Bill Type and Number:
Ordinance 2004-70Sponsor: Council President at the request of the Jacksonville Economic Development Commission:
Date of Introduction: January 13, 2004
Committee(s) of Reference: F; RCDE
Date of Analysis: January 16, 2004
Type of Action: Redevelopment Agreement Authorization; Grant Authorization; Disbursement Authorization
Bill Summary: This bill authorizes the execution of a Redevelopment Agreement between the City of Jacksonville, the Jacksonville Economic Development Commission and Riverplace Development, LLC ("developer"); authorizes a Recapture Enhanced Value Grant ("Rev Grant") in the amount not to exceed $3,600,000; authorizes the disbursement of annual installments of the Rev Grant to the developer, in a sum not to exceed $3,600,000. The bill further allocates additional development rights in the Downtown South DRI for a total of 175 residential units and 20,000 square feet of commercial/retail use. JEDC is designated as the responsible party for monitoring the project.
Background Information: Riverplace Properties, LLC., a Jacksonville-based development group, proposes to build a multi-story project on a 1.89 acre site on Riverplace Boulevard between Morton’s Steak House and the former AvMed office bldg that will consist of condominiums, retail and structured parking. The site will have 150 market-rate residential units, 5,200 SF of first-floor retail and a minimum of one parking space per condominium unit. The developer is investing $46,890,199 in the project. The developer is seeking project assistance from the City of Jacksonville in the form of a proposed City investment package that would include an economic development grant for ten (10) years based on the average per square foot sales price of the units. The Recapture Enhanced Value (REV) Grant on the total project is provided on an annual basis equal to a percentage of municipal and county ad-valorem taxes paid on the project’s real property after the project is constructed. The total maximum REV grant over 10 years for this project, based on the $46 million capital investment of the developer, is approximately $3.6 million. The base year is 2003. The City will reimburse the developer on May 15 of each year during the 10-year period. If the developer sells the project prior to the end of the term of the agreement, the REV grant will not be assumable or transferable to another developer, unless approved by JEDC.
Note: Though the bill’s title refers to Riverplace Development, the developer’s actual name is Riverplace Properties. Also, the REV grant stipulations in the Redev Agreement (based on s.f. sales price of units as opposed to being based on a percentage of incremental taxes generated) deviate somewhat from the REV grant stipulations in the City incentive guidelines. A waiver may be in order.
Policy Impact: Economic Development/Jacksonville Economic Development Commission
Fiscal Impact: This bill authorizes an economic development grant in an amount not to exceed $3,600,000.
Analyst: Jackson