Khan, Jaguars expect Lot J development to begin early 2020

[Ken_FSU]

^It's hard to tell, as the wording in the term sheet is a bit vague and can be read either way:

"The district will consist of an entertainment venue with restaurants and retail and street-level restaurants and retail in the amount of 75,000 square feet."

Speaking of which, I'm looking at both term sheets, and here's how the new term sheet breaks down versus the old.

Ad valorem tax rebate:
Old term sheet - $25 million max rebate (75% over 20 years) for residential tower, hotel, and office space
New term sheet - $25 million max rebate (75% over 20 years) for two residential mid-rises only potentially suplimented by some form of completion payment if necessary for the hotel to get this "rebate" number up to $25 million

Jacksonville Live Arena!
Old term sheet - $50 million for the city's half of the Live! arena building; if this piece costs less than $100 million, the Jags could use the city's money for hotel or residential portions instead
New term sheet - $50 million for the city's half of the Live! arena building; if this piece cost less than $100 million, the city will be refunded half of the difference

Infrastructure improvements:
Old term sheet - $93 million solely financed by the city
New term sheet - $78 million* solely financed by the city

*Even with the reduction in infrastructure commitments included in the new agreement ($15 million), the city would still be on the hook for the difference in one of two ways. If Phase II moves forward, the city would be on the hook (per the agreement) for contributing up to $15 million toward a new parking garage for the next phase (the difference between the original $93 million in infrastructure commitments and the $78 million included in the new agreement). Or, if environmental remediation proves to be more costly than originally anticipated, the $15 million "difference" might be owed by the city as well.

Grant vs. Loan:
Original term sheet - The city gives the developers $65 million in free cash to "facilitate" the development
New term sheet - The city loans the loans the developers $65 million (secured by a $13 million deposit from Cordish/Khan)

Because the city is still on the hook for the full $93 million in infrastructure improvements, it looks like the only major difference between the two term sheets is that $65 million contribution from the city to "jump start" the development has switched from a cash handout to a loan (no terms disclosed).

We're incurring the full infrastructure costs, paying for half of the Live! arena, and providing a $25 million REV grant for the residential, and the Jags/Cordish are paying for half of the Live! arena, and all construction costs of the hotel, office, and residential components.

In terms of what we're getting for the new agreement versus the old, we're getting 100 more parking spots (1,400 vs. 1,300, with the 100 extra spots being structured in the residential garages), a comparable number of hotel rooms (200 in the old agreement, 150-250 in the new one), more residential (400 units vs. 300), and a lot less office space, which feels like a good thing (120k in the old agreement, 40k in the new one).

Also looks like the parking terms are slightly more favorable to the Jags in the new term sheet versus the old (the Jags formerly got to keep any parking proceeds above "historical levels" for all parking at Lot J; now, they get to keep all parking revenue outright from residential users).

Interesting that a note in the new term sheet seems to tip the Jags hand as to what they're thinking for Met Park (new term sheet references a luxury hotel, condos, marina, office and ground-level retail at a total cost of around $250 million).

[FlaBoy]

Ken_FSU,

Sounds like the plan they put forward already. I have to imagine they still want a convention space nearby because, again, football and some concerts isn't enough. It is also a hike to get over there if you are going to the Arena for an event. It's part of what I don't love about this plan. Arena/Baseball Grounds have way more events than the stadium. The Jax Live! is kind of isolated there by the stadium.

[jaxlongtimer]

On the renderings, the surface lot is currently a retention pond. I never realized it was that easy to fill them in - but this is the second one proposed recently downtown (the Florida Blue garage was the first).

I don't think you can fill them in unless you relocate them close by.  This was done with a pond at San Jose and Oak Bluff to allow the Chick-Fil-A and Zoes to get built.  They just rebuilt the pond on the rear of the property from the original spot on the front.

You can also build over the pond.  I  understand there is a "pond" under the Wells Fargo building.  Walmart in Mandarin has part of their parking lot built over a pond.  Don't know, but maybe Fla. Blue's garage is also built over what was there.  My guess is this is the option they would use here although it will cost more.  No way SJRWM is going to allow these ponds to just go away given it seems impossible to not build them in the first place when new construction of any significance is undertaken.  Once built, they are likely there forever in one form or another.

