by Bradley Parsons
Staff Writer
Bob Rhodes doesn’t know yet who he’ll be working with to streamline the City’s downtown development, but he knows what he wants to work toward.
The chairman of the Downtown Development Authority has been charged by Mayor John Peyton with reviewing how the City manages downtown development. Peyton challenged the Jacksonville Economic Development Commission to spend less money to create more jobs, income and tax revenue. By the time Rhodes’ downtown committee is done, he said he wants to supply the JEDC with clear guidelines about where the City should spend its money, and better tools to measure the effectiveness of City incentives.
The downtown committee won’t meet until early June, but the idea of targeting incentives is already swaying DDA discussions. Rhodes said during Wednesday’s meeting that he wanted downtown incentive deals “laser focused” on encouraging development at or below the market rate.
“Let’s just figure that, as we move forward, City assistance should incentivize the market rate. That’s what we should be doing,” said Rhodes.
Of course the committee’s first trick will be figuring out the market rate. The question usually leads to a lot of shrugged shoulders inside the board meetings. The generally accepted market rate for downtown residences is around a dollar per square foot or about $800 to $1,100 a month for a 1,000-square-foot apartment.
But Rhodes and several other board members want to get away from ballpark figures. The downtown market is still developing, he said. With only about 1,260 residential units available – and 65 percent of those are price fixed for low-income residents – Rhodes said a lot of the market analysis is based on estimates.
As the market fills out - there are 3,900 units scheduled to be built in the next three years – price points will become more clear. Rhodes said his downtown committee will seek to specify where the market-rate ends and luxury prices begin.
The downtown committee will also look at the increasingly popular mixed-use developments. The projects typically combine retail and residential space. Rhodes said the JEDC should figure out ways to make sure developers using City money, stick to guidelines on both the residential and retail sides of the deal.
“We should think about whether we need to be tougher on first-floor retail,” said Rhodes. “If it’s a project we’re assisting, how can we guarantee the project conforms to the original concept?”
In the past, the City has sought to encourage a 50/50 mix of rental and for-sale residential units downtown. The JEDC wants about $7 of private money invested for every dollar of City money, and it wants new residential development to supply its own parking spaces: three for every apartment built. Rhodes said his committee will examine those targets to make sure they’re desirable and realistic.
Rhodes’ committee will have to work fast. JEDC Chairman M.C. Harden originally wanted all the committee reports in time for the commission’s July meeting. However, that deadline will likely be pushed back, said JEDC spokesperson Jean Moyer. The downtown’s committee membership isn’t set, and it wasn’t likely to convene until June, about a month behind schedule, said Moyer.
Rhodes said he’s ready to “hit the ground running.”