Bill Type and Number: Ordinance 2003-612

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

Date of Introduction: May 13, 2003

Committee(s) of Reference: F; RCD

Date of Analysis: May 16, 2003

Type of Action: Development & Acquisition Agreement; Grant Disbursement Approvals; Appropriation; Fund Transfer

Bill Summary: This legislation concerns the LaVilla Bistro Project to be developed by Jax Casual Dining, LLC. The bill approves the disposition of land for the purchase price of $4.00 per square foot (may include dispositions at less than fair value in accordance with Florida law) for up to 6,089 square feet (approximately $192,000) of restaurant space and parking; the Agreement is between the City, the Jacksonville Economic Development Commission and Jax Casual Dining LLC. The bill approves and authorizes the disbursement of a sum sufficient to make annual Recapture Enhanced Value (REV) Grants to the developer in an amount not to exceed $63,000; approves the disbursement of a sum sufficient to make a Site Development Grant to the developer in an amount not to exceed $100,000; approves the disbursement of a $1,900,000 loan to the developer. The bill appropriates $100,000 from the Downtown Tax Increment Trust Fund to fund the Site Development Grant and appropriates a $1,900,000 City Loan from the Northwest Large-Scale Program (Northwest Jacksonville Economic Development Fund). Further, the bill provides for the transfer of $800,000 from the Northwest Business Infrastructure Program account to the Northwest Large-Scale Program account. The bill reserves up to 6,089 square feet of development rights in the Northside West Portion of the Consolidated Downtown DRI.

Background Information: In response to the Downtown Development Authority RFP, the Jax Casual Dining, LLC proposes to purchase LaVilla Block 8 and construct a 6,089 s.f. Casual dining and entertainment establishment similar to Friday’s and Applebee’s concepts. The developer anticipates that the new business will create over 100 full-and-part-time jobs. The City’s construction/permanent loan (from NWJEDF) will be provided at an interest rate of three percent (3%) for a term of 15 years with a 30-year amortization schedule. The City will have first lien position on the facility, furniture, fixtures and equipment when the project is completed. The clawback provision in the legislation provides that in the event that the developer is unable to obtained required take out financing within 18 months of the facility’s completion, the remaining loan balance interest rate will escalate to a rate equal to the prime lending rate plus 2 percent. The City is conveying LaVilla Block 8 to the developer for $4 per s.f. The REV grant will be provided on an annual basis equal to 75% of the incremental increase in ad valorem taxes paid on real property at the project site for the years 2005-2009. Reimbursements from the City begin in 2006 and continue to 2010.

Policy Impact Area: Economic Development/LaVilla/Jacksonville Economic Development Authority

Fiscal Impact: This bill appropriates $2,000,000

Analyst: Jackson