Not sure how they engineer away the guy-wire for Channel 12's antenna unless they can build around it or the station is moving it to a suburban antenna farm.  The only other station with an antenna near downtown is Channel 4.   With advances in technology, maybe there are new opportunities making moving worthwhile.

[jaxlongtimer]

Are we looking at a Lot J/Shipyards 20 year buildout?

Looks like they have moved on mostly from the Shipyards to Metro Park per the article's quotes below  Now it's Lot J/Metro Park  . 

Iguana's development rights at the Shipyards expired in August. DIA CEO Lori Boyer said Sept. 9 that Iguana representatives said they plan to submit a new development proposal focusing on the adjacent Metropolitan Park that only incorporates a small portion of the Shipyards....

...However, Lamping said the latest pitch to the DIA would free more than 30 acres for riverfront parkland.

"You're much better off focusing on the eastern end of the Shipyard rather than along the entire St. Johns River. So that's what we've done," Lamping said. "What we discussed with the DIA in terms of scale of that Shipyard project will end up being greater in every metric compared to what we originally chose to do – larger project, more expensive, more residences, more hotel rooms, more office space."

The DIA board signaled it wants Boyer to engage the National Park Service to consider trading Metropolitan Park, which is federally controlled, for the city-owned Shipyards property.

[heights unknown]

Soooooo...would it be appropriate in saying that MAYBE this is one of the reasons why, aside from the debacle between the City and Landing Owner Sleiman, that the Landing was allowed to be razed? Just a question and my hunch. But still, they really need to build something on the Landing property as Lot J is far removed from the bullseye of the Downtown Urban Core.

[jaxlongtimer]

Soooooo...would it be appropriate in saying that MAYBE this is one of the reasons why, aside from the debacle between the City and Landing Owner Sleiman, that the Landing was allowed to be razed? Just a question and my hunch. But still, they really need to build something on the Landing property as Lot J is far removed from the bullseye of the Downtown Urban Core.

Two reasons why tearing down the Landing plays into Khan's hands:

1.  Eliminates entertainment competition in the greater Downtown area.  Live! will be all by itself and now likely suck out whatever little night life remains in the central business district if it takes off.
2. Offers the City another riverfront parcel to barter with the National Park Service so Khan can get control of Metro Park.

Curry taking care of his #1 campaign supporter.  We need to count the $15 to $20 million spent on the Landing as an additional subsidy to these projects.

[MusicMan]

The Jags long string of poor performance, and we get this.  I hate everything about this project. If the money was spread around all of downtown we would get so much more bang for the $$$.   Don't forget, the stadium and Lot J sit in an Enterprise Zone.  At the end of the day Khan walks with all the money, if there is any left.

[Bativac]

Soooooo...would it be appropriate in saying that MAYBE this is one of the reasons why, aside from the debacle between the City and Landing Owner Sleiman, that the Landing was allowed to be razed? Just a question and my hunch.

It would be appropriate to say not maybe but absolutely.

People who left Jax read this stuff purely for the entertainment value. "Why does it keep happening in Jax?" Because people who care give up and move on.

[Papa33]

Was it just me or did Kahn and Lamping seem uninterested at the presser?

[marcuscnelson]

Was it just me or did Kahn and Lamping seem uninterested at the presser?

C'mon man, they just want to be able to make enormous amounts of profit at taxpayer expense...

[sandyshoes]

The stadium and Lot J...I can already see the Mother of All Greenspace coming. 

[Steve]

Chris Hong and Nate Monroe at the T-U are ripping apart the financing deal for this one. I haven't had time to process exactly what they're saying but I bet they aren't wrong.

Now, it may still make sense to move forward (or not). I'm also thinking that it's possible to continue to negotiate here (and they don't want to agree to better terms maybe we walk away).

[minder]

Curry on 1010xl in 5 mins re Lot J.

[thelakelander]

Curry and the 1010XL guy have no clue of what they're talking about when it comes to planning and the urban core. They don't get it. It is what it is. Hopefully, in the future for downtown's sake, someone will. Things will really blossom a lot faster than we imagine when that day comes.

[minder]

Curry and the 1010XL guy have no clue of what their talking about when it comes to planning and the urban core. They don't get it. It is what it is.

He talked 2/3 times about "critics". Felt like a veiled shot at this forum haha.