Armory Being RFP'd

[nuts over reality]

Reva Development plans on leasing the Armory for $1 a year. No ownership mean no responsibility. Can give the Armory back to the city and profit from the work force housing project. This sound like the Landings all over!

[thelakelander]

COJ will own Live! at Lot J as well. Yet everyone who doesn't know better seems to think it will be a game changer.

[jaxlongtimer]

Reva Development plans on leasing the Armory for $1 a year. No ownership mean no responsibility. Can give the Armory back to the city and profit from the work force housing project. This sound like the Landings all over!

Leasing from the City instead of developers owning these projects is just another taxpayer giveaway as they pay no property taxes during the lease.  That's on top of the incentives the City gives them elsewhere but they probably won't include the tax savings in the public totals to avoid a taxpayer backlash.  And, with the leases at bargain rates they get another giveaway.

Imagine no property taxes on hundreds of millions of value in Lot J or elsewhere.  At 1.5 to 2% tax rate, we are talking about $15,000 to $20,000 per million per year so $100 million in development equates to $1.5 to 2.0 million per year of no taxes to support City services or our schools.

[nuts over reality]

Also Reva will make about 4 million alone, once he completes the work force housing project and probably will has a non-recourse HUD loan.
So if the project fails Reva could walk away with 4m profit and stick the government with the loan.

[jaxlongtimer]

Also Reva will make about 4 million alone, once he completes the work force housing project and probably will has a non-recourse HUD loan.
So if the project fails Reva could walk away with 4m profit and stick the government with the loan.

As is if all this plus no property taxes, generous city incentives (plus any other tax credits) and a bargain lease are not enough, the Armory and Lot J are both in Federal Opportunity Zones.  This means that developers can defer paying current capital gains taxes from unrelated projects for up to 10 years (i.e. an interest free loan by the Feds), get a substantial reduction of said capital gain taxes and, the real zinger, never-ever pay any income tax on any of the profits on any of these new developments!  And, really, will any of these developments improve the quality of life for the surrounding residents or just, on the best of days, gentrify their neighborhoods and further their plights.

With all these breaks, how can the developer lose, even on a dud of a project?  It's the ultimate taxpayer giveaway.

[thelakelander]

To be fair, doesn't the armory flood? I wonder what's the plan to deal with Hogans Creek?

[jaxlongtimer]

To be fair, doesn't the armory flood? I wonder what's the plan to deal with Hogans Creek?

If the Armory (or Lot J) floods and the City owns it, they will probably get the taxpayer funded FEMA to cover the damages.  Another advantage to leasing from the City.

Like I said, the developers in these deals almost can't lose.

[nuts over reality]

Any news on the armory, still sitting empty. Maybe the mayor needs to look at this deal to.  I thought the idea was to preserve the armory and make it part of the community again. It seem that the interest is in tearing down the maintenance buildings and building apartments.

Why would someone offer to buy the maintenance buildings but only lease the armory?

[sandyshoes]

Can we put JEA in there??

[nuts over reality]

Has anyone heard if the armory plan is going forward?

[thelakelander]

Haven't heard anything since the pandemic began.

[bl8jaxnative]

As is if all this plus no property taxes

What are the property taxes paid by Lot J today?

[nuts over reality]

any update on the armory?

[thelakelander]

Crickets.

[heights unknown]

I'm falling asleep.