North Jacksonville Cold Storage Projects Get City Financial Support | Jax Daily Record | Jacksonville Daily Record
Two companies providing cold storage and distribution facilities in North Jacksonville have won $5 million in property tax relief from the city.
City Council voted 17-0 Aug. 24 on two bills approving enhanced value recovery grants, property tax rebates, for unrelated facilities by third-party logistics company Arcadia Cold Jacksonville LLC and the company cold storage company FreezPak Logistics based in New Jersey.
Arcadia plans to lease and invest $86.5 million in a refrigerated distribution facility to be built in the Imeson International Industrial Park, according to a July 6 draft redevelopment agreement and project summary from the Bureau economic development of the city.
The office’s executive director, Kirk Wendland, told the council’s finance committee Aug. 16 that the company would lease the cold storage space from building owner and Arcadia subsidiary Saxum Real Estate.
FreezPak’s plan was detailed in a July 20 city summary that says the company will lease a $116 million warehouse at 8730 Somers Road.
Together, the two companies plan to invest a total of $202.5 million in segregated cold storage, a growing logistics use in Jacksonville.
• Resolution 2022-0617 grants a 50% REV grant over five years to Arcadia, capped at $2 million. In exchange, the company says the facility would create 60 jobs at an average annual salary of $50,500 plus benefits by December 31, 2027.
• Resolution 2022-0618 authorizes a REV grant capped at $3 million to FreezPak parent company BGFP Jacksonville LLC. The company told city officials that its cold storage and distribution facility will have at least 80 employees by the end of 2026.
Council members Randy DeFoor and Rory Diamond were absent for the votes.
FreezPak would pay an average annual salary of $56,000 plus benefits, the city summary says.
Saxum / Arcadia
Saxum Real Estate applied for planning permission on August 5 to construct a 334,022 square foot food storage/distribution freezer on 32.37 acres at 250 Busch Drive E., No. 1, at a cost of $60, $77 million. Primus Builders Inc. of Woodstock, Georgia is the contractor.
The permit application indicates that approximately one-third of the facility will be shell space for a future tenant, meaning that two-thirds, or approximately 222,459 square feet, would be for an initial user.
An application and plans filed July 5 with the St. Johns River Water Management District show Saxum Real Estate plans to develop the project on North Main Street and Van Dyck Road inside the International Industrial Park Imeson.
Arcadia’s draft redevelopment agreement with the city says it will lease approximately 216,963 square feet of space.
The building will have 32 loading docks, 62 trailer storage spaces and 109 parking spaces.
To qualify for the incentives, Arcadia promised the city a capital investment of $86.5 million.
The city’s summary says the company will spend $84 million on building improvements and $2.5 million on machinery/equipment, furniture and fixtures over the next two years.
Arcadia will receive nothing from the city if the capital investment falls below $65 million.
The city expects a return of $4.41 on every dollar of public investment in the project.
Council had to approve the waiver of the base salary provision in the city’s public investment policy to qualify the Arcadia project for the incentives.
The average salary of $50,500 does not meet the policy requirement that property tax incentive salaries meet or exceed the state average salary of $55,422.
More investment FreezPak
FreezPak envisions an investment of $83 million in real estate and $33 million in machinery and equipment for the proposed facility over the next two years, the city summary states.
Economic development officials expect the town to receive $3.70 for every dollar invested in the project.
Private capital investment is expected to be at least $100 million and FreezPak would create at least 80 jobs by the end of 2026.
FreezPak reportedly pays an average annual salary of $56,000 plus benefits.
The resolution did not require a waiver of the public investment policy.
According to Wendland, the FreezPak site is where Philadelphia-based BG Capital is offering a $101.2 million development on Somers Road.
BG Capital paid $11.175 million on July 15 for 20.5 acres to develop the 272,400 square foot Jacksonville Cold Storage at 8730 Somers Road near the JaxPort Talleyrand and Dames Point marine terminals.
BGFP Jacksonville LLC has purchased the property from Somers Road Jacksonville Propco LLC, which is InLight Real Estate Partners of Ponte Vedra Beach. BGFP could refer to BG Capital and FreezPak.
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