by Bradley Parsons
Staff Writer
A group of Gateway developers is looking to keep employment-based City incentives by growing trees instead of jobs.
Gateway Development Partnership received in 1999, about $200,000 in grants to bring a Publix shopping center to the Gateway Mall. The money, which was spent on infrastructure improvements, was tied to 150 jobs that Publix promised to create. Four years later, the shopping center has fallen 70 jobs short of that number, giving the City the right to reclaim $90,790.
Instead the Jacksonville Economic Development Commission is offering to let the developer keep the money to invest in landscaping around the mall. The deal brokered between the developer and JEDC depends on City Council approval. It is moving through Council committees now and could be ready for a full vote by Oct. 26.
The bill approved by the Finance Committee allows the City to spend the so-called clawback payment on landscaping, which JEDC officials said would improve an area targeted for economic development. Though short on jobs, the Publix has been a valuable addition to the surrounding Northside neighborhood, said John Alderson, a JEDC director.
“We are committed to that area,” said Alderson. “The grant brought a Publix to a neighborhood that wanted it. Now, to clawback that money doesn’t really help anybody. We’ve tried to work out a deal that’s win/win. This keeps the incentive dollars working in that neighborhood.”
Although the jobs fell short, the money has been a value for the City, said Alderson. The City essentially bought 80 jobs with the original grant. That works out to $2,431 per job, far below the standard set by incentive guidelines for the area.
The Northwest Economic Development Trust Fund, which is set aside for projects in the area, allow the City to spend $15,000 per job. The City is willing to spend to jump start development in an area where jobs have historically been slow in coming and quick to leave.
It will be up to the developer to decide how to invest the forgiven funds. But JEDC spokesperson Jill Leavy said the JEDC would verify that the entire $90,790 is spent on landscaping. “We will most definitely monitor how the money is spent,” she said.
Still, the Gateway deal, “is not setting any precedent,” said Leavy. Rather, the deal was “a specific solution to a specific
project.”
Publix has blamed a slow economy in the wake of the 2001 terrorist attacks as part of the reason why the jobs haven’t added up. Alderson said Publix provided “anecdotal evidence” that it could have reached 150 full-time employees at some point, but could not document the claim. If part-time jobs are considered, Publix could employ more than 150 right now, said Alderson.
If the City had the deal to do again, the jobs requirement would have been scaled back to 80, said Alderson. He pointed out that the supermarket had invested more than $1 million in lease payments and capital contributions since moving into the mall.