JACKSONVILLE, Fla. — The financial analysis for the Lot J development plan has been released - weeks after the plan was announced.
Two weeks ago, Mayor Lenny Curry and Shad Khan announced the Lot J plans and the decision to put it forward. Curry’s office wants to commit more than $152.7 million in direct public investment and another $65.5 million in interest-free loans towards the plan.
The financial analysis was done by Johnson Consulting on behalf of Shad Khan’s development company. The plan is dated to October 21 - after the announcement and legislation to City Council was filed. In the report, Johnson Counsulting says that they have done three analyses into Lot J. One in June 2018, September 2018, and October 2018.
According to this new financial analysis, the total fiscal impact will be $13.3 million from the construction, but Johnson Consulting says that over a 30-year-period, that will equate to a fiscal impact of $456.6 million. The report goes on to state that by Year 5, there will be $179 million of total spending, $58 million in increased earnings, $9.5 million in tax revenues, and support 1,070 full-time jobs. This is all, of course, during a “stabilized year of operation”, not a year during a global health pandemic.
When WOKV asked about the financial impact analysis that was released, Curry said that it’s not part of their investment policy to conduct a Return of Investment calculation because that is not the course of “ordinary business.”
“The economic impact was not a part of the deal so when you look at incentives where you’re dealing with private businesses, where it’s tied to job creation and economic development, those are tied to the incentives,” Curry said. “When I stated the jobs and the economic impact, that’s gravy, this deal is a city owned facility or a private developer is putting hundreds of millions of dollars of their money into it and then we will lease it back to them.”
Curry said that they do have protections if metrics have to be met when it comes to city investment.
The financial projections that Curry cited in the announcement earlier in October were the ones given to him by the private developers, not by the City. At the time, he said that there would be an estimated annual economic outcome of $100 million a year.
The plan does have to be approved by City Council. It initially was filed for the last City Council meeting, but was incomplete. The bill will be filed again for City Council’s meeting on October 27. In a memo that was sent out to City Council members, President Tommy Hazouri says he plans on assigning the legislation to the Committee of the Whole, that way every council member can be involved and equally informed. If the bill passes the main council on Oct. 27, the hearing with the city and the Jaguars will be on November 5.
Cox Media Group
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