Jacksonville Development News

[Lakelander]

^I didn't realize they also owned the large surface parking lot on San Marco Blvd. I would like to see something worthwhile built on that site instead of the riverfront. That piece of property is the most important key to creating a pedestrian friendly corridor, from San Marco Square to the Southbank.

[Captain Obvious]

^ No joke, you're absolutely right, but it's not going to happen.

As previous construction figures indicate, it would cost them anywhere from $30-50 million dollars to replace those 1,000 spaces with the necessary garage (thus freeing up 3/4 of the lot for development). I don't remember the exact figure, but their property taxes on that huge surface lot only stack up to several thousand (they might even be included with the property tax on the skyscraper!!)

Therefore, there is absolutely ZERO financial incentive for them to develop the large surface lot. The exact same thing scan be said for Prudential, and their INSANELY big surface lot off Prudential and Kipp Street.

[JFDinJax]

^Why would a parking garage cost $30-50 million? Aetna's 1,133-space garage had a construction cost of only $9 million. JTA's 1,875-space garage was $12 million.

BTW, isn't that surface lot on San Marco Blvd owned by Baptist Medical Center?

[Captain Obvious]

you are correct about the total cost. i was getting my numbers confused. $30-50 million would be the average cost of a ~1,100 space UNDERGROUND garage.

you are also correct that baptist owns the surface lot, i should have clarified that.

however, regardless of whether it's baptist or aetna; $30 million or $9 million, the cards are stacked against development.

they only pay $60,000 a year in taxes on that surface lot, easily covered by parking fees. so they have no incentive to finance 9 million dollars for a garage. they wouldn't want all that cash tied up in the increased equity for sure. however i don't even know if there is a precedent for a triple-net lease on a parking garage, so they have no way to free up their cash post construction. therefore, they would be making a huge gamble. the only way to turn profit on the site after a garage, would be to sell off the freed-up land to other developers. but then THEY need parking space, and how are THEY going to get financing, especially for buildings with garages? so if no developer bites on the land (which is a real possibility) the hospital suffers a whole lot of red on their earnings. basically, fear is preventing productive development.

long story short, inertia often runs against development. it is in baptist's interest to preserve the status quo and keep that a surface lot. it would take one of two things really, to get rid of the damn thing.

1) a visionary developer with more money than sense; who is willing to take the massive risk of purchasing the property from them at inflated cost and compensating their parking requirements.

2) a helpful city program willing to fix the mess the city created; i.e., eliminate parking requirements, offer tax credits, and market the site to developers.

/rant off

[Lakelander]

Humana building on Northbank sells for $16 million

10 February 2004

SunTrust will be largest tenant, and its name will be on it.


By CHRISTOPHER CALNAN
The Times-Union

The Humana Centre Monday became the latest in a string of Jacksonville office towers to be sold in recent weeks.

Capital Partners Inc. said it bought the 24-story building downtown on the Northbank for $16 million and plans to place the name of its largest tenant, SunTrust Bank, on its top. Orlando-based Capital Partners said it also bought for $4 million an adjacent 1.5-acre parcel it plans to use for a 1,200-space parking garage.

In addition to the garage, the company is considering building a hotel or condominiums on the parcel.

Bill Evans, Capital Partners' chief operating officer, said the company plans to fill up 224,000 square feet of the building's vacant space (59 percent of the total) by undercutting nearby lease rates.

"We're going to put forth an aggressive marketing program," he said. "We'll have lower rates than other Class A buildings downtown."

Last week, a South Florida group bought the Aetna Building on the Southbank. In January, Harbor Group International of Norfolk, Va., and a New York-based corporate investor bought One Enterprise Center, the 22-story home of the Wachovia Bank building and the Omni Jacksonville Hotel.

At the 381,000-square-foot Humana Centre, the name change could happen within 30 days, Evans said. Sun Trust is expected to move in by July.

SunTrust will occupy about 60,000 square feet, and Humana Inc. will occupy nearly 40,000 square feet, Capital Partners said in a news release.

The company said it plans to renovate the interior and exterior of the building.

Last month, Capital Partners said it was negotiating with Westin Hotel officials to build a 12-story, 197-room hotel and a 900-space parking garage.

