Jacksonville Jaguars owner Shad Khan’s interest in developing the Shipyards property on the Downtown Northbank of the St. Johns River has attracted attention to the JEA’s Southbank riverfront property.
JEA Managing Director and CEO Paul McElroy told the utility’s board of directors Tuesday that he has had informal conversations with developers interested in the 42-acre Southbank site since Khan said Thursday he was talking to the City about developing the Shipyards property.
The City owns the 40-acre Shipyards site.
The JEA property is the former site of the Southside Generating Station, which was decommissioned in 2001. The facility used fuel oil and natural gas to generate electricity.
“We’ve invested a considerable amount of money to prepare the site for development,” said McElroy.
“We are looking for the value at close to what we have on the books,” he said.
The property is at 801 Broadcast Place at the east end of Prudential Drive. McElroy valued the land at $28 million, while the Duval County Property Appraiser estimates the 2012 market value of the property at nearly $35 million.
“The recent talk of the Shipyards property adds value to the JEA property. How many cities do you know that have downtown, riverfront property for sale?” said Mike Hightower, chairman of the board.
Hightower asked board members to evaluate the property with a “three-bucket approach.”
“The first bucket is what we have invested in the property, the cost to tear down the plant, which was expensive. The second bucket is the mitigation of the brownfields. The third bucket is what it’s worth now,” said Hightower.
The City Brownfields Redevelopment Program website defines brownfields as “real property, the expansion, redevelopment or reuse of which is complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant.”
McElroy said the property is a key parcel in the development of Downtown Jacksonville. It could generate jobs, infrastructure, industry and business while maintaining access to the riverfront.
Meanwhile, the board voted 7-0 to approve the JEA’s proposed 2013-14 budget.
The $1.8 billion budget included $251 million in capital expenses and a record contribution to the City General Fund of $109 million.
The budget does not include any planned base rate or fuel rate increases for electric or water and sewer services.
The budget will be sent to City Council for review. JEA, an independent authority of the City, is required to submit its proposed budget to Council by July 1.
JEA hosted former board members Ashton Hudson and Jim Gilmore at The River Club on Tuesday to recognize their contributions to the board. Hudson preceded Hightower as chairman.
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