Northbank Redevelopment Task Force Final Report 020111

8/7/2019 Northbank Redevelopment Task Force Final Report 020111

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Jacksonville Civic Council

NORTHBANK REDEVELOPMENT TASK FORCE

FINAL REPORT

February 1, 2011


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Table of Contents

Members of the Task Force 2

Introduction .. 3

Section 1. The Case for Downtown. 5

Section 2. Land Use Recommendations. 8

Exhibit A 11

Exhibit B 14

Exhibit C 19

Section 3. Governance and Implementation.. 20

Section 4. Business Case & Economics. 24

Section 5. Near-Term and Related Issues. 30

Section 6. Summary and Conclusions 34

Acknowledgements. 37

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Members of the Task Force

Preston H. Haskell, ChairmanThe Haskell Company

Edward E. Burr M. Lynn PappasGreenPointe Holdings, LLC Pappas Metcalf Jenks & Miller PA

Ben Carter Robert M. RhodesBen Carter Properties Foley & Lardner, LLP

A. Hugh Greene John D. RoodBaptist Health Vestcor

Steven T. Halverson Peter S. RummellThe Haskell Company Rummell Company LLC

M. C. Harden III John M. Welch, Jr.Harden & Associates Board Member, DVI

Advisors to the Task Force

Adam Hollingsworth Ronald D. BartonChief of Staff Executive Director Office of the Mayor Jacksonville EconomicCity of Jacksonville Development Commission

Donald A. SheaExecutive Director

Jacksonville Civic Council

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Introduction

In March 2010, Mayor John Peyton and the Jacksonville Civic Council determined that

reversing the decline of downtown Jacksonville was a matter of urgent civic priority.

Despite many positive achievements in the past two decades, vacancy rates for office

buildings were at all time highs, with a drop in downtown employment from 60,000 to

51,000. Retail activity was almost non-existent. Efforts at growing the number of

downtown residents from approximately 2,000 to a more peer-city comparable of 10,000

had stalled. Even during the Task Forces study period, three major downtown

businesses announced plans to move to the suburbs. While the citys suburbs had

thrived, the condition of Jacksonvilles downtown was at its most distressed in recent

years.

Meanwhile, the City was faced with approximately 32 acres of vacant land (the

Shipyards property) coming into City ownership, and three large blocks occupied by

the County Courthouse and old City Hall were about to be permanently vacated. These

represented both a challenge and an opportunity: would downtown be blemished by yet

more vacant or unused space, or could this newly acquired riverfront land at the eastern

edge of the urban core be used to expand and revitalize the downtown experience?

Against this backdrop, the Civic Council, with the Mayors support and encouragement,

formed the Northbank Redevelopment Task Force, with the Civic Council providing the

bulk of the task force membership, while the office of the Mayor and the Jacksonville

Economic Development Commission made top-level officials and other resources

available to the Task Force.

The initial charge to the Task Force was to examine and make recommendations for the

development of the city-owned property described above, lying between downtown and

the sports complex, north of the St. Johns River, referred to herein as the study area.

Also, the charge included making recommendations regarding governance and

implementation as well as financing and economics. However, this charge was

expanded somewhat during the course of the Task Forces work to include adjacent

downtown properties, related issues, and certain immediate steps to be taken.

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The organization of this report also evolved somewhat during the study period. As finally

organized, Section 1 makes the case for downtown why downtown is important to

everyone in the community. Section 2 lays out a vision for land use within the study

area. Very importantly, an implementation agency with appropriate powers and

resources dedicated to downtown redevelopment, is described in Section 3. Section 4

proposes sources and uses of funds for implementation of this vision, and Section 5

addresses the immediate and evolving steps which are essential to catalyzing

redevelopment of the study area. Section 6 provides a summary of the major findings

and recommendations, and serves as an executive summary of the report.

The Task Force acknowledges that there have been numerous studies and reports

within the past 18 years regarding downtown and recommendations for improvement

and redevelopment. It is hoped, that this report may have greater impact due to its

inclusion not only of recommendations for land use, but also for a strong implementation

authority to stimulate and oversee private and public endeavors for downtown

redevelopment, and for sources and uses of funds. However, it should also be noted

that many of the recommendations are broad and directional, and further research and

refinement will be required prior to adoption or implementation.

In creating the Task Force, Mayor Peyton and the Civic Council realized that the further

development and implementation of its findings and recommendations could not beundertaken within the approximately one year remaining in the current Mayors term of

office. However, it was agreed that within that year the Task Force could indeed create

a conceptual, long-term, aspirational template for community discussion which, in

particular, would stimulate thought and debate during the City Council and Mayoral

campaigns of early 2011. Beyond that, the Task Force believes that its report will

provide a set of findings and recommendations that should guide the Council and

administration taking office in mid-2011, and policy makers beyond, in their actions

regarding downtown redevelopment. It is in this spirit that this report is submitted to thepeople of Jacksonville and its elected leaders.

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Section 1. The Case for Downtown

All great cities of the world have a nucleus, a center, a soul. A city simply cannot

prosper economically or qualitatively without a vibrant, functioning downtown.

A fun, energetic and productive center city is vital to every successful region, including

ours. Without a useful downtown, the surrounding neighborhoods are simply left with a

hollow core, an empty eyesore, a symbol of a time gone by, a reminder of former

grandeur that does not go away.

Downtown vitality has two dimensions. First, a vibrant city center delivers tangible

economic benefits to the entire city not just those living downtown. But beyond that, it

is a symbol of community cohesion, partnership between the private and the public

sectors, quality of life, local pride, external reputation, and community history.

Tangible Economic Benefits

Perhaps foremost, downtown has a favorable impact upon the property values of our

residential neighborhoods. Downtown buildings assessed at full value reduce the tax

burden on suburban homeowners, while requiring far fewer services such as schools,

fire and rescue, and crime prevention. Downtown is a net financial contributor to the

suburbs.

