The Downtown Investment Authority will consider adding $400,000 to its Food and Beverage Retail Enhancement Program after “surprising” demand amid the COVID-19 pandemic.
The funding increase coincides with a jump in projected property tax revenue in Downtown’s Northbank Community Redevelopment Area from $8.76 million to $9.42 million in the 2020-21 fiscal year.
The DIA Finance and Budget Committee voted 4-0 on July 8 to recommend the full board add the money to the $3 million Food and Beverage Retail Enhancement Program in the DIA’s proposed 2020-21 Northbank budget.
The program is designed to help fill vacant first-floor commercial space and target businesses wanting to relocate Downtown to The Elbow and Hogan-Laura streets corridors.
The DIA received a food and beverage forgivable loan application July 7 from Riverchefs LLC and landlord VyStar Credit Union to help with build-out costs for The Bread & Board Downtown restaurant on the ground floor at 100 W. Bay St. It is an estimated $1.41 million project.
According to DIA documents, VyStar and The Bread & Board parent company requested $400,000 and DIA staff recommended the board approve $371,590 for the project.
The application is on the DIA board’s July 15 meeting agenda for a vote.
The Bread & Board’s application is the second since the incentive program was approved in June.
The committee approved a $75,000 forgivable loan June 9 for Ruby Beach Brewing Co.’s new taproom and brewery at 228 E. Forsyth St.
“It’s a little surprising, and pleasantly surprising, that we have as many businesses as we do that are in the food and beverage line of work that want to open Downtown. That’s what we hoped for,” DIA CEO Lori Boyer said.
In addition to Ruby Beach and The Bread & Board, Boyer said and several more applications will be submitted in the coming months.
Two-way streets and more
Boyer suggested the retail enhancement budget boost as the Northbank’s projected ad valorem tax revenue for fiscal 2020-21 came in $660,395 higher than expected.
If the board approves the changes, the DIA’s total proposed Northbank budget in fiscal 2020-21 will be $10.52 million.
The amended budget proposal, which will be submitted to the City Council on July 15 along with Mayor Lenny Curry’s fiscal 2020-21 budget, shifts $2 million of the DIA’s unallocated money into programs.
The biggest proposed boost is $1.5 million for Downtown two-way street conversions. The board already set aside $1.51 million for the project in January.
Boyer said design services for the project are estimated at $600,000 to $800,0000. DIA Operations Manager Guy Parola told the committee July 8 that a request for proposals will be sent to design firms within 30 days.
DIA officials expect construction to begin in 2021 and cost $3 million to $5 million. The $2.6 million in proceeds from the city property sale at 325 W. Adams St. to Ryan Companies US Inc. for JEA’s next headquarters should fully fund the project, Boyer said.
DIA staff recommended $262,006 be moved into a facade grant incentive approved by the board in June for businesses and commercial property owners to improve their properties’ aesthetic appeal.
The city and Office of General Counsel want the DIA to increase the supervision budget for Northbank projects from $434,000 to $755,549.
Boyer said the DIA and city attorneys spent more time on Northbank projects this year, including a deal with Fidelity National Information Services Inc. for its corporate headquarters under development in Brooklyn.
Boyer said the remaining $500,000 unallocated in the DIA could be used for COVID-19 relief programs, such as low-interest loans, if needed.
Downtown’s Southbank CRA saw a $36,953 increase in projected ad valorem tax revenue, according to DIA budget documents.
