While the impending sale of PSS World Medical likely affects the plans, the Jacksonville-based medical supplies company apparently has been considering moving its headquarters from Southpoint into a six-story building that would be built on 30.7 acres along A.C. Skinner Parkway.
PSS acknowledged in June it was looking for sites to relocate and consolidate its headquarters, but had not confirmed which areas were under consideration.
A request was submitted Oct. 1 and filed Oct. 26 with the City Planning and Development Department Zoning Section for an administrative deviation.
The application included an exhibit for the "concept wall section" of an office building and the exhibit was labeled with "PSS World Medical," developer "Liberty Property Trust" and architectural firm "Wakefield Beasley & Associates." The exhibit was dated Aug. 28.
The property owner was listed as Southeast Properties Inc., a Boca Raton-based company. The agent was Jacksonville lawyer Wyman Duggan with the Rogers Towers firm.
PSS President and CEO Gary Corless and Duggan could not be reached late Wednesday or early this morning to comment or say why the PSS name was on the exhibit.
According to the zoning application, the property sits along A.C. Skinner Parkway between Southside Boulevard and Belfort Road. The stated reason for the request was "planned construction."
A written description dated Sept. 21 said the property comprises three parcels totaling 30.7 acres north of A.C. Skinner Parkway, south of Butler Boulevard, west of Southside Boulevard and east of Belfort Road. The property is undeveloped and has frontage both on Butler Boulevard and A.C. Skinner Parkway.
The application seeks to increase the maximum permitted building height from 60 feet to 110 feet "in order to facilitate the phased development of the property."
Phase one would "consist of the immediate construction of a six-story office building." It said similar construction would occur on the rest of the property in future phases.
However, PSS agreed to a $2.1 billion buyout offer from San Francisco-based McKesson Corp. on Oct. 24.
While the deviation application for the project was submitted and filed about that same time, acquiring companies typically make the final decisions about construction projects and corporate moves.
Daily Record contributing writer Mark Basch reported Monday that PSS World Medical decided in August to seek potential buyout partners and that McKesson made its initial bid Sept. 11, which was before the written description of the project was filed with the City zoning office.
The PSS proxy statement filed with the Securities and Exchange Commission told how the buyout deal came together. Basch reported it basically grew out of a plan announced in May by the medical supply distributor to realign its businesses. Three months later, the board apparently had doubts that the plan called "Healthcare 2.0" would succeed in light of industry trends.
During a special telephonic meeting in early August, the board discussed concerns about "the ongoing consolidation of independent caregivers and the potentially negative implications of such consolidation on its ability to successfully implement its Healthcare 2.0 initiative." Directors decided to explore a sale and buyout discussions began Aug. 20.
McKesson made its initial bid Sept. 11 and submitted a written proposal Oct. 16, according to the proxy.
The companies weren't saying what would happen to the PSS Jacksonville operations, where the company employs 780 people.
The potential headquarters move first surfaced in June. The Daily Record reported then the company was evaluating its site options because its leases were coming due, with one expiring in about two years.
The company, which distributes medical supplies, occupies space among two Southpoint buildings — the PSS Building at 4345 Southpoint Blvd. and the Enterprise Park Building at 4190 Belfort Road.
The buildings accommodate 200,000 square feet for PSS, but Corless said the company doesn't use all of it.
We reported options included development of an estimated 200,000-square-foot project to accommodate the operations, moving to an existing building or adapting the current space.
If the decision was to move, the company would decide either to occupy an existing building or work with a developer on a build-to-suit structure to meet the company's specific needs.
Chief Financial Officer David Bronson said after the company's annual meeting Aug. 16 if the company decided to build a structure, the time to start was drawing near.
Based on industry estimates of $150 a square foot, a development of 200,000 square feet could represent a $30 million investment.
The site team was working with CNL Commercial Real Estate in Jacksonville to evaluate the options.
The Daily Record reported Aug. 17 that PSS executives said they were "reasonably close" to a decision. Corless and Bronson said executives were expecting site-team evaluations about the options, which included looking at Downtown locations as well as areas outside Jacksonville.
They said the company was talking with City and state officials about the site decision, which indicates that economic incentives might be part of the evaluation. A spokeswoman for Mayor Alvin Brown acknowledged the PSS conversation in mid-August.
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