Evans said Monday the company should decide in March exactly what it will build on the property. Construction would start in the fall and take 12 months to complete, he said.

Capital Partners bought the former Bank of America building in Deerwood Park last month, giving the company a total of 2.3 million square feet in Jacksonville. It also owns property in Tallahassee and Orlando.

[Lakelander]

It looks like up to two 250 unit condo towers could spring up on the Aetna site. This is taken from a section of an article published on Feb. 11th in the Times Journal
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New Aetna Building owners discuss plans

New owners of The Aetna Building on the Southbank want to be friendly neighbors.

They met with Baptist Medical Center executives to discuss their intentions to develop and upgrade their recently acquired 12-acre Aetna site at 841 Prudential Drive along the St. Johns River.

"We're looking at it as a cooperative" effort, said ownership partner Hal Dodt.

Baptist, which is undergoing a $90 million expansion at its 800 Prudential Drive campus, appreciates the effort.

"They made introductions and raised the possibility of joint planning," said Baptist Health research analyst Chad Reece.

"We've haven't reached any specifics. It's very early, very initial. We were appreciative, considering how our campuses are intertwined," he said.

Reece said that Aetna Building owners and Baptist executives were "looking at the different opportunities and how they might work together."

Reece said Baptist would review its master plan and then meet again with Aetna owners.

Some possible synergies include Baptist using some of Aetna's 200,000 square feet of available office space, as well as its medical staff renting or buying in one or two potential high-rise 200- to 250-unit, apartment or condo buildings that Aetna owners contemplate.

Aetna owners also are investigating development of a 40- to 120-slip marina.

Dodt, principal of Renaissance Realty Associates, and Jeffrey Douglas, with Krook Douglas Development, led the group that paid $39 million for the 515,000-square-foot Aetna Building and its adjacent 1,100-space parking garage.

A visit to the Aetna management office this week found a site model with two towers along the river that were at least the height of the Aetna building.

The model also showed the possibility of small retail stores in front of the office building and its parking garage. KBJ Architects, the original architect on the 49-year old building, is working on designs, which would require city and other approvals before construction could start.

Don't expect firm plans for eight to 18 months, Dodt said. It would take that long to strike deals and perform the due diligence, he said.

In a brief tour of the building, which has 19 floors of office space, Dodt emphasized that residential development would be market driven, and probably market-rate, and that a marina was under study.

The group bought the building from OAIC Jacksonville LLC, part of Ocwen Financial Corp. of West Palm Beach.

[Captain Obvious]

Apparently, the new aenta owners are planning TWO 200+ unit towers about 300ft tall. But don't even expect real renderings or site plans for nearly a year

http://www.jacksonville.com/tu-onlin...um_aetna.shtml

Some possible synergies include Baptist using some of Aetna's 200,000 square feet of available office space, as well as its medical staff renting or buying in one or two potential high-rise 200- to 250-unit, apartment or condo buildings that Aetna owners contemplate.

Aetna owners also are investigating development of a 40- to 120-slip marina.

Dodt, principal of Renaissance Realty Associates, and Jeffrey Douglas, with Krook Douglas Development, led the group that paid $39 million for the 515,000-square-foot Aetna Building and its adjacent 1,100-space parking garage.

A visit to the Aetna management office this week found a site model with two towers along the river that were at least the height of the Aetna building.

The model also showed the possibility of small retail stores in front of the office building and its parking garage. KBJ Architects, the original architect on the 49-year old building, is working on designs, which would require city and other approvals before construction could start.

Don't expect firm plans for eight to 18 months, Dodt said. It would take that long to strike deals and perform the due diligence, he said.

In a brief tour of the building, which has 19 floors of office space, Dodt emphasized that residential development would be market driven, and probably market-rate, and that a marina was under study.

[Lakelander]

Landing renovations close to starting, Sleiman says

16 Feb. 04

Jacksonville Landing owner Toney Sleiman said a potential incentives deal could be worked out with the city within two to three weeks, which would allow him to start demolition and redevelopment of the riverfront marketplace.

That also would mean a portion of the first phase would be completed in time for next year's Super Bowl, but not all of it.

