The Commercial Revitalization Program provides for real estate tax recovery grant for the incremental improvements made for new, renewal, or expansion leases involving office or retail space in Downtown Jacksonville.
 
For leases of 3 or 4 years a 3-year real estate tax recovery grant equal in the first year to the lesser of:
  • 75% of the actual tax liability, and
  • $2.50 PSF with a 2-year phase-out thereafter
 
For leases of 5 years or more, a 5-year real estate tax recovery grant equal in the first three years to the lesser of:
  • 75% of the actual tax liability, and
  • $2.50 PSF with a 2-year phase-out thereafter
 
Leasehold expenditures for improvements must be at least (a) $5 PSF for new and renewal leases of less than 10 years; (b) $10 PSF for renewal leases of 10 years or more involving only previously occupied space; and (c) $35 PSF for new leases of 10 years or more and renewal leases of 10 years or more involving expansion space. Lease must not be a sublet or license agreement. Lease must provide that (a) any recoveries of real estate taxes will be passed through to tenant and (b) required leasehold improvement expenditures will be made. Tenant must not have accessed CRP previously for any space, except that, if tenant expands into new space and continues to occupy space for with CRP was accessed, tenant can receive benefits on expansion space. Not available to businesses that relocate from one part of Downtown Jacksonville to another.  This Program cannot be used for a space that has an outstanding Retail Enhancement Program recoverable grant.
 
Applications must be filed before lease is signed. For a new lease, evidence of leasehold improvement expenditures and number of new employees must be submitted to the DIA within 60 days of rent commencement. For a renewal lease, evidence must be submitted to DIA within 14 months of lease commencement and evidence of number of employees must be submitted to DIA within 60 days of rent commencement.
 
Example:  A financial services firm with 300 employees signs a 10-year lease for 100,000 SF in Downtown Jacksonville at $30 PSF. Without benefits, its annual real estate tax liability would be $10 PSF, or $1,000,000.
 

Year CRP Recovery Percent* CRP Property Tax recovery
1
2
3
4
5
75%
75%
75%
50%
25%
$    250,000
$    250,000
$    250,000
$    166,667
$     83,333
Total (Nominal) Tax Recovery   $ 1,000,000
 
 
As shown above, CRP would result in an aggregate recovery of $1,000,000 in real estate taxes over 5 years.
 
* CRP Recovery Percent is the percentage of the initial year’s benefit that is available each year.