The Downtown Investment Authority board voted Nov. 20 to recommend approval of a revised incentives package to retain a code-named company headquartered in Downtown Jacksonville.
The altered incentives for Project Blue Sky include a reduced City Training Grant, to $1.2 million from $1.3 million, and a provision to end a 15-year, $2.3 million Recapture Enhanced Value Grant after 12 years if the company opts not exercise an extension on its lease for the Southbank property where it intends to relocate.
DIA board members approved it as a consent agenda item on a 9-0 vote. The action sends the incentives to the Jacksonville City Council.
The Jacksonville Daily Record reported Oct. 9 that Haskell, the Jacksonville-based global architecture, engineering, construction and consulting company, matches the description of Project Blue Sky.
On Oct. 16, the DIA board approved the original version of the incentive package, comprising:
• A Recapture Enhanced Value Grant of up to $2.3 million. A REV grant is a refund on ad valorem tax revenue generated by a new development. The grant for Project Blue Sky is based on 75% of the increased real and personal property taxes generated at the project site over 15 years.
• A City Training Grant of $1.3 million based on $2,000 each for 650 jobs that company would retain through the relocation. The training would take place over two years and the payoff made over four years.
• A Target Industry Employment Grant of $750,000 based on $5,000 per job for 150 added positions over up to five years at the stated salary and location.
According to a staff report on the revised incentive package, which is contained in DIA Resolution 2024-11-14, the reduced City Training Grant reflects a change by the company to retain 600 jobs versus 650.
Staff reported that the company had negotiated a 12-year lease with options for two five-year extensions. If the company decides against extending the lease, the REV grant would end after the 12-year term expires.
A REV grant is a refund on ad valorem tax revenue generated by a new development or property enhancement. For Project Blue Sky, the REV grant provides a 75% refund.
The incentive request doesn’t identify a new location, but a building that would accommodate those needs is 701 San Marco, the former Prudential building at 701 San Marco Blvd.
The website for the property, 701sanmarco.com, says 170,000 square feet of space is available in the building.
The Prudential Insurance Co. of America sold the 14.5-acre property in September 2022 to Bradford Allen San Marco LLC for $70 million. Bradford Allen Investment Advisors is based in Chicago.
The DIA reported that the company planned to invest $20 million in capital improvements for its relocation and $10 million for computer equipment and office furniture.
The average salary of the created jobs, exclusive of benefits, is listed at $118,000.