Sleiman said on Thursday that if the deal, now being negotiated, is approved by the Downtown Development Authority, the Jacksonville Economic Development Commission and City Council, then demolition and construction could start 60 days after that.

He said that the redesign plans also must be approved by the DDA's Design Review Committee.

If all that happens, Jacksonville-based Sleiman Enterprises could start construction three to four months from now, which is later than his initial expectation that he might start work by March.

Sleiman bought the retail center in August for $5 million and vowed to re-energize the struggling center, which opened in 1987. He said he wanted to start construction in March, after city approvals, and complete the first phase in time for the Super Bowl scheduled at Alltel Stadium.

Sleiman said last week that if approvals come soon, part of that phase would be completed, but not all of it.

Sleiman said that the building exterior would be redone and that a "cut through" to open up the marketplace at Laura Street would be completed, creating an open plaza through the Landing.

However, just a few levels of a six-story, 945-space parking garage would be completed, although construction would be halted during the Super Bowl events.

"I want to get as much done as I can before the Super Bowl," Sleiman told participants at the JEA Power Breakfast Series.

Sleiman said the second phase would include another parking garage and two mid-rise mixed-use condominium buildings. The third phase is a 25-story, 500,000-square-foot office tower that would be built on the existing east parking lot.

Sleiman intends to market the building to Fortune 500 companies. "With the Super Bowl coming, we are going to market that a lot," he said.

While he initially proposed a 120-slip marina, he said that would be done later.

Asked the target date for completion, he expects the entire project to be ready in seven to 10 years. All three phases have been estimated at $200 million to $250 million.

Sleiman did not discuss the extent of the incentives, but said "we're in the middle" of negotiations and are discussing borrowing money, paying it back to the city and clawbacks.

The Times-Union has reported that Sleiman was seeking a financing package that topped $50 million and that Sleiman Enterprises and the city were trying to come to terms on Sleiman's request for a low-interest loan.

In the meantime, Sleiman said the Landing is being spruced up, especially the restaurants. "We talked to all the restaurant managers. 'You gotta clean up,'" he said.

Also, Landing consultant Mike Tolbert said that the former game room on the second level is available for community groups and also will become the "Music Factory at the Landing" for dances and other ticketed musical events on Friday and Saturday nights.

On the first floor, the former Lerner's space will become "Club Landing "on Friday and Saturday nights to feature nightclub entertainment and visiting entertainers performing in town.

Sleiman said he continues to work with national restaurant groups, but they are not commtiting to a Landing lease until there is adequate customer parking.

He also said that his parking garages will be brighter and nicer than the city garages. "Jacksonville is the proud owner of the ugliest parking garages downtown that I've ever seen," he said.

Sleiman said that the second- and third-phase condo and office buildings would be built based on market demand. "I am not going to build anything without a tenant," he said.

And he drew applause when he announced that "we have to get our heads out of the sand and change downtown today, not tomorrow."

[Lakelander]

Law firms are heading west toward new courthouse site

DOWNTOWN -- Land prices are going up and property is harder to come by as development plans intensify around the site of the new Duval County Courthouse, bordered by Adams, Broad, Duval and Julia streets.

During two years of negotiations between the city and attorneys Harold S. Lippes and Russell A. Smith for a now-vacant lot at 752 W. Adams St., the price increased from $5 a square foot to $15.

link to article: http://jacksonville.bizjournals.com/...16/focus3.html
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Here's some of the proposed developments listed in the article.

project:
office for attorneys Harold S. Lippes and Russell A. Smith
on a vacant lot at 752 W. Adams St.

Plans are to build a two- or three-story building on a 5,000-square-foot footprint for $1.6 million.

Depending on whether they build two or three floors, Lippes said, 7,000 square feet or 12,000 square feet will be available for lease. The first floor could be made suitable for a coffee shop, such as a Starbucks, or other retail business.

project:
Harris, Guidi, Rosner, Dunlap, Rudolph, Catlin & Bethea

recently purchased three adjoining lots on the southeast corner of Adams and Jefferson streets for $829,280. The land purchase includes the shuttered, 7,700-square-foot Howell's Automotive Garage.

