Councilman wants to trade Shipyards, other land for reduction in Jacksonville's pension debt

Jacksonville Councilman Matt Schellenberg wants to trade a string of properties ? including the Shipyards and the old City Hall and courthouse ? to the Police and Fire Pension Fund to lower the city?s unsettled pension debt.

Schellenberg said he?ll seek emergency action Tuesday for legislation that would cut a liability that stands near $1.7 billion, though the dollar value of the trade isn?t certain.

The bill (2013-669) calls for deeding over seven downtown properties in return for a $69 million reduction in the city?s debt.

It also envisions a trade involving timberland near Cecil Field and the city?s equestrian center, but doesn?t set a value on that.

Other council members panned the idea of emergency action, but said the city may well want to hand over some real estate eventually.

While the land-swap idea is ?certainly worth consideration, I don?t consider it worth consideration as an emergency,? Council President Bill Gulliford said.

Councilman John Crescimbeni said the city should have a detailed plan that protects the city if there?s another dip in real estate values.

?I?ve got a pension fund I have no control over,? he said. ?If we?re going to reduce this unfunded liability, I want to draw a line and say ?OK, if I give you this, I?m out of it.??

With a city task force looking at answers to the city?s pension problems, Gulliford said there?s no reason to act rashly.

?I?m not about to cut the legs out from under what I consider a community-wide effort,? he said.

Please don?t, said attorney Bill Scheu, who chairs that task force.

?Let?s wait for the task force to finish its work,? Scheu said.

Mayor Alvin Brown?s chief of staff, Chris Hand, reinforced that point, saying ?any legislation should come after the task force finishes its work, not before.?

Scheu noted that pension fund administrator John Keane prepared the legislation Schellenberg filed, and said the liability reduction shouldn?t be based on the assessed value, which is used to set taxes but typically is well short of the real price land can command.

?Mr. Schellenberg has not done his homework,? Scheu said. ?? Would anyone sell their property for the assessed value??

Schellenberg said he and Keane have talked for perhaps three months about the exchange. He said the land may be well below its peak value now, but that shouldn?t be a reason not to consider a trade.

If the pension fund gets the land cheap, then redevelops it and sells it for twice the price, Schellenberg said, that profit will help cover pension obligations that would fall on the city otherwise.

The downtown portion of the swap deal lists seven parcels: the Shipyards at 750 and 950 E. Bay St.; the former Duval County Courthouse at 330 E. Bay St.; the old City Hall at 220 E. Bay St.; the Water Street garage at 541 W. Water St.; and land at 28 W. Forsyth St. and 501 W. Adams St.

Steve Patterson: (904) 359-4263

Source: http://feedproxy.google.com/~r/JacksonvillecomsNewsSportsAndEntertainment/~3/wx91fEVxe4k/councilman-wants-trade-shipyards-other-land-reduction-jacksonvilles

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