City's Planned $65.5 Million Loan To Lot J Project Could Take 50 Years To Repay
The city’s proposed $218 million incentives package for the Jacksonville Jaguars and its project partners to develop Lot J includes a $65.5 million, interest-free loan that would be repaid after 50 years.
The loan is part of the city’s incentives offer for the proposed $445 million mixed-use project west of TIAA Bank Field, the Jaguars’ home stadium.
City spokesperson Nikki Kimbleton said in an email Oct. 6 that the loan would be repaid through growth on a $13.1 million trust funded by the developer. The city cannot touch the trust earnings until the account reaches $65.5 million or after 50 years.
“The Collateral for the loan is held in a trust and invested, and the City takes title to the corpus of the trust at the earlier of the time the corpus equals ($)65.5 (million) plus trust expenses, or 50 years,” said Kimbleton, city director of public affairs, in the email.
The loan structure wasn’t included in the term sheet released to local media after the Oct. 5 news conference with Jaguars owner Shad Khan, team President Mark Lamping and Mayor Lenny Curry.
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