The firm is close to selecting a contractor and even closer to picking an architect, said managing partner Robert Harris. The firm's partners are considering two plans: a 30,000-square-foot, three-story structure with retail space on the first floor, and an 8,000-square-foot renovation and expansion of the existing building.

project:
potential office tower by Foram Management Leasing

Miami-based Foram Management Leasing, which owns the 13-story building at 550 Water St., recently purchased the block bounded by Forsyth, Broad, Houston and Jefferson streets, which is at present a parking lot.

although there's no timetable for development, said President Wayne Stringer, but he envisions an office tower on top of a garage on the site. His company has experience in other markets where new courthouses have been built, including managing and leasing a 25-story building near the Dade County Courthouse.

"We're not sure there's a market yet," Stringer said. "We won't spec build; we'll need an anchor tenant."

project:
Medical/Professional Office complex

centered on the intersection of Lee and Duval streets a few blocks west.

The first phase opened two years ago. Phase two, which would be on the block south of the first phase, is in the design stage. Plans are to concentrate endocrinology and oncology professionals there. A third phase would extend the complex a block north of the existing complex.

project:
323 W. Duval St. office tower

located northeast of the courthouse, developers are considering a couple of scenarios. One plan calls for a nine-story, 100,000-square-foot office tower, renovating the Ambassador Hotel into 50 upscale apartments and building a 207-space parking garage.[

[Sunstorm]

Lots of good buzz for DT Jax!

[Lakelander]

Music Factory coming to the Landing

17 Feb 2004

Jacksonville Daily Record

Converting the old Lerner New York store in the Landing into a night club is just the beginning of the attraction’s efforts to help make downtown the place to be for Jacksonville nightlife.
“The space has been empty for a long time,” said Mike Tolbert, consultant for the Landing. “Last week, I went to look at it and thought that it’s a nice place for a club.”

Tolbert wants to find someone by late March or early April who is looking to bring a night club downtown.
“I just want to paint the picture for someone and let them take over,” said Tolbert.
As Tolbert searches for a tenant, the space won’t go unused. Singer Stephanie Mills, who will be in town Feb. 27 for a benefit concert at Edward Waters College, will be the first to occupy the empty space.
The store will be converted into a listening room for her CD party Feb. 26, and the following night, she will return with guests for an after-concert celebration.

Beyond these events, there are no definite plans for the site, but the Landing will introduce some new attractions in March, beginning with live music every Tuesday, Wednesday and Thursday night.
“We want to make a place downtown for workers to hangout in the afternoons when they get off of work,” said Tolbert.
Thursdays will also mark the return of the River Rally, a night of live music, drinking and carousing that took place about two decades ago at the Hilton on the Southbank.
This event, and others, will begin around 5:30 p.m. in order to attract an after-work crowd.

Also in March, the Music Factory will open in the old game room site.The 12,000 square-foot space will be a showcase for music promoters and live bands on Friday and Saturday nights.
The entertainment additions to the Landing are part of Tolbert’s three-pronged goal: to put space at the Landing to good use; create a venue for downtown, San Marco and Riverside residents to have a good time; and to give workers a place to relax after work.
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It looks like the Landing will reinvent itself as a nightlife entertainment and dining center instead of a retail mall, with the addition of a nightclub, the Music Factory, and the planned "Twisted Martini" bar facing the courtyard.

Also there was an article in the print edition of the business journal about a new two story restaurant, bar & art gallery with outdoor seating, planned to open in November on Adams Street right across from the Haydon Burns Library by a group called the Urban Core. So the entertainment scene in downtown is finally beginning to heat up now.

[Lakelander]

Plans for San Marco Publix move forward


Developers are asking the city's guidance in an attempt to develop a long-rumored Publix Super Market and neighborhood center in historic San Marco.

Executives with The Sembler Co., the St. Petersburg developer that built the Publix-anchored Riverside Market Square, met recently with city planners and are working with City Councilman Art Shad.

"They are in the final stages of their due diligence," Shad said. "There are a lot of loose ends to tie up. They are getting pretty close, though."

A Sembler executive confirmed in August that the company had a contract to buy property from SouthTrust Bank at southeast Atlantic Boulevard and Hendricks Avenue. SouthTrust owns about 70 percent of four blocks in that area.

