The city conveyed a 2.3-acre lot in Brooklyn on Feb. 14 to Blue Cross Blue Shield of Florida Inc. for the insurer to build an 896-space parking garage.
The city agreed to transfer the property at 800 Forest St. at no cost. In exchange, the parent company of Florida Blue will enter a 39-year lease agreement with the city to provide public parking access after 6 p.m. weeknights at all-day on weekends.
Florida Blue also will receive a $3.5 million city completion grant to build the garage.
The land agreement does include protections for the city. Florida Blue could be required to pay fair market value if it does not meet the March 31, 2021, substantial construction completion deadline. That clause would kick in 120 days after the deadline.
The city has the right to buy the property back from Florida Blue if the company misses the deadline. The property’s appraised value is $3.17 million.
Florida Blue now uses a 4½-acre riverfront surface lot along Riverside Avenue that it plans to sell to Fidelity National Information Services Inc. for construction of a $145 million headquarters.
FIS officials said Nov. 1 they expect to buy the property by the end of the first quarter.
Florida Blue hired Danis Builders LLC to construct the four-level, $22.5 million parking garage. The city issued a permit Jan. 2 for Danis to begin construction of the foundation.
The garage is expected to be completed by Sept. 9, according to a document filed with the Downtown Development Review Board.
The parking garage will serve Guidewell Inc., the parent company of Florida Blue, at its 532 Riverside Ave. tower.
Guidewell announced in October it will add 750 jobs in Riverside, comprising 500 contract and 250 full-time positions. That will increase the workforce there to 1,750 people.
As city-owned property, the site did not generate tax revenue. DIA officials expect the property, zoned Commercial Central Business District, to bring in $5.1 million over 20 years, or about $255,000 annually, once in private ownership.
The property previously was a retention pond.
