OFFICE OF THE CITY COUNCIL

RESEARCH DIVISION

FINANCE COMMITTEE

MEETING MINUTES

Tuesday January 15, 2019	Tape No.________________________
9:30 AM
Council Chambers 1^st Floor, City Hall	Carol Owens, Chief of Legislative Services
Greg Anderson, Chair	Legislative Assistant: Ladayija Nichols
Joyce Morgan, Vice Chair	Council Auditor: Kyle Billy
Lori Boyer	Chief of Research: Jeff Clements
Reggie Gaffney	Deputy General Counsel: Peggy Sidman
Bill Gulliford	Administration: Jordan Elsbury
Jim Love	Asst. Council Auditor: Kim Taylor
Sam Newby (arr. 9:32)

Meeting Convened 9:30 a.m. Meeting Adjourned 10:54 a.m.

If a person decides to appeal any decision made by the Council with respect to any matter considered at such meeting, such person will need a record of the proceedings, and for such purpose, such person may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based.

Attendance:

NOTE: The next regular meeting will be held Tuesday, February 5^th, 2019.

State Share Revenues presentation

Council Auditor Kyle Billy made a presentation on trends in state shared revenues as requested by the committee at its last meeting. He reported that the variances of actual state shared revenues from the City’s budgeted amounts have varied in both the positive and negative directions over the last several years. He explained the methodology by which his office projects county and municipal sales tax revenues based on current year collections compared to collections in the average of the 3 previous years. Their projection methodology differs somewhat from the methodology used by the City Budget Office. He explained the complications involved in using the state tax collection data, which contains a number of complications and nuances that make the projection process less than straightforward at times. Historical trends are usually the best predictor, adjusted annually for changes in overall economic trends. Council Member Gulliford speculated about the impact of online sales on sales tax collections. Council Member Boyer said that what the City does each year is evaluate the revenue estimates provided by the state each year and determine if we agree with their projections. She requested that someone examine the correction factors in state shared revenues imposed on the City of Jacksonville in the 1970s after the city and county consolidated to determine if they are still valid and fair. Ms. Boyer also asked why the City doesn’t get any supplemental funding from the state for counties with high percentages of incarcerated persons – do we actually have a smaller incarcerated population than other counties, or is the state calculation incorrect with the result that the City does not get the supplement that other counties with similar incarceration rates get? In response to a question from Council Member Morgan, Mr. Billy explained that his office’s projections sometime differ from those of the state and the City Budget Office because they generally have one or two months of additional trend data to use when doing their calculations later in the budget process. Chairman Anderson asked Mr. Billy to research several substantial changes in year-over-year revenue amounts in the historical data.

