JACKSONVILLE, Fla. — Some residents in Jacksonville are applauding the decision to table the Lot J vote amid growing concerns over project costs.
Jacksonville City Council President Tommy Hazouri said Saturday night he will not add the Lot J addendum to Tuesday's meeting, saying it's not fair to the taxpayers to rush this process.
Instead, he proposed a meeting on Jan. 7, 2021 to spend as much time as needed to talk about the proposal, and then voted on Jan. 12.
OurJax, a group of concerned citizens in Jacksonville, penned a letter to Hazouri and Members of the City Council on Tuesday supporting the decision.
The organization says that before a vote, the city should conduct a thorough study to determine in what ways this "unprecedented local public dollar investment in Lot J, will handicap the city with other, already identified infrastructure projects, and longtime community needs."
OurJax says the Council should spend the time between now and regularly scheduled January meetings to demand necessary and responsible changes to the current proposal.
"If you quickly approve a deal on which your auditor has raised serious questions, you may relinquish the ability to change your mind later," the organization said in the letter. "It is incumbent upon you to to protect the taxpayers and protect the city’s ability to invest in widespread infrastructure needs previously prioritized."
Read the full letter below:
"Dear Council President Hazouri and Members of the City Council:
As OurJax currently understands, President Hazouri will not agenda the Lot J addendum for a vote at today’s council meeting. We think that decision is prudent and in the best interest of Jacksonville taxpayers.
OurJax urges you to respect the overwhelming majority of citizens, OurJax, the Jacksonville Civic Council, and others who oppose the request by Mayor Lenny Curry and some council members to pass the current Lot J deal this week, absent a deep financial analysis. Attempting to force a 13-vote super majority needed to remove the addendum from the Committee of the Whole is contrary to the wishes of the council president, an overwhelming majority of the community, and contrary to council protocol. Furthermore, any decision made in haste in the face of such opposition will contribute to the growing distrust this community is expressing for local government.
OurJax was formed to champion Integrity, Accountability, and Transparency in local government. We will speak up when we see these three principles ignored. That is why OurJax has called out the lack of transparency and accountability in the Lot J deal, and the irresponsible rush to approve the Lot J proposal, no matter the cost and the many unanswered questions.
After a review by the council auditor and an admittedly quick review by Downtown Investment Authority staff, Jaguars’ lobbyist Paul Harden, the council auditor, and office of general counsel met in an effort to resolve many outstanding issues. Unfortunately, many critical concerns raised by the council auditor were not resolved.
The council auditor recommended that:
- the city have the right to stop funding if the Guarantor (Jaguars/Cordish Companies) is in default of any obligation under the Development Agreement. The Jaguars/Cordish refused
- payments to the Guarantor (Jaguars/Cordish Companies) be disbursed by the city on percentages of project completion. The auditor asked for “full visibility” into actual Direct Costs incurred. The Jaguars/Cordish refused.
- Council President Hazouri and Members of the City Council, if the REV grant is terminated, the full amount should not be applied as a credit for the developer, and the developer should not have the ability to determine how any shortfall is paid. The Jaguars/Cordish refused
- any cost overruns should not count against any shortfall. The Jaguars/Cordish refused
- the city should share in any profits realized by the Developer (Jaguars/Cordish) from the transfer (sale) of any development rights. The Jaguars/Cordish refused
- the city have approval rights over all improvements to Live!, to the plaza and to the walkway. The Jaguars/Cordish refused
- language should be added to protect both parties in the event of a breach of contract. The Jaguars/Cordish refused
Each of these recommendations is foundational, and city council should insist on them before approving the Lot J proposal.
OurJax has additional concerns that should be addressed prior to any approval.
For instance, in the case of Lot J, Mayor Curry has bypassed normal negotiating procedures and institutional review protections faced by all other developers.
If the developer abandons the Lot J development project, sells the deal to some other party, or Shad Khan moves the NFL franchise to another location, under the current proposal, there are no penalties or claw backs imposed upon the developer.
After reviewing the proposal, the Downtown Investment Authority (DIA) staff said the $65 million, no-interest “bread box loan” to the developer was not needed.
It should also be noted that the council auditor estimates interest payments on the borrowed $208 city investment will exceed $150 million.
No independent analysis has been conducted to determine market feasibility or compare the Lot J development with similar projects in other NFL cities.
OurJax recommends that the city conduct a thorough study to determine in what ways this unprecedented local public dollar investment in Lot J, will handicap the city with other, already identified infrastructure projects, and longtime community needs.
Finally, OurJax encourages City Council to follow the wishes of the city council president and the community in not voting to approve the Lot J bill at this time, but spend the time between now and regularly scheduled January meetings to demand necessary and responsible changes to the current proposal. If you quickly approve a deal on which your auditor has raised serious questions, you may relinquish the ability to change your mind later. It is incumbent upon you to to protect the taxpayers and protect the city’s ability to invest in widespread infrastructure needs previously prioritized.
The citizenry will respect your diligence, and you will engender greater trust and support. Just as Councilmember Joyce Morgan said in a recent council meeting, “We must get this right.”
Sincerely,
Michael J. Ward
President
OurJax"