Southeast asks for $64 million Incentive Package to complete Laura Street Trio

[thelakelander]

There is no parking garage planned that I'm aware of. The parking will be in the Vystar garage.

[heights unknown]

I could be mistaken but I believe Vystar took that over completely with their new garage & the updated proposals do not include a parking component.

Thanks JD. You are absolutely correct. But I do remember in past/initial renderings they did have a Parking Garage; but that was before VYSTAR came along.

[heights unknown]

There is no parking garage planned that I'm aware of. The parking will be in the Vystar garage.

Thank you.

[jaxlongtimer]

Shouldn't these incentives be, up to the agreed-to cap, tied directly to construction invoices paid to a contractor who had to bid for the project or at least price the project at the average of what 3 construction cost experts would agree on via a price audit of the subcontracts and overhead?  For this kind of money, it is easily worth the effort and isn't all that hard to accomplish.  If the costs come in lower, the City pays out less incentives.  In an "honest" deal, the developer and the City should both want the costs to be as low as possible while maintaining the integrity and quality of the project.

This should help squeeze out any game playing by a developer.  Criminal penalties should apply for any attempts to perpetuate a fraud such as kickbacks, bribes, dishonest presentations, etc.

[Steve]

https://www.jaxdailyrecord.com/news/2023/jun/21/dia-board-bunts-6356-million-laura-street-trio-incentives-decision-to-city-council/

In short, DIA advanced this to City Council without voting yes or no (rare move).

I'm actually okay with this because:

- I think we all have doubts this will actually happen.
- If they vote for it, then they're setting a weird precedent.
- If they vote it down, then there's little chance it passes at council.

Additionally, I think everyone knows this deal might be an exception because of the nature of the buildings and location. Conversely, everyone knows SOMETHING for the Jags is coming.

Atkins' biggest mistake might be not figuring out a way to get this going before the Jags came to the table. Everyone knew they'd be coming soon.

[Jax_Developer]

$63M in total incentives for this project is just unprecedented. Nothing says we are open to being financially taken advantage of than this project.

Let's just say the hotels are apartments to make this conservative in nature.. 143 + 169 = 312 total units. So $63M/312 units = $201,932 per unit. I can find more than a dozen local new construction ground-up developments whose cost averages for the entire project are less than $202k a unit. To have that in incentives alone is wild. I can also find other historic rehab projects outside of Jacksonville that's per unit cost basis is pretty close to just their incentive ask per unit...

This whole thing doesn't make any sense, and to Jaxlongtimer's point I think this request should be met with absolute transparency on the construction costs, broken down by line item. The lack of any information is baffling and we are just supposed to believe their numbers I guess.

[marcuscnelson]

Nate Monroe is pretty upset about the "bunt" by DIA. Arguing that it invalidates the DIA's existence.

[marcuscnelson]

So it's been a month now, any sign of action by City Council one way or another?