Khan's Jacksonville Shipyards Plans Revealed

[KenFSU]

Here are some details from the meeting, per Stephanie Brown (https://twitter.com/newsandnom) (thanks for the heads up, Ed!)

- Jags lobbyist Paul Harden asks DIA to keep an open mind about the proposal, knows there will be a back-and-forth
- Harden says their "unwavering goal" is to benefit the City of Jacksonville.
- Harden: we know this is a bold project, getting a football franchise together was bold and it happened
- Harden says he's here to answer questions and encourage them to get the bid process moving. City must solicit other bids b4 moving forward.
- DIA CEO recommending to set special mtg for next wk to discuss how to move forward w/ Khan's Shipyards proposals. Because they just got terms yesterday, they haven't yet had enough time to really consider this plan and what to do with it.
- DIA moves to set a special meeting for next week dealing with Shipyards proposal and process forward. Date TBD pending schedule comparisons.
- DIA CEO Aundra Wallace- we'll work expeditiously on this, it's important issue for the community. Chair adds "there's a lot o f work ahead"
- Paul Harden- lawyer working w/ Khan's investment grp- says they know will be a discussion, but they're dedicated to what's best for City
- Harden says City has abt $32mill in bonds off land, but they are willing to not make the City pay that off, instead will leave public space
- If current design doesn't include enough public park space to offset that debt, Harden says they are willing to build more in to the plan.
- Still no specific price tag being offered for City or private contribution. Also no clear funding idea, but Mayor says he's hopeful.
- Harden says all the public contribution they built in to the proposal is similar to public $ ask that's been offered to other proposals

[fieldafm]

City must solicit other bids b4 moving forward.

COJ should have been doing this for at least the last two years in order to set a market for the land. Now the RFP will be probably geared towards this one proposal.

DIA CEO recommending to set special mtg for next wk to discuss how to move forward w/ Khan's Shipyards proposals. Because they just got terms yesterday, they haven't yet had enough time to really consider this plan and what to do with it.

Harden has been floating these exact terms to city officials for almost a year and a half now... none of this is a surprise, its just now in writing.

Harden says City has abt $32mill in bonds off land

Been pounding that drum for awhile. People simply don't understand that there is already significant carrying costs (debt) on the land now.

Harden says all the public contribution they built in to the proposal is similar to public $ ask that's been offered to other proposals

Considering the City will have to substantially increase their debt exposure for this redevelopment scheme (without the subsequent property tax revenue generated from the land to pay back that bond debt), I think that statement is a little less than acurate based on the terms requested.

[edjax]

DIA Chair, per Sgephanie Brown, states not really aware of any other proposals that may surface after they get around to getting the RFP out.

[fieldafm]

Wow. Tryimg to put a positive spin on the TriLegacy. Poor mayoral oversight.  Millions and millions lost. Nice try.

I don't think it's spin - it's what happened. The city didn't own the land before the deal, TriLegacy did. They gave TriLegacy $38 million that went somewhere (who really knows). However, after that happened, the city got the land.

Effectively, the city paid $38 million for some land.

And the 35 million to clean it up. Anywy you look at it the city did not handle it properly.

The City is not currently obligated to clean up the property

And to expand, the previous developer was going to cap off most of the contaminated areas.. far cheaper than what Khan is asking for.

[Rynjny]

#jaxshipyards project could begin July 1st if approved. Actual cost of environmental cleanup for city would run about $20M, rather than $35M

[edjax]

Wouldn't the cleanup have to be completed before they would start?

[CityLife]

Wouldn't the cleanup have to be completed before they would start?

Khan's group still has to go through the RFP process and then entitle the land, which will take months and months. 

The only thing that can realistically start in July is environmental remediation and site prep work.

[heights unknown]

Here are some details from the meeting, per Stephanie Brown (https://twitter.com/newsandnom) (thanks for the heads up, Ed!)

- Jags lobbyist Paul Harden asks DIA to keep an open mind about the proposal, knows there will be a back-and-forth
- Harden says their "unwavering goal" is to benefit the City of Jacksonville.
- Harden: we know this is a bold project, getting a football franchise together was bold and it happened
- Harden says he's here to answer questions and encourage them to get the bid process moving. City must solicit other bids b4 moving forward.
- DIA CEO recommending to set special mtg for next wk to discuss how to move forward w/ Khan's Shipyards proposals. Because they just got terms yesterday, they haven't yet had enough time to really consider this plan and what to do with it.
- DIA moves to set a special meeting for next week dealing with Shipyards proposal and process forward. Date TBD pending schedule comparisons.
- DIA CEO Aundra Wallace- we'll work expeditiously on this, it's important issue for the community. Chair adds "there's a lot o f work ahead"
- Paul Harden- lawyer working w/ Khan's investment grp- says they know will be a discussion, but they're dedicated to what's best for City
- Harden says City has abt $32mill in bonds off land, but they are willing to not make the City pay that off, instead will leave public space
- If current design doesn't include enough public park space to offset that debt, Harden says they are willing to build more in to the plan.
- Still no specific price tag being offered for City or private contribution. Also no clear funding idea, but Mayor says he's hopeful.
- Harden says all the public contribution they built in to the proposal is similar to public $ ask that's been offered to other proposals

