Downtown projects could soon have a new opportunity to acquire much-needed funding, all without going to the bank.
The Jacksonville Civic Council and JAX Chamber announced Monday plans to form an independent investment entity, one with a focus on Downtown development. The mission is to provide capital for real estate investment in the urban core.
It will be led by Stephen Crosby, president of CSX Real Property Inc., who will be on loan and turn his attention to it full time starting in October.
The idea would be for a group of private investors to support the concept, but Civic Council Executive Director Jeanne Miller wouldn’t disclose how many already have signed on. She and Daniel Davis, chamber president and CEO, said the idea was still in preliminary stages.
Miller said more would be determined once Crosby comes aboard and creates a task force to further review the plan. Crosby was traveling this morning and unavailable for comment.
The purpose wouldn’t be to fully fund a project, but instead to assist when public and other private dollars fall short, Miller said.
“It would be a complement … we aren’t going to be a developer,” she said. “The mission is going to be a focus on jumpstarting these catalytic projects for Downtown.”
Miller also declined to name what projects those could be, again saying the effort would be determined by the independent group. The program also would turn a profit for the fund’s investors.
Downtown Investment Authority Chair Oliver Barakat said given funding constraints for real estate projects, the entity could be a “critical piece” for Downtown revitalization.
“I think it will be an important partner,” Barakat said.
He said once the group establishes the investment entity, he will encourage Crosby and others to come to the DIA board for an open discussion on plans.
He said he hopes the investment members become familiar with the DIA’s recently passed business improvement and redevelopment plans, so that investments align with those efforts.
The private investment concept isn’t new.
Mayor Alvin Brown proposed the private-sector step up with capital during his second year in office. Last January, Peter Rummell, past chairman of the council, talked about the idea, as has current Chairman Steve Halverson, Miller said.
With the momentum of the economy and Downtown projects, along with CSX allowing Crosby to join the effort, Miller said now was the time for the announcement. “We all feel that upswing,” she said.
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