Jacksonville is poised to set a record among NFL markets after City Council approved the remaining portion of a $300 million community benefits agreement between the city and the Jacksonville Jaguars.
On Sept. 10, Council voted 13-2, with three abstentions, to give final approval to a $94 million city contribution to the agreement, a companion to the $1.4 billion “Stadium of the Future” deal between the city and team to remake EverBank Stadium.
If ratified by the NFL owners group in October, the benefits agreement will be the largest in the history of the 32-team league.
Going into the vote, Council had already voted in favor of spending $56 million to develop three Riverfront parks, which was part of the community benefits agreement. The Jaguars have committed $150 million in the deal.
In addition to the parks, the agreement will fund affordable housing, workforce development and homelessness services in the Eastside neighborhood near the stadium and countywide.
“Tonight we delivered for all of Jacksonville an investment that will transform our community for generations. Thank you to City Council President Randy White, the CBA Special Committee, our chief negotiator Mike Weinstein, Shad Khan, Mark Lamping, and the entire team that made this day possible,” read a statement from Mayor Donna Deegan’s office after the vote.
Council member Jimmy Peluso, whose District 7 includes the Eastside, said that with the vote, the low-income neighborhood “is going to get the attention and love they deserve.” He said the benefits agreement would serve as a template for providing assistance to other struggling neighborhoods in Jacksonville.
The vote breakdown:
Voting yes: White, Peluso and members Ken Amaro, Raul Arias, Michael Boylan, Joe Carlucci, Matt Carlucci, Tyrona Clark-Murray, Nick Howland, Rahman Johnson, Will Lahnen, Chris Miller and Ron Salem.
Voting no: Rory Diamond and Mike Gay.
Absent: Terrance Freeman.
Abstaining: Kevin Carrico, Ju’Coby Pittman and Reggie Gaffney Jr.
The three members who abstained cited conflicts of interest related to their work with organizations providing workforce development, homelessness services or both.
$94 million portion
The $94 million portion of the agreement was split out for stand-alone consideration based on concerns among some Council members about how exactly it would be spent and how it would affect the city budget.
The city is facing several large expenditures in coming years besides the $775 million it committed to the stadium, including raises for police officers and firefighters, incentives for Downtown redevelopment and economic development projects, and eventually a new jail that could cost more than $1 billion.
Based on those looming expenditures and a plateau in incoming tax revenue, which did not meet expectations in 2024, Council auditors have forecast budget deficits of up to $105 million in the next four years.
The community benefits agreement began with a $100 million commitment from the Jaguars, which alone would have made it the largest package of its type in league history.
Mayor Donna Deegan’s office, which negotiated the stadium deal and benefits agreement, countered by offering to provide up $150 million if the Jaguars would bump up their contribution by $50 million.
The Jaguars did so, resulting in a proposed agreement that would provide $30 million in city funding to the Eastside over three years, $50 million for countywide benefits, the $56 million for parks and the stadium-adjacent flex field, and $1 million in discretionary spending in each of the 14 Council districts. The flex field was later dropped from discussions.
After the $94 million was split out, it was sent to a special Council committee that spent about 15 hours over five meetings examining it.
$40 million for Eastside
What emerged was a version providing $40 million to the Eastside over seven years, $40 million countywide over 15 years and the $14 million spread over the Council districts.
The special committee also approved protective measures suggested by Howland and Lahnen allowing the city to pause its annual payment in lean years. The protections use a formula that involves the annual inflation rate and the Consumer Price Index to determine whether the city can afford the payment without overextending its resources and dipping into reserves.
If the protections are triggered, the city receives an extra year on the back end of the agreement to make up for its payment.
Howland, a self-described fiscal conservative, said the protections were critical to his support for the agreement.
“The fact that we have the protection amendment and that we don’t spend if we don’t have the money makes me feel better” about the agreement being a record-setter, he said. “The fact that the Jaguars are committed to putting $150 million into our community alongside the stadium makes me feel really good. Of course, their investment is over 30 years, but it’s still the largest investment by any team in the history of the NFL.”
Gay and Diamond did not explain the reasons for their no votes before casting them. Gay cast the lone no vote against the stadium agreement, saying he believed it was problematic in several areas and needed to be discussed in much more depth.
What’s next
Up next for Council is to determine exactly how the community benefits money will be spent and whether to create a tax increment financing district for the Eastside to generate more economic development for the neighborhood. In TIF districts, funding from future increases in tax revenue due to redevelopment can be used within the district to pay for new infrastructure and programs.
White has committed to creating another committee to discuss those issues.
Under the stadium deal, the city and Jaguars are both contributing $625 million to upgrade and modernize EverBank Stadium with such new features as a roof cover, new and wider concourses and additional food and beverage options. In addition, the new stadium will feature a reflective exterior coating that is designed to reduce interior and a design with openings at the corners to facilitate airflow in the seating areas.
In addition, the city is contributing $150 million in deferred maintenance and capital improvements.
The time line calls for construction to begin in February 2025, with the team playing at EverBank in 2025-26 at a capacity similar to the current configuration. The Jaguars will stay at the stadium in 2026-27, when capacity will be reduced to 43,500 to accommodate for construction, and then will play either in Gainesville or Orlando the following season before the new stadium opens in August 2028.