Increased costs bring more proposed changes for Shipyards project

JACKSONVILLE, Fla. – Some work is underway on the Shipyards project, which involves a new hotel and office building on Jacksonville’s Northbank, but costs have gone up, and all indications are the deal that the Jaguars have with the city is about to change again.

Construction costs and other financing have increased, so Jaguars owner Shad Khan and his investment team are proposing changes to the city deal, which was approved earlier. Now, Khan wants to actually buy all of the property for the luxury hotel and office site instead of leasing it from the city.

“They already own the land that the hotel is on. They already bought that. They closed on it,” said Downtown Investment Authority CEO Lori Boyer. “So now they’re also going to own the property that the office building is going on.”

Boyer says this is a good deal for the city.

“First of all, we get the cash price at closing for the land that we were not getting before,” she said.

That’s $3.2 million to buy the land that the office complex will sit on. Khan’s total investment will be over $387 million.

“The Jags are building for us. They’re hiring the contractor that is building the marina, that is doing the bulkhead replacement, that’s rebuilding the Riverwalk there. Those projects are things they’re going to execute on our behalf,” Boyer said. “And they get reimbursed with the city money that is in the city capital project.”

So while the Jaguars will be paying more in construction costs, the city is still offering incentives once the project is complete. As part of the new deal for the hotel, Khan’s company, Iguana Investments, will get $25 million from the city once the project is complete. Khan’s company will also get $50 million in tax incentives, over time.

And the city will be paying back some of the costs to Iguana Investments, including $13 million for a new marina, $8.7 million for a new marina pier, nearly $7 million for a new bulkhead, and nearly $10 for a new support building in the event lawn.

In the long run, Boyer says, all of this money will be coming back to the city in revenue.

News4JAX is taking a deeper dive into the Shipyards project, which is already underway on Jacksonville’s Northbank.

The hotel and office are expected to be done by the end of 2025, but it might take a little longer.

“I do think it’s all going to happen,” Boyer said. “We have a design contract right now on the Shipyards West Park. That is well underway. Progress is continuing on that front. We have legislation next week on getting the pilings in for the [USS] Orleck’s relocation over to that area. We have MOSH (Museum of Science and History) moving forward with their plans to locate in the middle of that Shipyard stretch, and I absolutely believe they’re going to get this hotel constructed,” Boyer told News4JAX on Wednesday.

So new legislation has been filed with the Jacksonville City Council spelling out the new deal, and a special City Council workshop will be held next month explaining to members what all is involved.

A spokesperson for Iguana Investments on Wednesday provided News4JAX the following statement on the Shipyards legislation:

“Iguana Investments’ vision for the Shipyards property remains fully intact and unchanged. Work, in fact, continues on the property today. The new legislation working its way through City Council reflects months of collaborative work between Iguana and the Downtown Investment Authority (DIA) to address various site-specific issues, the purchase of the office property at fair market value, and global supply issues affecting the overall project cost and schedule. The revised redevelopment agreement reflects Iguana Investments’ increased capital investment from $301M to a minimum of $387M and adds no more than six months to our original completion date guarantee. Collectively, the proposed changes to the redevelopment agreement will result in a greater return on investment for the City. We’re grateful to the DIA for their efforts in moving this project forward and look forward to answering any questions from City Council members in the coming weeks.”

You May Also Like

Grammy winners 2023: The full list from album of the year to best song and artist

Best American Roots Performance Aaron Neville & The Dirty Dozen Brass Band…

Win tickets to 2023 Daytona Speedweeks events

Speedweeks is the kickoff to the NASCAR season with an action-packed schedule…

Huddersfield Town forward Martyn Waghorn believes Terriers can put 'together a run' after QPR draw

The veteran striker bagged his first goal for the Terriers on Saturday…

7th Grader Wins $10K in Shooting Challenge on Basketball Court

A seventh grade boy’s shot of a lifetime during a recent high…

Matthew Scott Flores Caught Driving Gary Levin’s Car: Police

Matthew Scott Flores was caught driving a car belonging to missing man…

‘Humiliation Was Inflicted by Chinese Communists’ on Biden

Senator Tom Cotton (R-AR) said on this week’s broadcast of “Fox News…

Aaron and Spencer say goodbye to the Love Island villa as they are voted off

Aaron and Spencer say goodbye to the Love Island villa as they…

What happened when Aiden Fucci allegedly killed Tristyn Bailey?

Tristyn Bailey was just 13 when she was brutally murdered. Aiden Fucci…

‘I’d Give Anything to Just Hear Her Voice’: Mother Pleads for Information About Missing Daughter

Editor’s Note: This article is part of a series this month spotlighting…

Voting starts for Cyprus’ presidency, with 3 front-runners

NICOSIA – Cypriots on Sunday began voting for their eighth president in…

Huddersfield Town's strange low-key drift leaves ultimate direction of travel uncertain

The Terriers and their fans alike all seemed uncertain of what to…

Rival boss gives Sheffield United promotion backing over key aspect as Middlesbrough pose threat

Rotherham United manager Matt Taylor watched his side secure a well-earned point…