by Bradley Parsons
Staff Writer
The City Council could decide tonight how much more than $211 million the City will be allowed to spend on its new Duval County Courthouse. Whether the City borrows $20 million to finish construction, or just half that, the City Council was assured last week that the mayor knows how to pay the money back.
City Policy Chief Steve Diebenow told the Council the City will use the current courthouse to pay down part of the debt. Whether the revenue comes from lease payments or property taxes on the riverfront property, Diebenow said future tenants will help defray the City’s expense.
The City will save about $1 million a year when the public defender and state attorney move their offices into the old federal courthouse, which is being renovated. If that money can earn the City interest, Diebenow said the funds could help pay down the courthouse debt. The money could also be bonded and used to renovate the federal courthouse. That investment, based on current interest rates, could return about $16 million in capital improvements to the old building, raising its value.
The City will pay for the first $211 million to build the courthouse, according to a mayor’s office compromise the Council will vote on tonight. A courthouse trust fund will pay for the next $2 million. Beyond that, Diebenow said, the money will be borrowed.
Diebenow told the Council the mayor would tie the sale or use of the current courthouse land to the repayment of the City’s debt.
“There’s a legislative hammer, if you will, included that we are committed that the proceeds from the land will go toward paying down the bond,” said Diebenow. “We want to force a discussion if a different use is found for the land or the funds.”
The City appraised the City Hall annex at $8.5 million four years ago. The current courthouse has not been appraised.
Several Council members noted the City’s past penchant for selling downtown property at terms that favored the buyers. Council member Jerry Holland questioned how much money the property would raise.
“It’s pretty well known that the City likes to buy high and sell low,” he said.