Committee amends Project Underground agreement to clarify rev‑grant terms, JSEB and job thresholds

The Finance Committee on Jan. 21 approved an amendment to Project Underground’s economic development agreement to clarify compliance with the city’s public investment policy and to revise financial and job‑creation terms.

Philip Peterson explained the changes: the rev grant term was revised to five years with a final payout year of 2033; the city’s JSEB (Jacksonville Small and Emerging Business) participation target was corrected to 20% of the amount the city contributes to the project; a minimum number of retained jobs is set at 146; and the amendment clarifies how the rev grant is adjusted if the project does not meet its new‑job targets (full grant if 100% of target is met; proportionate reduction between 80% and 64% of target; termination if below 64%). Peterson said a miscommunication between the council office and the Office of Economic Development had led to wording that could have required 100% new‑job attainment to receive any rev grant; the amendment restores the standard proportional reduction approach consistent with prior agreements.

Councilmembers asked for clarifications on the rev‑grant amount and return on investment; Councilmember Diamond confirmed that $275,000 of the package is structured as a rev grant. Councilmember Laney supported the package as a high‑return, rev‑grant‑only incentive but cautioned that ROI calculations assume available cash and may not reflect budget constraints.

The amendment carried and the committee approved the bill as amended (vote recorded as 6 yeas, 0 nays). The committee closed its business and adjourned.