Item/File No.	Title/History
1. 2018-76	ORD-MC Amend Sec 21.07 (Fiscal & Budgetary Functions), Article 21 (JEA), City Charter, to create New Subsec M to Provide & Maintain Water & Sewer Lines in certain Pre-Consolidated Urban Areas. (Sidman) (Introduced by CM's R. Brown, K. Brown, Newby, R. Gaffney & Dennis) (Co-Sponsored by CM's Hazouri & Freeman) Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 - 2/27/18 Public Hearing Pursuant to Sec 21.11, City Charter & CR 3.601 - 3/27/18
	1. 2/13/2018 CO Introduced: TEU,F
	2/20/2018 TEU Read 2nd & Rerefer
	2/21/2018 F Read 2nd & Rerefer
	2. 2/27/2018 CO PH Addnl 3/27/18/ Read 2nd & Rerefer TEU,F
	3. 3/27/2018 CO PH Only
	Bill Summary TEU: Defer DEFER at the request of CM Dennis
2. 2018-420	ORD-MC Auth All Documents Necessary to Consummate the Installation of the National Memorial for Peace & Justice's Duval County Memorial Monument in Hemming Park to Commemorate the African-American Victims of Lynching in Duval County, FL btwn 1877 & 1950; Create new Chapt. 54 (Peace & Justice Memorial Monument Oversight Committee),Ord Code; Create New Sec 111.107 (Peace & Justice Memorial Monument Special Revenue Fund), Chapt 111 (Special Revenue &Trust Accts.), Part 1 (Parks, Recreation, Culture & Entertainment), Ord Code, Providing Oversight by Peace & Justice Memorial Monument Committee; provide for codification. (Hodges) (Introduced by CP Brosche) Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601-7/24/18
	1. 6/26/2018 CO Introduced: NCSPHS,F,R
	7/16/2018 NCSPHS Read 2nd & Rerefer
	7/17/2018 R Read 2nd & Rerefer; 7/17/2018 F Read 2nd & Rerefer
	2. 7/24/2018 CO PH Read 2nd & Rereferred; NCSPHS, F, R
	Bill Summary NCSPHS: Defer DEFER at the request of CP Bowman
3. 2018-593	RESO Expressing City Council's Opposition to the Sale of JEA at this time. (Johnston) (Introduced by CM Dennis)
	1. 8/29/2018 CO Introduced: R,F
	9/5/2018 R Read 2nd & Rerefer; 9/5/2018 F Read 2nd & Rerefer
	2. 9/11/2018 CO Read 2nd & Rereferred; R, F
	Bill Summary DEFER at the request of CM Dennis
4. 2018-661	ORD Amend the Beach Community Development District's Boundary, to Remove Approx 25.41 Acres from said District; Amend Chapt 92 Sec 92.22 to Memoralize reduction in acreage from previous Amendments and Current Amendment; Provide for Severability. (Grandin) (TEU)(PD Apv) TEU Public Meeting- 11/5/18 Finance Public Meeting-11/6/18 LUZ Public Meeting-11/7/18 Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 - 11/13/18, 11/27/18, 12/11/18, 1/8/19, 3/12/19
	1. 10/9/2018 CO Introduced: TEU, F, LUZ
	10/15/2018 TEU Read 2nd & Rerefer
	10/16/2018 LUZ Read 2nd & Rerefer; 10/16/2018 F Read 2nd & Rerefer
	2. 10/23/2018 CO Read 2nd & Rereferred; TEU, F, LUZ
	3. 11/13/2018 CO PH Contd 11/27/18
	11/27/2018 CO PH Contd 12/11/18
	12/11/2018 CO PH Contd 1/8/19
	1/8/2019 CO PH Contd 3/12/19
	Bill Summary TEU: Defer DEFER at the request of CDD Representative
5. 2018-712	ORD-MC regarding Prohibition of the Approval, Grant, or Issuance of Certain Licenses, Permits, Certificates or Zoning Actions to Persons with Unpaid Civil Penalties or Current Violations of the Ord Code; Amend Chapt 307 (Historic Preservation and Protection), Pt 1 (Gen Provisions), Sec 307.111 (Enforcement; Civil Remedies); Amend Chapt 320 (Gen Provisions), Pt 4 (Permits), Sec 320.402 (Application for Permit); Amend Chapt 518 (Jax Propty Safety and Management Code), Pt 1 (Gen Provisions), Sec 518.103 (Applicability); Creating a new Sec 609.110 (Prohibition of Administrative Action); Amend Chapt 650 (Comprehensive Planning for future Development), Pt 4 (Amendments to the Comprehensive Plan), Sec 650.402 (Initiation of Proposal); Amend Chapt 654 (Code of Subdivision Regs), Sec 654.105 (Applicability); Amend Chapt 656 (Zoning Code), Pt 1 (Gen Provisions), Subpart B (Administration), Sec 656.109 (Administration and Enforcement; Interpretation of Zoning Code; Administrative Deviations), and Sec 656.111 (Violations and Penalties); Amend Chapt 780 (Property Tax), Pt 3 (Tax Exemption for Rehabilitation and Properties in Historic Districts), Sec 780.305 (Application). (Grandin) (Introduced by CM Crescimbeni) LUZ PH Pursuant to Sec 656.123, Ord Code - 1/3/19, 1/15/19 Public Hearing Pursuant to Chapt 166.041, (3) (a) F.S. & CR 3.601 - 12/11/18, 1/8/19, 1/22/19
