A planned veterans-centric community is one step closer after gaining City Council Finance Committee approval on Wednesday.
The committee approved the plan by the Invest in America’s Veterans Foundation to use up to $28.5 million of revenue bonds, issued by Capital Trust Agency, Inc., to convert Mission Springs Apartments on Jacksonville’s Westside into a complex providing low-income housing with a focus on veterans.
Christopher Walker, representing the Cape Coral-based foundation, said the project includes some cosmetic improvements to the 444-unit property at 5320 Timuquana Road, along with new office meeting space for community programs.
“We’ll also have local representation in Jacksonville to make sure everything is running smoothly,” he said.
Over the past nine years, foundation President and founder Ralph Santillo said they’ve focused on single-family projects, and that Mission Springs would be their first apartment complex.
“We want Jacksonville to be the pilot program for us,” he told the committee. “We won’t let you down.”
Although the Finance Committee unanimously approved the bond sale, council members debated whether the project meets specific conditions under TEFRA, the Tax Equality and Fiscal Responsibility Act, since the sale is considered tax-exempt.
A TEFRA hearing, required by the federal tax code, determines whether projects paid for by tax-exempt bonds meet certain criteria and are appropriate for the community.
After TEFRA hearings, either the mayor or the City Council can approve the project.
Council member Bill Gulliford said he believes the issue should have gone through the Housing Finance Authority.
Instead, it was approved by the Neighborhoods, Community Investments & Services Committee and the Finance Committee.
Gulliford said he intends to file legislation that would require future similar projects to go through the JHFA.
Council member Garrett Dennis said problems in recent years have made the city wary of non-profit organizations buying large swaths of property.
“Because of what happened with Global Ministries at Eureka Gardens, we want to make sure we’re scrutinizing the nonprofits using these bonds to finance their process,” said Dennis, who supports the project.
“You don’t want to be a hindrance to development, but we still have to sign off,” he added.
In the case of Eureka Gardens, former Mayor Alvin Brown approved a bond sale without a City Council vote.
Finance Committee Chair Anna Lopez Brosche said the project is going through the proper TEFRA process.
Another point of contention at Wednesday’s meeting came over tax revenue — specifically where it should be spent.
Since the sale will take the property off the city’s tax roll, Brosche says the foundation has agreed to make payments in lieu of taxes of about $142,000 a year during the life of the bond.
It is a pilot program to compensate for the loss in general revenue funding.
Dennis said he would prefer that tax revenue stay in the district.
“If you think about it, that’s $142,000 a year, a lot of money and a lot of impact that can be used in that 3-mile radius,” he said.
Dennis said he plans to introduce legislation would allow for the tax revenue to be used for public projects within a 3-mile radius of the apartment complex.
Several council members cautioned against such action, saying it would set a bad precedent for future projects.
“I’m concerned about it,” council member Aaron Bowman said. “I’m worried about opening that door.”
Dennis says he’ll host a Town Hall meeting at the Webb Wesconnett Library at 6 p.m. April 10 to answer questions from residents about the project.
Walker, representing the foundation, said if the bond sale is approved, they plan to close on the deal by mid-May, and begin implementing their programs shortly after.
The full council will vote on the matter Tuesday.
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