Editorial: Incentives to restore Laura Street Trio could spur downtown economic development

Any time tax incentives are part of a development plan, people will have concerns about whether it's the best use of taxpayers' money.

Such deals should be scrutinized, which is what reporters and columnists do on these news pages and what letter writers do on the editorial pages. 

After reviewing that scrutiny and watching more than two decades of starts and stops on restoration efforts for the historic Laura Street Trio, we are happy to see positive momentum that will have a huge impact on downtown Jacksonville. 

We commend the Jacksonville City Council for approving $26.7 million in incentives for the restoration of the Laura Street Trio into part of a Marriott Autograph Collection project, with hotel rooms, a bodega and other retail space in the heart of downtown.

It wasn't unanimous approval — but it was close. 

LeAnna Cumber cast the one opposing vote after criticizing the late addition of $2 million in taxpayer incentives beyond what the Downtown Investment Authority board approved in March. She said the extra money undermines the city's process for determining incentive amounts. Her concerns are valid. 

Her reasons for opposition include offering $2 million "just because someone asked nicely," though the city can't fund some maintenance needs and the City Council voted in May to double the local gas tax to help pay for road, drainage and transit projects. 

But we agree with council member Michael Boylan, who told reporter David Bauerlein that he saw the restoration project as a capstone for revitalizing downtown.

Bauerlein reported that the incentives are the biggest taxpayer-backed package the city has put up for the three vacant buildings — constructed between 1902 and 1912. While officials debated proposals over the last 20 years, the buildings continued to deteriorate.

Still, nationwide with the COVID-19 pandemic triggering budget crises for municipal governments, it's essential that the city use caution when giving out incentives, which can entice more growth.

The good news is that cities are experimenting with new evaluative tools and practices that help maximize economic, fiscal, and social benefits, according to the American Research Group Brookings Institute.

Bill Fulton, director of Kinder Institute for Urban Research at Rice University in Houston, says there’s a big difference in putting money toward incentives for a troubled downtown area that could be an impetus for economic growth, as opposed to a suburban Walmart that a local government looks at as another vehicle for sales taxes only.

“The fundamental questions with incentives are, “Are you making something that wouldn’t happen otherwise, or is this something that would’ve happened otherwise,” he said. “After two decades, it sounds like this wouldn’t have happened without incentives….It means that something is happening as opposed to nothing.”

Jacksonville's downtown needs some attention in order to bring more vitality to the area. That's one thing that most citizens will agree on.

The city will loan SouthEast Development Group almost $24.7 million, forgiving $19.4 million of that if the developer does its part under the redevelopment agreement.

SouthEast plans a $70 million project that includes the renovation of the three historic buildings and construction of a new eight-story building. The National Park Service supports the restoration plan of the three buildings on the National Register of Historic Places. 

The city of Jacksonville under various mayors has struggled with being good stewards of taxpayers' money. The key on this and other incentive packages is to make sure developers do their part to see projects through to completion as promised. 

SouthEast has proven it can do this kind of work. It restored the Barnett Bank, which is across the street from the Laura Street Trio. 

When completed, this latest project would bring back into use what's long been considered three of most architecturally significant buildings in Jacksonville — while also spurring other economic development and job creation in Downtown Jacksonville. 

That's positive momentum for our city.