Shad Khan's Jacksonville Shipyards proposal: "mojo in action"

Today at EverBank Field, as the highlight of the annual Jacksonville Jaguars State of the Franchise address, Jaguars owner Shad Khan and team president Mark Lamping presented a vision for Shipyards development which is designed to turn the long-beleaguered 48 acre Northbank downtown property into a vibrant entertainment and leisure district. In Jacksonville, the Jaguars have been tied into politics as the highest level since the days of Touchdown Jacksonville, so though today was nominally about football, it was really about so much more.

The State of the Franchise address is invariably a political affair, and this year was no exception. A clue to the hierarchy could be gleaned from the VIP seating. In the first row, Mayor Brown and Jags Coach Gus Bradley sat next to each other, joking like old friends before the event. The second row had members of the Petway family — strong Lenny Curry supporters who were instrumental in both the genesis of the franchise two decades ago and in a sponsorship deal announced today. And the third row had Mayoral Candidate Bill Bishop and some other City Councilmen.

The event started off with an action-packed highlight video with a Wagnerian score and jump cuts to exciting images: the mammoth scoreboard (funded, along with other upgrades to EverBank, to the tune of $43M, a controversial city expenditure seemingly with everyone but the Mayor and the City Council back in 2013); women in bikinis in the stadium pools; and, lest we forget, a little bit of football.

After the video, Khan acknowledged the Mayor and City Council President Clay Yarborough — perhaps a strategic move with the last one, as Khan is going to need Council support sooner than later during this process. “It felt good watching the video and [Jaguars] football again,” Khan said.

“I want to make it clear that it’s my responsibility… to deliver better results on gameday,” Khan said, adding a refrain familiar to long-suffering Jags fans and Jacksonville residents alike: “we’re on the verge of turning the corner.”

After Khan’s remarks concluded, Mark Lamping took the stage and discussed the Jaguars’ numbers, which YOY from 2013 to 2014 had improved by many key metrics. Sponsorship money is up, and so is ticketing revenue; the team has the 4th fastest growth in the NFL and an 11.1% increase in ticket revenue — driven by a premium seating increase that has led to a 6.4% YOY increase in average ticket revenue.

The Jaguars put a lot of energy every year into discussing revenue streams more candidly than fans might like, but there are good reasons. Jacksonville, as Lamping said, presents an existential problem in terms of marketing. One of the smallest markets in the league, with the second most “transient” population (in terms of people moving in and out), the Jaguars have a problem with both raw numbers and local loyalty to their brand. This explains why “London is a really important part of the strategy” and why corollary metrics, such as increased television markets in southern Alabama and Charleston SC, matter so much. The Jaguars, even two decades in, are still finding their foothold in terms of local fan allegiances. During a decade and a half of underperformance on the field, marketing initiatives matter more to this franchise than perhaps any other.

“As the team wins,” said Lamping, “more fans cite the Jaguars as their favorite team.” This is important, as Jacksonville is “not a typical small market — we are a transient market”, a genuinely brilliant insight that extends to more things Jacksonville than just the city’s relationship to the NFL franchise.

Some discussion of the US Assure sponsorship agreement followed, including an address from CEO Ty Petway. But that was just an appetizer. The main course: the Shipyards renovation plans.

The Shipyards has been, in the eyes of Khan, a “boulevard of broken dreams”, a “front door to downtown Jacksonville with no porch light and no welcome mat.” The opportunity to redevelop the space: “rare, immediate, vitally important”.

The dazzling concept video for the Shipyards offers something for every New Urbanist. A boardwalk, mixed use spaces, restaurants and art galleries, along with an amphitheater, a marina, and the USS Adams, which would be a permanent fixture.

As well, one of the strengths of the proposal is its enhancement of the north-south connectivity in the area, and the proposal would also allow for a connection to Springfield to its north. This has already gotten great support from Springfield Preservation and Revitalization, which stated on its Facebook page that “connecting our Springfield Historic District to a new, sparkling Shipyards development via Hogan’s Creek was one of the priorities of the plan. Shall we start tomorrow?”

