The code-named Project Paper Company matches Intercontinental Exchange Inc., although the city has not disclosed the name and ICE has not responded to emails for comment.
The Mayor’s Budget Review Committee voted Oct. 7 for the Office of Economic Development to submit legislation to City Council for $21 million in city incentives for the project.
The state has tentatively approved $124 million in incentives by way of a $4 million High-Impact Performance Incentive Award and a $120 million Capital Investment Tax Credit.
The project says the incentives are “a material factor” in whether it stays and expands or leaves and grows where it has a presence in another Southeastern city.
Project Paper Company is an existing financial services company seeking to expand and establish its national headquarters for its Mortgage/Technology Division in Jacksonville, according to a Sept. 30 city memo to the committee.
The project plans at least a $173 million capital investment and possibly more than $216 million over five years in construction, equipment and building improvements, it says.
The “building(s)” will house more than 1,500 current employees that will grow by 500 jobs over seven years.
The Sept. 30 memo says the incentives are a material factor in remaining and expanding in Jacksonville instead of relocating and expanding in “another large Southeastern metropolitan area in which it has a presence.”
The memo says 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.
Intercontinental Exchange Inc. describes itself as a Fortune 500 company that designs, builds and “operates digital networks that connect people to opportunity.”
“We provide financial technology and data services across major asset classes helping our customers access mission-critical workflow tools that increase transparency and efficiency.”
“At ICE Mortgage Technology, we are transforming U.S. housing finance, from initial consumer engagement through loan production, closing, registration and the long-term servicing relationship. Together, ICE transforms, streamlines, and automates industries to connect our customers to opportunity.”
Making the match
ICE has said already it was expanding in Jacksonville.
In February, ICE reported a big increase in mortgage technology revenue in the fourth quarter after completing its 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, also said it is upgrading the former Black Knight headquarters at 601 Riverside Ave. in the Brooklyn area of Downtown Jacksonville.
During ICE’s year-end conference call with analysts Feb. 8, Chief Financial Officer Warren Gardiner said its capital spending plans for 2024 include “$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.
ICE, which lists headquarters offices in New York and Atlanta, now owns the 327,000-square-foot Black Knight building along the St. Johns River.
Gardiner did not give any more details of the expansion projects but ICE spokesman Josh King said the company is modifying the building to accommodate employees moving to Jacksonville as it integrates the Black Knight operations.
“This requires some modest upgrades to the existing facilities there, which are beginning this year,” King said then by email.
“We aren’t detailing the specific details of those improvements, but we envision our Jacksonville presence to be an important part of ICE’s future.”
So far in 2024, permits acquired for improvements to the Riverside building comprise a fire system upgrade and a chiller replacement totaling $331,534.
Jobs and Black Knight
ICE’s annual report said ICE has 2,970 employees in Florida, more than in any other U.S. state. It had 8,074 U.S. employees and 13,222 in total as of Dec. 31.
It did not say how many employees it had at Black Knight.
As of 2022, JAX Chamber said Black Knight had 2,120 employees. It has not posted updates. The city memo specifies “over 1500 employees.”
ICE had a mortgage technology division but with the addition of Black Knight for a full quarter, its mortgage technology revenue doubled from $249 million in the fourth quarter of 2022 to $502 million in the final quarter of 2023.
ICE’s total revenue was $2.2 billion in the quarter.
Gardiner said ICE expects mortgage technology revenue to grow by a low single-digit to mid-single-digit percentage in 2024.
“There is clear momentum across the industry as customers seek technology and data solutions that drive greater transparency and workflow efficiencies,” he said.
Although ICE is expanding its Jacksonville presence, it is cutting costs as it integrates the Black Knight operations.
“We expect to realize approximately $135 million in annualized savings by the end of 2024, ahead of our original expectations of roughly $100 million by year-end,” Gardiner said.
Benjamin Jackson, president of ICE’s mortgage technology division, said in the conference call that the company provides “a true life-of-loan offering” after completing the acquisition of Black Knight.
“As we enter 2024, we remain focused on the successful integration of Black Knight and executing on our strategy of relieving the pain points and inefficiencies that exist across the mortgage workflow,” he said.
Locations
ICE Mortgage Technology Academy Support says it is based in Pleasanton, California, with offices in Atlanta; Omaha, Nebraska; Provo, Utah; and in India and Poland.
Atlanta could be the other “large Southeastern metropolitan area in which it has a presence.”
As for Black Knight’s building, it had shared the space with Fidelity National Information Services Inc. until FIS moved to its own new headquarters nearby at 347 Riverside Ave. in 2022. Fidelity-associated companies occupy several buildings along Riverside Avenue.
The city memo said the company was being recruited by “numerous other locations in the Southeast and is considering options in other large cities that have a significant financial sector located as part of its business environment.”
Ed Randolph, executive director of the OED, told Mayors Budget Review Committee members that in addition to Jacksonville, the project company is considering Tampa, Atlanta and possibly Charlotte, North Carolina, as sites for its divisional headquarters.
ICE hiring in Jacksonville for mortgage technology
ICE has posted job openings for Jacksonville that include:
• Senior Regulatory Compliance Writer to support “all facets of ICE Mortgage Technology customers to ensure business writing services provided to our customers exceed expectations.”
• Senior Mortgage LOS Consultant, which is the “ICE Mortgage Technology’s Professional Services Consultant (that) will be responsible for driving the adoption, optimization, and deployment of our solutions. Using their expertise and the organization’s best practices, the consultant will aid in the design, building, and delivery of the solution.”
• .NET Software Engineer for which “ICE Mortgage Technology is seeking a .NET Software Engineer to support custom development work for a high-profile client. The .NET Software Engineer will develop, maintain, and support applications for the organization’s servicing technologies division for a dedicated client account.”
• Senior Analyst, Regulatory Reporting and Business Intelligence “to ensure ICE Clear Credit remains in compliance with constantly evolving regulatory reporting obligations.”
• Software Test Analyst in which “ICE Mortgage Technology is seeking a Software Test Analyst to support both manual and automated testing of proprietary software applications. The Software Test Analyst will create and maintain the processes of the division’s quality assurance program.” It also “may teach or train junior colleagues on QA processes and procedures, and report performance to management.”
Jacksonville incentives
The city says the $21 million in incentives comprise a projected $10 million Recapture Enhanced Value Grant over 13 years; a $5 million Business Expansion Grant over 10 years; a Job Creation Grant of up to $3 million ($6,000 for each of the 500 jobs); and a Job Retention Grant up to $3 million ($2,000 for each of 1,500 employees that are here).
The 500 new jobs would be created by Dec. 31, 2031, creating a payroll topping $50 million not counting benefits; a capital investment of at least $173 million and up to $216 million “to construct and out-fit existing and future expansion office space” by Dec. 31, 2029.
The project would maintain a major employer of more than 1,500 employees in the targeted finance industry that adds to the “skilled labor base in Jacksonville.”