JACKSONVILLE, Fla. – Jaguars owner Shad Khan says his plans to redevelop The Shipyards in Downtown Jacksonville are gaining support from the city.
The proposal would bring a Four Season Hotel to the downtown banks of the St. Johns River. There are also plans for a football performance center next to TIAA Bank Field, an office building, a sports medicine complex and other improvements to the city-owned marina.
The Four Seasons Hotel and Residences, with 176 rooms and 25 residential units, would open in early 2025, if the plans are approved.
In a statement (in full at end of article) issued Monday afternoon, Khan and his development company Iguana Investments said the cost will exceed $300 million for the hotel and office building. He said the city’s only upfront cost will be to move the fire museum, marine fire station and the docks near Metro Park, which could run about $20 million. The city would end up paying more at the completion of the project with grants and tax subsidies totaling more than $114 million.
LINK: Supplemental financial summary for Shipyards project
“In short, the project will produce benefits that will exceed any expenditures made by the City. That’s good news for all of us, today and deep into the future,” Khan writes.
Jaguars President Mark Lamping led the conversation at a community meeting Monday evening about The Shipyards project and wanted people to have their questions answered.
“I’m so happy that we chose to do this. I enjoy hearing from supporters and I enjoy hearing from people who give us constructive criticism,” Lamping said.
Community members spoke out with praise and concerns, one of which was buildings taking over city park space.
“I do have concerns about putting the hotel on park property,” one person said.
Lamping explained: “In addition to the 14 acres of park space, it creates an equal or larger park in size.”
People were pleased with that answer.
“They’re going to support whatever the city decides to do with Metro Park so far, and what they’re trying to do is to not infringe on that, so that’s nice,” JJ Hammond said. “One way to make Jacksonville a destination, not a pass-through, is to support these projects.”
Jacksonville resident and Jaguars season ticket holder Ted Powell is optimistic about the project.
“We appreciate the way the Jaguars have responded to some of the mistakes they made with Lot J, and they’re holding the community meetings and they’re doing more listening,” Powell said.
The Downtown Investment Authority has been working with Khan on developing a plan and plans to go over a draft of it on Friday during a committee meeting. The full board would then take it up in July before going to the City Council for final approval.
“On behalf of Iguana Investments, I am extremely grateful to the staff of the Downtown Investment Authority for its diligence and collaboration throughout our negotiations, resulting in a proposed term sheet presented Friday afternoon to the DIA Real Estate Disposition Committee. We are proud of the hard work by both sides to arrive at this recommendation, which we feel will deliver exceptional value to the City of Jacksonville throughout the term of the project.
“Private investment will exceed $300 million for the Four Seasons Hotel and condominiums and the nearby office building, with Iguana Investments responsible for nearly all upfront cash expenditures and any cost overruns. The City’s only upfront cash costs will be limited to the relocation of the fire museum, marine fire station and dock to facilitate this new development. The balance of City contributions to the project would occur once the project has been completed in the form of payment for improvements to City-owned assets (the Marina, Marina Service Building and Event Lawn), a Completion Grant, and a REV Grant that would be paid from taxes that would not be generated if not for the project.
“In short, the project will produce benefits that will exceed any expenditures made by the City. That’s good news for all of us, today and deep into the future.
“In addition to our proposal yielding a return on investment to taxpayers, it will also make possible much-needed improvements to existing community assets, such as the City-owned marina and Metropolitan Park, all complemented by the relocation of 10 acres of park space from Kids Kampus to an area near Hogan’s Creek and Catherine Street. Downtown Jacksonville will, as a result, enjoy an unprecedented amount of urban park space highlighted by three times the amount of linear feet along our spectacular and picturesque riverfront.
“We are heartened by and appreciative of the support we’ve received since announcing our plans last month. While we know there is more work to do, it is encouraging to see that we are far from alone in believing in the promise of our downtown and the positive and immediate impact this project can have on our friends and neighbors throughout our region. Downtown Jacksonville must be a destination for business, living, entertainment and leisure for visitors from throughout the world, as well as for those who understandably consider it an honor to call Jacksonville their home.
“To that end, our hope is this term sheet, which was inspired by input from citizens and City officials alike, will earn the endorsement of the committee and advance to the DIA Board for final approval next month. In the meantime, we will continue to listen, learn and communicate. And, above all, I personally pledge that we will do everything we can to serve our community, be responsive, and make you proud.”
Shad Khan