What will it cost the taxpayers?

Jacksonville is moving forward with Shad Khan’s plan to redevelop the Shipyards and the biggest question to be answered is what will it cost Jacksonville's taxpayers?

“Now we have to do the real work of going from concept to actual numbers- this is where the real work starts,” says Downtown Investment Authority CEO Aundra Wallace.

The DIA voted today to allow contract negotiations to begin with the Jaguars' owner's development group, Iguana Investments Florida LLC. Their proposal includes residential and office space, a multi-layer practice field, public art and more for the now vacant and contaminated site. The bid scored far and away higher than the two competing plans which had been submitted.

GALLERY: Shad Khan's proposal to redevelop the Shipyards

The DIA raised a series of questions, however, about some elements of the design. Paul Harden, who represents Iguana, says they're open to the ideas, as long as they fit with the end goal of creating a spark in Downtown.

“One of the things that it’s going to take to make the football franchise sustainable is for the City to have a sustainable Downtown,” Harden says.

The biggest concern from Board members is the cost for which the City is on the hook. Iguana's proposal has the City give the land to the development group, fund the environmental cleanup, pay for improvements along Bay Street, complete a Northbank Riverwalk, partner with building the attractions on the site, and more.

“Cost to the city- the infrastructure improvements along the way- is going to be high on our list to get a handle on,” Wallace says.

As the negotiations move forward, Wallace says there will be a point where he brings an updated terms sheet to the DIA which reflects the exact cost. Board Member James Bailey used this part of the discussion to point out that they had complete confidence in the ability of Khan's group to deliver on what it promises- his concern is the City's ability to do the same on the public investment.

DOCUMENT: Current terms sheet from Iguana Investments Florida LLC

In exchange for the public investment, the proposal says the development itself would be privately funded and the City would receive a share of profits from land sales, after certain development costs were recouped.

DIA Vice Chair Jack Meeks was the first to express concern about the addition of office space, given the current vacancy rate in Downtown, and many others agreed. A few weren’t completely behind the multi-layer practice field as well, saying it’s not the “attraction” the area needs.

Board member Kay Harper-Williams believes there is not enough residential space. While several other board members agreed with that as well, Harden says they’re going to let the market dictate that part of the development.

“You’ve had some folks who have gone in there with a square peg and it turns out the market was round,” Harden says.

He says they’ve been working mostly conceptually until they actually get control of the land, but will be bringing in experienced teams to investigate what exactly the market needs- retail, residential, for rent, etc.

Harden took it one step forward, however, saying that Khan himself does want to live at the Shipyards.

Some questions on the team selected by Khan were also voiced- specifically Board Member Doris Goldstein believes the companies involved are known more for stadium work than urban riverfront design.

Still others had questions not about what’s included in Khan’s proposal- but what’s not. Board member Melody Bishop questioned whether the project could be expanded to include Met Park. Specifically, she wants to see the venue moved closer to the core of Downtown.

Harden wouldn’t disclose much information, but confirmed their team is, in fact, working with interests in Washington about freeing up the property. Because the federal government invested in Met Park several decades ago, there are restrictions on the property currently. Harden says they’re looking at how much time is left on that contract and other obstacles involved. He said it’s a “great idea” to have Met Park be a part of this discussion.

Wallace wouldn’t put a timeline on the negotiations, but Harden says they are ready and hoping to move as quickly as possible. The one thing holding it up right now is an ongoing environmental assessment of the land. Both parties say it’s important to get a better hold of the extent of the contamination and, therefore, how much it would cost to clean up.

“Once we know that, that’s kind of when the horses are at the starting gate,” Harden says.

The Mayor’s Office confirms to WOKV that they’re expecting initial estimates from the ongoing environmental assessment at the end of May, with a final report to be filed with the State by the end of June.