For new businesses coming to town, the central district can be economically more

advantageous than suburbia. The expensive infrastructure is already in place.

Employers located in the urban core can more readily recruit workers from all parts of

the city, enhance commerce by having businesses close to each other, and create their

own energy that feeds on itself and provides multiplier effects business-wise and

socially. Because downtown is located at the center of our metropolitan area, workers

can reach their places of employment more or less with equal ease from any part of thecity. The use of public transit is enhanced by workers commuting to and from

downtown.

A citys downtown is a physical reflection of civic pride, self worth and confidence that is

immediately seen and felt by visitors and visiting business persons. In the national (and

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even global) competition for new business, downtowns, not their suburbs, define the

competing cities. The television aerial shot during a football game is of downtown, not a

suburb. These images, and the institutions which constitute them, often form an

enduring first impression that leads to return visits and continuing business interest.

Downtown helps reduce sprawl by concentrating activity in one area. By building density

in the heart of the community, we make the entire city more livable, and protect and

sustain the outlying areas. An economically productive downtown spills over into the

suburbs, raising values and per-capita incomes throughout the community.

Intangible Considerations

Downtown is the only place central enough for major leisure events professional

sports, entertainment, festivals and special events, fairs, and the like. It is an important

community space where members of all segments of the community can meet equally

for parades, speeches and other community events. It can host things that simply would

not happen elsewhere. It is the heart of the community, and the site for government,

arts, churches, and financial institutions. No single neighborhood can be more socially

important or productive than downtown.

Tourism and convention activity are enhanced by a strong downtown. Indeed,downtown is the only plausible location for a successful convention center. Tourists are

attracted to downtown events and amenities, and conventioneers stay longer and spend

more as well. To these visitors, Jacksonvilles downtown offers unique opportunities to

see our history, visit small shops, and engage the river in many ways.

Downtown is essential to the attraction of many young people, who are actively seeking

to live in dense, mixed-use communities which dont require cars, and shops,

residences, parks and businesses exist close together. These are mostly well educatedand professional, a growing set of workers upon which competitive cities rely and

flourish. Making downtown attractive to this important demographic segment is critical to

the economic and intellectual growth of our city.

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Conclusion

Jacksonville has an especially strong case for a successful, central downtown. It is a

spread out city, characterized by numerous neighborhoods scattered over hundreds of

square miles, divided by rivers, rail lines, and expressways. No one or even several

put together of these neighborhoods can provide the energy, activity, and community

that our downtown can. Properly developed, it becomes an asset which our citizens

use, enjoy, and value as much as their own neighborhood. Indeed, downtown becomes

everyones neighborhood.

Jacksonvilles urban core possesses certain features which give it potential to become a

great downtown. Transportation infrastructure to and from downtown is very much in

place. Uniquely, the magnificent St. Johns River flows through the heart of downtown,

providing a focal point and a visual amenity that is unparalleled. It has a modern and

comprehensive urban sports complex. It has a consolidated government which can act

in the interests of the entire city.

Subsequent sections of this report provide a roadmap for creating a vibrant downtown

that capitalizes upon these advantages, enhancing the economic and social wellbeing of

all its citizens.

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Section 2. Land Use Recommendations

This section sets forth, in general terms, the findings and recommendations of the Task

Force regarding land use and development of the study area. It is divided into three

parts, the first dealing with the former City Hall property north of the Hyatt Hotel together

with the existing County Courthouse site, and its parking lot, immediately to the east.

The second part deals with the so-called Shipyards property, bounded by Berkman

Plaza on the west, East Bay Street on the north, and Metropolitan Park on the east. The

third part discusses opportunities for linkages and connectivity with adjacent properties

to the east and west, a band extending from the Times-Union Center for Performing Arts

to Metropolitan Park.

City Hall and Courthouse Sites

In 2012, functions located in the former City Hall and current County Courthouse will be

relocated to the new Courthouse complex now under construction on the western side of

downtown. Both buildings are approaching 60 years since construction, and are

generally regarded as obsolete. The City government has no plans for occupancy of

either building and the Task Force has thus devoted its attention to replacement uses.

The former City Hall property consists of approximately 100,000 square feet, and isimmediately adjacent to the Hyatt Hotel on the south. The Hyatt Hotel comprises 966

rooms and approximately 90,000 square feet of ballroom, meeting rooms, and

conference space. However, it has no space for an exhibition hall. The Hyatt interests

have expressed considerable interest in having the City construct a comprehensive

convention center on the Courthouse site, with appropriate connections to the hotel.

The Task Force received a presentation from the Hyatt interests and its architects

proposing a comprehensive and elaborate convention center of 180,000 square feet,

with long-term expansion of the convention center and/or hotel on the City Hall site.

The Task Force is keenly aware that the existing Prime F. Osborn Convention Center

has failed to meet expectations since its opening over 25 years ago. It is generally

recognized that this failure results from the Osborn Center being remote from the central

business district and having no nearby hotels. The property east of the Hyatt Hotel, on

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the other hand, is more centrally located and is adjacent to a large hotel. The Hyatt-

proposed convention center would be more than double the size of the Osborn Center

and would be comparable to convention centers in Fort Lauderdale, Tampa, Orlando

and Birmingham.

After careful consideration of the Hyatts desire to use the entire Courthouse block, the

Task Force considered a different plan which would use the City Hall Annex block north

of the Hyatt Hotel and potentially a portion of the Courthouse block for construction of an

exhibition hall, and make all or a majority of the Courthouse block available for mixed-

use retail, entertainment, dining, and public open space. The exhibition hall would be

attached to the Hyatt Hotel and would contain (if limited to the City Hall block)

approximately 80,000 square feet of pure exhibition space on the second level (which is

the same level as the Hyatt ballroom and other public spaces), with additional flex

space of approximately 40,000 square feet at the lower (street) level. The balance of

the street level would contain retail space along Bay Street, a public entrance on the

Newnan Street (west) side, and loading docks and related uses on the Market Street

side, which would be adjacent to the service docks of the hotel.

