by Bradley Parsons
Staff Writer
Nearing the end of a year-long reorganization, the Jacksonville Economic Development Commission is preparing to redirect its energy into building Duval County’s job and real estate markets. Observers of the downtown market say they hope the commission’s new structure and leadership will translate to a more focused approach.
Even with the City strapped for cash in the upcoming budget year, these real estate observers expect the JEDC to continue providing developers with real estate-based development incentives. But those with a direct stake in the market, like CB Richard Ellis Managing Director Jim Citrano, hope that future incentives are doled out as part of a comprehensive strategy.
The JEDC has spent more than a year developing new policies to govern when and where the City will provide incentives and who will get them. But Citrano suggests a simple standard.
“If you have to explain to people why the project is necessary, then it’s probably not something that you need to put City incentives into,” said Citrano. “If the public purpose isn’t clear, then why are you giving incentives?”
For instance, Citrano questioned why the City gave developers $23 million worth of incentives for the downtown Adam’s Mark.
“Why are we giving incentives to build 900 hotel rooms if you don’t know how many rooms downtown needs?” he said.
Citrano said the City lacked that comprehensive vision for downtown when he served as chairman of the Downtown Development Authority.
“During my term (with the DDA) while we’re incenting residential projects, my concern was that we didn’t know what the ideal point was. At a certain point you have to ask: what do we want and what do we need to do to get there?” he said.
The JEDC has spent much of the last year asking exactly those questions, said JEDC Chairman Ceree Harden. After Mayor John Peyton ordered the commission in May 2004 to streamline its organization and refocus its mission, the JEDC developed measurement systems to appraise past and future projects. Projects will now be evaluated based on their potential to increase jobs, per capita income and tax revenues in Duval County, said Harden.
One of the targets the JEDC will be chasing is to draw 11,500 residents to downtown by 2010. That figure might represent some wishful thinking according to market observers.
In May, Miami-based Lambert Advisory, hired by the City to examine residential development in and around downtown, told the DDA not to be preoccupied with numbers of residents. Instead the City should focus on building a well-rounded market representing different price ranges and blending rental and for-sale units.
“How many units is not as important as encouraging the right kind of units,” said Eric Liff, a Lambert principal.
Real estate analyst Ray Rodriguez, president of the Real Estate Strategy Center of North Florida, echoed those sentiments. The City is following the proper track to continue to emphasize residential development, he said. But the City shouldn’t focus there exclusively.
“I’d recommend about a 70/30 split between residential and retail,” said Rodriguez. “Don’t put all your eggs in one basket. Any urban market is going to need entertainment venues and stores that satisfy the basic needs of residents.”
High on Rodriguez’ wish list for downtown: a mini market and a cleaners. Citrano said the City should try to put a school in the urban core.
“Schools bring in everything,” he said. “You need to get some activity after 5 o’clock. Get people hanging out in the book stores and coffee shops.”
And once the residences are built, who will fill them up? Citrano expects a mix of investors, who are simply looking to flip the property to another buyer for more money, and relatively high-income singles and small families. Rodriguez said the City can create a more diverse community downtown by encouraging development in diverse price ranges.