It’s all enough to make you forget Liberty Street. Almost. Khan called it “mojo in action”, an intentional allusion to his statement a couple of years back that “a homeless person in Detroit has more mojo than a millionaire in Jacksonville.”

Next steps: a proposal will be delivered to the Downtown Investment Authority on Monday. Then the fun begins.

After the event, Mayor Brown and Khan spoke to assembled media. Brown described the plan as having “great vision”, one that makes “Downtown a top priority”; a “visionary, iconic plan”.

“Shad’s always been interested in the Shipyards,” the Mayor continued, describing Khan as a “visionary leader that understands business.” As for the plan? The Mayor is “committed 1000%”, and “we’ll do our part to make sure the site is ready.”

Khan, for his part, believes “we’ve got to get moving forward” on the project. When asked why the proposal was omnibus rather than piecemeal, he was characteristically blunt. “A piece at a time doesn’t work — we’ve got to have a big vision”, and described the project as a “franchise stabilizer”.

Khan removed all doubt about his support for Mayor Brown also — there had been rumors floating around, since Khan’s appearance at a GOP fundraiser last year where he was introduced by Lenny Curry, that the Jaguars owner may lend support to the challenger.

“I support Alvin Brown, and I’m going to be supporting Alvin Brown. He does a great job for our city,” Khan stated.

In talking to Dave DeCamp, Mayor Brown’s Director of Communications, he outlined the long and winding road that will bring the project to fruition, but confirmed that the Mayor is “enthusiastic about redevelopment.” I mentioned to him that this is an ambitious project, and he agreed, with a caveat: “Jacksonville deserves an ambitious project.”

Time will tell whether the DIA and Council will come through to make this a reality, but if recent history is any guide with Council, some pushback should be expected. The scoreboards are still a sore point with many in Jacksonville, who recall their approval against the backdrop of threatened library closures and other service cuts.

The Mayoral challengers each offered statements on today’s proposal. First, Bill Bishop, a very experienced architect who has given concrete plans for urban renewal throughout his campaign, and given his background, his comments were particularly interesting:

As a presentation, the proposal looks great.  At first look the design rationale appears valid and the concept designs are very dynamic and exciting.  It really is indicative of a world class development.  My only criticism is that all the trees are palm trees which make it look like Miami.  We do have deciduous trees in Jacksonville which actually provide more shade.  This is important especially along Bay Street. They also could be used for areas that are on land as opposed to structures over water.  There palm trees would be appropriate due to structural concerns from the tree root systems.  I believe the plan could be workable.  As I have said previously, this piece of property is perfect for a large mixed use development.  That is what was shown.  The market will decide if the specific pieces are appropriate.  Presumably, Mr, Khan’s team has taken that into consideration.  There were no specifics given regarding individual users or a timeline but it is probably way too early for that anyway.  The politics is an open issue.  It will depend in some ways on what is asked of the City because I am certain there will be an “ask” for something.

Lenny Curry also offered a statement:

As a person who has built a business and created jobs in downtown Jacksonville, I am a strong advocate for a vibrant and economically growing  downtown that is linked to Jacksonville’s unique and diverse neighborhoods. We must ensure the entire city benefits from these efforts. So, I look forward to reviewing the proposal from Shad Khan and Mark Lamping during their Jaguars State of the Franchise Address.

Under Mayor Brown though, we have seen a deficiency in his work with private sector investors to bring something like this to reality. There are numerous examples during Brown’s time in office of budget mismanagement, failure to manage contracts and RFP’s – even ones as simple as the water taxis. And the recent collapse of Liberty Street in downtown is a glaring example of his failed management of the city’s basic infrastructure needs.

When I am mayor, I will work with private businesses to streamline and create a successful DIA process that ensures projects deliver the best return on investment for the taxpayers of Jacksonville.