by Bradley Parsons
Staff Writer
Business owners had their say Wednesday at the mayor’s Jacksonville Economic Development Commission Subcommittee meeting. Among their requests: more access to capital and less access to the City’s general counsel.
The subcommittee is charged with recommending structural changes to the commission. Each member sought opinions from developers and business owners who had City support for their ventures through the JEDC. The responses listed more positives than negatives, but every person polled saw some room for improvement.
Whether a small or large business, most of the respondents said funds — either loans or City incentives — could be hard to come by, even after projects had been approved. A dearth of funding early in a project could be debilitating for small businesses said subcommittee member John Demps.
JEDC executive director Kirk Wendland said small business owners often don’t understand the terms of the agreements they sign. He said their funds get hung up early until the City can verify information provided during the approval process.
“I find myself telling these guys ‘We need x-x-x to disperse your funds and you’re not giving me that,” said Wendland. “It’s unfortunate, but the last thing we want is to turn on the TV and see a half-completed project where the developer has spent our money and is back looking for more.”
Money is also tough to come by when a project runs over budget.
The prospect of revisiting a 15-week approval process to fix cost overruns sometimes acts as a deterrent to downtown investors said Wendland.
“The City could have $8 million into a project, but if it goes $20,000 over budget, the developers are worried they have to go through the process again.”
Wendland recommended the City make a contingency fund available to address overruns, although he said he worried that developers would plan their projects with the extra money in mind.
The downtown developers questioned by subcommittee member T.R. Hainline expressed a collective desire to diminish the general counsel’s presence.
Hainline said his respondents complained the City’s lawyers were overstepping their roles during negotiations.
“They perceive the lawyers coming in and trying to make policy. They’re trying to decide what’s going to be best for the City,” said Hainline.
Wendland said there had been occasions when the general counsel “might give you more advice than you paid for.” But he said their presence was essential when negotiating major projects such as Berkman Plaza or The Shipyards. Representatives from the downtown developments were among Hainline’s respondents.
When the developer is seeking multiple millions from the City, Wendland said negotiations require counsel on both sides of the table. He said it was the responsibility of the JEDC leadership to weigh the advice provided by counsel.
Assistant General Counsel John Germany, also a subcommittee member, said the Berkman and Shipyard deals had favored the developers. He said the general counsel ensured the deals would hold up to City Council scrutiny.