A code-named financial services company is planning a new $216 million headquarters division in Jacksonville and is seeking $21 million in city incentives, according to an Office of Economic Development project summary.
The code-named Project Paper Company already has a presence in Jacksonville. The five-year project comprises construction, equipment and building improvements for the headquarters of its national mortgage/technology division, according to an OED document released Oct. 4.
The OED document said the minimum capital investment is $173 million with the spending anticipated at $216 million over the five years.
On Oct. 7, the OED is scheduled to request approval from the Mayor’s Budget Review Committee to file legislation with the City Council for an incentive package for the project.
According to the OED document, the company has more than 1,500 office employees and expects that number to grow by 500 over seven years.
The expansion will house both executive positions and front office staff. For the new jobs, the average annual salary with benefits is $125,000, with an average base of $100,000.
City incentives
The proposed city incentives package comprises:
• A Recapture Enhanced Value grant of up to $10 million, based on 50% of the taxes generated by the project site for 13 years.
• A Job Creation Grant of up to $3 million for 500 new jobs the company is expected to create. The jobs will have an average annual base salary of $100,000, the document states.
• A Business Expansion Grant of $5 million, payable at $500,000 per year for 10 years starting on the sixth year after execution of an economic development agreement between the company and city.
• A Job Retention Grant of up to $3 million for maintaining the current 1,500 jobs.
State incentives
The state of Florida would provide $124 million in additional incentives:
• A High-Impact Performance Incentive award of $4 million.
• A Capital Investment Tax Credit of $120 million, or 100% of the state’s corporate tax liability for the company.
The OED lists the return on investment for the city incentives at $1.01 for every $1 invested.
Other cities in the Southeast are recruiting the company, the document states, and the company is considering options elsewhere.
Financial services in city
There are several financial services companies in Jacksonville.
In January, JPMorgan Chase & Co. CEO Jamie Dimon told the Daily Record that besides growing the branch network in the Jacksonville area, the company may also look to add back-office operations in addition to its large mortgage center.
JPMorgan employs about 1,700 people in Jacksonville and said it will hire 100 more for the new branches and other needs.
In 2022, Fidelity National Information Services Inc. opened its new $156 million headquarters on Riverside Avenue, for which the city and state provided $29.9 million in incentives. FIS employed about 1,200 people at that time and said it was 75% of the way toward adding 500 jobs, a commitment it made in its development agreement with the city.
Another firm in the mortgage business is Black Knight Inc., headquartered at 601 Riverside Ave., in Brooklyn near the FIS headquarters.
Citi, Deutsche Bank, Wells Fargo and Bank of America also have campuses in Jacksonville.