City Council Advances Lot J Deal With $ 65.5 Million Loan

The total cost of the development would be in the order of $ 450 million, according to presentations made to city council.

JACKSONVILLE, Fla .– Jaguar owner Shad Khan and Town Hall took one more step on Thursday towards reaching a deal on the development of Lot J after a super-majority of the city council rejected several changes to the death proposall which were designed to make the deal more taxpayer friendly but were strongly opposed by Khan’s development team.

The council canceled an attempt to allow the city to recover up to $ 152 million in case the Jaguars leave Jacksonville, as well as an attempt to withdraw a $ 65.5 million interest-free loan that the city would provide developers.

Khan’s representatives told the council they would not agree to a deal containing either provision.

After:Jacksonville City Council begins voting on controversial Lot J deal

After:Jacksonville city council to vote for Lot J deal with Jaguars

Although the council spent most of the day debating and modifying the proposed deal with Khan and The Cordish Companies, the substantive terms of the deal remain unchanged from the deal that Khan and Mayor Lenny Curry unveiled in October.

The council could vote to endorse the deal at its Tuesday meeting, and there appear to be at least 13 council members, which is the minimum two-thirds majority the bill must pass, who support it in its current form.

The proposed deal would commit the city to investing up to $ 233 million in taxpayer investments and incentives to build a Live! entertainment district with two mid-rise apartment buildings, boutique hotel and parking on city-owned land near TIAA Bank Field.

The total cost of the development would be in the order of $ 450 million, according to presentations made to city council.

While city council rejected attempts to reduce the city’s level of spending on the project – a move that the Jaguars representative said would be fatal – an amendment proposed by City Councilor Ron Salem won support from the team in case Khan moves the team before 2034. and has sold his share of the development Lot J.

In the scenario, the city would get 100% of the net proceeds from Khan’s sale of its stake in the Lot J development.

Additionally, City would have the option of forcing Khan to sell its stake in Lot J within two years of the team moving out of Jacksonville, in which case City would get the proceeds from the sale.

The amount of proceeds would be based on the sale. Salem used a hypothetical scenario in which the sale of Khan’s portion of the Lot J development went for a price of $ 250 million.

The team agreed that no matter how much Lot J sells, the city will get at least $ 50 million, even if the sales amount is less than that.

Salem used the date of 2034 because it is four years after the term of the current lease which ends in 2030.

The Jaguars have said they want to extend the lease, but that depends on determining what the “stadium of the future” will look like and what it will cost the team and the city for those renovations and upgrades. .

Click on here to learn more about the Florida Times-Union.

Previous Ancient Roman villa discovered under apartment block in Rome, Italy
Next 7 home loan strategies for first-time borrowers