Council debates financing, uses and timeline for final phase of Jackson Square development

Eric Moore of Brandywine presented details about the proposed final phase of Jackson Square (item 3.4), describing plans for an approximately nine-story building to anchor a nominated public space and house municipal uses. Moore said the project includes a food plaza, a park, new signage and pillars “so everybody to know when they’re in Jackson Square,” municipal office space for the Economic Development Corporation (EDC), and additional municipal space.

Moore said the estimated construction timeline is about 27 months once financing is in place, with a first payment coming roughly 30 months after council approval. On financing, Moore said the building would be developed under a lease-to-own structure: the developer obtains construction financing, the city pays rent over a period (cited as 30 years), and after rent obligations are met the title reverts. Moore said the first-year rent payment on the 30-year schedule would be $5.2 million, with an escalating schedule thereafter; he said the city could request the detailed payment schedule in the lease document.

Council members and other participants pressed for much more detail. They asked for a full financial analysis comparing the lease-to-own structure with traditional bonding, the annual lease schedule and escalation, and an inventory of which departments currently leasing space the city expects to relocate into the new building. One council member said, “I would imagine that this building is going to help get rid of rents that we’re paying somewhere else,” and requested documentation showing how much would be saved and who would occupy space.

Council members also proposed alternative uses for portions of the building, including senior housing, youth services, or an incubator/merch store. The Brandywine representative and administration said they would provide a more complete tenant list and a financial analysis and that the council could pause the item between readings to gather feedback. One council member urged that the council should not approve sale of the parcel for a nominal $1 if public perception would view it as giving land to the developer; Moore said the sale price is at the city’s discretion and that the financing structure is designed to put the building under private financing until title transfers under the lease terms.

The transcript shows extensive Q&A and requests for follow-up; it does not record a final vote on ordinances or agreements in the excerpt.

(Ending) Administration and the developer agreed to provide a complete financial analysis, a tenant and space-use plan, and potential alternatives such as senior or youth services before the council proceeds to final readings.