	1. 10/23/2018 CO Introduced: NCSPHS, F, LUZ
	11/5/2018 NCSPHS Read 2nd & Rerefer
	11/6/2018 F Read 2nd & Rerefer
	11/7/2018 LUZ Read 2nd & Rerefer
	2. 11/13/2018 CO Read 2nd & Rereferred; NCSPHS, F, LUZ
	3. 12/11/2018 CO PH Contd 1/8/19
	1/8/2019 CO PH Contd 1/22/19
	Bill Summary NCSPHS: Defer DEFER at the request of CM Crescimbeni
6. 2018-747	ORD-MC Amend Sec 21.07 (Fiscal & Budgetary Functions), Article 21 (JEA), City Charter, relating to JEA's Annual Contribution Payment; Apv Amend to Interagency Agreemt with JEA; Providing for Construction. (Brooks) (Introduced by CP Bowman) Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 - 11/13/18 Public Hearing Pursuant to Sec 21.11, City Charter & CR 3.601 -11/27/18
	1. 10/23/2018 CO Introduced: TEU,F
	11/5/2018 TEU Read 2nd & Rerefer
	11/6/2018 F Read 2nd & Rerefer
	2. 11/13/2018 CO PH Read 2nd & Rereferred; TEU, F
	3. 11/27/2018 CO PH Only
	Bill Summary TEU: Defer DEFER pursuant to Section 21.11, City Charter
7. 2018-864	ORD Approp $30,000 from Community Foundation for Northeast Florida to provide Critical Mental Health and Substance Abuse Svcs to Duval County Teen Court Participants; Providing for Reports from Dir of Teen Courts to Community Foundation of NE Florida. (BT 19-031) (McCain) (Req of Mayor) Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 - 1/8/19
	1. 12/11/2018 CO Introduced: NCSPHS,F
	1/2/2019 NCSPHS Read 2nd & Rerefer Charles Patterson
	1/3/2019 F Read 2nd & Rerefer
	2. 1/8/2019 CO PH Read 2nd & Rereferred; NCSPHS, F
	Bill Summary Fact Sheet NCSPHS: Approve Assistant Council Auditor noted a concern about appropriating funds not yet received, but said that the City has received reliable funding from this agency in the past. Council Member Gulliford suggested adding language to the bill prohibiting its expenditure until the grant is received. Deputy General Counsel Peggy Sidman said that this has been an on-going discussion in the Finance Committee about the degree to which spending can be limited once budgetary authorization is approved. Council Member Boyer suggested the addition of a letter of agreement between the City and the court system regarding receipt and use of the funds, which could then be used to make a correction in next year’s budget should the funds not materialize. Chuck Patterson of the Court Administration office said that the grant has been approved and the funds should be received sometime this week, prior to next Tuesday’s City Council meeting. Motion (Boyer) – amend to add a letter of agreement between the courts and the City regarding receipt and deposit of the grant funds After further discussion the Boyer motion was withdrawn. APPROVE 7-0
8. 2018-865	ORD Approp $112,745.00 from Metropolitan Park Maint (SF 1D4) - Dockage & Rental of City Facilities to Metropolitan Park Maint (SF 1D4) - Operating Expenses to provide funds for Maint & Improvements to Metropolitan Park and various facilities. (BT 19-033) (McCain) (Req of Mayor) Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 - 1/8/19
	1. 12/11/2018 CO Introduced: NCSPHS,F
	1/2/2019 NCSPHS Read 2nd & Rerefer Keith Meyerl
	1/3/2019 F Read 2nd & Rerefer
	2. 1/8/2019 CO PH Read 2nd & Rereferred; NCSPHS, F
	Bill Summary Fact Sheet NCSPHS: Amend/Approve AMEND/APPROVE 7-0 Pg. 1, line 26: strike “a transfer of funds” and insert “an appropriation of revenue”
9. 2018-866	ORD Approp $790,000.00 by transferring funds from Operating Supplies - Rescue & Fire Operation in the FY 19 Gen Fund Budget to Capital Outlay, Bunker Gear, and Clothing Sub-Objects to purchase 1) Clothing & Bunker gear for the new Rescue Personnel to be assign to R17, R37, R44, and R61; and 2) Capital Equip, including Cardiac equip, including Cardiac Monitors, Stairchairs, Stretchers, scbas, and Autopulse for Eight (8) new Rescue Vehicles as apv in FY 19 Budget. (BT 19-034) (McCain) (Req of Mayor) Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 - 1/8/19
	1. 12/11/2018 CO Introduced: NCSPHS,F
	1/2/2019 NCSPHS Read 2nd & Rerefer Keith Powers
	1/3/2019 F Read 2nd & Rerefer
