A bill heading to City Council would give JAX LNG LLC a property tax incentive capped at $5.3 million for its ongoing $113 million expansion of a natural gas liquefaction and storage facility along Dames Point Road.
Council President Terrance Freeman is expected to introduce Resolution 2022-716 at the Sept. 27 meeting. The legislation provides a 10-year, 50% Recapture Enhanced Value Grant, a property tax refund, tied to the creation of 10 jobs by December 2027.
A project summary drafted Aug. 24 by the city Office of Economic Development says JAX LNG LLC is a 50-50 joint venture of Berkshire Hathaway Energy GT&S subsidiary Pivotal JAX LNG LLC and NorthStar Midstream.
According to the summary, the company plans $60 million in real estate improvements and $53 million in machinery, equipment installation and upgrades to its facility at 9225 Dames Point in North Jacksonville along the St. Johns River.
The 10 jobs would pay an annual average salary of $70,000 plus benefits.
Economic development officials say property tax growth from the expansion would generate a $1.99 return to the city for every $1 invested.
JAX LNG was established in January 2015 to develop the natural gas liquefaction and storage facility to provide LNG to industrial customers that do not have natural gas pipeline access and as fuel for marine vessels and trucks, the city summary says.
According to JAX LNG’s website, the facility is a supplier for TOTE Maritime Puerto Rico’s dual-fuel container vessels.
The first phase of the facility was completed in 2018. The city issued 14 permits in August and September 2021 to contractor G.A. West & Co. Inc. of Creola, Alabama, for project costs totaling more than $9.2 million.
At the time, Pivotal LNG said liquid natural gas storage at the site will increase from 2 million to 4 million gallons and liquefaction will rise to 360,000 gallons per day.
It was the first small-scale waterside LNG production facility in the U.S. with both marine and truck-loading capabilities, according to the release at that time.
Freeman will introduce the bill at the request of Mayor Lenny Curry’s administration after the Mayor’s Budget Review Committee voted unanimously Sept. 12 to file the legislation and economic development agreement with Council.
Unless the bill is deferred, Council could vote on the resolution by Oct. 25.