The JAX Chamber of Commerce’s economic development arm, JAXUSA Partnership, will announce details of a financial service company’s $173 million-plus expansion in Jacksonville during a media event Dec. 17.
The announcement, scheduled for 11:15 a.m. at the chamber’s offices at 3 Independent Drive, involves a company code-named Project Paper Company in city documents related to a $21 million incentive package for the expansion. The chamber said Dec. 16 that company executives would be on hand for the event along with Mayor Donna Deegan and JAXUSA Partnership President Aundra Wallace.
The city’s description of the company matches Intercontinental Exchange Inc.
In a Sept. 30 memo, city staff called Project Paper Company an existing financial services provider seeking to expand and establish the national headquarters for its Mortgage/Technology Division in Jacksonville. The memo stated that the company planned a capital investment of $173 million to $216 million over five years in construction, equipment and building improvements, it says.
The expansion will include space for more than 1,500 current employees that will grow by 500 jobs over seven years.
The memo said the newly created jobs would pay an average base wage of $100,000 that rises to $125,000 with benefits. The operation would include front-office and C-suite jobs.
ICE, best known as the operator of the New York Stock Exchange, describes itself as a Fortune 500 company that designs, builds and “operates digital networks that connect people to opportunity.”
The company announced it was expanding in Jacksonville after completing its acquisition of Jacksonville-based Black Knight Inc. in September 2023. In a Feb. 8 conference call with analysts, ICE Chief Financial Officer Warren Gardiner said spending plans for 2024 included “$100 million related to the new office space and expansion and improvement across New York, London and Jacksonville,” according to a company transcript of the call.
Black Knight is a software, data and analytics company that serves the housing finance market, including real estate data, mortgage lending and servicing, as well as the secondary markets.
On Nov. 26, Jacksonville City Council voted 18-1 in favor of legislation containing the incentives package, Resolution 2024-0836. Council member Rory Diamond, who regularly votes against incentives, cast the no vote.
The incentives were revised as the resolution progressed through the Council process, remaining at $21 million throughout but adjusted to provide an increased percentage of the funding through a Recapture Enhanced Value Grant.
The finalized package included a $16 million REV grant over 13 years versus the original grant of $10 million over 13 years. The revised grant provides a 90% refund on ad valorem tax revenue generated by property improvements, while the original was for 50%.
In addition, the changes included a reduction in so-called cash grants, which are paid from the city’s general fund. The final version contained a Local Targeted Industry Employment Grant up to $5 million, which was up $2 million from the original agreement. Other grants totaling $8 million were eliminated.
The approved package increases the city’s return on investment of public funding from $1.01 per $1 to $1.17 per dollar.
The changes came about through renegotiations prompted by Council members Nick Howland and Will Lahnen. Independently of each other, the two raised concerns over how the cash grants in the original package – the portions involving REV funding – would affect the city budget at a time when Council auditors are projecting budget deficits up to $105 million by 2029.
Lahnen and Howland are among Council members who have called attention to cash grants in the wake of the city’s approval of several high-dollar spending items. Those include the $1.4 billion stadium deal with the Jacksonville Jaguars and raises for police officers and firefighters.
The general fund can be described as the city’s checking account, which is funded largely through tax revenue.