City of Jacksonville wants to give Shad Khan interest-free $65 million loan for Lot J
Jacksonville taxpayers will give Jaguars owner Shad Khan $65.5 million through an unusually structured loan that would charge no interest, take up to 50 years to repay and significantly lessen Khan's tax burden, according to the proposed deal he's reached with City Hall to build a mixed-use development on Lot J next to TIAA Bank Field that was announced Monday.
Under the novel arrangement, the city will provide an upfront payment of $65.5 million to the billionaire's development team. Instead of repaying the loan over a fixed schedule, the developers would make an upfront deposit of $13.1 million into a trust account, where the city expects it to grow in value over decades. The city would collect the money when the account's value reaches $65.5 million or 50 years, whichever happens first.
Counting the loan, Curry has proposed committing as much as $233.3 million in public subsidies to the project, including as much as $205 million in hard cash. In comparison, the city plans to spend roughly $240 million this year across the city on big-ticket capital projects and infrastructure improvements.
Khan's development team, which is a partnership between himself and the Cordish Companies, plans to invest $229 million in the project, although the amount is actually $174.4 million when the proceeds of the city loan are accounted for.
Read more: https://www.jacksonville.com/story/news/local/2020/10/06/jacksonville-wants-give-khan-interest-free-65-million-loan-lotj/3636734001/
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