JACKSONVILLE, Fla. – The Lot J entertainment district would be one of the biggest investments in Jacksonville’s history, and on Thursday the City Council took steps to make sure the deal is one taxpayers can live with.
During a marathon meeting, there was a vote of 15 to 4 in favor of the plan. The City Council plans to take a final vote on Tuesday.
City Council President Tommy Hazouri has been at odds with the Mayor Lenny Curry’s office on this deal for the past two months. He said there are still concerns despite the fact the council has given thumbs up.
“I’m happy that we’re moving forward, and I think we’ll have more debate on Tuesday,” Hazouri said. “I mean some people brought up issues -- a big concern transparency. I don’t care what people said, it follows the trail on the JEA debacle.”
A good part of the City Council meeting was very slow going over the details of the deal, but the pace of the meeting changed later in the afternoon.
Tarik Bateh, an urban land developer, was invited to speak and raised concerns, using a red flag as a prop.
Bateh said a proper study on the project has not been done.
Another issue, according to Bateh, is that the developer would not have to pay cash upfront. He said they should try to make it fair for both sides.
He said the city should also not become a construction lender, referring to a $65 million dollar “breadbox” loan, which he described as a grant from the city. The Council voted to keep the loan as a part of the deal.
Bateh also said the city should not give away the Lot J property, but instead lease it out for $1 just in case the developer pulls out or the Jaguars relocate.
“Correcting these four red flags will not create the perfect deal, far from it, but what it will do is will allow an alignment of interest between the city and the developer such that other details can be more easily resolved,” he said.
After Bateh’s comments, the Lot J developer, COO Zed Smith of The Cordish Companies, responded saying the Jacksonville deal is quite different than others.
“These deals are very complex,” he said. “And certainly Jacksonville is even a greater challenge because we’re doing so much at one time.”
Jacksonville Mayor Lenny Curry said Wednesday if the multi-million development project adjacent to the Jacksonville Jaguars stadium is not approved now, it will never be approved.
“If you pull the plug on Lot J, it’s gone. If Lot J, if you pull the plug on Lot J, it’s over. It’s not happening,” Curry said Wednesday. “Let’s be clear. We can debate, they are debating it. The organization is working with them. I’m not going to spend the next two- and a half years every time we present a deal to City Council and people say we need to pull the plug. Some of this is political.”
Curry has pushed for the polarizing project from the start, saying it will be good for Jacksonville and help ensure that the Jaguars will stick around long-term.
On Thursday, City Council considered all of the proposed amendments to the current deal on the table. There would then be a final vote on Tuesday that requires a 2/3 majority to pass.
Among the amendments, Councilman Ron Salem has proposed that if the Jacksonville Jaguars permanently relocate before 2034 and any part of Lot J is sold, then the developer would have to pay the city 50% of the net sale proceeds, or at least $50 million.
There has been ongoing drama amongst city leaders over the deal.
“Nobody has provided us anything on what these actual hotels and apartments will cost per square foot, but we are spending a whole heck of a lot of money and we don’t know any backup information to justify what we are spending,” Councilman Matt Carlucci told News4Jax this week. “I just think it ought to start over. I think it’s time to just pull the plug on it. The will of the community is just not there.”
In the past couple of weeks, News4Jax has also heard criticism from the local NAACP chapter, claiming this project only enriches billionaires and team owners and only creates minimum wage jobs.
Others, including councilmembers, have voiced support for the project is an investment in Jacksonville’s Eastside and is in the best interest of the city -- and all of Northeast Florida.
Councilmembers have been looking over the details of the $445 million entertainment complex and scrutinizing the proposed city investment of $233 million in direct spending or loans to the developer.
News4Jax asked the Jaguars about Curry’s statement Wednesday and a spokesperson said it will wait until the vote Thursday to make a comment.