by Mike Sharkey
Staff Writer
Months after announcing the deal, the City, Jacksonville Landing, Inc., the Kuhn Companies and Humana closed Thursday on the commercial real estate agreement that will pave the way for major changes in the area around the Landing and the SunTrust building, formerly the Humana building.
“Kuhn’s acquisition of the Humana building is the most significant,” said Ron Barton, executive director of the Jacksonville Economic Development Commission, at Thursday’s JEDC meeting. “This allows us to move forward on the River Watch project. It’s a much more significant development because it will have a residential, commercial and retail component. It’s one thing to put these documents together. It’s another to actually close.”
None of the principals from any of the four parties attended the closing. John Germany, an attorney with the Office of General Counsel, works closely with the JEDC. He said it’s common in deals with multiple partners for the attorneys for each party to attend the signing.
River Watch at City Centre is a two-building, $100 million project that includes the renovations of the SunTrust building and the construction of an adjacent office tower on the surface parking lot just west of it. The first few floors of the new tower will be a parking garage, and those spaces will satisfy the City’s obligation to provide parking for the Landing.
Mayor John Peyton said he was glad to see the deal done and even happier to end the decades-old parking issue at the Landing.
“I am thrilled that the parking issues with the Jacksonville Landing that have existed for 20 years have been resolved and that development of the River Watch at City Centre project is moving forward, adding to the transformation and growth of our urban core,” said Peyton. “The offerings of new residential, office and retail [space] will continue to invigorate Downtown and respond to our vision for Downtown.”
When completed, the River Watch at City Centre will consist of a 33-story residential tower with 188 riverfront units, 78 loft-style units, a deck, 16,000 square feet of retail space and a 1,050-space parking garage. Kuhn is currently marketing the 23-story SunTrust tower as office condominiums.
“We are ready to move forward on the development of the River Watch at City Centre project and look forward to satisfying the growing residential, office and retail needs of Jacksonville’s Downtown,” said Kuhn Vice President of Development George Moore.
The closing also included a $2.5 million payment from Humana to the City that resolves past parking obligations Humana didn’t fulfill, including an agreement to build a parking garage on the lot at the corner of Bay Street and Hogan Street.
In other news from the JEDC meeting:
• The Commission approved a $1.05 million grant from the Historic Preservation and Restoration Trust Fund. The Kuhn Companies purchased the Laura Street Trio — the Bisbee Building, Florida Life Building and the Marble Bank Building — from the Police & Fire Pension Fund. The grant will offset some of the $29.3 million Kuhn plans to spend restoring the exterior of the three historically-landmarked buildings.
“Revitalizing these buildings is significant in promoting a healthy Downtown,” said Karen Nasrallah, a JEDC project manager. “These buildings have been vacant without utilities for over 10 years.”
Most of the nearly $30 million will go toward replacing the windows in the three buildings and the cornice around the top of the Marble Bank Building. According to Nasrallah, Kuhn plans to convert the Florida Life and Bisbee buildings into office condos, and he’s working with the prospective tenant for the Marble Bank Building, the oldest bank building remaining in Downtown.
The Historic Preservation Commission must approve the work before it is done. The City will inspect the work and, according to Nasrallah, Kuhn will be reimbursed the $1.05 million once the refurbishing job is done. Kuhn is in the process of doing similar work across the street at the old Barnett Bank Building.
The grant will leave approximately $824,000 in the trust fund. However, the sale of the Haydon Burns Library to Main Branch, LLC will replenish the fund by $2.25 million.
• The JEDC also approved two $50,000 grants for the filming of two feature movies in Jacksonville. “Eliot Rockett” and “Glad All Over” are Ring Production feature movies that will be shot in Jacksonville within the next six months. Todd Roobin of the JEDC’s Film & Television office said the production of each film will employ about 70 people making at least $30 an hour. Sharon Stone, Penelope Cruz, Mark Walberg, Robert Duval and Ving Rhames are just a few of the actors expected to star in the movies.
“This is significant because a Jacksonville film production company has not invested in its own films since the early 1900s,” said Roobin. “In my 20 years, this is one the best opportunities I’ve seen.”
According to the proposal, over $5.5 million of the movies’ $7.1 million Florida budgets will be spent on Jacksonville labor and area businesses.
Commissioner Zim Boulos said, “Todd, do you think you could negotiate a cameo appearance for Charlie (Commissioner Charles Appleby)?”
Roobin said, “Is that with Sharon Stone?”
• A deal was also approved that will convey 1.2 million square feet of development rights currently held by Fidelity National Financial to The Alfred I. DuPont Testamentary Trust. According to Barton, DuPont would like to build its corporate headquarters on the Riverside Avenue site. DuPont has until Dec. 30, 2010 to develop the property or it reverts back to Fidelity.
• Barton said he expects Main Branch, LLC to close on the Haydon Burns Library within the next 30-60 days.
• Barton also said he expects a report from three of the four Downtown task forces at next month’s meeting. The findings from the retail, residential and entertainment task forces are all expected to be announced with the open space/pedestrian task force results expected later. “I am actually very pleased,” said Barton. “I think it was a successful exercise.”
• Stephanie Ashley has joined the JEDC as a business development specialist. She’s a Florida State graduate, which Barton — also an FSU alum — said makes him happy.
• The next JEDC meeting is March at 9 a.m. on the 15th floor of the Annex.