In addition to placing the exhibition hall entirely upon the City Hall Annex block,

consideration should be given to treating that parcel and the Courthouse site as a single

complex, containing both a larger exhibition hall and retail/dining/entertainment space.This would involve closing, bridging, or relocating a portion of Market Street south of Bay

Street, but would provide for greater flexibility in sizing the exhibition hall without

significantly diminishing the land available for other uses. For example, taking just the

Market Street right of way would add 15,000 square feet to the exhibition hall.

In either case, the resulting convention center would be a hybrid of the Hyatts

conference rooms, ballroom and meeting rooms, together with the new exhibition hall

and flex-space. The usable areas would be significantly larger than the Osborn Center,which contains 76,000 square feet of exhibition space, 29,000 square feet of meeting

room space, and a 10,000 square feet ballroom. Such a center could successfully

penetrate a very significant portion of the state and regional convention and tradeshow

market, as well as a sizeable segment of the national market.

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To meet the demand of additional parking created by a new, comprehensive convention

center, the Task Force recommends consideration of building an approximately 325-

space parking garage, one possible location being on the west side of Newnan Street,

utilizing a portion of JEA-owned property, and currently private property consisting of

one- and two-story office buildings. These buildings are tenanted primarily by law

offices, which presumably would seek to relocate when the new courthouse is

completed.

Exhibit A provides a very preliminary layout of a possible exhibition hall plan. It does not

depict the space which could be added by eastward expansion beyond Market Street.

The Task Force feels that this general approach is the most feasible and desirable

option for the following reasons:

It frees up most if not all of the Courthouse block for mixed-use entertainment,

retail and dining space, effectively extending our core downtown eastward, and

complementing and extending the dining and entertainment district currently

emerging on East Bay Street. Otherwise, the hotel and convention center would

become a remote, rather isolated extremity at downtowns eastern edge.

The mixed-use complex would provide additional dining, shopping, and

entertainment destinations for out-of-town conventioneers using the Hyatt

Hotel/convention center.

The mixed-use complex would make the Hyatt a more desirable destination for

non-convention guests, placing them more in the middle of a surrounding set of

downtown venues, rather than being at its extreme edge.

The cost of the exhibition halls, largely or entirely a public expenditure, would be

substantially less than that of the proposed Hyatt plan, and thus more consistent

with the benefit received and more appropriate to the foreseeable financial

resources of our City.

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Exhibit A First Page

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Exhibit A Second Page

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Given the foregoing recommendation, the Task Force also focused upon determining

more specifically the character and use of the Courthouse property. As part of this

research, the Task Force met with regionally prominent and successful real estate

developers to obtain their opinions as to the feasibility of developing a mixed-use project

on the Courthouse site. These developers felt that the site had the necessary

ingredients for successful development: sufficient size, riverfront location, proximity to

existing downtown venues and their activity, and the demand which would be created by

an adjacent convention center and hotel. Indeed, one of the developers has been in

contact with national retail and restaurant chains who have expressed favorable interest

in the site.

While specific site configuration would require considerable additional study, one

preliminary plan is shown in Exhibit B. This plan envisions a two-level complex with a

central courtyard extending to the river, with retail stores, restaurants, cinema, and

related uses. It would be developed in two phases, with the initial phase being on the

north half. The southern half could initially be used for parking and/or a destination

venue for outdoor entertainment or other people space.

The foregoing development plan lends itself to implementation over the next three to four

years; however, to maximize the value of the new convention center, completion andopening of it and the mixed-use venues should occur as simultaneously as possible.

Planning, financing, selection of a developer, negotiations with Hyatt, and acquisition of

the property for the Newnan Street parking structure can all proceed prior to the vacating

of the former City Hall and Courthouse in 2012. Demolition and construction could

proceed thereafter, with completion in approximately two years.

The Task Force also believes that substantive public sector financial investment will be

required. As in most cities, the convention center will likely be financed largely orentirely by the public sector. The mixed-use development of the courthouse site will

require some combination of land donation, tax abatement, and cash investment. These

requirements are discussed in greater detail in Sections 3 and 4.

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Exhibit B

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Shipyards Property

The Shipyards property consists of approximately 28 acres of clear, undeveloped, city-

owned land. While its St. Johns River shoreline is highly irregular, regulatory approval

may be received for bulkheading and filling certain of the recesses in the shoreline,

which would provide up to 60% more land (approximately 16 acres) as well as providing

more north-south depth and regularity of shape.

Compared to the former City Hall/Courthouse property, the Shipyards property is much

greater in size and more remote from downtown. The Task Force therefore feels that its

development should contemplate a timeframe of perhaps two decades or more.

However, its ultimate realization would result in a magnificent mixed-use urban fabric

extending from the central business district, along the river, to the sports complex.

The arena, baseball park, and football stadium are excellent, up-to-date facilities with

adequate parking and good accessibility from adjacent highways and expressways.

However, they are sorely underutilized, standing vacant the great majority of the time.

The Task Force believes that the development recommended herein should and will

ultimately result in synergies with the sports complex venues. It is an emerging trend in

other cities that entertainment, retail and dining are interactive with events in such

venues. Events such as concerts, shows, and other performing arts events, as well assports events, can be longer, more enjoyable, and more diverse experiences than

merely attending a game and then going home or elsewhere for dining and

entertainment.

Given the foregoing characteristics, it is clear that a variety of uses can and must be

developed on this property. Each of these is described below.

Residential. The Shipyards land represents an excellent site for downtownresidential development. Its waterfront location, the amenities and attractions

proposed on the Courthouse site, and proximity to downtown make it a very

desirable location for much-needed residential development. Having more urban

residents is the most fundamental prerequisite to successful downtown

development.

