by Max Marbut
Staff Writer
Sometimes there’s more to soil than meets the eye, especially when it comes to fill dirt.
That’s particularly true about the soil in the north portion of Cecil Commerce Center, a fact that has been discovered by the City and Bridgestone Firestone.
When the international tire manufacturer contracted to purchase more than 63 acres of Cecil Commerce center from the City in 2006, both sides understood there would be a due diligence process to determine the condition of the site and its elevation.
Through six months of site studies, three significant conditions were discovered that neither the City nor Bridgestone Firestone were aware of when the contract was executed.
At the time of the sale, it was believed the project would require 380,000 cubic yards of fill dirt to sufficiently raise the site for drainage, but the reality is that more than 900,000 cubic yards will be needed. The fill stockpile on the site also contains too much water and would have to be processed and filtered in order to be used.
The studies also revealed there are approximately 32 acres of wetlands on the site, more than double the 15 acres identified through the original aerial survey.
Add it all up and Bridgestone Firestone was looking at an increase of about $7 million to the project cost.
“We nearly had heart failure,” said Nelson Miller, Bridgestone Firestone’s representative who appeared before the Jacksonville Economic Development Commission at its meeting Thursday morning.
The one-million square-foot distribution center will bring about 250 new jobs to Jacksonville that pay more than the state average salary with an annual payroll of more than $9 million.
Building the facility will also indirectly result in adding more than 200 above-state-average jobs at the Port Authority to support increased container freight activity.
In addition, taking the land off the City’s inventory and putting it on the tax roll would result in a gain of approximately $400,000 a year in property taxes.
Ron Barton, executive director of the JEDC, proposed amending the agreement to reduce Bridgestone’s purchase price by $3 million in order to close the sale and allow the company to move forward with the development as soon as possible.
The City will also provide Bridgestone access to a stockpile of fill dirt at Cecil Commerce Center that is suitable for the project, with Bridgestone paying for its transportation.
Barton said the amendment “adjusts the transaction to accurately reflect the conditions” and does not create incentives or in any way subsidize Bridgestone.
He also pointed out the City, as the developer, would have to mitigate the conditions in order to sell the property and it doesn’t make sense to lose a substantial new employer and major port customer.
Nelson said Bridgestone has already been granted permits for the project by the St. Johns Water Management District. While the project is three months behind schedule, Bridgestone believes the center could still be in operation early in 2008. They feel the proposed amendment is equitable and are ready to put a shovel in the ground.
“We can swallow $4 million, but not $7 million,” he said.
The Commission unanimously approved the amendment and sent it to the City Council.
The JEDC’s new Downtown Zoning Overlay was also approved and will now be sent to the City Council’s Zoning Code Rewrite Special Committee. The committee will make final recommendations and draft legislation necessary for consideration by the full City Council.
The proposed changes include the creation of a Downtown Development Review Board that would replace the incumbent Design Review Committee. The DDRB will have two additional non-voting members, one from the School Board and a City Council member designated by the Council president.
Other items approved by the JEDC at Thursday’s meeting:
• An amendment to Northrup Grumman Systems’ lease at Cecil Commerce Center that will address future access issues involving 21 storage bunkers and part of a helipad the aeronautical firm currently uses for storage. The amendment forgives $41,196 in rent over a one-year period and at the end of that period, Northrup Grumman will vacate the bunkers and helipad at their own expense, estimated to be $50,000.
• Issuance of up to $8.6 million in bonds for expansion by Lee & Cates Glass, Inc. The company was founded in Jacksonville in 1926 and has grown to 22 locations in 13 cities in North Florida and South Georgia. Lee & Cates will use the funds to purchase a 128,000 square-foot building on a three-acre site on Shawland Road. The building will be renovated and equipped for the manufacture of a variety of glass products, creating seven new full-time jobs eligible for benefits. The City and the JEDC will not have any liability for payment of debt service related to the issuance of the bonds.