On the same day City Council met to approve a 2014-15 budget that tapped into reserve funds for public safety and other essential services, a local developer presented a plan to renovate four Downtown historic buildings.
The project will cost about $70 million, including nearly $8 million the developer is counting on from the city.
Stephen Atkins, principal of SouthEast Development Group, showed his plan for the Barnett Bank Building and Laura Street Trio to about 120 members and guests of the World Affairs Council Jacksonville. The event was part of the Global Business Luncheon series at The River Club.
While most of the audience was receptive to the development proposal, Downtown Investment Authority CEO Aundra Wallace said after the presentation that Atkins and the city aren’t that close to an agreement.
“We’ll try to get there, but the DIA doesn’t have that capital,” Wallace said.
He also said any agreement that might one day be struck between the city and SouthEast would require the project to be complete before the developers would receive grant funds or tax credits.
“I would not structure a transaction that did not have the private sector going first, if we can come to an agreement,” said Wallace.
Atkins has been pitching the mixed-use historic restoration project since May 25, 2010, when he showed conceptual renderings to former Mayor John Peyton and city economic development officials.
In April 2013, Atkins and a new group of partners used a $3 million loan from Stache Investments Corp., the venture capital firm owned by Jacksonville Jaguars owner Shad Khan, to purchase the four buildings.
Concurrent with the loan, Atkins announced a partnership with general contractors Woody Garner and David Searcy to merge Atkins Group Inc., AGI Equities, Dav-Lin Construction Co. and Linea LLC to form SouthEast Group.
The four buildings, all at or near the corner of Laura and Forsyth streets, were constructed after the Great Fire of 1901 and represent some of Jacksonville’s most historic architecture.
“They are a symbol of the best of our past and can be a symbol of our future,” said Atkins.
He said commitments are in place for the $70 million project to cover 44 percent equity interest and 45 percent debt, leaving 11 percent for the city’s share of a private-public partnership.
In terms of local economic development from the project, the construction phase of the project would take about two years and would create 250 jobs with an annual payroll of $7.5 million.
The project would require the local purchase of $28 million in construction materials, Atkins said.
Plans include apartments, restaurant and retail spaces.
Once they are are open for business, 185 new permanent jobs would be created with an annual payroll of $2.5 million. Atkins estimated $11 million in new retail sales would be generated by the new businesses in the buildings.
“Putting people back to work is just as important as putting buildings back together,” said Atkins. “We’re bringing a tremendous amount of opportunity to the table.”
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