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Offices. The construction of low- and mid-rise office buildings on this property

would constitute an answer to the flight of office buildings to the suburbs. Similar

to Riverside Avenue at the opposite end of downtown, these buildings would

enjoy waterfront proximity, on-grade or lightly structured parking, plus proximity

to housing, entertainment and retail.

Commercial. It is not unreasonable to assume that, over time, a small

commercial district would arise in the eastern precincts of the Shipyards property.

This would be more of a convenience retail center for nearby residents than a

destination center such as that proposed for the Courthouse. As the property

becomes populated with office buildings and more active use is made of the

existing sports venues, a medium sized hotel near the easterly end of the

property would be entirely feasible. Both the hotel and shopping center would

also serve out of town visitors to the entertainment park described below.

The overall result of the development described above would be a vibrant, interactive

downtown making optimum use of its sports and entertainment venues, permanent

downtown residences, and places of business.

A final and important development feature which the Task Force considered for theShipyards property is an interactive destination entertainment park which would draw

from all parts of the city. Members of the Task Force met with a Jacksonville-based

developer and operator of such parks, located in similar places and similar cities, which

have been very successful. The elements in such a destination park might consist of a

London Eye type wheel, a coaster, adventure golf, a zip line course, and others. The

project could begin with only a few such elements, to which more could be added in

phases. It is not necessary that all of the elements be contiguous, but could be

dispersed throughout the development, and certain ones could be discontinued orrelocated at a reasonable cost, to provide for more permanent urban elements.

In other cities where this type of park has been developed, the operational economics

have been uniformly positive. Using a public-private partnership structure, the City

contributes land and a portion of the construction cost, and the developer and its

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investors contribute the balance and receive the profits for a period of time. At that point

the assets revert to the City, and could be continued, relocated nearby, or discontinued.

The vision for such multi-use development of the Shipyards property lends itself to

certain design concepts and standards. These include diverting pedestrian traffic from

Bay Street onto the site with wide winding sidewalks and features of visual appeal and

interest on either side of the walkway. Residential buildings could be interspersed with

other uses, and ample use of green space should be made. The St. Johns Riverwalk

should be completed to Metropolitan Park and provisions should be made for boat

marinas at appropriate locations.

Finally, the Task Force believes that appropriate incentives should be made available to

encourage the development described above. These may include land donation,

property tax abatement, job-creation grants, and/or other inducements further described

in Section 4.

Linkages to Adjacent Sites

In addition to the foregoing recommendations concerning the study area, the Task Force

believes connectivity to existing elements along the riverfront both east and west should

be integral to the development vision set forth above.

In particular, the barrier which exists below the Main Street bridge between the Hyatt

Hotel and the Jacksonville Landing should be mitigated or eliminated. This would

require the removal of a certain amount of parking, together with improvement of Coast

Line Drive, the riverwalk, additional lighting, way finding signage, and landscaping and

green space.

To the east, the role and use of Metropolitan Park should be re-evaluated. It is currentlyremote and underutilized, and certain of its features may lend themselves to being

relocated to the Shipyards property, further strengthening that area as an active

destination for the entire community. The existing Metropolitan Park land could then be

considered a part of the study area, with land uses similar to those recommended above

for the Shipyards property.

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As already mentioned, the three sports venues are an asset which should ultimately

become integral to this entire development. They regularly draw between a few hundred

and 80,000 people to the area, and the potential for enlarging and integrating this

dynamic into the development is an important one.

These measures, though relatively modest, would result in a rich, broad, and diverse

band of activity stretching from the Times-Union Center to Metropolitan Park and the

sports complex. It would make available a comprehensive set of amenities consisting of

performance venues, entertainment, retail, housing and office buildings, interactively

located along the St. Johns riverfront, to both downtown residents and the broader

community.

These features are depicted in their entirety in Exhibit C.

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Exhibit C

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Section 3. Governance and Implementation

The previous section of this report makes recommendations for land use in the

Northbank area of downtown. This section describes and advocates a governance

structure and implementation agency that enables development and implementation of

these objectives.

The Task Force studied downtown implementation agencies in cities and other

jurisdictions throughout Florida and beyond, and found that successful downtown

development was invariably correlated with the existence of an active, independent,

focused and well financed such entity, which Jacksonville does not possess.

It should be noted that Jacksonville does possess an effective Jacksonville Economic

Development Commission (JEDC), which has wide-ranging responsibilities, including

downtown development. Its primary and dominant responsibility is synonymous with its

name: economic development for Jacksonville. It also houses the citys Film

Commission, the Sports & Entertainment Board, and oversees development of the Cecil

Commerce Center.

Proposed Implementation Agency.

Because downtown redevelopment is a major, multi-faceted, long term and complex

challenge, it deserves the concentrated and continuing effort of a city agency dedicated

solely to the downtown mission. The Task Force recommends creation of a new

agency, perhaps named the Downtown Improvement Authority (DIA), that can fulfill that

role, establishing a clear and accountable entity responsible for leading downtown

revitalization efforts.

Creation of the DIA provides a number of additional benefits. First, it will provide clarityof responsibility and eliminate potential conflicts. Because JEDC has city-wide

responsibility to manage economic development activity, it must often choose between

downtown and competing locations in the city to apply its limited funding and resources.

Establishment of DIA will remove this conflict and enable JEDC to focus on economic

development and job creation outside of downtown.

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Because redevelopment of downtown is a long-term proposition, requiring a continuous

and sustained commitment and multi-year work program, it is necessary to develop a

structure that can be sustained beyond a single mayoral administration. While the efforts

and priorities of Jacksonvilles current mayor and JEDC director toward downtown have

been excellent, downtown has not always received a commensurate level of support and

has received minimal funding. The DIA can ensure the consistent reliability of staff and

funding to address the long-term needs of a successful downtown revitalization program.

