A.G. Gancarski
At long last, Jacksonville’s Mayor is revealing more aspects of the city’s stadium proposal. And she and her negotiating partners are framing the tentative deal as a win-win, with a lease vastly improved from the current agreement that runs out later this decade.
Donna Deegan, Jaguars President Mark Lamping, and special negotiator Mike Weinstein finally presented the parameters of the proposal.
“This is our opportunity to meet the moment,” Deegan said, “to live up to the moniker of being the Bold New City of the South.”
The $1.25 billion deal will be a 50/50 split, with the Jaguars agreeing to cover all cost overruns in a “much larger commitment than they originally proposed,” per Deegan. Jacksonville will also be on the hook for $150 million in deferred maintenance costs, bringing the total cost to $1.4 billion, and the actual split to 55/45.
The scheme’s financing relies on deferring a pension tax expected to take effect in the next couple of years, per the Mayor’s Office, moving legacy projects back to that and using a big chunk of the next four capital improvement plans to fund the stadium.
The rationale?
“A prior administration thought it would be a good idea to consider ending the BJP earlier than 2030, possibly at the end of 2026. This required taking projects that would have been paid for by the BJP sales tax, placing those projects in the City’s Capital Improvement Plan (CIP) and borrowing money to complete those projects … If the city follows through with the approved referendum BJP end date of 2030 and returns the projects that were taken out of the BJP and adds similar projects that can be added through City Council approval, it will remove around $600 million from anticipated borrowing and save the taxpayer over $1.5 billion in debt payments and still get all the projects completed according to their schedules.”
The city share, even with deferred maintenance costs included, would be less 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 Mayor noted her “pride and excitement” regarding the “historic agreement,” called a “crucial step” in downtown development and an economic catalyst for the rest of the city.
She said the economic benefit would be $26 billion for the city over the course of the 30-year lease, and said this new lease represented the team meeting the city “halfway,” with an agreement that is “good for Jacksonville and good for the Jaguars.”
Lamping noted the team spend was the largest private investment in Jacksonville history, and that given the stadium was “at the end of its useful life,” it was time to get a deal done on a “365-day building” that could handle events far beyond what it does now.
He also promised, regarding the renderings, that “what you see is what will be built.” That includes more air conditioned space, more escalators and elevators, more restrooms, and more comfort for the fans overall compared to the current facility.
Lamping said that even the construction of the building would create a $2.4 billion economic impact for the city. That includes the city and the team partnering on all non-football events. The team will move its offices out of the stadium, which is alleged to create opportunities for meeting space once the renovation is done.
Regarding international games, the Jaguars will have the option to play one home game a year overseas, guaranteeing seven home tilts a year.
Regarding the Florida-Georgia game, both universities are said to be on board for a negotiated extension of the series locally starting in 2028, when construction is to be wrapped.
Community benefits are also part of the pitch, with construction workforce development programs, local vendors prioritized, and acceptance of goals of the Jacksonville Small and Emerging Business Program, along with $300 million in shared costs for the Outeast neighborhood abutting the stadium, workforce development and parks.
The Jaguars will also commit $100 million to the development of a commercial district next to the stadium, with the expectation that it will be built by 2032.
The presentation to the City Council finally brought forward public messaging on a process that hasn’t involved anyone but the team and the executive branch thus far, but will need legislative approval to move forward.
Council members aren’t all on board, though they didn’t get a chance to say anything to the Mayor or the others presenting.
“We got the deal and over the last year Mayor Deegan hasn’t negotiated anything new for this stadium lease other than to add ANOTHER 150 MILLION of additional City spending on non-stadium programs. That’s a non-starter, and Council will remove it. We are where we were last year,” said Rory Diamond, a Republican from the Beaches, on social media.
The Jaguars and the Shad Khan vehicle “Iguana Investments” previously envisioned a total investment that could cost as much as $2.068 billion, a number that could include stadium improvements costing between $1.2 billion and $1.4 billion, as well as between $550 and $668 million for development of a “sports district,” an option supposedly off the table.
Jacksonville was proposed to foot the bill for two-thirds of the cost of stadium improvements in the original term sheet.
From here, the City Council is expected to take 60 days to vet the proposal, and the Mayor’s Office is taking the show on the road, with five so-called “community huddles” around Duval County.
NFL owners will ultimately have to approve the final deal, should it be approved legislatively.
If the stadium is renovated, the Jaguars are expected to be on the road for one year. It’s unknown where they would play their home games at this point.
17 comments
rick whitaker
May 14, 2024 at 7:07 pm
MAYOR, you pay for it if you want it. you don’t have that much money, well too bad. let the billionaire pay 100% plus land lease.
Margaret
May 14, 2024 at 8:34 pm
“..total cost [for the City] .. $1.4 billion.” Plus: “…economic benefit would be $26 billion for the city over the course of the 30-year lease..”
How in the world can THAT be proven as a guaranteed benefit to
the City? And, let’s not forget that the Stadium is located near the St. Johns River, which will be rising in level over the next few years, as a result of climate factors, severe hurricanes, etc.