	2. 1/8/2019 CO PH Read 2nd & Rereferred; NCSPHS,F
	Bill Summary Fact Sheet NCSPHS: Amend/Approve AMEND/APPROVE 7-0 1. Spell out “SCBA” 2. Pg. 2, line 5: strike “No match is required.” 3. Attach revised Exhibit 1 to correct BT
10. 2018-868	ORD Auth Interlocal Agreemt Continuing the First Coast Workforce Development Consortium (2018 Interlocal Agreemt) bet City & Counties of Baker, Clay, Nassau, Putnam & St Johns; Provide for 2-Yr Participation Limitation by the City in the 2018 Interlocal Agreemt. (Hodges) (Introduced by CM Freeman) Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 - 1/8/19
	1. 12/11/2018 CO Introduced: NCSPHS,F
	1/2/2019 NCSPHS Read 2nd & Rerefer CM Freeman
	1/3/2019 F Read 2nd & Rerefer
	2. 1/8/2019 CO PH Read 2nd & Rereferred; NCSPHS, F
	Bill Summary NCSPHS: Defer DEFER at the request of Council Member Freeman
See Auditor’s Attachment on page 7 11. 2018-869	ORD Auth 8th Amend to Amended & Restated Lease with Gator Bowl Assn, Inc,; Oversight by Sports and Entertainmt Ofc. (Sawyer) (Req of Mayor) Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 - 1/8/19
	1. 12/11/2018 CO Introduced: F
	1/3/2019 F Read 2nd & Rerefer Joey Bergman
	2. 1/8/2019 CO PH Read 2nd & Rereferred; F
	Bill Summary Fact Sheet In response to a question from Council Member Boyer, Joey Bergman of the Sports and Entertainment Office confirmed that the amendment applies only to the FSU-Boise State game and makes no other changes in the Gator Bowl Association lease for other events. Ms. Boyer noted that the Gator Bowl Association has requested funding from the Tourist Development Council to support the game, which the TDC does not have available at this time. Council Member Love asked Mr. Bergman to provide him with an estimate of attendance and room night bookings for the game. Council Member Gulliford noted that attendance at the recent Gator Bowl game and many other bowl games has decreased in recent years, which is a concern for the financial future of those games. In response to a question from Chairman Anderson, Ms. Boyer gave more details about the TDC’s long-standing commitment to fund the Gator Bowl with bed tax funds and said that the TDC will need to assess that commitment going forward and whether that event merits the level of support that has traditionally been given. APPROVE 7-0
12. 2018-872	ORD Auth Execution of a Redev Agreemt btwn the City of Jax,("City"), Downtown Investment Authority ("DIA"), & Axis Hotels LLC ("Developer) to support renovation by Developer of the Ambassador Hotel Bldg located at 420 N. Julia St & Construction of Approx 200 Residential Units of Market Rate Housing in the Northbank Downtown Redevelopment Area (Project); Auth Downtown Historic Preservation and Revitalization Trust Fund Grant in the Amt of $1,500,000 to the Developer in Connection with the Renovations to the Ambassador Hotel Bldg., to be Approp by subsequent legislation; Auth a REV Grant of $4,900,000; Waiving the Downtown Historic Preservation & Revitalization Trust Fund Guidelines Auth by 2002-395-E to Auth Grants in Excess of $1,000,000 for the Proj; Designating DIA as Contract Monitor for Redevelopmt Agreemt; Designate Proj Oversight by Public Works & DIA. (Sawyer) (Introduced by DIA) Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 - 1/8/19
	1. 12/11/2018 CO Introduced: NCSPHS,F
	1/2/2019 NCSPHS Read 2nd & Rerefer Brian Hughes
	1/3/2019 F Read 2nd & Rerefer
	2. 1/8/2019 CO PH Read 2nd & Rereferred; NCSPHS, F
	Bill Summary Fact Sheet NCSPHS: Amend/Approve Assistant Council Auditor Kim Taylor reviewed the Council Auditor’s proposed amendments and comments from pp.10-11 of the agenda. Brian Griner, President of AXIS Hotels, indicated his agreement with the proposed changes in the number of hotel rooms from 127 to approximately100 and in apartments from 200 to approximately 220. Motion (Boyer): add an amendment to revise the number of hotel rooms from 127 to approximately 100 and the number of apartments from 200 to approximately 220 in the development agreement – approved. Mr. Griner described the development proposal and explained the provision of social services and mentorship to some residents