Estimates for the price of the Four Seasons hotel to be built on the Northbank turned out to be low even when pricing in the cost of inflation.
The 2021 estimate was $321 million. The actual cost will be almost $388 million, according to the Jax Daily Record.
Jacksonville Jaguars owner Shad Khan is building the hotel and an office building near the TIAA Bank Field where his NFL team plays home games.
The City Council is being asked to approve a new development agreement that will increase the cap on the property tax refunds that go to the project, which is within the downtown tax increment district.
In tax increment districts, developers get partial refunds of the added tax revenue they generate.
Another change is that Khan would buy the 1.05-acre parcel instead of leasing it from the city.
The hotel would go on the former Kids Kampus park, which was where the old Jacksonville Shipyards were located.
Although skeptics feared the project would turn out to be less than advertised, as was the case with Dailey’s Place, a Jaguars vice president confirmed recently that it will be a 176-room Four Seasons hotel, luxury condos, a spa, a restaurant and a six-story office building.
This plan is a scaled-down version replacing the grander “Lot J” project, which the council rejected.
As part of the deal, the city would pay for redeveloping a public marina, a support building, an event lawn and rebuilding the Riverwalk. The city also has to do other infrastructure improvements, which were needed even without the hotel project.
Anticipated net tax revenue to the city also has increased and now is projected to be $20 million over 20 years.
The Jaguars, through its real estate company Iguana, also will donate $4 million to the city over 20 years for maintenance and programming at nearby Metropolitan Park.
According to the Record, the Downtown Investment Authority expects the city to receive $1.10 for every $1 it spends on the hotel project and $1.23 for every $1 related to the office building.