The City of Jacksonville’s share of a proposed $345 million UF grad school in LaVilla may balloon from $50 million to $100 million as a result of additional plans to house a Semiconductor Institute on the campus.
The university is asking for the additional $50 million commitment from the city to be approved by the council by June 24th.
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The extra funds would be used for campus improvements.
The state is also kicking in $45 million for the Semiconductor Institute.
The mayor’s office backed the additional investment in a statement, arguing it will provide a solid return on investment.
“This Institute is expected to have at least a $100 million dollar economic impact for Jacksonville,” a spokesperson for the mayor’s office told Action News Jax. “This additional spending is necessary to ensure the successful launch of the Florida Semiconductor Institute in Jacksonville and to invest in workforce development for the city.”
Council Finance Chair Ron Salem (R-Group 2 At-Large) said he believes the potential the proposed campus would bring to the urban core is worth the investment.
“I think it will add jobs and be good for the city,” said Salem.
But given the city is staring down the possibility of budget shortfalls in excess of $100 million over the next three years, city leaders will have some tough choices ahead.
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“I’m not sure exactly when that $50 million will kick in, how quickly, and if we’re going to do that we may have to look at other expenses and cut those back in order to pay for it,” said Salem.
In a statement, UF told Action News Jax the second $50 million installment is the last piece of funding needed to build the first academic building on the proposed campus.
“We do not anticipate requesting any additional funds in the near future,” a university spokesperson told Action News Jax.
But there are additional costs the city could incur soon related to the campus.
Two competing proposals are being considered that would facilitate the acquisition of a two-story LaVilla office building to allow classes to begin this year.
Salem’s proposal would spend up to $8 million to purchase the building outright, while the mayor’s plan involves swapping an acre of land in Riverfront Plaza for the property.
Mayor Donna Deegan’s plan would require Gateway Jax to develop the land and offer at least $20 million in incentives to the developer.
It’s not clear how the additional funding request from UF will play into how council members view the two competing options, but Salem said he’s optimistic a decision on the office building acquisition will be made by late May.
“And I believe there will be more coming here from the University of Florida as we get this going. We’re a large urban area. Gainesville is not, and I think that will pay off for us long term,” said Salem.
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