by Sean McManus
Staff Writer
When Downtown Development Authority managing director Al Battle shot an e-mail to longtime DDA board member and commercial real estate executive Jim Citrano, Mayor John Delaney and his boss, Jacksonville Economic Development Commission Executive Director Kirk Wendland last week outlining three proposals for the Marble Bank properties on Laura Street, it showed the intensity with which local developers are clamoring to engage in the costly and complicated process of historic revitalization.
And while City officials work to find the balance between preservation, cost and what’s best for the city, developers continue to find the balance between City incentives, quality projects and what will attract high-paying tenants.
A 153-page proposal from the newly-formed Klutho Partners, a development group led by Chris Brown and Mike Langton, calls for a $58 million Klutho Commons, a mixed-use development that includes, the Marble Bank building, the Bisbee building, the Old Barnett Bank building and potentially a new, Class “A” office building above a nine-story parking garage. The developers are also contemplating the acquisition of the empty lot the Center Theater once occupied.
The proposal contains chapters on the firm’s founders, architects and property managers. It outlines the scope of the project, with maps and renderings, pages upon pages of financial projections, including letters from banks, purchase agreements, feasibility studies, and plenty of examples of other projects all over the Southeast where Klutho Partners’ principles has played a part. There are notes about “community spirit” and how the project would be “win-win.”
Another proposal, from Steinemann & Co., calls for a $23 million renovation that is also considering the Center Theater property. Signet Development has outlined three plans for DDA, ranging from $11 to $30 million. One calls for a Klutho Gallery, also incorporating the Florida Life building. Signet would also add multiple parks, one on the corner of Laura and West Adams streets.
Each of the proposals are designed to sell the DDA on their vision for some of downtown’s most important buildings.
According Battle, the whole process starts when a City-owned property is deemed central to the City’s overall redevelopment goals. When the DDA thinks a particular site would be appropriate for a mixed-use development, it will seek approval from the DDA board to issue a Request for Proposal. Then, it will work with the City’s Procurement and Supply Division to advertise.
“The ad is intended to be as specific as possible about what we are looking for and the timeline we’re thinking about,” said Battle. Ads, which are often published in local newspapers, trade journals and sent via e-mail are intended to be seen by as wide an audience as possible. They are also made available through the DDA’s website.
“Ninety days has become the norm,” said Battle, referring to the length of time developers are given to come up with the proposals, which vary in size and emphasis. “Throughout those three months, we are engaged in dialogue and answering questions about the property and what exactly our vision is.”
Battle said all proposals have to contain the different uses the developer has planned, the financing and request for incentives, compatibility with the surrounding neighborhood, and why this particular idea is best for the city.
“I think in the past ideas really ran the gamut,” said Battle, who has worked for the DDA for over five years. “Now I think people have a little better idea of what we’re going for.”
Battle said “what he’s going for” in the case of the Marble Bank, was historic preservation. But depending on the area, such as LaVilla, the primary goals can lean more in the direction of just cleaning up a neighborhood. Battle said mixed-use is popular because it falls in line with the growth strategies the City has for a 24-hour downtown.
After the 90 days, the proposals are analyzed by the DDA staff, according to the JEDC’s media relations expert Christina Langton.
“The best ones then go to the board,” she said.
That’s a process that Battle said takes about another two months and includes formal presentations by each of the candidates as well as negotiations over incentives and overall redevelopment with the group the DDA likes best.
The process to get the deal through the board to the entire JEDC can take anywhere from four to six weeks, depending on when meetings are scheduled. If the plan gets through, it goes to City Council for a final vote. That usually takes another two weeks.
Of course if the DDA and the developer can’t come to an agreement on incentives or price of the property, then the whole process might start again. The DDA may go back to its second favorite proposal, or they may re-release an RFP.
Because of permitting, design review and deal monitoring, the City stays with the project all the way through to completion.
“For each individual property, or cluster of properties, the DDA will look at the each of the proposals and the best one will win,” said Citrano, who has had his hand in downtown development for 30 years. “Or if none of them are good, we’ll wait for one that is.”
Citrano said Jacksonville still has a reputation for keeping the best projects for what he called “the home town boys,” and is struggling to attract developers from across the country.
“We’re working to attract the attention of the national players with the innovative ideas,” said Citrano, adding he still sees a fair amount of creative ideas.
“This is a public forum and we’ll listen to any idea,” said Citrano, who once had to squelch a proposed 50-acre park dedicated to the Huguenot Indians that he said was blatantly racist and served no public need.
“Working at the DDA you do get to meet people who have devoted their lives to a cause. We’ll listen, but in the end, it’s what’s best for the city,” he said.
Both Battle and Citrano believe that in most of these incidences, the City is a high-risk lender, looking out more for the future of the city than the potential to make money in the short-term.
Traditionally, because historic buildings were not built with T-1 Internet connections and high-tech security systems, cost is always the biggest obstacle to preservation. “What we’re always asking is, ‘What price, restoration?’ ” said Citrano. “Everybody wants the original architecture, but in almost every case it would be exponentially cheaper to knock it down and start from scratch.”
But Citrano, the DDA and the City are committed to preserving the integrity of historic buildings.
“And that’s good,” said Citrano, whose term is up next year. “We’ll get some new guys with some new ideas in there and we’ll make this stuff happen.”