Bill Type and Number: Ordinance 2001-795

Sponsor: Council President at the request of the Jacksonville Economic Development Commission

Date of Introduction: August 14, 2001

Committee(s) of Reference: F, RCD

Date of Analysis: July 27, 2001

Type of Action: Amendment to prior economic redevelopment agreement

Bill Summary: The bill amends the prior redevelopment agreement between the City and Vestcor Companies for redevelopment of the Lynch Building. The bill increases the City's loan to the Lynch Building (11 E. Forsyth) project from $13.4 to $17.8 million, reduces Vestcor's interest rate on the loan from 3.43% to 1.525%, converts the CDBG loan to a CDBG grant, and gives the City a share in the operating profits of the building.

Background Information: The amendments were requested by Vestcor to meet higher than expected project costs, particularly due to the need to remove considerable quantities of asbestos and lead-based paint. The amendments increase the City's contribution from $15.4 to $19.8 million, while the developer's equity investment increases from $1 to $1.1 million. The increased project cost also increases the availability of federal historic preservation tax credits from $1.9 to $3.2 million.

Policy Impact Area: Historic preservation; downtown revitalization.

Fiscal Impact: Increases the total project cost from $18.3 to $24.1 million, and the City's direct investment from $15.3 to $21 million.

Analyst: Clements