Jacksonville City Council probes financials of stadium renovation, suggests conceptual support

The Jacksonville Jaguars are closer to a renovated stadium after the City Council hashed out details of the proposal to pay for it.

With just under three weeks before an anticipated vote June 25, Jacksonville’s legislative branch is tangling with the financial impacts of what will be the biggest capital project in local history, with a seeming consensus that they are good with the path forward.

The 19-member City Council began hours of deliberations with questions for Mayor Donna Deegan’s chief negotiator, Mike Weinstein, and Jaguars President Mark Lamping, Council Auditor Kim Taylor and City Council consultant Michael Huyghue. Questions dealt specifically with financing and the team guaranty, and the nonrelocation agreement (which principals will discuss during the afternoon).

The threshold for approval of the deal — which is backed by the local Chamber of Commerce, the Jacksonville Civic Council, former Mayor Lenny Curry, and former Jaguars’ owner Wayne Weaver — is but a simple majority.

But the deal itself, which would obligate $925 million from taxpayers for $775 million in stadium renovations and $150 million in community benefits, is complex.

Taylor gave the administration and the NFL team a boost before questions even began Wednesday morning, saying it was “reasonable” to use the Better Jacksonville Plan 1/2 cent sales surtax as a funding mechanism.

No amendments will be allowed on the deal until June 17’s public hearing, but the Q&A period is a good indication of where those voting on it stand, with Council members gently probing on issues like debt load, the BJP plan approved by referendum originally in the year 2000, and the mechanics of the deal, with all stopping short of even mild objections to financing the NFL asks in the first hours of discussion.

Republican Michael Boylan questioned auditors about the interest impact of the deal, with Taylor noting that swapping projects via the BJP funding scheme would “neutralize” a big chunk of the debt, and the $600 million added burden being effectively neutralized that way rather than adding what she called “hard debt” to the city’s books.

Boylan also probed on the ROI of the agreement, which is standard for development deals, but acknowledged he didn’t expect that number Wednesday.

Republican Joe Carlucci questioned the “debt-neutral” framing of the increased obligation, noting that while $600 million would be taken care of by the BJP tax, an additional $175 million would have to be financed via debt regardless.

“I just want the narrative to be clear,” Carlucci said. “There’s obviously a $175 million gap.”

Carlucci added that he’ll support the deal regardless, though.

Republican Chris Miller reminded those on hand of the need for a new jail, which could cost $1 billion in the next few years. Auditors said that could cause as much as $80 million a year in debt impact.

“That’s one example of something we really need to come to terms with as we go through this process,” Miller noted.

Miller also wanted to know the reason for the 55/45 cost split.

Lamping noted the deal needed to be both “fair to the taxpayers” and acceptable to 3/4 of NFL owners by being in line with peer markets in recent deals.

Incoming Council President Randy White sought assurances that Weinstein and others sought counsel from the Police and Fire Pension Board regarding the deal’s impact to pensions. Weinstein had presented to them, but the PFPF didn’t weigh in on the proposal’s impact on the legacy defined benefit pension plan that was closed in 2016 to new entrants. That nonetheless is slated to be paid off finally by the repurposed 1/2-cent BJP sales tax some time before 2060.

Jacksonville has nearly $5 billion of pension unfunded liability, noted commentator Chris Hand.

The questions and declarations continued on.

“I want to know what the total project will cost us,” added Republican Raul Arias.

Arias also wondered what the impact of a “stock market crash” would be on pension health, with Taylor assuring him that it wouldn’t impact “100%” funding of the pension in the end.

But those concerns didn’t seem to dampen enthusiasm.

Republican Matt Carlucci wanted answers as to the impacts of the Jaguars’ home playoff games during renovation, noting that if it “costs a little more,” he “won’t have a problem with it.”

And ultimately, Carlucci along with Republican Ken Amaro and others were on board.

“Let’s move,” said the former newscaster-turned-legislator.

One reassurance for lawmakers is that the Jaguars are contractually obligated to absorb cost overruns, Lamping assured them during a discussion of the team guaranty. That means that the deal may be more even a split than the 55/45 proposal.

And for those worried that the stadium won’t resemble the renderings, Weinstein noted that the “obligation is to build what you’ve seen,” offering reassurance for those who might have contrasted the futuristic scheme of Daily’s Place pictures with the reality, which looks like a medical cannabis grow house.