by Max Marbut
Staff Writer
An agreement approved by City Council five years ago to grant $400,000 from the Historic Preservation Trust Fund to rehabilitate a building on West Adams Street got some new life Thursday from the Jacksonville Economic Development Commission.
The six-story structure is 98 years old and is owned by Kimmik Corporation and its principal, Marion Graham. His intention was, and still is, to turn the empty structure into a mixed-use development that will offer a restaurant on the ground floor, office space on the second floor and loft-style apartments or condominiums on the floors above.
Graham petitioned the commission to approve an amendment to the Redevelopment Agreement. In its original form, the restoration of the building was to be completed before any of the money from the trust fund could be transferred to Kimmik. Graham proposed a compromise to allow transfer of $120,000 upon completion of the first floor and the adjacent streetscape, with an additional $80,000 disbursement when the second floor is ready for occupancy and the remainder in increments until the entire project is completed.
JEDC Deputy Director Paul Crawford said one of the factors that had caused the project to come to a halt was the discovery of a substandard foundation after the renovation began.
“It was built on top of rubble, which was okay in 1911,” said Crawford.
Crawford pointed out that a substantial amount of restoration has already been completed, including separate electrical service and meters for all tenants and the addition of a kitchen area in the rear of the first floor. On the upper floors, wall studs and some drywall are in place and the windows that could not be restored have been replaced.
As for the potential of the residential element of the project, Crawford commented, “It takes a unique individual to live Downtown, but we’re realizing there is an opportunity for development based on occupancy and lease rates at 11 East and The Carling,” two similar historic restoration projects, one across Adams Street from the Kimmik project and the other a block away.
Graham said the building is “30 percent pre-leased” including all of the office space on the second floor and two lofts. He also said, “We don’t have a tenant for the first floor yet but there have been a number of inquiries. We need to get the streetscape finished.”
JEDC Executive Director Ron Barton explained that Historic Trust Fund Grant disbursements aren’t based on leases but rather on completion of the rehabilitation. He told the commissioners, “All he needs is the Certificate of Occupancy for us (the City) to release the funds. The objective is to restore the building.”
Barton also commented on the current economic environment and its impact on the housing market, another factor that led to the development’s postponement.
Commissioner Christopher Corr pointed out the original agreement had expired and the City was well within its rights to “tear it up and start all over.” Barton said there are basically two choices shared by the City and the developer.
“We can either look at the building as it is for several more years or we can work with the developer to get the project moving,” he said, then added that amending the agreement would allow improvements to the streetscape to begin.
Graham told the commissioners he has so far invested “close to $3 million in the project” and it will cost another $1.2 million to complete the ground floor and sidewalk improvements. He also estimated the work could be completed within 12 months if the amendment is approved by City Council.
“This is a unique circumstance,” said Barton. “The developer has made a good faith effort to move this project forward and compared to The Carling and 11 East, there is much less financial involvement for the City.”
The proposal to amend the agreement was unanimously approved and now goes to the Council for its consideration.
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