Pending approval, the City will not have to make a decision to purchase three Downtown parking garages for another two years.
Legislation was introduced Tuesday by City Council members Greg Anderson and Bill Gulliford to amend a March 2004 redevelopment agreement between the City, the Jacksonville Economic Development Commission and Metropolitan Parking Solutions for the garages.
Under the original agreement, the City provided three parcels of land to MPS for $1 each to build and operate parking garages for the new Duval County Courthouse, the Arena and the Sports Complex and also to provide loans, when necessary, to fund certain operating deficits of the garages.
In addition, the original agreement allowed the City to buy the three garages prior to Jan. 1, 2012, at prices depending on remaining debt and City loan payments.
Faced with a deadline and a decision to continue to issue loans for the struggling garages or jump into the parking garage business by purchasing and running the facilities, legislation will provide an additional two years to make the decision.
It also decreases the MPS annual rate of return on its $3 million equity investment to 6.75 percent from 8 percent.
MPS would still have to pay 100 percent of debt service on the project bonds issued by the City.
The two-year extension would allow City officials to view the financials of the garages to determine if they can turn a profit when the new courthouse opens in May.
The legislation comes from a Council Finance Subcommittee comprising Anderson, Gulliford and Council member Warren Jones.
They met several times in October with MPS and City officials to determine legislation on the issue.
The resulting legislation included those two provisions as well as MPS providing data, calculations and documents to the City and JEDC on expenses to run to the facilities.
City Chief Financial Officer Ronnie Belton told members of the Council Finance Committee Tuesday those expenses would be verified throughout the extension.
He said two years would provide time to “watch and see” if a profit is turned.
If the legislation hits no roadblocks, it could be voted on by Council in mid-December.
Council member John Crescimbeni requested a second piece of legislation in the event MPS officials reneged or the deal began dragging.
“I don’t want any shenanigans,” said Crescimbeni.
Belton assured Crescimbeni and Jessica Deal, Mayor Alvin Brown’s Council liaison, that signatures would be expedited.
Jones told the group he thought the agreement was good, but
personally did not want to see
the taxpayers take over a
parking garage because it is “not their role.”
Anderson, who chaired the committee, asked that the panel remain active to monitor progress and analyze the expenditures. Finance Chairman Richard Clark agreed.
“I think this is a good solution,” Anderson said of the legislation. “We’re able to take a look at it for two years to determine if it’s profitable.”
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