In real estate, it’s all about location.
When asking the Downtown Investment Authority for a low-interest loan to repair a leaky building, it’s all about presentation.
That came to light Wednesday when the DIA considered a request from the owners of The Jacksonville Bank building at 100 N. Laura St.
Attorneys Chuck and Eddie Farah are seeking a $130,000 loan with a 10-year term at 2 percent interest to help make the building watertight. The loan would be secured by a second mortgage on the property.
Also on the authority’s agenda was a retail enhancement grant for $102,000 to defray part of the cost to build-out space on the ground floor of the building for Black Sheep 5 Points’ planned Downtown restaurant.
Aundra Wallace, authority CEO, said the two proposals were “related” and getting the restaurant depends on getting the loan.
“These two investments should be together,” he said.
Board members objected to being asked to approve a loan for maintenance of a building.
“I find it offensive that we’re being asked to loan money for a roof leak,” said Vice Chair Jack Meeks, who presided over the meeting.
Board member Kay Harper-Williams said she was contacted by a tenant in the building who plans to move out due to maintenance issues not addressed by the owner, including defective elevators and air-conditioning, in addition to leaks.
Matthew Clark, leasing agent for the building, said a new management company took over the building in July and maintenance issues will be solved as part of a planned $2 million upgrade of the building.
Board member Marc Padgett agreed the authority isn’t intended to help landlords pay for routine operating expenses, but Black Sheep proposing to open another location in the building could be a consideration.
“We don’t typically provide loans for building maintenance, but knowing it’s for Black Sheep makes the loan make more sense,” he said.
As the discussion continued, Meeks said the loan for roof repair was not part of the discussion when the Retail Enhancement Grant Committee approved the grant for Black Sheep.
He then opened the floor for a motion and a vote on only the grant, which was approved unanimously.
Meeks recommended to Wallace that DIA staff prepare another presentation for the authority’s meeting scheduled Dec. 16 to provide a “more comprehensive overview” of the building improvement project.
Clark said the plan includes elevator and HVAC repairs, construction of a street-level entrance for the health club on the second floor, redecorating the lobby and facade improvements, such as LED lighting.
“It sounds better to say a $2 million renovation project needs $130,000 help rather than $130,000 for a leaky roof,” Meeks said.
Presenting the loan as part of a larger project might make the request make more sense, said board member Doris Goldstein, but she had concerns about the loan, even if it’s related to the other building improvements.
“These details will be forgotten,” she said. “It will be remembered we gave $130,000 for a leaky roof.”
When the item was deferred, Harper-Williams said she understood that’s the board’s choice, but she won’t support the loan.
“I’m happy to vote it down today,” she said.
Also approved was a $1.2 million incentive package for a $6.2 million renovation of 20 W. Adams St. The project, when complete, will create housing for 60 students attending Florida State College at Jacksonville.
The incentives comprise $600,000 from the Historic Preservation Trust Fund to offset a portion of the construction cost and a $600,000 loan to the college, which will lease the building, to help cover operating costs.
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