Jaguars, Jacksonville city announce $450 million mixed-use development at Lot J
The Jacksonville Jaguars and Mayor Lenny Curry’s administration released details Oct. 5 and announced a deal to finance team owner Shad Khan’s $450 million proposed development at Lot J near TIAA Bank Field.
Mayor Curry proposes the city pay for its portion during construction with revenue bonds. The city would spend no more than $50 million for the Live! district under the deal and $77.7 million in the project’s infrastructure. No more than $25 million in incentives would go toward the hotel and residential development. That comprises a mix of grants and completion payments.
Curry’s administration also wants to provide Khan’s development team with a $65.5 million construction loan, which he said would be secured by a $13.1 million deposit into a city trust.
The loan included in the deal is known in the real estate industry as a “breadbox loan,” a novel financial program designed to allow developers to receive money from municipal governments, much like a grant, while avoiding the significant federal tax impact of actually receiving one, according to documents created by UTW Capital, LLC, a firm that manages these types of loans.
Mayor Lenny Curry said that the city would loan Khan’s development team $65.5 million, but he didn’t say the loan would be interest free or take the city as long as 50 years to be repaid.
The mixed-use development dubbed the “Live! District,” will include:
two residential buildings with a total of 400 for-rent residences, a 150-250 room hotel, 75,000 square feet of street-level retail, 40,000 square feet of Class A office space, a 750-space surface parking lot, two 350-space parking garages, and a 100,000 square-foot entertainment center with bars and restaurants, as well as indoor and outdoor facilities.
Lot J site work could start in early 2021 and construction will take 36 months. The Jaguars and city said there will be 2,300 construction jobs to build Lot J and 1,000 permanent jobs.
“I am very proud to invest in this project and reinforce my commitment to Jacksonville, our downtown and all of Duval,” said Shad Khan, owner of the Jacksonville Jaguars. “A vibrant downtown drives economic upside and opportunity for the entirety of a community. This is our moment to make that happen in Jacksonville while creating jobs and bringing people together in the process.”
The city’s $92.8 million infrastructure responsibilities include $33.3 million for site improvements, $6.3 million for environmental remediation, $44.9 million for structured parking, and $8.3 million for surface parking. In May, city Director of Public Affairs Nikki Kimbleton told a teleconferenced meeting of the Jax Chamber’s Downtown Council on Friday morning that Lot J was a priority.
Jacksonville City Council President Tommy Hazouri added: “Economic development is a major priority of our City Council, and the revitalization of downtown is a key priority for the economic growth of Northeast Florida. This unprecedented project at Lot J will further enhance Jacksonville’s growing reputation as a world-class destination for citizens and visitors alike.