Positive attitude and approach on both sides at present; it appears that both sides want to work together for the common good and benefit for the City of Jacksonville; THAT'S what I'm talking about! At least the start is smooth, off, and running; we'll see what happens next week.

[heights unknown]

Wouldn't the cleanup have to be completed before they would start?

I think that's what RYNJNY was referring to; cleanup first and then construction after cleanup. Everything would start with the cleanup and then construction would commence of the actual development.

[downtownbrown]

What about the environmental concerns and the state approval required?  I've been told, for example, that the reason the Berkman marina has those crappy floating docks is that the state wouldn't allow them to put pilings in to hold concrete floating docks in place.  It will take an act of God to approve the constuction of anything into or over the water, won't it?  Khan's plan calls for a bunch of fill also.  Same story. Does anyone know at what level the approval process for that needs to go?  Is it only the state, or will the feds need to sign off?

[Marle Brando]

The remediation for the site is estimated around 20mil, so it's far below the 35mil cap. Also Hogans Creek cleanup can be funded from the city stormwaters funds per Daily Record. So if terms stick, which I'm sure they wont, the city would be 7mil short of the cost for site remediation, must secure funding for public portion improvements like riverwalk, Bay St, moor etc.

[fieldafm]

The remediation for the site is estimated around 20mil, so it's far below the 35mil cap. Also Hogans Creek cleanup can be funded from the city stormwaters funds per Daily Record. So if terms stick, which I'm sure they wont, the city would be 7mil short of the cost for site remediation, must secure funding for public portion improvements like riverwalk, Bay St, moor etc.

Stormwater fees don't even come close to the City's present obligations for septic tank removal and stormwater treatment (the City is failing to meet state-mandated benchmarks related to the health of the St Johns).. nonetheless cleaning up Hogans Creek (which is going to require federal funding). Let's make sure facts stay at the forefront of this conversation. COJ doesn't have tens of millions of stormwater fees sitting around unused.

Your estimates as to costs are also way off. As proposed, the City's cost all-in is going to be more than 35mm. The 35mm figure is there simply because of previous public money benchmarks firm prior redevelopment schemes.

[edjax]

The remediation for the site is estimated around 20mil, so it's far below the 35mil cap. Also Hogans Creek cleanup can be funded from the city stormwaters funds per Daily Record. So if terms stick, which I'm sure they wont, the city would be 7mil short of the cost for site remediation, must secure funding for public portion improvements like riverwalk, Bay St, moor etc.

Stormwater fees don't even come close to the City's present obligations for septic tank removal and stormwater treatment (the City is failing to meet state-mandated benchmarks related to the health of the St Johns).. nonetheless cleaning up Hogans Creek (which is going to require federal funding). Let's make sure facts stay at the forefront of this conversation.

Are you saying the City could not legally use the storm water fees toward the Hogans Creek cleanup?

[fieldafm]

The remediation for the site is estimated around 20mil, so it's far below the 35mil cap. Also Hogans Creek cleanup can be funded from the city stormwaters funds per Daily Record. So if terms stick, which I'm sure they wont, the city would be 7mil short of the cost for site remediation, must secure funding for public portion improvements like riverwalk, Bay St, moor etc.

Stormwater fees don't even come close to the City's present obligations for septic tank removal and stormwater treatment (the City is failing to meet state-mandated benchmarks related to the health of the St Johns).. nonetheless cleaning up Hogans Creek (which is going to require federal funding). Let's make sure facts stay at the forefront of this conversation.

Are you saying the City could not legally use the storm water fees toward the Hogans Creek cleanup?

Not at all saying that. I'm putting perspective on the 'they can just use stormwater fees' talk. COJ doesn't have sufficient stormwater fee revenue presently to pay fior needed infrastructure improvements it's obligated for now. In fact, COJ is so far behind on its obligations in regards to the river that it has to buy pollution credits as a temporary band aid. Hogans Creek requires a significant investment, and the City is already behind the 8-ball on many obligations to reduce fecal colliform and nitrogen levels in the river (which are what stormwater fees pay for).

[edjax]

^^ well your response just kind of came off like Brando was stating this could be done and you were refuting it couldn't be done. Why I asked as I had no clue. But then again, not like the city has never robbed one fund to use for something else.