Furthermore, since several City departments and divisions have responsibility for

downtown functions and programming, all of those activities should be coordinated by

DIA acting as the Citys lead agency for downtown redevelopment. The Mayor should

charge the DIA with assembling and leading a downtown work group consisting of all

City departments engaged in downtown. The work group should include representatives

of JEDC, public works, parks and community services, special events, and housing &

neighborhood departments. The work group will met regularly to communicate and

coordinate downtown redevelopment activity.

The DIA will serve as the Citys Community Redevelopment Agency (CRA) under Florida

Statutes for the downtown Community Redevelopment Areas. In this capacity, it will

manage the two existing tax increment financing (TIF) districts downtown. Section 4 of

this report provides detailed recommendations on funding strategies for DIA, includingthe treatment of revenues associated with the downtown TIF districts, and the

opportunity to bond those funds for downtown redevelopment initiatives.

The DIA should house and manage all parking-related activities currently contained in

the Public Parking Division, Parking Enforcement Division, and other entities, to insure

that a these functions complement the DIAs redevelopment strategy.

The DIA would also oversee all downtown events and entertainment activity presentlyoperated by the Office of Special Events, with a view toward their not simply being

entertaining to the public, but integral to the appeal, activity, and development of

downtown. The existing Downtown Development Review Board (DDRB), the one-stop

planning and permitting agency for downtown, also would fall under the responsibility of

DIA and be staffed by it.

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Finally, it should be noted that this agency would have jurisdiction covering all of

downtown, not just the Northbank or the study area. This jurisdiction consists of the

three Tax Increment Districts, which are also the two Developments of Regional Impact

(DRIs).

Constitution of DIA

The Task Force recommends that the DIA consist of seven members, four appointed by

the Mayor and three by the President of the City Council. All appointments should be

subject to confirmation by the City Council. Four-year staggered, renewable terms will

ensure continuity of governance, and transcendence of the commissions composition

beyond any four-year term of the Mayor or Council members.

A City Council member representing the downtown core should be included as an

additional, non-voting DIA member. Under current districting, three council districts

touch downtown, resulting in its having no single council member as a strong advocate.

Strong consideration should be given during the next redistricting measure to making all

of downtown part of a single council district.

Representatives from key agencies should be identified as liaisons to DIA. Those may

include JEDC, Downtown Vision, Inc., JTA, and others. Specific professional skills

should be sought in making appointments to the DIA, including finance, real estate, and

marketing. The Board will recruit an Executive Director who will be responsible for all

management aspects of the DIA, and serve at its pleasure.

Budgeting Process

A major factor in attracting private investment in downtown Jacksonville is the level of

confidence among private developers that the Citys project approval process is applied

consistently and efficiently. Currently, redevelopment agreements must be approved by

the City Council on a project by project basis, representing a significant disincentive to

downtown redevelopment. This methodology should be changed to provide a better

ability for the DIA to act, under the oversight of the Mayor and City Council.

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The Downtown Improvement Authority shall prepare an annual budget for approval by

the mayor and submitted to the City Council as part of the executive branch budget. The

annual budget should identify the level of funding necessary to support the

administrative operation of DIA, as well as proposed downtown capital improvements

and development incentives. The budget and programs therein must be consistent with

the reinvestment policies previously approved by the City Council. Those approved

policies establish guidelines for the utilization of economic development incentives.

Customary City Council oversight of the DIA would be achieved through the review and

approval of the annual budget.

Once budget approval is obtained, DIA would have the discretion to negotiate

redevelopment agreements consistent with the budget and approved investment

policies. Agreements that are consistent with the budget and approved investment

policies should not require further council approval. Any redevelopment agreements, or

financial incentives which result in exceeding any years budget would be subject to

Mayoral and Council approval. This discretionary authority for DIA would be conceptually

similar to that already established for the Jacksonville Childrens Commission and the

Public Service Grants Council.

All funding sources and uses will be reported to the City annually through the municipal

budgeting process. Beyond the costs necessary to sustain its administrative operations,all DIA revenues shall be used to structure incentives to attract and retain employers in

the downtown area. DIA shall have the authority to make multi-year incentive

commitments, subject to the oversight of the DIA Board, the City Administration, and City

Council as exercised through the budget process.

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Section 4. Business Case and Economics

This section consists of two parts. The first develops general estimates of the public

support, or financial incentives that are required to fund the redevelopment objectives

set forth in Section 2 above. The second part discusses the potential sources of such

funds.

Estimated Public Support Requirements

Understanding the costs of redeveloping Jacksonvilles downtown is a relatively

straightforward process. To restore the loss of some 10,000 jobs and bring some

10,000 new residents to downtown, the playing field must be made approximately level,

in economic terms, as to developing in the central urban district versus doing so in the

suburbs. This means that the City, through its implementation agency with appropriate

powers, must provide that level of financial assistance which renders downtown nearly

but not precisely as economical as the suburbs. The reason that the two need not be

exactly equal is that downtown has, or should have, greater intangible values for owners,

residents, employers, employees, developers and customers, as set forth in Section 1 of

this report.

Various approaches may be used to quantify the cost of leveling the playing field.However, the approach used by the Task Force is one that involves comparing the cost

of land and construction between downtown and the suburbs. The components of this

cost are set forth below:

Land. Land in the suburbs can be purchased for approximately 15-25% of the

cost of downtown land. With the exclusion of land devoted to parking, a high-rise

building downtown occupies between 15-25% of the land area footprint that a

low-rise suburban office building does. Thus the cost of land per unit of buildingarea tends to be comparable between the two locations. This reasoning is also

applicable to residential buildings; however, the land requirements for retail or

entertainment may approach the land required for the same building in a

suburban location.