of the hotel through a non-profit agency that will provide training in the hospitality industry. Approximately 20% of the apartments will be reserved for workforce housing. Mr. Griner answered questions about the timing of the construction and announced that LaQuinta Historic (an upscale division of the Wyndham Hotels group) will be the hotel brand. AMEND/APPROVE 7-0 Place a Revised Agreement On File to: a. Correct referenced DIA resolution to 2018-09-03 in Section 1.2 b. Change base year to 2019 c. In Section 5.1 strike references to residential apartments, retail space and office space d. In Section 6.1 fill in Final Year of REV to be 2038 e. Remove references to Loan in Section 10.1 f. Correct scriveners errors g. Revise the number of hotel rooms from 127 to approximately 100 and the number of apartments from 200 to approximately 220
13. 2019-20	ORD Approp $200,000.00 Land & Water Conservation Fund (LWCF) Grant from FL DEP to fund Public Outdoor Recreation Improvements at Kathryn Abbey Hanna Park; Corp Sec to execute and deliver DEP Agreemt LW676 with City; Amend 2019-2023 CIP Ato provide funding for Proj Entitled "Hanna Park - Splash Park"; Oversight by Dept of Parks and Rec. (BT 19-041) (McCain) (Req of Mayor) Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 - 1/22/19
	1. 1/8/2019 CO Introduced: F,NCSPHS
	Bill Summary Fact Sheet NCSPHS: 2^nd and rerefer 2^nd and rerefer
14. 2019-21	ORD Approp 200,000.00 by transferring available funds from Countywide Economic Dev II Proj to Façade Renovation Grant Program to provide Commercial or Retail Façade Renovation Bldg Assistance for Existing Businesses in Economically Distressed Areas of Jax; Required report from OED to City Council & Council Auditor. (BT 19-037) (McCain) (Req of Mayor) Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 - 1/22/19
	1. 1/8/2019 CO Introduced: F,NCSPHS
	Bill Summary Fact Sheet NCSPHS: 2^nd and rerefer 2^nd and rerefer
15. 2019-22	ORD Approp $3,671,424.54 ($1,809,962.00 in New Revenue collected from Foreclosure Registry and a Re-allocation of $1,347,231.27 in previously approp funds); to provide funding to cover var progs auth pursuant to Chapt 179, Ord Code. (BT 19-039) (McCain) (Req of Mayor) Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 - 1/22/19
	1. 1/8/2019 CO Introduced: F,NCSPHS
	Bill Summary Fact Sheet NCSPHS: 2^nd and rerefer 2^nd and rerefer
16. 2019-23	ORD Approp $1,500,000.00 from Kids Hope Alliance Operating Subfund Fund into Kids Hope Alliance Budget to fund Progs & Svcs for At-Hope Children and Youth in Jax.(BT 19-043) (McCain) (Req of Mayor) Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 - 1/22/19
	1. 1/8/2019 CO Introduced: F,NCSPHS
	Bill Summary Fact Sheet NCSPHS: 2^nd and rerefer 2^nd and rerefer
17. 2019-24	ORD Approp $15,000.00 Grant Award from Northeast Florida Healthcare Coalition (NEFLHCC) to fund the purchase for the JFRD Rescue Units of an AeroClave Decontamination System; Auth Memo of Agreemt btwn Northeast Florida Regional Council & JFRD; Designate Oversight by JFRD. (BT 19-036) (McCain) (Req of Mayor) Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 - 1/22/19
	1. 1/8/2019 CO Introduced: F,NCSPHS
	Bill Summary Fact Sheet NCSPHS: 2^nd and rerefer 2^nd and rerefer
18. 2019-26	ORD Transferring $841,416.00 from Debt Managemt Fund & Gen Fund/Gen Svcs Dist to Motor Pool - Direct Replacemt for Puchase of 38 Covert Vehicles previously scheduled for Lease for JSO; Amend 2018-504-E, to replace Revised Schedule B4c, Vehicle Replacemt Sched, as it pertains to JSO to allow for the purchase of 38 Covert Vehicles previously scheduled for lease; Apv Bancorp Bank as Seller of Vehicles; Auth the Mayor, or his Designee & Corp. Secretary to execute & deliver said documnts. as deemed appropriate by City's Ofc. Of General Counsel & Risk Mgmt. Div. to accomp. Intent of this ord.; Invoke exception 126.107 (G)(Exemptions),part 1 (General Regulations), Chapt. 126 (Procuremnt Code), Ord Code (BT 19-042) (Davis) (Req of Mayor) Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 - 1/22/19
	1. 1/8/2019 CO Introduced: F,NCSPHS Bill Summary Fact Sheet NCSPHS: 2^nd and rerefer 2^nd and rerefer

