartments, 200 condos, 25 townhomes, etc.

[KenFSU]

Here's my understanding of the new framework, based on the JBJ and T-U's reporting today:

1) Elements buys the land outright from JEA, at the $18.5 million originally agreed upon.

2) The city loans the DIA $26.4 million to spend on infrastructure for the project, specifically to develop parkland (a riverfront park up to 5 acres, a seperate park, a walking trail around the development), a half-mile extension of the riverwalk, roads, public parking, etc. Ownership of the public spaces would be transferred to the city. The DIA will pay the city back over the next 20 years, exclusively using revenue from the Southside TID.

3) A Community Development District is established for the project, with $30 million in bonds being issued to jumpstart development. Elements has a financial backer on board ready to put down the $30 million (the backer hasn't been identified, but has been in talks with Aundra Wallace for the last week or two).

4) The District would pay back the $30 million in bonds over the next 22 years, via a a 22-year REV grant from the DIA.

5) No clue if it's binding, but per the timetable given to the City Council, the entire project - 725 apartments, 147 hotel rooms, 200 condominiums, 25 townhomes, 125 marina slips, plus 134,600 square feet of retail space and 200,000 square feet of office space - would be built-out by 2022.

The City Council would need to agree to the loan to the DIA, and because the REV grant exceeds 15 years, the council would also need to sign off on that too.

Aside from the CDD aspect, and the switch back to Elements purchasing the property outright, I think the biggest difference I've seen here is the post-purchase transfer of ownership of the riverfront greenspace (4-5 acres) back to the city.

[marcuscnelson]

Here's my understanding of the new framework, based on the JBJ and T-U's reporting today:

1) Elements buys the land outright from JEA, at the $18.5 million originally agreed upon.

2) The city loans the DIA $26.4 million to spend on infrastructure for the project, specifically to develop parkland (a riverfront park up to 5 acres, a seperate park, a walking trail around the development), a half-mile extension of the riverwalk, roads, public parking, etc. Ownership of the public spaces would be transferred to the city. The DIA will pay the city back over the next 20 years, exclusively using revenue from the Southside TID.

3) A Community Development District is established for the project, with $30 million in bonds being issued to jumpstart development. Elements has a financial backer on board ready to put down the $30 million (the backer hasn't been identified, but has been in talks with Aundra Wallace for the last week or two).

4) The District would pay back the $30 million in bonds over the next 22 years, via a a 22-year REV grant from the DIA.

5) No clue if it's binding, but per the timetable given to the City Council, the entire project - 725 apartments, 147 hotel rooms, 200 condominiums, 25 townhomes, 125 marina slips, plus 134,600 square feet of retail space and 200,000 square feet of office space - would be built-out by 2022.

The City Council would need to agree to the loan to the DIA, and because the REV grant exceeds 15 years, the council would also need to sign off on that too.

Aside from the CDD aspect, and the switch back to Elements purchasing the property outright, I think the biggest difference I've seen here is the post-purchase transfer of ownership of the riverfront greenspace (4-5 acres) back to the city.

Wow, so this... this could actually happen.

But do they really think they'll have everything built out within 4 years? That doesn't sound very doable, unless they start, like, tomorrow.

[TimmyB]

Wow, so this... this could actually happen.

But do they really think they'll have everything built out within 4 years? That doesn't sound very doable, unless they start, like, tomorrow.

This will all be in the press release on Sunday, if you follow my drift.

[KenFSU]

Sounds like Lori Boyer is a pretty big proponent of the new framework.

From the T-U:

Boyer said that "puts the burden" on the developer to fully build out The District in order to get the full amount of REV grants.

The city would focus its spending on projects that the public can use. The $26.4 million budget for the city's portion of the work would mainly go toward construction of a riverfront bulkhead, extending the Southbank Riverwalk, building a boardwalk and a paved trail around the edge of the property, and creating a riverfront park and "pocket parks" on the site. The city would get the land for the parks at no cost.

Boyer said even if The District never builds anything, the city still would have the benefit of increasing public access to the St. Johns River with the parks and a longer riverwalk. The city also would extend Prudential Drive and Broadcast Place into the development site, and construct Riverside Drive along the area where the riverfront parks would go.

[KenFSU]

P.S. So we know that the state budget has $10 million set aside for demolition of the section of the Hart Bridge ramps between the stadium and Met Park. We also know that as soon as that ramp comes down, Shad Khan wants to develop Met Park. And we also know that in order to do so, because federal grant money was used to build Met Park, the city would need to execute an in-kind land swap and build a park elsewhere.

If the proposed framework for the District is approved, resulting in the city owning five acres of riverfront parkspace on the Southbank, with additional pocket parks and trails surrounding it, there's your land swap, right? Clearing way for further development on the river in front of the stadium. Ideally, we'll have an amazing parkspace in a future Shipyards development, but in terms of satisfying the swap on paper, and clearing that hurdle for immediate remediation and development of the Met Park space, this could be a side benefit that I haven't seen anyone mention yet.

[thelakelander]

Met Park is way bigger than five acres. A land swap for it is most likely taking place within the Shipyards site.

[KenFSU]

Met Park is way bigger than five acres. A land swap for it is most likely taking place within the Shipyards site.

Current Met Park, for sure, but wasn't original Met Park (phase one), which was built using the federal grant, much, much smaller? Like under 10 acres?

Also, correct me if I'm wrong, but pure acreage is only one variable considered when weighing the merits of a land swap. Appraised value is equally important. As is age/obsolescence. Five acres of clean waterfront land might not carry that much different a value than a dead park on 20 acres of contaminated land, bounded by highway and shared with a TV station.

Love the Shipyards park floated by Khan, particularly with the USS Adams integration, it has to happen, and to me, it's the absolute ideal location for an urban riverfront park to bridge the CBD and the Sports district, but it's realistically years off by the time that the Hart ramps are fully demolished and the Shipyards is fully remediated. The existing Met Park site, conversely, might be less than two years from being shovel ready, depending on how quickly the ramp comes down and the Met Park land is cleaned up.

If the arctic pace of Shipyards remediation is holding up a land-swap that will allow Met Park redevelopment to begin, might be worth at least thinking about whether all of this new combined greenspace the city is potentially bankrolling and owning would qualify for the swap. Might move along redevelopment of that site more quickly and get the pure financial liability of a future swap off the books.

[thelakelander]

Metropolitan Park is 32 acres. I have to go back and check but I don't believe the original park was smaller than 10 acres. Also from my understanding, it makes sense to turn a portion of the Shipyards into green space because of the contamination issue. Also, the green space proposed for the District was always a part of the plan. Maybe time will prove me wrong but at this point, I don't see a strong link between Metro Park and what's proposed at the District.

[Shirt Tail Johnson]

The original plan was $433M in costs, but it looks like this plan is is calling for a reduction of 25% or so, so we can only estimate the new cost will be 325M give or take a few mill.  The 56M that the city is kicking in property taxes and 26M in infastructure improvements represents about 82M which is approximately 25% equity stake in the deal.  Take out the 26M and leave the tax rebates its a 17% equity stake. Not bad  a bad deal for the developer.  If i were a betting man, My guess is Rummell and Co are will have less than that "in the deal" once completed. 

[thelakelander]

If Shirt Tail is correct, sounds like this year's Christmas gifts will be provided by the Rummell household!