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Construction. Construction cost per usable square foot of a high-rise building is

considerably greater than that of a low-rise building. This is because (a) the

efficiency of a high-rise building is lower due to the space required by elevators

and by generally smaller floor plates, and (b) the construction cost per gross

square foot of a high-rise building is greater than that of a low-rise building due to

heavier structural components, greater life safety requirements, and elevatoring.

The combination of these two factors will result in a premium for high-rise

construction of approximately 15 to 30%.

Parking. The number of automobile parking spaces for a downtown building will

generally be slightly lower than that of a suburban building due to mass transit

availability and the potential for downtown residents to walk to their place of

business, which are somewhat offset by the lower land requirements for a multi-

level parking structure versus an at-grade parking lot. However, the construction

cost per space of a parking structure exceeds that of an at-grade parking lot by a

multiple of approximately ten times. Indeed, the cost of structured parking is

often used as shorthand for the overall cost differential between suburban and

downtown buildings.

To summarize the comparison between downtown and suburbia: land costs can be

roughly equal, depending upon exact location; construction costs are generally higherdowntown by as much as 15% or 30%; and parking costs can be as much as ten times

greater. Using current costs of construction, and an occupancy ratio of 250 s.f. per

person for an office building, and parking of approximately one automobile space per

employee, the public assistance or incentive required to make downtown approximately

equal to suburbia is in the vicinity of $13,000 per person employed. For housing,

assuming one automobile space and two persons per residential unit, the structured

parking cost is approximately half that amount per person.

Putting that cost of $13,000 per office worker or residential unit into a proper context

requires projections of desired growth in downtown employment and residency over

time. To restore the downtown employment base to 60,000 persons over a 10-year

period, for example, a public investment of approximately $13 million per year would be

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required. Similarly, to grow downtown residency by 2,000 residents per year for the

foreseeable future, a public commitment of $7 million per year is needed.

These amounts do not include major one-time expenditures such as that for the

convention center/exhibition hall, the entertainment park, and the waterfront linkages

proposed in Section 2. Assuming such expenditures to be approximately $80 million

and bonded over 25 years, debt service would add approximately $6 million annually, for

a grand total of approximately $29 million per year.

The foregoing calculations are admittedly approximate, not highly scientific, and based

upon assumptions which in reality could vary considerably. Other quite valid

approaches could be undertaken. Nonetheless, these serve as reasonable

approximations for purposes of this report.

Sources of Funds

To fund the redevelopment goals set forth in Section 2 and the costs thereof discussed

immediately above, the City must consider multiple sources of funding. As detailed in

the previous Section 3, the Task Force recommends creation of an implementation

agency, tentatively named the Downtown Improvement Authority (DIA), to receive these

funds and implement the measures recommended in Section 2.

As general principles, the Task Force recommends that revenue from downtown stay

downtown and the City leverage its financial resources to provide the maximum possible

return on investment for its citizens. These principles necessarily reach across a wide

spectrum of funding sources, to which the Task Force encourages full and serious

consideration by the Administration and City Council.

Tourism Investment District. There is considerable interest within the hotel-motelindustry in seeking state statutory authority to impose a tax upon certain

revenues within its industry and within a specified jurisdiction, presumably Duval

County. The proceeds would be used for purposes of promoting tourism activity

within that district. While not yet a reality, this initiative has substantial industry

support and should be actively pursued.

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Special Events Management & Production. The City has a well-funded special

events office, which should be shifted organizationally to fall under the

management of DIA. That structure would ensure that the maximum number of

special events are produced downtown each year, and would enable DIA to

aggressively seek new revenue from sponsorships, media sponsorships,

vendors, and the like.

On-Street Parking Enforcement. Transferring parking enforcement from the City

to DIA would enable the City to reduce its cost of operating the parking program

by shifting employee salaries and benefits to DIA. This will also result in greater

efficiencies in operation of the parking meter network and enforcement of other

parking restrictions downtown.

Off-Street Parking Facility Management. Operation of City-owned garages

downtown should shift to DIA for reasons of cost savings to the City, revenue

generation for DIA, and flexibility to structure parking incentives to prospective

downtown office occupants and employers. Subject to restrictions on revenues

imposed when the garages were financed, and management expenses, net

parking income should be a source of funding for downtown redevelopment.

Tax Increment Financing. Currently, two TIF districts exist in downtown

Jacksonville. However, the future revenue streams of the TIFs have been

heavily encumbered to support commitments and development incentives not

specifically tied to the TIF districts and, egregiously, to balance the General

Fund. Such practices should cease, with all future TIF revenues reserved for

use within the TIF district under the auspices and management of DIA.

Grants. DIA should have the ability to receive grants from all levels ofgovernment, as well as from foundations, philanthropies, and private

organizations. In particular, the DIA should be designated as the administrative

entity for downtown job creation investments, such as state Qualified Target

Incentives (QTI) grants.

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Disposition Proceeds for City-Owned Property Downtown. Acting as the Citys

downtown revitalization agency, the DIA would receive all net proceeds arising

from sale or lease of redevelopment parcels.

Public/Private Partnerships. There is growing familiarity with and use of project

development in the U.S. wherein a governmental agency partners with a private

entity in creating and financing a project with a combination of public and private

funds. The private entity usually builds and operates the facility for a fixed period

of time.

Utility Revenues Finance District (URFD). This approach would establish a

formula under which a percentage of the revenue from JEA sales downtown

would flow into a newly-established Utility Revenues District and be managed by

DIA for capital investments downtown. Such investments could be made directly

from revenues of the URD, or be bonded in the case of large-scale need.

Private Funds. Many of the recommendations made or implied in Section 2

(particularly within or close by the sports complex) should involve a mix of public

and private dollars, similar to Public-Private Partnerships (PPP) successfully

implemented in other cities.

