City Council will consider removing new apartment and parking garage construction from a development agreement with Axis Hotels LLC at the historic Ambassador Hotel site Downtown.
Augustine Development Group, through Axis Hotels, continues work to convert the historic structure at 420 N. Julia St. into a 127-room La Quinta Inn & Suites, Downtown Investment Authority CEO Lori Boyer said March 9.
Council President Scott Wilson filed Ordinance 2020-0230 at the request of the DIA that removes a $4.9 million Recaptured Enhanced Value grant from the agreement. The estimated total development cost for the Ambassador Hotel remains $15 million, according to the bill.
A $1.5 million Downtown Historic Preservation and Revitalization Trust Fund grant for the hotel would remain in place if Council approves the new agreement.
The Mayor’s Budget Review Committee voted unanimously March 9 to allow the DIA to file legislation for the renegotiated agreement.
A legislative fact sheet attached to the bill states that Augustine Development has modified its redevelopment plans for the former Independent Life and Accident Insurance Co. building across the street at 233 W. Duval St. to incorporate the 200 multifamily unit and parking garage into that project.
The apartment and parking garage construction is estimated at $38.15 million.
The $28 million, 180,000-square-foot Independent Life renovation incorporates apartment and retail.
Boyer said March 9 that Augustine Development is redrafting designs for the parking garage to support both buildings.
The DIA board approved the changes to the agreement Dec. 18 in an 8-0 vote.
Axis Hotels purchased the 1.5-acre Ambassador Hotel site in July for $5.4 million. The block is bordered by Duval, Julia, Church and Pearl streets
Council approved the original agreement with Axis Hotels in January 2019.
The deal requires the developer to begin building improvements at the Ambassador Hotel by Sept. 25 and complete construction by March 25, 2022.
Augustine Development Group President Bryan Greiner said Feb. 20 that interior demolition at the Ambassador Hotel began in November 2018.
The renovation and restoration of the 64-year-old Independent Life building received conceptual design approval Nov. 14 from the Downtown Development Review Board.
Plans for that project show 140 market-rate apartments, a rooftop terrace with a pool and a ground-floor grocery store, which Greiner said Feb 20 has an operator.
Greiner and investment partners DLP Capital LLC purchased the 19-story office building in early October through PEP10 LLC for $3.7 million.
The Council Land Use and Zoning Committee voted 6-0 on April 21 to advance a bill to designate the Independent Life building a local landmark at Greiner’s request and at the recommendation of the Jacksonville Historic Preservation Commission.
If approved April 28 by the full Council, the Independent Life project also would be eligible for historic trust fund dollars.