A.G. Gancarski
With capital improvement deals such as Jacksonville’s $90 million package of Capital Improvements for EverBank Field, the devil is in the details.
Even as the legislation is passed, a few questions remained (at least from this writer) about certain language in the bill.
To that end, we reached out to the office of Jacksonville Mayor Lenny Curry for some answers.
One such question had to do with what was described, in the bill, as ”2015 Financing Costs”
This term “means actual, reasonable, out-of-pocket professionals’ fees and expenses in an amount not to exceed $650,000 for each of the City and JJL, incurred (i) in the case of the City, solely relating to the issuance of the Interim Financing and/or the 2015 Improvements Financial Instruments or otherwise directly related to solely the financing and funding of the City Contribution, and (ii) in the case of JJL, solely relating to the financing and funding of the JJL Contribution.”
A question we had: Does this mean that the cost of securing financing is, in total, up to $1.3 million? Is this a back-end add on to the package? We asked for a precise breakdown of the number.
The answer, from spokesperson Tia Ford: “We do not know how much financing will be. It is anticipated to be less than half of $1.3 million. Whatever the amount is will come out of the $90 million.”
Another bit of bill language seemed to imply that the Jacksonville Jazz Festival may move to the Sports Complex in future years.
“On the dates of all City Advertising Events and the annual Jacksonville Jazz Festival, City shall have the right to use the Covered Flex Field, at its sole cost and expense, and to retain all admission ticket revenues, parking revenues, and facility fee revenues, as applicable, and Concession Profits and net revenues from Merchandise sales from such use.”
Our question: does this mean that the Jazz Festival is going to move toward the sports complex, using the flex field and the amphitheater?
The mayor’s office response was that this was “undetermined at this time.”
Another bit of bill language lost in the coverage had to do with money from Tallahassee being applicable to the package:
“The City, with the support of JJL, submitted the Sports Development Program Application to the Florida Department of Economic Opportunity on October 30, 2014 (as it has been supplemented from time to time, the “Application”). The City and JJL resubmitted the application on October 28, 2015. The City and JJL agree that if moneys are received by the City pursuant to the Application, all such moneys shall be applied to the 2015 Improvements Costs and credited equally between the City and JJL. The City and JJL shall determine the mechanics of the application of such moneys.”
Our question: Does this mean that any state money received through these channels go to debt service? Paying down principle? Or maintenance fund? Or whatever is needed at the time?
The mayor’s office responded that “if costs exceed $90 million, the Jaguars will cover the overage amount. If costs are under $90 million, the City and Jaguars will split the savings. Money from the state would go toward stadium improvements and most likely reduce costs bringing them below $90 million.”
Another question had to do with the expedited timetable for construction. During Council deliberations, the Curry administration made the case that the bill had to be expedited because construction needed to be completed before the beginning of the 2016 Jaguars season.
However, there are no such guarantees; indeed, a clause in the deal allows for construction to be delayed one more year, to July 2017.
” The parties acknowledge and agree that the timeline for the construction of the Amphitheater, the South End Zone Improvements and the Covered Flex Field is compressed, and JJL and the Event Company may delay substantial completion of all or any of those projects until July 31, 2017,” reads the bill language, which given the lack of guarantees of completion in the proscribed time frame, seemingly undercuts the case for urgency.
“Any delays would most likely impact the amphitheater and/or flex field, not the stadium,” said Ford, “and therefore should not have an impact on the following football season.”
In the short term, the effect of a delay would seem to be a loss of revenue from parking and ticket surcharges. The open question, as construction proceeds: will there be pressure, or even awareness, from the general public regarding such.
The mayor’s office tells us that the Jaguars will be responsible for determining and providing timetables.