General Fund. Recognition should be given to the fact that all of the separate,

discrete measures described above may or may not meet the required

investment in downtown. Consideration should be given to dedicating those

property taxes which derive from downtown to downtown development. While

current conditions do not augur for immediate implementation of a millage

increase, it should be noted that Jacksonvilles peer city-counties in Florida

impose ad valorem millage rates in the 11 to 13 range, while ours is below 10.Not only is this figure low in terms of comparable jurisdictions, it is historically

low: in 1986, the rate was 12.3 mills.

While considerable study and analysis is needed to determine the amounts which each

of the foregoing sources would generate, the Task Force believes that, in the aggregate,

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they would likely meet or exceed the requirement of $29 million annually identified earlier

in this section. The Task Force acknowledges that raising new revenue is never an easy

task, but Jacksonville is a low-tax city, and the case for greater investment in downtown

is a clear and compelling one.

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Section 5. Near-Term and Related Issues

As previously noted, the study area for which the Task Force is responsible generally

extends from the eastern edge of downtown to the sports complex. However, in the

course of its work, the Task Force realized that there were a number of issues relating to

properties outside of its study area which have a significant impact, particularly in terms

of immediate steps which will catalyze or accelerate the longer-term goals. This section

addresses the most important of those issues, and makes recommendations for actions

in connection with them.

Laura Street

Approximately two years ago, the Administration and JEDC determined that Laura Street

from City Hall at the north end to the Jacksonville Landing at the south, should be

reconstructed to enhance its physical appearance, make it more pedestrian friendly, and

provide a greater sense of continuity for the office, retail, governmental and other spaces

either in place or planned. Accordingly, those physical improvements are now under

construction with completion expected in the first quarter of 2011. The Task Force

believes that these physical improvements will indeed make Laura Street an important

north/south corridor with the potential to enhance pedestrian activity, improve and

expand retail and entertainment opportunities, and create housing developments.

The Task Force notes two specific examples regarding Laura Street. The first of these is

the proposed development known as the Laura Street Trio/Barnett Building. A group of

private developers has contracted to purchase the three vacant buildings at Laura and

Forsyth Streets, and the former Barnett Bank Building at Laura and Adams Streets. The

adaptive reuse planned for these buildings include retail and restaurant spaces on the

ground floor, condominium and rental units in the Trio buildings, a new parking structure,

and a combination of housing and boutique hotel in the Barnett Building. However,these plans are dependent upon public sector support from the Downtown Historic

Development Fund, and other incentives and/or loan guarantees. The Task Force urges

that this important development be strongly supported by the appropriate public

agencies, and that consideration be given to a public-private partnership that would be

financially positive for the city and the developers.

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The Task Forces second recommendation is that Laura Street be opened to the St.

Johns River by carving out a portion of the Jacksonville Landing building on axis with

Laura Street. This would extend Laura Street to the public activity plaza on the riverfront

side of the Jacksonville Landing, and clearly opening it to the urban fabric to the north.

DVI Initiatives

In March 2010, Downtown Vision Inc. released an important document entitled Turning

the Corner: Rethinking and Remaking Downtown. While the DVI report did not address

the Task Forces study area, it made a number of very important recommendations,

whose implementation will greatly enhance the process of redeveloping the study area.

Important among these are:

Resources that would encourage activities and housing should be focused upon

the area east of Laura Street and north of Bay Street. This part of downtown has

already begun to emerge as an arts district and is adjacent to the study area. If

the recommendations contained in Section 2 of this report regarding the

Courthouse and City Hall property are implemented, this general area will

become the most important part of downtown for vibrant, 24/7 activity.

Security, code enforcement, and police presence in downtown should be

significantly enhanced. A substantial, dedicated Sheriffs Office patrol should

exist for downtown, including the study area as it develops. This would also

include dealing with the problem of panhandlers, loiterers and homeless who

loiter the street, parks, and vacant properties in downtown, and generate a

variety of nuisance activities.

DVI, together with the Downtown Committee of the National Association of

Industrial and Office Properties (NAIOP) advocates the reform and unified

management of all downtown parking facilities, revised pricing including no

charge at nights and weekends, and using all revenues for downtown

maintenance and improvements. The Task Force concurs in these findings, and

as noted in Section 4 of this report, the implementation agency should include

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management and financial control of all public parking, both within the existing

downtown and the study area as it develops.

Many more of the DVI recommendations are nearly identical to those presented in

previous sections of this report. These include more rational management of TIF Funds,

making existing and future streets more pedestrian friendly, and creation of a single,

effective implementation agency to oversee all aspects of downtown development.

The remainder of the recommendations contained in the DVI report possess their own

merit, and are not repeated herein. However, the Task Force strongly supports its many

thoughtful and important recommendations and commends it to the appropriate public

and private bodies for consideration and implementation.

The Arts Core Initiative

During the latter stages of the Task Forces activity, the Cultural Council of Greater

Jacksonville and Downtown Vision, Inc. began a very focused study of potential

downtown living and working space for artists. These two organizations engaged a

consultant with extensive experience in arts and cultural districts in the downtown area

of cities throughout the U.S. The Jacksonville artist survey was distributed to nearly

1,000 full-time artists, part-time artists and student artists, and received responses from616 respondents, of whom 94% were individual artists. Among the important findings

were:

37% of artists are seeking live/work space. Of these, 79% are likely or very likely

to rent or buy in downtown if units are available within the next three years.

There is already available vacant space in office and retail buildings which is

convertible to living and working space for artists.

The area of greatest interest to the survey respondents was very similar to the

arts district discussed above and in the DVI report: Laura Street on the west and

Bay Street on the south, extending approximately four blocks east and north.

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The Task Force strongly supports the continuation of this initiative, and believes its

realization would complement its recommendation for revitalization of the eastern part of

downtown, and would positively impact the Task Forces recommendations for the study

area. Additionally, it would rehabilitate empty buildings and put vacant properties back

on the tax roll; provide a cultural identity to downtown that would encourage people to

visit, live and work; provide an environment that would attract creative entrepreneurs,

help business recruiting; and provide increased surrounding property values; and

constitute a highly valuable cultural and economic development catalyst.

