The uncertain immediate future of the Jacksonville Economic Development Commission could adversely affect a bond issue approved Thursday.
The commission unanimously approved a resolution authorizing issuance of Revenue and Revenue Refunding Bonds in an amount not to exceed $8.1 million for the Samuel C. Taylor Foundation.
The 501c3 nonprofit owns and operates four assisted- and independent-living facilities for the aged in Jacksonville, collectively known as Taylor Residences.
Before the vote, Commissioner Helen Rowan questioned whether the dissolution of the JEDC and creation of the Office of Economic Development proposed by Mayor Alvin Brown could create a setback for Taylor Homes with its lender, Compass Bank.
“There is a timing issue, which we have made the mayor’s office aware of,” said City Assistant General Counsel Juliana Rowland.
Matt Sherburne, vice president of finance and administration for Taylor Residences, said the lending process began last year.
“I think we can close the deal in the next couple of weeks,” he said.
If City Council approves Brown’s proposed legislation to reform economic development April 24 and he immediately signs it, there could be an issue in the transaction.
If Brown were to sign the legislation after May 1, the JEDC would still be intact until after the bonds are issued.
“What dissolution will be has not been decided by the mayor’s office,” said Rowland.
Sherburne said the funds obtained through the bonds would be used to retire $3.4 million in existing bond debt and pay off $2 million in federally funded mortgages.
The balance of the funds would be available for renovation and improvements at the nonprofit’s care facility on Spring Park Road near Emerson Street, he said.
Council still must approve the issuance of the bonds, which would create no financial liability or obligation for the City.
Asked how the anticipated reorganization could affect the incumbent members of the commission, JEDC Acting Executive Director Paul Crawford said the current appointments would expire.
He said the commission positions could be transferred to the proposed Downtown Investment Authority or the mayor could select new members who would have to be confirmed by Council.
Crawford described the new authority as “akin to the library board.”
He said it would have funds to use for incentives and projects, but its actions would not be subject to Council approval.
“Here’s your bucket of money,” he said.
He said the economic development effort for Duval County other than for Downtown would be the responsibility of Brown’s proposed Office of Economic Development.
“It would all go through the mayor’s office, then the auditor, then the City Council,” said Crawford.
He said he believes there is an opportunity for the formation of an advisory board for the economic development office, but that would be up to the mayor’s office.
Before the meeting adjourned, Crawford said the commissioners might meet in May and June, but “that’s just a guess.”
The next scheduled meeting is May 10.
356-2466