A Baltimore restaurant group gained an opportunity to expand to Jacksonville’s Downtown Northbank after action May 20 by the Downtown Investment Authority.
On a 7-0 vote, the board directed staff to negotiate with Atlas Restaurant Group on an agreement to build and operate a restaurant on city-owned property in Riverfront Plaza. Member Sondra Fetner arrived after the vote, and member Jill Caffey was absent.
With the vote, the board accepted a recommendation from a DIA evaluation committee that scored proposals from Atlas and St. Augustine-based PK Hospitality Group for the property on the southwest corner of the park.
Atlas and PK issued the only responses to a DIA notice of disposition for the restaurant site. Disposition is the process by which the city transfers publicly owned property for private development.
The committee evaluated the two proposals on six criteria, including experience, the groups’ lease proposals, financial capacity and operational viability. Each category was scored on a scale of zero to 20.
Cumulatively, Atlas scored 90 to PK’s 71.7.
Atlas, which operates more than 50 restaurants, proposed to build a shell building that the city would own, then build-out the shell and lease it. The group’s terms include being reimbursed $8 million from the city to design and construct the building.
Atlas would spend $4 million on the build-out, then pay a base rent of $560,000 annually with a 3% escalation per year.
If revenue reaches $11.2 million annually, the rent would switch to 5% of that revenue.
Atlas would provide maintenance and pay for insurance.
Its restaurant would include a waterfront raw bar and casual dining component, a full-service dining room with seafood and steaks and a rooftop bar and lounge.
Board members expressed concerns about parking for the restaurant, with member Cameron Hooper saying original plans for the Jacksonville Landing included a parking garage that was never built. The Landing, a retail and restaurant complex, was on the Riverfront Plaza site. Built in 1987, it was demolished in 2019 and 2020 after losing luster and tenants.
“We’re seen things not work there because of a logistical nature,” Hooper said. “We have to look at history.”
DIA staff member Allan DeVault said Atlas is expected to make significant use of valet parking, using the city owned Water Street parking garage west of the plaza.
Atlas operates in Delaware, Maryland, Pennsylvania, Texas and Washington, D.C. Several of its restaurants are on waterfronts.
PK’s concept was for Prohibition Kitchen, an entertainment-driven gastropub, including a main dining room with live music, a private dining space, rooftop cocktail lounge and rum-focused tasting environment.
Its proposal included a full abatement of rent for the first two years, with rent of $120,000 in year three, $144,000 in year four, $168,000 in year five and a 2.5% increase annually thereafter.
According to the DIA, the facility will include 6,000 square feet of interior space, a 1,500-square foot patio and a rooftop bar.