by Mike Sharkey
Staff Writer
Fidelity National Financial has made two successful appearances before the Jacksonville Economic Development Commission — one in 2003 and again two years later. Both times, the JEDC approved major projects that brought Fidelity and high-paying jobs to Jacksonville and helped fuel the current resurgence of the Brooklyn area.
Thursday, Fidelity made it three-for-three as the JEDC approved by a vote of 7-0 (JEDC Chairman Bob Rhodes recused himself from the vote since his law firm, Foley & Lardner, represents Fidelity) a Fidelity National Information Services Inc. project that would bring another 210 full-time jobs to the company’s Riverside Avenue campus. Because Jacksonville is competing with Little Rock, Ark. for the jobs, the decision lies with Fidelity.
“They are hard to compare,” said Ginny Myrick, a Holland & Knight attorney who spoke on behalf of Fidelity. “Little Rock’s incentives are different from Jacksonville’s.”
According to JEDC Business Development Chief Lindsey Ballas, Jacksonville’s incentives are based on Fidelity getting a Qualified Target Industry (QTI) tax credit for the property being in what’s considered a “Brownfield area” by the State of Florida. The project involves Fidelity creating 210 full-time jobs at 115 percent of the statewide average wage, or $55,000 a year. Overall, Jacksonville’s incentive package is worth approximately $1.16 million, compared to $2.7 million for Little Rock.
“Without the package from Florida, this probably would not happen at all,” said Myrick. “This probably wouldn’t work without the Brownfield designation. You are offering the best you have. The dollars may look different on paper, but there are different strings attached.”
Ballas said Fidelity has an excellent track record since relocating its headquarters from California five years ago. The original incentive deal called for 750 new jobs, while the 2005 deal called for 800. Overall, Fidelity has invested $75.75 million in Jacksonville since 2003, according to the JEDC. The current deal calls for another $1.1 million in capital investment.
“They are completely compliant with the 2003 deal and actually exceeded it,” said Ballas. “There are 49 jobs left to be created through the 2005 deal, but they are fully on track and have until Dec. 31.”
According to the project packet, FNIS is the “global leader in processing and technology solutions for financial institutions and has been recognized as the number one financial services technology provider worldwide.” Fidelity National Financial is the parent company of FNIS, which had reported revenues of $4.8 billion last year.
The expansion will come within the FNIS Default Services group, “which helps large lenders by providing outsourced services such as property tax data procurement, disbursement processes, delinquency tracking and reporting, and foreclosure and bankruptcy process management.”
“We see the fruits of that capital investment on Riverside Avenue,” said Ballas. “This is a growth industry and we think this is a great project because it’s a targeted industry in Jacksonville and it will further help revitalize the Brooklyn area.”
Ballas said if FNIS expands in Jacksonville, the QTI credits will come in the form of $3,000 per job created. However, those credits will come on the back end of the expansion.
“They must prove the jobs were created and wages were met,” she said. “If they don’t perform, they don’t get the money. This will bring $11.6 million in new payroll to the Jacksonville economy.”
The JEDC also approved two request for proposals (RFPs). One involves the now City-owned block in LaVilla on West Union Street where Jax Casual Dining received City Council approval in 2003 to build LaVilla Bistro, a 6,089-square-foot restaurant. That approval included about $1.8 million worth of incentives from the City. Since then, Jax Casual Dining has spent all of that money and defaulted on the loan. In February, the City took ownership of the 1.2-acre parcel.
“Our goal, through the CRA (Community Redevelopment Act) is we want to see all of our property brought to the highest and best use and get it into private hands,” said Ballas.
The JEDC approved the RFP unanimously, but only after removing the selection criteria that covered the intended use of the building. The original language said “intended use of the site of the restaurant will be
given preference.”
Ballas explained that provision was written as such because the building already has a kitchen, grease traps and the type of plumbing found in restaurants. However, JEDC Commissioner Randle Shoemaker argued the provision may be too restrictive and if the City really wanted the best use of the property the RFP shouldn’t be restrictive in any capacity.
Ballas said the Property Appraiser’s Office is currently determining the market value of the property and wouldn’t venture an estimate. She did say the City will look to sell it for the appraised value or more.
“We want to make sure this is the best RFP we can issue,” said Ballas.
The JEDC also approved an RFP for the sale of two other City-owned blocks in LaVilla bordered by Union, Jefferson, Beaver and Madison streets. The 2.3-acre property consists of 21 parcels. Ballas said she did not have an appraised value, but she did say a national retailer has already expressed interest.
In other news from the meeting:
• Mike Bouda of JEDC Sports & Entertainment said last month’s baseball game between the University of North Florida and Mississippi State at the Baseball Grounds was a success, and he’s looking at working with UNF on other games in the future. According to Bouda, possible opponents for UNF include Notre Dame, Ohio State and Michigan.
• Also, Jacksonville loses the ACC baseball tournament to Boston next year, but Bouda said he is planning to make a bid for a long-term return to Jacksonville starting in 2010.
• Thursday’s meeting was the first for new JEDC members Brenda Ezell and Herschel Vinyard.
• The next meeting of the JEDC is April 10 at 9 a.m.