Developer SunCap Property Group LLC’s planned $10 million investment in the FedEx distribution center at Cecil Commerce Center is to acquire land for parking and road improvements, according to a city official.
In a Jan. 28 email, city Office of Economic Development Executive Director Kirk Wendland said SunCap will spend the money on land and to extend Waterworks Street to a new paved surface parking area.
“The focus is on increased efficiencies that would come from the additional parking and logistics configuration,” Wendland said.
The JEA board of directors voted 7-0 on Jan. 28 to sell 16 acres at Cecil Commerce Center to SunCap for the project, which Wendland said would create an estimated 145 jobs at the FedEx facility.
“I anticipate that design work will begin as soon as the land acquisition is finalized,” he said. “I further anticipate that the developer and the company will continue to move forward as quickly as possible.”
An interoffice memorandum from JEA CEO Jay Stowe states city economic development officials approached the utility in May and JAXUSA Partnership approached it in July about the availability of 16 acres.
JEA owns a 306-acre multiuse parcel at Cecil Commerce Center at the end of Waterworks Street.
The property was appraised at $1.742 million, according to JEA.
The board’s vote waives a provision in its real estate procurement rules to allow JEA to directly negotiate with SunCap.
Stowe’s memo classifies the JEA parcel as surplus property and says redevelopment would improve the utility’s access to its property by extending Waterworks Street.
“While the City of Jacksonville maintains land holdings in partnership with a master developer within the Cecil Commerce Center, utilizing the JEA parcel would allow 16 acres of City-owned lands to remain available for future commercial/industrial development,” the memo states.
The city’s master developer at Cecil Commerce Center, Dallas-based Hillwood, will not have a role in the FedEx improvements, according to Wendland.
Hillwood and the city have a profit-sharing agreement for real estate transactions at the site.
SunCap Jacksonville LLC sold the 297,579-square-foot FedEx Ground Package System Inc. property at 13509 Waterworks St. in February 2015 for $30.65 million.
Monmouth Real Estate Investment Corp. of Freehold, New Jersey, bought the property through MREIC Jacksonville Fla LLC.