This pandering to Khan is outrageous! Even though I voted for Deegan and I am a democrat, I am appalled by the mis-use of tax money in this way, when City services may become even more strained in the future.
MH/Duuuval
May 14, 2024 at 9:27 pm
Where is the city’s new resiliency officer when we need her?
Frankie M.
May 14, 2024 at 10:14 pm
Position was eliminated due to budget cuts for the new stadium. Isn’t it ironic? Don’t ya think?
MH/Duuuval
May 15, 2024 at 9:40 am
Don’t be lying on the chief resiliency officer — or has she been shoved aside the way Dee shoved aside Dr. Scott Rivkees after Dee obtained free from friends in Israel a million doses of hydroxychloroquine during COVID? (Don’t ask me how many doses went undosed.)
Frankie M.
May 14, 2024 at 10:12 pm
Not much policy difference between AG & Rory on this one. They oppose the stadium deal but for different reasons. AG because he hates any football team not named the gatas & Rory because he hates any mayor that doesn’t have an (R) in front of their name. Still waiting for Seber to weigh in. Will he support the stadium deal if they agree to name it after some Confederate war general killed by his own troops? Inquiring minds want to know.
MH/Duuuval
May 15, 2024 at 9:43 am
Beyond his typical kvetching and caterwauling, Rory looks to make his mark on zoning — and surprisingly has come down on the side of increased density. Let’s see how his MAGA friends relate to that.
Seber Newsome III
May 15, 2024 at 11:52 am
Hey Frankie, if they named the stadium Robert E. Lee, I would be for it, you are right.. The city cannot afford a new stadium, that’s a fact. Their are to many more important projects that need to be done.. Football is not needed, its just entertainment. Pension funds, new jail, septic tank phase out, they are needed. Deegan will be. one term Mayor, thank God,, and this deal will seal the deal. Long live the South!!!!
Seber Newsome III
May 15, 2024 at 1:18 pm
Seber likes the ideal of naming the stadium after Robert E. Lee. Now, the city cannot afford a new stadium. With the pension problem, the septic tank phase out, a new jail, etc… Just fix the 30 year old stadium and save money. Make Khan the Con pay for a new stadium if he wants one.. Khan just bought a $400,000,000, 400 foot yacht. What the heck, he is a billionaire. Khan wants to bleed the taxpayers dry, bankrupt the city.
MH/Duuuval
May 15, 2024 at 8:38 pm
If it is called Lee stadium, folks will assume it is named after the first Black Republican judge in Florida, Joseph Lee.
rick whitaker
May 15, 2024 at 1:30 pm
people of jacksonville, don’t allow yourself to be ripped off by a business man. your children will be left with the bill.
Susan
May 15, 2024 at 2:52 pm
Don’t worry, Rick. Most of us will be leaving. Soon.
rick whitaker
May 15, 2024 at 3:44 pm
SUSAN, consider east tennessee. we also have a bad government, but i hope it will change after trump is run off. we do have low prices, taxes, and good weather, so i guess if we had a good government, the place would fill up with floridians.
Susan
May 15, 2024 at 4:19 pm
Thanks, Rick. If it’s good, I’d keep it under my hat. You don’t want refugees from florida to swarm you. I hear lots of people moving to NC and SC and pretty sure they don’t want them there, either.
Nah
May 15, 2024 at 2:46 pm
Anybody who knows math and understands the basics of finance can see they’re lying through their teeth. How stupid do they think the voters in this city are? It’s just insulting. Anybody with a brain, a job, and kids they care about will be fleeing the city in short order. Let’s not forget all this billionaire welfare is happening on top of McCoy’s creek, the area of the river flagged by ACOE as critical concern and basically a disaster area for even a cat 1 storm. Taxpayers will pay for all of that damage and destruction, too. And you can forget about upkeep of even basic city responsibilities so count on your property values going down while your taxes go up (yes it’s very possible). Oh and taxpayers will still be paying off the existing stadium through at least 2031. That’s the city’s equivalent of continuing to pay off a totaled car. The additional taxes for the old stadium and pension haven’t even kicked in yet. Did I say pension? What pension? You mean the one that takes up half the city budget yet is 85% unfunded? Yeah that one. $3.5B annual shortfall in actual liabilities with daily and annual compounding interest? Doesn’t concern this mayor. I hesitantly supported the current mayor but am disgusted. City council has always been corrupt and useless but a lot of voters thought Deegan would be different. So many pretty words and empty promises except to the billionaire club.
The superfans will be happy. Good thing they can’t afford to buy a house or pay taxes to support the city and the school system. And probably never will in Jax. Jax is becoming a renter city full of transients who don’t stay long, and it seems that’s how the ruling class want it. It will continue to go downhill and hollow out even while paying developers billions to put new lipstick on a tired old pig. Sad.
rick whitaker
May 15, 2024 at 3:46 pm
NAH, great comment
MH/Duuuval
May 15, 2024 at 8:39 pm
I hope no season ticket holder — or even a single ticket holder — is foregoing the rent or going without groceries and diapers.
Comments are closed.