by Bradley Parsons
Staff Writer
City Hall’s plans to finally build Duval County’s courthouse in LaVilla should give the area’s real estate a boost, but only if those plans make it off the drawing board, according to a downtown market observer.
Mayor John Peyton announced last week that he had reached an agreement with Chief Judge Donald Moran to build a $250 million court complex in the heart of the slow-developing downtown neighborhood. This is the City’s third attempt to move beyond the planning stage on the project. Previous attempts were scuttled by disagreements over the project’s budget and design.
That might help explain why the latest announcement hasn’t yet created much buzz in the downtown real estate market, suggested Ray Rodriguez, president of the Real Estate Strategy Center of Northeast Florida. It will take more than just plans to get potential developers in the area excited, he said.
“There’s still some skepticism about the project and the location because we’ve heard these announcements before,” said Rodriguez. “When developers see cranes on the site, that’s when they’ll believe this is for real.”
Developers hoping to get a jump on the competition will be keeping an ear close to the ground in coming months, said Rodriguez. They’ll be looking for building permits related to the courthouse and waiting for contractors and subcontractors to be hired, usually signs that a project is about to go vertical, said Rodriguez.
Developers also will likely be paying close attention as Peyton’s and Moran’s plan travels the City’s approval process. The project still requires approval from an architectural review committee and the City Council, a process that could take months. If the plan receives Council approval early in 2006, the mayor’s office projects that construction could be complete by 2010.
Once construction on the courthouse is underway, Rodriguez expects the City’s investment to spur development in the LaVilla neighborhood at downtown’s west end. Several law offices have already moved to the area in anticipation of the courthouse being built.
The courthouse’s new location should encourage similar development in the area. Rodriguez expects other law offices will move to the neighborhood creating demand for further commercial real estate development.
“I think most of the demand that will be created will be for quality office space,” said Rodriguez. “Then I’m sure you’ll see some mixed-use housing and retail to fill some of the needs created by that development.”
Law firm Coffman, Coleman, Andrews and Grogan was one of the area’s pioneering investors. In 2002, the firm built its own office, a 20,000-square-foot office building on W. Monroe Street about three blocks west of the intended courthouse site.
Two years later, the firm snapped up another 60,000-square-foot parcel across the street from its office. The firm intended to turn that land into offices and parking. But City Hall’s previous false starts on the courthouse have stalled those plans.
Despite the latest courthouse announcement, the firm will wait to develop that land, said partner Patrick Coleman. He said the firm would likely build offices if it gets enough interest from potential renters. Coleman has said in the past that the firm would consider selling the land as well.
“We’re delighted to see the courthouse project get some momentum going,” said Coleman. “But I haven’t noticed any activity yet in terms of interest in our property.”
Current plans call for the City to build a criminal courthouse first, followed by a civil complex if funding allows. The split development might hurt demand in the area real estate market, because firms that focus on civil litigation will likely wait for the civil complex before moving to the neighborhood, said Coleman.
Still, Coleman said he’s encouraged by the progress. Successful construction of the criminal courthouse could give momentum to the civil side of the project, he said.
“Any work on the new courthouse is hopeful for this side of town,” said Coleman.