The Jacksonville City Council voted 17-0 on Oct. 12 to approve a $114 million incentives package for Jacksonville Jaguars owner Shad Khan’s proposal to build a Four Seasons Hotel and Residences-anchored development on the Downtown riverfront near TIAA Bank Field.
Through Iguana Investments Florida LLC, Khan plans to spend an estimated $321 million to develop the city-owned former Kids Kampus Park.
Council passed Ordinance 2021-0673 with no debate or commentary. Council member Aaron Bowman was absent.
“Thank-you to the @CityofJax Council members for their approval of my Shipyards transformation plan. This plan includes a luxury hotel on our riverfront, new Jaguars Performance Center & the new home of the @MOSHjax museum,” Jacksonville Mayor Lenny Curry said in a Twitter post after the vote.
Council members have met with Iguana, Jaguars executives and lobbyists the past several months on the proposed project.
Jaguars leadership also held town hall meetings over the summer to pitch the project to the public.
The deal will give Khan’s company a $25,834,887 cash grant after the hotel is complete and a 20-year, 75% Recapture Enhanced Value Grant, or tax rebate, of up to $47,683,955.
Another $40.4 million includes the value of city-owned land, public infrastructure and amenity improvements and easements that support the development.
The deal gives Iguana the option to build a support building and with a ship store and restaurant for the Metropolitan Park marina, events lawn and Northbank Riverwalk improvements.
The city will fund the estimated $17.273 million in construction costs with Iguana responsible for cost overruns.
In its term sheet, the Downtown Investment Authority estimated it will cost the city $8.72 million to relocate the Marine Fire Station, dock and historic Fire Museum on the property.
The remaining $2 million comes from easements granted to the developer and the projected loss of land value from leasing the office building parcel.
The city will retain ownership of the 1.05-acre office parcel and lease it to Iguana for $36,000 per year for 40 years.
The city will sell Khan’s company 4.77 acres of the former Kids Kampus property for $100.
The land is appraised at $12.45 million, according to the DIA.
In July, the DIA board voted to recommend Council approve the agreement with the Jaguars affiliate.
The city agreement commits Khan to a minimum $301,057,548 development. Iguana says the project will comprise a 176-room Four Seasons with 25 for-sale luxury condominiums, a full-service spa and restaurant and a 157,027-square-foot, six-story, Class A office building.
Jaguars President Mark Lamping said Oct. 4 that Iguana will start construction on the project in the first quarter of 2022.
The agreement with the city says construction of the hotel and office building has to start no later than June 1, and the project must be completed by Dec. 31, 2025.
The hotel and office building design are scheduled Oct. 14 at the Downtown Development Review Board for conceptual approval.
The project will require final DDRB sign-off and city permit approvals before Iguana can break ground.
The vote on the Four Seasons agreement is the second real estate development deal with Khan the Council has backed since Aug. 24.
Council unanimously approved a public-private partnership with the Jaguars to split the cost to build the team’s proposed $120 million football performance center.