Jacksonville approves $1.4 billion 'stadium of the future' that should keep Jaguars in town for decades

The city of Jacksonville, Florida, has given the green light to a $1.4 billion “stadium of the future” on Tuesday. This move is expected to retain the Jaguars, a franchise of the NFL, in one of its smallest markets for a minimum of 30 years. This decision also concludes years of uncertainty regarding the franchise’s possible relocation.

The proposal received a 14-1 vote in favor from the city councilmembers, with two members abstaining. It now moves on for final approval by the NFL owners. The owners will convene in Atlanta in October, where 24 out of 32 votes will be required to finalize the deal.

Despite the 50-50 financial split being higher than what most NFL owners allocate for new or renovated stadiums, the Jaguars do not expect significant resistance from the league.

The proposed stadium plan requires each party to contribute $625 million towards the $1.25 billion project. Jacksonville, without imposing any new taxes for the rebuild, would also add another $150 million in deferred maintenance. This would prepare EverBank Stadium for construction in 2026, effectively raising the city’s contribution to 55% of the total cost.

Construction is set to commence after the 2025 season. In 2026, the Jaguars will play to a smaller crowd as there will be no upper deck. The following year, they will host their home games in Gainesville or Orlando.

The proposal entails the Jaguars signing a 30-year lease, agreeing not to relocate, and being restricted in the number of games they can play outside Jacksonville. The updated lease stipulates that all preseason and postseason home games would be held in Jacksonville, with one annual home game continuing to be played in London, probably at Wembley Stadium.

Both parties anticipate that the renovated stadium will result in more notable events.

Moving forward, the Jaguars have accepted to shoulder all cost overruns associated with construction, take charge of the stadium’s day-to-day operations, and cover 80.4% of game day expenses.

Team president Mark Lamping has said that the proposed 63,000-seat, open-air stadium includes a translucent covering that’s like “wearing shades in the sun.” This is expected to decrease outside temperatures by 15 degrees.

The capacity can be increased to 71,500 to house events such as the annual Florida-Georgia rivalry, the Gator Bowl, a College Football Playoff game, or the Final Four. The north end zone would still accommodate pools and a party deck.

The city, along with the Jaguars, continues to aspire for significant development around the area. This is anticipated to include a satellite campus for the University of Florida, expected to accommodate 10,000 graduate students. Both the city and the team deem the areas around the stadium as crucial for the ongoing success of downtown Jacksonville.

The city intends to fund its part of the agreement by reallocating $600 million from a capital improvement plan and utilizing revenue from an existing half-penny sales tax to finance the construction in a pay-as-you-go scheme. The city claims this approach will save them $1.5 billion in debt-service expenses over the lease term.

The Jaguars intend to finance a segment of their share through the NFL’s G-4 program, a scheme that offers monetary aid for stadium initiatives. The funding obtained through this program is deemed a loan, which is reimbursed from the allotted share of specific seating of the visiting team. Any team that applies for the loan must provide matching funds.

Copyright 2024 by The Associated Press