It’s been a long road, but the destination is in sight.
The project to revive the Barnett Bank building and the Laura Street Trio Downtown that was unveiled nearly seven years ago is $4 million away from reality.
The Downtown Investment Authority approved Wednesday its $5.8 million share of a $9.8 million incentives package that would complete the financial side of the $90 million historic preservation and reuse project.
“You just kept bouncing back,” said authority Chair Jim Bailey to Steve Atkins, principal of SouthEast Development Group, who first presented the project in 2010 at a ceremony in former Mayor John Peyton’s office.
“Let me tell you how long I’ve been working on this,” Atkins said after the incentives were approved. “When I started, my daughter was in second grade. Now she’s in high school and looking at colleges.”
The key to moving the project forward is Atkins’ partnership with Las Vegas-based The Molasky Group of Cos.
Molasky last week reached an agreement to buy the Barnett building from Stache Investments, Jacksonville Jaguars owner Shad Khan’s venture capital firm.
Atkins borrowed $3 million from Stache in 2013 to purchase the building, but last July the court ruled in favor of Khan’s company in a foreclosure action after Atkins didn’t make payments on the loan.
In addition to $4 million from the Downtown Historic Preservation and Revitalization Trust Fund, the authority approved a $1.8 million Recapture Enhanced Value grant — a rebate of 50 percent of the property taxes generated by the project for 20 years.
The city will not transfer any of the funds to the developers until the work is complete and the occupancy certificate has been issued.
“No public funds are at risk during construction. This is being led by the private sector, If they don’t perform, it’s not paid out,” said Aundra Wallace, DIA CEO.
City Council will now consider an ordinance for a $4 million redevelopment grant that would green-light construction.
When completed, the Barnett Bank building will have a bank, office and retail space and about 100 market-rate apartments.
The Laura Trio will be transformed into a Courtyard by Marriott hotel, bodega market, café, restaurant, rooftop bar and retail office space.
A 550-space parking garage also is part of the project, to be built by the developers at a cost of $11 million on property the city owns at Adams and Laura streets.
The city will operate the garage and lease 250 spots to the developers, leaving the remaining 300 for other customers.
The Molasky Group was established in 1951 and specializes in build-to-suit projects for the commercial, government and residential markets.
In the past 15 years, the company has completed 2.2 million rentable square feet of office space, developed 425,000 square feet of special use rental space and 850,000 square feet of retail space, according to molaskyco.com.
The Barnett Building and Laura Trio comprise about 320,000 square feet.
Deciding to take on the largest historic preservation and adaptive re-use project in Jacksonville history was due to Atkins’ enthusiasm for the project and the development opportunity, said Matthew Connolly, senior vice president of development for Molasky.
He said he heard about the project soon after he met Atkins at a developers conference in 2015 and “within a few minutes you could see the grand nature of those buildings.”
Connolly, who works in Molasky’s Atlanta office, said another factor was the timing for the project was perfect, and it meets the company’s intent to expand its presence in the Southeast market.
“And we like unique, complex projects. This is certainly that,” he added.
Legislation for the remaining $4 million grant could be introduced to council as soon as Feb. 14.
(904) 356-2466
Barnett Bank building
112 W. Adams St.
Development cost: $34.2 million
Features: Two floors of banking and retail, 50,000 square feet of office space on five floors and 100 apartments on 11 floors with monthly rents from $750 to $1,350.
Incentives: $4 million redevelopment grant from the city when the final certificate of occupancy is issued.
Laura Street Trio
Laura and Forsyth streets
Development cost: $44.6 million
Features: Courtyard by Marriott hotel, restaurant, bodega market, rooftop bar, retail office space and cafe.
Incentives: $4 million redevelopment completion grant from the Downtown Historic Preservation and Revitalization Fund when the final certificate of occupancy for the three buildings is issued and a maximum $1.8 million Recapture Enhanced Value grant for a rebate of 50 percent of the property taxes generated by the project for 20 years.