Two economic development deals requesting almost $10 million in City and state incentives to create 480 jobs will be considered by City Council tonight.
In a special meeting Monday, the Council Finance Committee approved more than $1 million in incentives for SunGard AvantGard LLC to consolidate its operations and relocate from the Southside to Downtown.
The company is a subsidiary of SunGard Data Systems Inc. and is an information technology services company.
Its corporate headquarters is in Wayne, Pa.
The company intends to move into the Prudential Building, 701 San Marco Blvd., from its current location 4901 Belfort Road, Suite 160.
A building-permit application under City review shows that Tenant Contractors Inc. is the contractor for an $860,000 project to renovate 28,850 square feet for SunGard on the 11th floor of the east tower.
Plans show executive offices, offices, open office areas, training and meeting rooms, a boardroom and a breakroom, "quiet" rooms and space for IT equipment.
A project summary shows SunGard AvantGard intends to spend $4.4 million in private capital investment for the move.
SunGard AvantGard has 80 employees and intends to add 170 for a total of 250.The new jobs would pay an annual wage of $54,719 plus a benefit package valued at $12,300.
The company seeks $1.02 million through the Qualified Target Industry Tax Refund program. The City's obligation would be no more than $204,000, or 20 percent. The state will pay the remaining $816,000, or 80 percent.
The deal was jointly announced Wednesday by the City and JAX Chamber and the legislation was filed later that day.
Because the deal was less than $300,000 in City incentives, the deal was eligible for Council's one-cycle fast-track process, which allows it to be filed, introduced and voted on in less than a week.
The Finance Committee also approved an incentives deal May 7 for Railex LLC, an expedited train service marketed to the food, beverage, pharmaceutical and manufacturing industries.
The company seeks almost $8.8 million in City and state incentives to acquire undeveloped rail-spur property along Philips Highway to construct a multimodal logistics center.
The 18-acre tract of undeveloped rail-spur property is adjacent to Florida East Coast Railroad.
The incentives comprise more than $1.7 million from the Qualified Target Industry Tax Refund program, of which $341,000 would be paid by the City and $1.4 million would be paid by the state; $1.6 million from the City through a Recapture Enhanced Value grant, paid over five years to refund taxes on properties and investments made by the company; $5 million from the state's Economic Development Transportation Fund, commonly called the road fund, an infrastructure incentive; and $465,000 from the state's Quick Response Training grant, provided by Workforce Florida.
The company proposes to create 310 jobs by Dec. 31, 2018, with an estimated payroll of $17.3 million. Of the jobs, 200 would be created by Dec. 31, 2014.
After the Finance Committee approved the incentives May 7, Railex executive Paul Esposito said the company has looked at locations throughout Florida and Georgia, but that Jacksonville has "set itself apart as far as a logistics hub."
Esposito, Railex executive vice president of network planning and government relations, cited Jacksonville's port and rail and road infrastructure as examples of the logistics benefits.
Esposito said the company has been considering the Southeast since 2006 and the Jacksonville facility would serve as its logistics center for the region.
The facility will be the company's fourth logistics center. The others are in Delano, Calif.; Wallula, Wash.; and Rotterdam, N.Y. The Jacksonville building and design will mirror those facilities, Esposito said.
The project summary shows the company is projected to invest $105.7 million within a five-year ramp-up period.
The facility will comprise 252,000 square feet of refrigerated freight consolidation and deconsolidation warehouse and distribution facilities.
The expected investment consists of $2.3 million in land acquisition, $34.8 million in building construction, $1.7 million in manufacturing and packaging equipment, $6.2 million in warehouse equipment and technology infrastructure, $700,000 in furniture and fixtures and $60 million in refrigerated rail cars and intermodal trailers.
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