Ed Randolph, Executive Director, Office of Economic Development – City of Jacksonville

Invest: sat down with Ed Randolph, executive director of the Office of Economic Development in Jacksonville, to discuss the key highlights and initiatives under the leadership of Mayor Donna Deegan, covering the city’s focus on supporting small businesses, infrastructure development, and workforce challenges, while exploring Jacksonville’s strategic advantages in fintech, logistics, and medical technology.

What have been some of the main highlights and milestones for the Office of Economic Development in the last year or so?

Over the last year, we’ve not only focused on our regular efforts to attract new businesses to Jacksonville but under Mayor Donna Deegan, who has been in office for a year now, we’ve been especially focused on three main pillars of her campaign, which revolve around economic development. 

One of these pillars is small business. We’ve made significant strides in being a much better partner to the small businesses in Jacksonville. Like most communities, around 80% of our businesses here are considered small. Permitting has also been a key issue, particularly for small businesses. Delays in obtaining permits can be critical, as one or two months of paying rent on a space without operating can mean the difference between success and failure. The third pillar is infrastructure. So, these have been our primary focuses in addition to ongoing initiatives from previous years.

Which industries or sectors do you expect to be the main drivers of growth in Jacksonville in the short to medium term?

We’ve seen great success in a few key industries, and we need to continue playing to our strengths. The top two sectors are fintech and logistics. Geographically, we’re a natural fit for logistics, and over the last 35-40 years, Jacksonville has become a banking hub for the Southeast, dating back to when Merrill Lynch and Bank of America established major operations here.

We’ve attracted companies like Dun & Bradstreet and Paysafe, and now we’re seeing the development of a $300 million-plus campus by the University of Florida, which will focus on fintech and medical sciences. This will be their first main campus outside of Gainesville.

In addition to fintech, we’re also focused on aviation and medical sciences. We’ve got two active Naval Air Stations and the retired Cecil Commerce Center, which is now a major logistics park. Each year, about 2,500 military personnel retire from the area, and many stay in Florida due to the tax benefits. This provides a steady source of disciplined, well-trained workers, particularly for the aviation industry. We also recently announced a $150 million project by Hermes to manufacture and test supersonic jet engines here.

In the logistics space, we’ve become the Southeastern hub for perishable, refrigerated, and frozen items. We’ve attracted at least 12 businesses over the last ten years, each investing $100 million to $150 million in facilities. These are significant investments that require only about 20 acres of land, providing a great boost to our ad valorem tax base.

As for medical sciences, we are home to one of the few Mayo Clinics in the world, which has been investing billions of dollars in expanding its campus. This, along with other medical institutions, is another area of growth we’re focused on.

How are the city and the Office of Economic Development benefiting from the population growth and business activities taking place in the region?

We’re definitely benefiting from the growth, especially in terms of tax revenue and increasing our overall ad valorem base. However, one challenge we’re addressing is workforce development. As more businesses come to Jacksonville, we need to ensure that we have a skilled workforce to meet their needs.

We’ve been working closely with local learning institutions, including community colleges and state universities, to create programs tailored to the skill sets these new businesses require. We’re also holding monthly meetings with collaborators in the workforce ecosystem, including nonprofits, to ensure that we have programs in place to train workers at all levels, not just for white-collar jobs.

We’ve developed robust incentive programs for both large and small businesses. For small businesses, we’re about to roll out a micro-grant and micro-loan program to help them get established. The mayor has made it a priority to position Jacksonville as the small business capital of the Southeast, so we’re working hard to support small businesses in their critical first few years.

For larger businesses, we offer a variety of grant, loan, and tax programs, and we work closely with our local utility, which is owned by the city. This gives us flexibility in attracting businesses with high water and electric needs, such as battery manufacturing. We’re also investing in infrastructure in areas that are likely to attract these kinds of businesses.

How does the Office of Economic Development keep track of progress in Jacksonville, particularly with development projects and workforce initiatives?

We’re very transparent about our progress. Our website provides detailed information on the projects we assist with, tracking everything from inception to completion, including compliance with any incentive agreements. We’ve also brought in a more modern IT team under the current mayor, who has implemented dashboards that track various metrics across city government, including our office. This transparency ensures that all aspects of our work, from project initiation to accountability, are easily accessible to the public.

What are some of the main challenges the city is facing?

The three main challenges we’re facing are affordable housing, utilities, and workforce development. Like many communities, we’re struggling with providing affordable housing as home prices rise, particularly in neighboring counties where the average home price is around $500,000. This makes it difficult to attract and retain workers.

To address this, we’re working on public-private partnerships, including a $10 million fund that we’re asking the City Council to match with $30 million of private capital. This will be used to provide low-interest loans for building a workforce and affordable housing.

In terms of utilities, the rapid growth has caught us off guard. We’re focusing on upgrading water, sewer, and electric infrastructure in areas that are likely to see more industrial development. By doing so, we can better accommodate the needs of new businesses.

Workforce development is another key focus. We’re working with local educational institutions and even high schools to develop programs that meet the needs of our growing industries. We’re also emphasizing certification programs as an alternative to traditional four-year degrees, particularly in fields like IT and medical sciences.

What will be the main focus or priorities for the Office of Economic Development over the next two to three years?

Our main focus will be on fintech, logistics, and medical technology. We aim to become a fintech hub in the United States, and we’ve developed strong relationships with the fintech community in London, which has already led to companies like PaySafe establishing a presence here.

Logistics will continue to be a priority, especially as our seaport reaps the benefits of a nearly billion-dollar dredging effort. We’re also investing in relationships with European, South American, and Asian carriers to boost our position as a logistics hub for the Southeast.

In medical technology, we’re looking to capitalize on the investments being made by institutions like the Mayo Clinic. We haven’t done as much as we could in this area in recent years, but with the ongoing expansion and new investments, we’re focused on attracting more businesses in this sector.