City Council Strategic Plan Priorities

At the conclusion of the agenda the committee discussed the Council’s strategic budget priorities resolution. The latest draft has additional language regarding bulkheads and docks as requested at the last meeting. Ms. Boyer said that her suggested language is that the bulkheads be funded at the target amount rather than the minimum ($2.5 million target rather than $1.5 million minimum) and that dock work be designed to better withstand storms and tidal impacts. Council Member Gulliford suggested the need to include an item regarding additional funding under the Quality of Life category for community-based health care organizations that serve the un- or underinsured. Council Member Love suggested incentivizing City employees to become mentors using paid time off. Council Member Morgan said that increased funding to the Public Service Grants would reach the city’s most vulnerable populations and provide much-needed preventive services.

Motion (Gulliford): add an item under the Quality of Life category: coordinate and fund community-based organizations that provide health care services

Council Member Boyer said that a comprehensive inventory of all safety net programs is vital to understanding how many programs are being funded at what levels and how many individuals are perhaps being served by multiple programs. Mr. Gulliford said he has heard from some not-for-profits that they are not entirely satisfied with the Public Service Grant process because of the restrictions of the priority population categories and the unreliability of getting grant funding year after year for continuing projects. Chairman Anderson said that he is encouraged by the cooperation going on among community-based health care organizations to identify and collectively address problems. He believes that UF Health is a linchpin to the health care system for the city, since it treats so many persons without health insurance.

The Gulliford motion was approved unanimously.

