Donna Deegan anticipates ‘very productive’ Jacksonville Jaguars stadium negotiation process

Jacksonville Mayor-elect Donna Deegan is upbeat about the Jaguars’ stadium renovation proposal, one that, if approved, will be the biggest capital investment in city history of potentially more than $1 billion.

The Democrat takes office July 1, but said Wednesday at City Hall she has already talked to Jaguars ownership and management and anticipates “very productive” negotiations.

“I have had, already, a number of conversations with Shad Khan and with Mark Lamping. (Interim CFO) Mike Weinstein, as I said, has also been in contact with them. We’ve had good conversations, but look, I’m not even in office yet. These negotiations have not yet begun,” Deegan said.

The Mayor-elect expects cordial talks.

“I know that a lot of people are already casting this and looking at this as an adversarial situation. And I understand any time you have negotiations, you’re going to see that sort of thing. But I want you to understand that these huddles that the Jaguars are having right now, that was something that I asked them to do when I met with Mr. Khan months and months ago.”

The team is meeting with people throughout the city to introduce construction plans, which include a stadium renovation, a sports district and potentially the University of Florida graduate campus on land ceded by Khan.

“I think it’s incredibly important to take what their plans are, put those plans in front of the public, and here are the concerns of the public firsthand. And I give them a lot of credit for setting up 22 of those. So I don’t have any problem with the fact that those are happening. And I’m actually very appreciative of the fact that they included that in the process,” Deegan said.

“So I’m looking forward to a very productive negotiation season. I think that, frankly, we both really want to get to yes,” Deegan added. “That will certainly be a process, but I think it’s going to be fine.”

The effort ultimately could include more than a billion dollars of city investment and up to four years of stadium renovation impacts (and potentially five years of construction total) in what is billed as a “re-imagination of the entire stadium and adjacent property.”

The Jaguars and the Shahid Khan vehicle “Iguana Investments” envision a total investment that could cost as much as $2.068 billion, a number that could include stadium improvements costing between $1.2 and $1.4 billion, as well as between $550 and $668 million for development of a “sports district.” That sports district essentially could be a reboot of the Lot J concept rebuffed by the City Council earlier this decade.

Overall, this would be a 50-50 cost share between the city and the team, according to a document dated May 11 — just days before the mayoral election.

The stadium cost would be largely shouldered by the city government, which could be on the hook for anywhere between $800 and $934 million — two-thirds of the overall price tag. The city share would be more than the $760 million Nashville is spending on its $2.1 billion domed stadium, with the state of Tennessee adding $500 million — an option the state of Florida will not offer.

The sports district development, meanwhile, would be largely funded by Khan, with the city obligated to spend between $75 million and $100 million, just 14% of the overall project cost.

All told, the city might spend as little as $875 million, or as much as $1.034 billion. That latter number would be a 50/50 cost split on the whole project with Khan, whose net worth of $11.4 billion is more than seven years of the city’s general fund budget.

According to documents obtained by Florida Politics drafted on May 11 and May 24, the sports district construction would begin in January 2025 if the project is approved, presumably after the Jaguars’ 2024 home schedule is completed. The stadium renovation would begin in January 2026, meanwhile.