Read the executive summary (PDF, 221KB)
The Jackson Free Press has obtained a document Jackson Mayor Harvey Johnson Jr. gave to city council members in closed session on May 17, outlining a proposed cost-sharing agreement with Convention Center hotel developers. The document, which the city still has not provided directly to the JFP (despite an open records request), recommends that the city help finance the $200 million project through bonds, but does not specify a dollar amount for that help.
The plans to finance the mixed-use development along four blocks of Pascagoula Street includes "Gulf Opportunity Zone Bonds secured by urban renewal bonds, and ultimately secured by project revenues project revenues, state tourism sales tax rebate revenues, project reserve funds, city deficiency obligation payments and a first deed of trust on the property," the document states.
The document also proposes that the city extend the maturity of the balance of the development's existing Section 108, a loan guarantee provision of the Community Development Block Grant provision, for a total of a $7 million loan.
The developers have also agreed to pay the city a fee of "$3 million to $6 million" at closing, to be placed in a reserve fund for the benefit of the city. The developer will also pay an annual fee of "approximately $420,000" once the project is in place, the document states.
The proposal does not outline any penalties the developers would face if TCI-MS fails to meet the agreement.
Read the previous story on the development.
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