The former Jones Bros. Furniture building Downtown.

Council could soon decide Jones Bros. Furniture building incentives

Developer wants to redevelop property into apartments, restaurant and retail space.
By: 
Sep. 7, 2018

City Council could soon decide whether to approve incentives of $2.3 million to redevelop the former Jones Bros. Furniture building Downtown.

Developer ACE JAX LLC wants to convert the property at 520 N. Hogan St., along with another vacant building at 502 N. Hogan St., into apartments with a street-level restaurant, office and retail space.

The Downtown Investment Authority approved a financial incentives package of up to $2.3 million in May.

The Mayor’s Budget Review Committee signed off on it in August.

The estimated $11.1 million renovation would transform the seven-story building into 28 apartments, 10,247 square feet of retail or restaurant space and a 1,040-square-foot office.

The incentives comprise a $1.5 million grant from the Downtown Historic Preservation and Revitalization Trust Fund and a $750,000 loan from the Downtown Economic Development Trust Fund.

The loan amortizes over 20 years with an annual interest rate of 1.5 percent. The first 12 months are interest-only payments.

The city retains second position on the mortgage.

In addition, the city plans to convey the surface parking lot along West Ashley Street to ACE JAX for $1, although the land is valued at $120,141.

The former Jones Bro. Furniture Co. building is owned by O U R Properties Inc. and the building next to it is owned by Mandarin Emporium Inc.

ACE JAX LLC is led by managers Elias Hionides and Christian Allen of Atlantic Beach.

Hionides is vice president of Petra Management Inc.

The legislation will be introduced Tuesday to City Council.

The Finance Committee will review the bill ahead of a full council vote likely in October.