Aetna’s decision to stay Downtown or move to the suburbs isn’t just about money.
The company has been seeking a campus-style facility like its peers in the financial sector.
The insurance giant leases 170,000 square feet and has 840 employees in the 22-story Southbank building that bears its name. It wants to expand by another 150 to 300 jobs, mainly in the area of call center representatives, said Downtown Investment Authority CEO Aundra Wallace.
Such jobs are typically housed in suburban office parks, which is where Aetna has scouted.
“I knew when they were looking into the suburbs, they were looking for campus-type environments,” said Wallace, comparing such a setup to that of Florida Blue and others with similar arrangements.
Wallace said the nature of the expansion is a factor in the company’s possible move, as office parks have ample surface parking that doesn’t factor into lease rates.
Mayor Lenny Curry last week made a pitch to Aetna executives during a phone call, said Kerri Stewart, the mayor’s chief of staff.
While those conversations were productive, she said, one takeaway was that the company was concerned about the Downtown facility given their needs.
“There’s a pretty big difference in what the suburbs and Downtown can offer,” she said.
Wallace said when the company does make its decision — as of Friday morning, it had not — the millions saved over the length of any 10-12 year deal and the facility itself would likely be two major factors.
The DIA has been working with the landlord, Boca Raton-based GV-IP, on a package to try to keep the company Downtown.
Wallace said the maximum the authority could do is a Recaptured Enhanced Value grant in the $2.4 million range over 10-12 years, which would go to the landlord to help offset its costs.
He said Aetna indicated it didn’t want city incentives, just the best deal from the landlord. That resulted in the DIA working with the landlord instead.
Wallace said even with the grant — one of the bigger ones the DIA has offered — the difference between Downtown and suburban offers was still around “a few million” over the life of a deal.
Typically, the DIA wouldn’t be involved offering money for retention, Wallace said, but he was willing this time because of the expansion involved.
Aetna’s lease expires Aug. 31, 2017.
Company spokesman Walt Cherniak earlier this week acknowledged the company is exploring its options. On Thursday, he said he couldn’t comment any further.
Wallace said while suburban spaces can offer better rates and ample surface parking, Downtown provides better company exposure in a “very good business community fabric.”
“It comes down to business model,” said Wallace. “Maybe Downtown doesn’t fit their business model right now.”
Stewart said the company’s decision will be in its best interests and still be a positive for Jacksonville.
“Whatever the outcome, every effort has been made,” she said.
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