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Section 6. Summary and Conclusions

This section summarizes the most important and compelling recommendations

developed in the preceding sections of this report. Many others, not listed below are

essential to achieving the Task Forces objectives, and their absence from this list

should not be seen as trivializing them. In either case, most of them are general and

directional in nature and will require further study and refinement.

1. Downtown development must occupy a renewed, and indeed foremost place in

public policy thought and action. It must be given highest priority as an urgent

matter of civic importance, upon which the entire city of Jacksonville depends

for its long-term vitality and prosperity.

2. All Jacksonville citizens must be made aware and appreciative of the

importance of downtown to their personal prosperity and enjoyments. Those

living in the suburbs must understand the economic and intangible roles which

downtown plays in their lives, welfare, and prosperity.

3. A strong, independent, well-funded but transparent and accountable

implementation agency must be created for exclusive focus upon downtown

development. Downtown activities, which are now scattered among variousagencies and departments, should be centralized under the control of this

entity.

4. Policy-makers must recognize the potential that exists for a grand, first tier

future downtown that extends to and includes the sports complex and contains

a thriving diversity of land uses, occupancy, activities, and amenities.

5. The crucial importance of downtown residential living must be recognized,reinforced, and implemented. No city our size has so few downtown residents.

6. A convention center should be created which is adjacent to a hotel, is located

in downtown, has nearby retail and entertainment establishments, and contains

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an adequate and appropriate combination of meeting, conference, ballroom

and exhibition space.

7. The splendid riverfront site which our courthouse occupies at the eastern edge

of downtown should be developed as a public/private partnership, to

complement a convention center, to extend downtown activity eastward, and to

be the springboard, the catalyst in development of the property extending to the

sports complex.

8. Laura Street should become a prime north/south activity street of downtown.

Retail, housing, dining, and a hotel should be developed. It should be an

active, pedestrian-oriented, multi-faceted activity corridor that is the magnet for

diverse downtown activity. Over time, other streets could evolve similarly.

9. The district generally east of Laura Street and north of Bay Street should be the

focus of development for residential, dining and entertainment, retail, and

artists galleries and studios.

10. In the east/west direction, the broad swath of downtown extending from the

Times-Union Performing Arts Center to and beyond the redeveloped

courthouse site should similarly be an active and cohesive band of importantdowntown venues and activities.

11. The issues of police presence, code enforcement, safety and security,

cleanliness, and homeless persons must be more forcefully addressed.

12. Our elected leadership, and the citizenry in general, must be prepared to make

significant financial investments in downtown. While economic circumstances

do not permit doing so at this writing, additional sources of revenue must beseen as essential to the revitalization of downtown, which will return such

investment many times over in economic, social and civic improvements.

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13. The sources of funding for this set of investments are numerous, and should be

carefully explored with a view toward fairness, effectiveness, and revenue

production.

All great cities have great downtowns. They achieve this status because of civic effort,

sustained commitment, leadership both elected and unelected, and financial investment.

Owing to recent external economic conditions and the longstanding policy of low cost

and limited government services, our city has not achieved this status.

But it can. It has natural and manmade resources which position it well but have not

been fully taken advantage of. It is a low-tax city with the capacity to enhance civic

investment without overburdening its taxpayers. It has a dedicated, high-quality citizenry

who deserve to be residents not of the cheapest city in the south but of the best city in

the south. The recommendations herein provide a clear and compelling blueprint for

becoming just that. To continue past patterns, particularly in the area of revenue and

investment, will result in continued decline to the detriment of our entire citizenry. On the

other hand, investing resources in downtown will place Jacksonville and its urban core

on a trajectory of economic, social, business and civic success.

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Acknowledgements

While producing this report was essentially a volunteer-driven effort, the Task Force

received valuable assistance in certain commercial and technical areas. In particular,

the Task Force would like to thank the following individuals and firms for their important

and voluntarily rendered assistance:

Florida Times-Union reporters David Hunt, Jeff Brumley and David Bauerlein met

with the Task Force to share their insights into downtown development activities

in other cities. These journalists had produced an in-depth series entitled

Downtown Dilemma which was published in the Times-Union in December 2009,

and shared their valuable research with the Task Force.

John Kaatz of the consulting firm CS&L Consultants, which had developed a

report regarding a convention center for Jacksonville in 1997, met with the Task

Force to provide additional, current information and insights regarding convention

center size, location and characteristics.

Architects from The Haskell Company and Reynolds, Smith & Hills developed

conceptual plans for a convention center and related features which are

described in Section 2 and depicted in Exhibit A.

Downtown Vision, Inc. and its Executive Director, Terry Lorince very generously

shared background information and current data regarding core downtown

issues.

Ben Carter and Ben Carter Properties, Atlanta real estate developers with

extensive Jacksonville experience, provided advice and specific

recommendations regarding the Courthouse block and entertainment park.

Carter also facilitated discussions with PARC Properties regarding the

entertainment park.

Terry Stiles of Stiles Corporation in Fort Lauderdale and Granville Tracy of

American Land Ventures of Miami met with the Task Force and provided

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valuable insights into successful downtown developments in their respective

cities.

The engineering and land planning firm of England-Thims and Miller provided

technical information and graphics depicting the Task Forces recommendations

for land use, and produced Exhibit C.

A group of students at the Florida Coastal School of Law prepared a white paper

for the Task Force which examined the history of downtown development

governance in our city, especially the roles played by the various incarnations of

the former Downtown Development Authority.

The Task Force believes that its work was both facilitated and enhanced by the valuable

contributions which these individuals and firms made, all on a pro bono basis, and

extends its deep thanks to them.

Documents

Northbank Redevelopment Task Force Final Report 020111