by Mike Sharkey
Staff Writer
In ancient times, commerce was actually pretty simple. You went to the market bearing goods that you hoped other people wanted in exchange for the things you needed and wanted.
A new blanket could often be traded for a basket of fruit, vegetables, a bag of herbs or even a small farm animal.
The barter system at its finest and it worked at virtually every level for centuries.
Today, even the simplest of business transactions can takes weeks to finalize, thousands of dollars in man hours and consultant fees and, of course, plenty of attorneys. All that considered, it’s actually quite amazing that the City of Jacksonville is bartering, yes bartering, its way to owning the old federal courthouse on Monroe Street.
For almost two years the City has been negotiating with the General Services Administration to somehow obtain the facility that is being replaced by a brand new federal courthouse that is caddy-corner to City Hall and is scheduled to be competed by next September. Various true financial deals have fallen through — until recently.
In a nut shell, the City has a firm handshake deal to exchange 104 parking spaces in the Water Street garage for the old federal courthouse. And, get this, the deal was the GSA’s idea.
Brad Thoburn, the City’s director of intergovernmental relations, has been the main player for the City during negotiations with the GSA. On May 22, the GSA came to the negotiating table with the barter plan. After both sides spent months looking at the feasibility of such and offer, a deal was struck. On Oct. 18, the GSA formally made an offer of 104 spaces in the garage in exchange for the courthouse.
Thoburn said the deal saves the City $873,600 in acquisition fees. In reality, getting the building for virtually nothing represents an enormous savings the City can pass along when it begins construction on the new $190 million county courthouse complex.
“The ball park estimate is that getting the building will save us $20 per square foot,” said Audrey Moran, Mayor John Delaney’s chief of staff, adding that the courthouse is approximately 300,00 square feet. “We can renovate the old building with that money. Also, having a landmark building as part of the courthouse complex is a real plus for Jacksonville.”
Moran said she didn’t anticipate that the $6 million the City will save will come off the $190 million price tag for the new courthouse. Much of that savings will be used to renovate the building and add amenities to the new facility.
“We are very pleased we were able to reach an agreement with the federal government,” said Moran. “It’s a very creative deal. It’s two governments working together for a common goal. It’s a great example of out-of-the-box thinking.”
Officially, the deal isn’t done. Red tape is in the way, but Thoburn said he doesn’t expect any snags.
“We have introduced a resolution [with City Council] that authorizes us to make an offer,” said Thoburn.
A specialist in dealing with the state and federal government, Thoburn has worked diligently for months to make the deal happen. All along he felt the City would eventually get the building, he just never figured it would come at essentially no out-of-pocket cost.
Had the City been forced to purchase the building, the price tag would have been in the $1 million range.
“They are authorized by statute to give us the building for one-half of the underlying land value,” said Thoburn. “We worked through that statute. They [the GSA] came up with a figure of $873,600 and we agree with that. The key is we are getting the building. It’s not for free, but it’s as close as you can get. It is a trade. It’s not cash.”
Thoburn reiterated Moran’s assertion that the deal is a prime, but rare, example of two government entities agreeing on something that benefits both parties.
“It’s a unique circumstance where everybody came together, the City and the GSA, sat down and made it work,” said Thoburn.
Despite the fact it’s just a handshake deal right now, Thoburn said he expects that to change in January when City Council will grant Delaney the authorization to make a formal offer the the GSA. After that, one more group will examine the details and it will be complete.
“The GSA will send it to a Congressional committee of jurisdiction and they will sign off on it,” said Thoburn. “It does not require congressional action, just a committee to sign off.”
Although the City will not take over the old courthouse until January of 2003, Thoburn said he expects the GSA to start using the garage shortly after the deal is finalized, probably in late February or early March.
Design-wise, the acquisition will nothing but enhance the campus-like feel the new county courthouse will have. Moran said the old building will present the architects with an interesting and intriguing proposition.
“It adds an interesting element to the design process,” said Moran. “We believe the architects will like that challenge. What Mayor Delaney has envisioned is a campus setting, not a high-rise like in Orlando. There will be green space, walkways for pedestrians and reconfiguration of streets.