To prepare for submitting its 2024-25 budget to City Council, the Downtown Investment Authority conducted a workshop for board members March 8 at City Hall.
Authority CEO Lori Boyer presented a proposed budget showing revenue of $14,095,607 for the Northbank Community Redevelopment Area and $7,266,408 for the Southbank CRA, the same amounts in the DIA’s budget adopted for the current fiscal year.
“We usually project 3% growth, but the property appraiser says the rising cost of insurance, interest rates and vacancy rates are making property values go down. The projected tax revenue will not increase next year,” Boyer said.
“This is the first year we are predicting flat tax revenue,” she said.
The fire that destroyed the Rise Doro apartments in the Sports and Entertainment Complex also will affect next year’s budget, Boyer said.
She suggests that the board consider moving about $4.5 million from the current $12.1 million line item for the proposed Shipyards West development to finance work underway or planned for development of Riverfront Plaza, the former site of The Jacksonville Landing where Laura Street ends at the St. Johns River.
The Shipyards West budget adopted last year would finance a food hall or restaurant near Hogans Creek east of the USS Orleck Naval Ship Museum.
The Four Seasons hotel is under construction on the riverfront site near EverBank Stadium and where the Museum of Science & History plans to build a new home in Shipyards West, relocating from the Southbank.
“Particularly with the loss of the Rise Doro development, until the Four Seasons and MOSH are complete, there is no market for permanent facilities,” Boyer said.
The board also might consider redistributing money now allocated for the Retail Enhancement Grant program, Boyer said.
About $1.9 million in the current budget is unencumbered for the Northbank and about $950,000 remains available on the Southbank.
The funds are intended to provide a match from the city for property owners who want to improve the streetscape appearance around businesses, such as adding sidewalk seating for a restaurant.
“We have not been successful in getting people to apply,” Boyer said.
The board will consider the DIA’s preliminary 2024-25 budget at its meeting scheduled for 2 p.m. April 17.
The board must approve and submit its final budget to Council in June. The city’s fiscal year begins Oct. 1 and ends Sept. 30.
