by Bradley Parsons
Staff Writer
To encourage development along the City’s planned Bay Street Town Center entertainment corridor, the Downtown Development Authority approved a plan Wednesday that would make more City money available to area business owners.
Bay Street is dotted with historic buildings, and the City has paid out of its Historic Preservation Trust Fund to help new owners with the costly historic renovations. The new proposal would make about $1 million in loans available to area property owners to help install necessities like plumbing and to bring the buildings up to code.
The Downtown Development Business Investment Fund Program would be available to first or second floor retail, restaurant or entertainment-theme businesses within the Riverfront District. The money comes from The Vestcor Cos. $50,000 monthly payments on a $17 million City loan, which was used to renovate the Roosevelt Hotel building.
DDA managing director Al Battle unveiled the program as part of a redevelopment package sought by East Bay Street, LLC, to turn the second floor of the Dyal-Upchurch building into an art gallery. The $114,000 Investment Fund loan would pay for two bathrooms and a fire sprinkler system. The group is headed by building owner Gary Husk, who plans to spend $351,000 of his own on the internal improvements. Husk previously received a $350,000 Historic Trust Fund grant to help pay for the building’s $1.7 million exterior renovation.
The DDA board approved the package unanimously, but board member David Auchter said the program would receive close scrutiny as the Dyal-Upchurch incentives move through the approval process. The Jacksonville Economic Development Commission and the City Council were sure to ask why the City was spending money twice on the same project, he said.
“This is the first time we’ve encountered a developer double dipping into City incentives,” said Auchter. “At the next step, people are going to want to know if this is the way this is supposed to work.”
Battle said the Historic Trust Fund grants were intended more for exterior renovations, while the Investment Fund Program loans would be put to use inside. Battle said the loans would pay for necessary improvements to the buildings. If the businesses fail, Battle said the improvements would make the buildings more attractive to new investors.
“Whether the gallery stays or goes, the bathrooms aren’t going anywhere,” said Battle. “The space is going to be retail ready.”
Like the Historic Trust Fund money, Battle said the loans would encourage investment into the City’s Bay Street Town Center. The City is spending $2.2 million to renovate Bay Street and providing other incentives to lure entertainment venues to the stretch of Bay Street between the Sports Complex and the Landing.
The entertainment corridor is viewed by the City as the next step toward a vibrant downtown. Battle said the City needs to take steps to encourage investment in an area with no track record of supporting entertainment venues. He envisions the loan program as a three-to-five-year kick start for the area.
“In my view, it either is or it isn’t going to happen within that period of time. These loans will hopefully help get Bay Street rolling.”