Posted on June 24, 2020
The Mayor’s Budget Review Committee unanimously approved Monday a $75 million allocation for Jaxport to spend on its harbor deepening project. The allocation now advances to City Council for approval.
The allocation includes a $35 million grant from the city and a $40 million bridge loan, advancing money that will be paid over two years by the Florida Department of Transportation as work on the deepening project advances.
The city will contribute another $35 million to the project through a $60 million bond, which it expects to issue this year. Jaxport will pay the remainder of the $60 million bond.
The city has also committed to providing up to $10 million in a bond that will be issued next year. Jaxport will have the ability to draw on that as needed.
Chief Administrative Officer Brian Hughes praised Jaxport during Monday’s meeting for requesting only $70 million to $80 million from the city, after subtracting the bridge loan that FDOT has committed to repaying. Jaxport told the city in previous years it may need as much as $150 million from the city.
“The reason that the ultimate appropriation number is now in the $70 million range is because our partners at the port – [CEO] Eric Green and his team, as well as the board – worked very, very hard and did a very successful job of getting state and federal partners to really maximize their participation,” Hughes said.
The U.S. Department of Transportation, FDOT, Jaxport and some port tenants have each contributed tens of millions of dollars to the project so far.
The $484 million project will deepen the first 11 miles of Jacksonville’s shipping lane by seven feet, allowing larger ships with higher container capacities to dock at the port fully loaded. Deepening began in 2018 and is on pace to be completed in 2023, two years ahead of schedule.
Source: bizjournals
