Redevelopment on the Berkman II is moving forward with the approval from the Jacksonville Downtown Investment Authority amounting to a $36 million incentive package.
"We've been waiting for a long time for a project like this," said Councilman Reggie Gaffney who’s district encompasses the Berkman II.
"Eyesore" and "blight" were among the buzzwords at Wednesday's Downtown Investment Authority meeting concerning the redevelopment of Berkman II. The discussion on the project lasted more than an hour as plans were detailed and board members mulled an incentive package with $36 million.
Incentives include $20 million in a partial ad valorem tax rebate of 20 years at 75 percent of the total grant not exceeding $20 million. An operational performance subsidy worth $8.25 million based on operation of the hotel. A redevelopment grant worth $3.25 million that will only be paid out after the developer receives a certificate of occupancy.
Developers from 500 East Bay LLC said the cost published at $122 million for the project may sit closer to $150 million. The development team confirmed in the open meeting that the hotel would not be branded as a Margaritaville property. The developers have two Margaritaville properties in Mississippi.
Amenities are still in the works, but the developers mentioned possible items such as a ropes course, Ferris wheel with 36 climate controlled gondolas. Also a mooring site for the U.S.S. Adams pending aggressor between the involved parties. An anchor restaurant was not named due to ongoing negotiations per the developers.
Members of the development team said they can move ahead as early as December with work on the building. Forecasting a completion of the project within 24 months.
Developers say up to 700 jobs could be created as a result of the redevelopment. The project will head to the City council for further approval.