by Mike Sharkey
Staff Writer
The Police and Fire Pension Fund plans to call the area “CitiCenter at Hemming Plaza.” Officials from the mayor’s office don’t care what it’s called. Both agree, though, that eventually consolidating City offices and agencies within City-owned buildings will be good for the efficiency of government and good for the tax rolls.
Last month, the Pension Fund acquired the Haverty’s Building in exchange for a $3 million reduction on the unfunded liability the City owes the Pension Fund. Last week, the Fund began internal demolition of the building and, once a design is approved, plans to renovate the six-story building into offices for the Jacksonville Economic Development Commission and the City’s Planning & Development Department. The City says the job will take 18-24 months, but Fund Administrator John Keane has more ambitious plans.
“We hope to improve on that,” said Keane, who thinks the job can be done within 18 months of the beginning of renovations. “That’s our plan.”
Originally, the City intended to own the Haverty’s Building outright. In fact, the City hired the law firm of Smith Hulsey & Busey to negotiate a deal with the previous owner, Philip Browning, principal owner of Striton Properties in Atlanta. The issue ended up in a district court of appeals and eventually the City paid Browning $1.8 million for the building. Browning’s asking price was $5.5 million.
Susie Wiles, spokesperson for Mayor John Peyton, said leasing the Haverty’s building from the Fund is the financially-feasible thing to do right now.
“We had the funds available to buy the building, but the funds to renovate it were not available,” said Wiles. “It’s a lease-to-own and this will help get a City asset on-line.”
Wiles said the expectation is the City will own the building outright within 5-6 years.
Keane said he has hired the same internal demolition company that he used at the Laura Trio, which the Fund owned before selling it to the Kuhn Companies. He said the only thing holding up the design phase will be waiting for the City to decided exactly who will occupy the building and the configuration of the offices.
“We are going to inherit a contract with the local (demolition company),” said Keane. “Once that’s done, we will be ready for bids.”
The Haverty’s Building was the original YMCA in Jacksonville. In the 1950s, it was renovated and became a furniture and clothing store. It has been vacant for several years.
Keane said the Fund would still like to obtain the Snyder Memorial at the corner of Laura and Monroe. At one point a couple of weeks ago, the building was part of legislation that would convey the Snyder Memorial to the Fund. However, outcry from City Council forced the mayor’s office to amend the bill to include just the Haverty’s Building.
“Its ultimate disposition is still up in the air,” said Keane of the Snyder Memorial. “We are into Downtown redevelopment and there will be other opportunities.”