For the first time in several years, the sounds of major construction could be heard Downtown in 2015.
Some of the most prime redevelopment sites have begun to move forward. One is even nearing completion.
The Daily Record sat down with Aundra Wallace, CEO of the Downtown Investment Authority, for an update on six projects that have been major points of conversation in terms of 21st-century urban renewal in Jacksonville.
The DIA board voted in July 2013 to allow the city’s Office of Economic Development to take over the projects, which are now back with the authority.
Barnett Bank Building and Laura Street Trio
The proposal to renovate the historic Barnett Bank Building along Laura Street and three more historic buildings one block away – commonly known as the Laura Street Trio – has been floating around since May 2010 when Mayor John Peyton was in office.
Wallace is ready for there to be a conclusion to the speculation.
Steve Atkins, SouthEast Group principal and managing director, for years has proposed residential, office space, restaurants, a sports bar and even a boutique hotel for the sites.
He told the World Affairs Council in September the $70 million project would require at least $8 million from the city to become reality.
“We’ll try to get there, but the DIA doesn’t have that capital,” Wallace said at the time.
That opinion hasn’t changed.
“It’s really difficult to try to make the numbers work,” Wallace said Monday. “It’s a question of how much equity and how much debt on the private-sector side can the project generate. … I don’t want (the city) to be more than 20-something percent of the transaction.”
Wallace said the city has a deadline for its potential role in the project.
“First quarter of 2015, I’m hoping to get to a ‘go’ or ‘no go’ on this project. We’ve spent 90 days working on that project. I’m going to make a recommendation one way or another,” he said.
Jacksonville Jaguars owner Shad Khan’s venture capital initiative, Stache Investments, in April 2013 loaned Atkins and his partners $3 million to purchase the four structures. Terms of the agreement haven’t been shared.
In the past couple of months, Stache has severed relationships with the KYN business incubator and is in a legal battle with Edgewood Bakery over ownership of the Murray Hill institution. They are two of Khan’s other venture projects.
Does Wallace think the Barnett and Laura Street Trio also could be affected? “It’s one of the investments that was done under his previous financial manager. I’m quite sure he’s looking at the entire portfolio. Whatever happens with that remains between the developer and Khan. We are not going to get into that issue,” he said.
Atkins did not return phone calls for comment. Khan spokesman Jim Woodcock did not return an email.
The Shipyards
Future development at The Shipyards property will depend on, among other factors, what it will take to identify and resolve environmental issues on the property.
In November, the city Professional Services Evaluation Committee recommended a firm to perform testing and environmental consulting on the 40-acre site. Mayor Alvin Brown is considering whether to proceed with the committee’s recommendation.
The city has designated $13.4 million from a settlement with the site’s former developer for the cleanup, if needed.
Khan has expressed interest in developing mixed-use residential and commercial properties on the site. Team President Mark Lamping said in September he expects Khan to make a decision on his plans by March.
Until there’s a development plan put on the table, the city is in the wait-and-see posture, Wallace said.
Jessie Ball duPont Center
The Jessie Ball duPont Fund in June 2013 purchased the former Haydon Burns Public Library from the city for $2.2 million.
Soon afterward, a $20 million renovation project began, converting the historic building along Adams and Ocean streets into office and meeting space that could be leased to local nonprofits at below-market rates.
Project spokeswoman Mary Kress Littlepage said Tuesday the exterior and interior structural renovation will be substantially complete by the end of January.
Tenant build-out will then begin and nonprofits are scheduled to start moving in as early as April.
She said all of the space on the floors above ground has been leased or secured by a letter of intent, with some space remaining available in the basement.
As far as the city is concerned, the duPont Center could be considered a showcase project for future Downtown projects.
“We wish we had more developers and owners that have a great deal of capital and committed to make a project work,” Wallace said. “We’ve got the Haydon Burns off our plate.”
Bostwick Building
A group led by Dixie Egg Co. owner Jacques Klempf purchased the former First Guaranty Bank & Trust Building, often referred to as the “Bostwick Building,” in July for $165,100 in a city foreclosure auction.
The group announced plans for the “Cowford Chophouse,” a high-end steak and seafood restaurant with a raw bar and rooftop lounge.
Elkins Constructors was selected as the general contractor for the project, but Klempf said the first step would be to ensure the 110-year-old building is structurally stable. Then it will be time to begin planning its historic renovation.
In November, Klempf estimated the group will invest $2.7 million in construction costs and $2.6 million in build-out. That’s in addition to $260,000 in site acquisition and $600,000 in operating capital. That’s more than $6 million before the restaurant serves its first meal.
There’s a cap on the city’s potential financial involvement in the project.
The DIA last month signed off on incentives worth $750,000 for the project. City Council will have to sign off on that deal after the New Year.
The Cowford Chophouse won’t open for more than a year, but Wallace said it’s the kind of deal that’s attractive to the
city.
“It’s a good project. It sets the tone for how the DIA wants to do business,” he said. “We recognize a good deal when we see one.”
Sax Seafood & Grill
In 2003, the city entered into an agreement with an Orlando-based developer to construct a restaurant in LaVilla near the Ritz Theatre and Museum.
The restaurant never was completed and, after putting nearly
$2 million into the project, the city in 2008 released the developer from having to repay a construction loan and took over the property.
It has been vacant since.
Wallace said any future development of the restaurant property will be feasible only if it is part of a larger project. One possibility could be development of student housing in partnership with Florida State College at Jacksonville, but the city has not contacted the college even on a preliminary basis, Wallace said.
Downtown Retail Enhancement Program
The DIA has appropriated $750,000 for the Downtown Jacksonville Retail Enhancement Grant Program.
The program is designed to create momentum in recruiting and retaining restaurant and retail businesses in the Northbank core retail area, south of Church Street between Julia and Market
streets.
Funds also are available for business incubators and information technology companies wishing to locate in Downtown’s retail zone.
Grants may be used by property and business owners to cover a portion of the costs associated with renovating or preparing commercial space in older buildings for a tenant.
Renovation projects must exceed $10,000 to qualify for a grant. Up to $20 per square foot leased or occupied could be granted, but the total amount may not exceed 50 percent of the cost of renovation.
Recipients are required to create two full-time equivalent jobs and remain in business at the location for at least five years.
The authority began accepting applications Dec. 1.
Wallace said four applications have been received, which are being evaluated. All or some of the applications could be presented to the authority’s board in January.
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