A Jacksonville financial services company can receive $21 million in public funding for an expansion that, according to the city, includes a $173 million investment and the addition of 500 jobs to its 1,500-member workforce.
On Nov. 26, Jacksonville City Council voted 18-1 in favor of legislation containing the incentives package, Resolution 2024-0836, for the code-named Project Paper Company. As described in city documents, the company matches the description of Intercontinental Exchange Inc.
The version approved by Council was revised from the original package.
Council member Rory Diamond, who regularly votes against incentives, cast the no vote. He said the city had a poor record of inducing the targeted number of jobs and investment in its incentive packages.
The Council vote constituted final action on the incentives package.
As first negotiated, the incentives comprised a $10 million Recapture Enhanced Value Grant over 13 years; a $5 million Business Expansion Grant over 10 years; a Local Targeted Industry Employment Grant up to $3 million for job creation; and a Job Retention Grant up to $3 million.
As revised, the REV grant increases to $16 million over 13 years, the targeted industry grant rises to $5 million and the other two grants are eliminated.
Both versions offered $21 million.
As renegotiated by the city, the company and the JAX Chamber, which helped forge the original deal, the revisions include an increase in city per-job funding to $10,000 from $6,000. In addition, the REV grant is for 90% over 13 years as opposed to 50%.
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, which are paid from the city’s general fund, in the aftermath 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.
With large spending commitments in the future and tax revenue expected to grow modestly, Council members like Lahnen and Howland are advising the city to use caution in approving more incentives that draw from the general fund.
Those members would prefer that the city rely more on REV grants, which don’t involve direct draws from the general fund. Instead, those grants provide refunds on ad valorem tax revenue generated by a new development. Although the city forgoes a portion of the increased revenue, it still collects more than it would have if a property hadn’t been improved.
In addition to the city incentives, the state of Florida has tentatively agreed to provide the company with a High-Impact Performance Incentive of $4 million and a Capital Investment Tax Credit of 100% of the state’s corporate tax liability for the company.
Intercontinental Exchange Inc. describes itself as a Fortune 500 company that designs, builds and “operates digital networks that connect people to opportunity. The company has said already it was expanding in Jacksonville.
ICE completed the $11.9 billion acquisition of Jacksonville-based Black Knight Inc. in September 2023. 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.
ICE, best known as the operator of the New York Stock Exchange, said it is upgrading the former Black Knight headquarters at 601 Riverside Ave. in the Brooklyn area of Downtown Jacksonville.