A $2 million City grant for the merged Bi-Lo Winn-Dixie headquarters and incentives for construction of residential rental units in Brooklyn were approved unanimously Wednesday by the Jacksonville Economic Development Commission.
Called “Project Opal,” the Bi-Lo Winn-Dixie deal was approved for $2 million from the City through a “Recapture Enhanced Value” grant payable over a 10-year period.
The deal is contingent upon Bi-Lo retaining 891 jobs, creating 100 new jobs and making a taxable investment of $79.8 million at Winn-Dixie’s Westside headquarters and Baldwin distribution center.
In addition, Gov. Rick Scott has offered $3.6 million through his Quick Action Closing Fund and $1.04 million through a Quick Response Training Grant.
The total incentives package is worth $6.64 million.
Linked through a conference call, Bi-Lo Holdings Chairman Brad Boggess said at the meeting that the company was “thrilled” with Scott’s approach to help secure the deal for Jacksonville.
Bi-Lo, based in Greenville, S.C., completed its acquisition of Jacksonville-based Winn-Dixie March 9.
Commission member Barbara Moore said during the meeting that losing the Winn-Dixie headquarters “would have been a big loss.”
Paul Crawford, JEDC acting executive director, told commission members the company will be held accountable for the job creation and public investment portions of the deal.
According to the commission, the average salary of the 100 new jobs is expected to top $80,000, but the salaries are not part of the deal.
According to the project summary, the company will invest about $93 million, of which $79.8 million will be subject to real and personal property taxes, from 2012-16.
Crawford said the investment would primarily be for information technology and merchandising equipment among other expenditures.
The grant would be paid based on the increased taxes and not until Bi-Lo paid taxes.
JAXUSA Partnership President Jerry Mallot spoke in support of the deal and of Randall Onstead, Bi-Lo’s chairman. Mallot said Onstead, who will move to Jacksonville, will be “a wonderful corporate citizen.”
He also said the jobs “are the kinds of jobs attractive to the city of Jacksonville.”
The commission also approved a $4.9 million REV grant to Jacksonville-based NAI Hallmark Partners for a mixed-use development in Brooklyn.
The project will be a six-story building with about 300 residential units, a 386-space, two-story parking garage and 16,500 square feet of commercial space.
The grant, paid over 20 years, is contingent on Hallmark making a $30 million taxable investment.
The project is planned at 200 Riverside Ave.
Hallmark Partners co-founder Alex Coley said the project has been planned since 2004-05 and has changed in scope during the real estate downturn.
“We think it’s the right product at the right time,” said Coley.
Don Shea, Jacksonville Civic Council executive director and executive-on-loan to Mayor Alvin Brown, said the administration supports the project and its intention to bring affordable housing Downtown. Brooklyn is near Downtown.
Crawford said the rental units will carry “a price point that works” of about $1,200 a month and are targeted to people in the 25-35-year-old age range.
Both projects will be presented to City Council for approval.
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