A lease agreement between Wayfair Inc. and the city of Jacksonville for temporary office space in Cecil Commerce Center was approved Tuesday by the City Council Finance Committee.
The Boston-based online home decor retailer plans to use the space for administrative groundwork before opening its West Jacksonville distribution center in 2020.
Ordinance 2019-306 authorizes a maximum two-year lease for 1,800 square feet of office space in Building 374 at 6146 Authority Ave. Wayfair would pay a $1,350 per month — about $9 per square foot.
The lease includes a one-year renewal option with a 3% rent increase.
The bill was introduced by City Council President Aaron Bowman on April 23 as emergency legislation so Wayfair can begin operations while their 1 million-square-foot, $72 million facility is under construction.
The office will be used for administrative work as well as to host job fairs to hire managers and employees.
The bill was advanced in a 7-0 vote with 10 amendments. Among the changes to the bill, the city agreed to waive its right to terminate the lease for convenience.
The city also was asked by Wayfair to waive any responsibility for maintaining a common area and the amended legislation states the online retailer will not be responsible for reconstruction at the facility for damage caused by fires, hurricanes and other issues.
Kirk Wendland, director of the city Office of Economic Development, told the committee that the majority of city leases at Cecil are 20-year agreements. After the OED, city attorneys and Wayfair met about the lease terms, the changes were made because of the short-term nature of the agreement.
“What you have is amendments that are not substantial in effort but make both sides feel comfortable about the lease,” Bowman said.
Wendland said 250 jobs at the Wayfair distribution center will be full time, benefited positions — largely warehouse work. He said there will be additional seasonal opportunities and expects the facility “will exceed” the job creation targets.
Council member Reggie Gaffney asked Wendland if Wayfair is considering hiring former offenders in Jacksonville. The OED director said it would likely depend on Wayfair’s corporate policy and Bowman told Gaffney he would work with the company on the issue.
“Certainly, as Mr. Wendland said, 250 (jobs) — I think you’ll see a lot more than that. I think we will start working with (Wayfair) to ensure that we’re helping them find the right talent,” Bowman said. “Certainly, Mr. Gaffney, you and I know we need to get those folks jobs. We’ll do what we can on that.”
The bill now moves to the full City Council for likely passage May 15.