The committee agreed to file the resolution under the Finance Committee’s sponsorship.

Jeff Clements, Council Research Division

Posted 1.15.19 4:00 p.m.

Tape – 1.15.19 Finance Committee – Legislative Services Division

2018-869 8^th Amendment to the Gator Bowl Association Lease

This amendment is specifically for the football game between Florida State University and Boise State to be played on August 31, 2019.

Revenue to the City:

- The Association will pay a base rent amount of $100,000.

- The City will receive $3.00 per parking space used at the game which is estimated to be $15,000 based on 5,000 spaces

- The City will receive 11% of concession revenue. The estimated concession revenue is $89,100.

- The City will receive a Ticket User Fee of $1.25 per ticket pursuant to Municipal Code Section 123.102. The $1.25 Ticket User Fee is the non-profit rate. This event should have an estimated attendance of 45,000 and the estimated revenue could be approximately $56,250.

Total Revenue to the City is estimated to be $260,350

Expense to the City ($385,000):

- The City, through SMG’s budget approved by City Council via Ordinance 2018-504-E, will cover the game day costs in an aggregate amount not to exceed $385,000.

Estimated Net Impact to the City is ($124,650)

The Association will provide to the City:

- 150 Game tickets (lower level)

- 50 Parking passes

- 50 Pre-Game Hospitality Passes

- 24 Tickets to the City of Jacksonville Suite

- Total value of items provided to the City is not available. The ticket prices have not been determined by the Jacksonville Sports Council.

2018-872 Ambassador Hotel

Summary:

This bill will authorize the execution of a Redevelopment Agreement for the renovation of the Ambassador Hotel (420 N. Julia St.) and the construction of approximately 200 residential units of market rate housing. The Redevelopment Agreement will provide for a grant from the Downtown Historic Preservation and Revitalization Trust Fund in the amount of $1,500,000 for the renovation of the Ambassador Hotel and a Recapture Enhanced Value (REV) Grant in the amount of $4,900,000. According to DIA’s calculation, the project will generate a Return on Investment of 1.51.

The developer intends to renovate and develop an approximately 127 room hotel, construct 200 units of multifamily market rate housing and a structured parking facility to serve both the hotel and housing projects.

CONCERN:

The Downtown Historic Preservation and Revitalization Trust Fund has been over committed. This started with the approval of Ordinance 2017-403-E which provided for a $4,000,000 grant for the Barnett Building (which has been encumbered) and a $4,000,000 grant for the Laura St. Trio. As stated on our hand-outs for Ordinance 2017-403-E and Ordinance 2018-630-E, “the Downtown Historic Preservation and Revitalization Trust Fund has enough funds for the $4 Million grant to the Barnett developer. The funding source for the $4 Million grant to the Trio developer has not yet been identified as there are not sufficient funds remaining in the Downtown Historic Preservation and Revitalization Trust Fund.” Below is a summary of proposed commitments from the trust fund that could impact the General Fund/GSD.

Another project that will have a General Fund/GSD impact is the redevelopment of the Berkman II Tower and parking garage recently approved by the DIA Board (DIA Resolution 2018-09-02). According to the term sheet, as part of the incentives for the Berkman II project, there will be an $8,250,000 Operational Grant and a $3,250,000 Redevelopment Completion Grant, both to be funded by the General Fund/GSD. If the Downtown Historic Preservation and Revitalization Trust Fund is ultimately funded by the General Fund/GSD, these pending and proposed commitments could have a total impact of $17.8 Million on the General Fund/GSD over multiple years.

Amendment:

2. Place a Revised Agreement On File to:

a. Correct referenced DIA resolution to 2018-09-03 in Section 1.2

b. Change base year to 2019

c. In Section 5.1 strike references to residential apartments, retail space and office space

d. In Section 6.1 fill in Final Year of REV to be 2038

e. Remove references to Loan in Section 10.1

f. Correct scriveners errors