At the time, Sembler estimated development of about 70,000 square feet of stores and offices, as well as apartments or condos.

City planners said this week that housing was not part of the recent talks. City planners and Sembler have not confirmed the name of the grocery store during interviews, but Shad said Sembler has identified the store as a Publix.

He also said the Publix would be about 38,000 square feet, larger than the 27,000-square-foot Riverside store but smaller than the suburban stores.

Sembler will have to go through several regulatory reviews before it can develop the site. Michael Herzberg, current planning division chief at the Jacksonville Planning and Development Department, said the issues include parking, traffic flow, landscaping and street closures.

He said SouthTrust would operate a corner bank with a drive-through, so that would need to be worked out, too.

Herzberg said that the road closure process can take a year. He and Shad expect that Sembler will need to complete a Planned Unit Development zoning review and possibly file for land-use amendments. Planning department director Jeannie Fewell said the discussions are "very preliminary."

"They did not come in with any plans or applications. They haven't filed anything," she said. "We made some suggestions."

Herzberg said he met with two Sembler executives within the past three weeks. He said they did not discuss a time frame for development. Shad said the PUD process allows for neighborhood involvement, which he considers critical for the project's success. "I made it very clear to them that the community needs to be involved," Shad said.

The site "is the heart of San Marco." He said no community meetings have been scheduled, but "the community will have lots of opportunity for input." Sembler executives did not return calls for comment this week.

It's unclear how other existing retail stores on the blocks will be affected, although Shad and Herzberg said that some could be incorporated into the design and construction. Shad said the community response so far has been "very, very favorable."

Former district Councilman Matt Carlucci said "the design and the way it looks will be critical." He also said that while parking is a big issue, "a lot of people will walk to it."

Carlucci estimates the development could take up to two years. Shad said that developers wanted to start. "They don't have a time frame, but ... they are eager to move forward as soon as possible," he said.

[Lakelander]

Fidelity considers Shipyards tower

27 February 2004


Company could also add additional 450 jobs



By KAREN BRUNE MATHIS
The Times-Union

Fidelity National Financial Inc. Chairman Bill Foley said Thursday the Jacksonville-based Fortune 500 company should decide within 30 days whether to develop an office building on property near its Riverside campus or at The Shipyards downtown.

"We couldn't do both," Foley said from his corporate offices at Fidelity's 601 Riverside Ave. campus.

Fidelity moved its headquarters from Santa Barbara, Calif., to Jacksonville in August. Fidelity acquired the campus as it bought the financial services division of Alltel Information Services Inc., which employed 1,400 people in Jacksonville.

Fidelity promised to add 750 jobs over three years in return for an incentives package of $12.525 million, comprising a city-state tax rebate for job creation, a reimbursement of taxes for improving its property values and state road grant assistance.

"We covered our expenses in relocating our employees," Foley said. "We were just trying to come out even."

The company is growing through internal expansions and external acquisitions. Foley said the company could relocate more jobs to Jacksonville, provided the city and state assist with an incentives package.

Foley said Fidelity could boost its workforce by 1,100 to 1,200 people, up from the initially promised increase of 750, at an average wage of $62,500.

To handle the growth, Fidelity has surfaced potential expansion plans at its campus, which now has a 13-story office building and three other buildings.

"We've got real space constraints," Foley said.

Foley said that Fidelity has a contract to buy 5.9 acres next to the campus and must decide by March 25 whether to complete the deal. If Fidelity chooses that site, it probably would build a 10-story, 280,000-square-foot building, he said.

BY THE NUMBERS

About the company


Fidelity reported more than $7.7 billion in revenues and earnings topping $860 million in 2003. Fidelity employs about 32,000 people worldwide, with the majority in the United States.



If Fidelity chooses to build at The Shipyards downtown, along the Northbank riverfront, it would develop a larger building to house the headquarters, title business and part of the mortgage services business. The Riverside campus would serve as a processing center.

Foley said a Shipyards building likely would be up to 18 floors and 500,000 square feet in size. The site is on the far western side of The Shipyards, near Berkman Plaza.

"It's a great spot. The property is terrific," Foley said. He said he was talking with the city and the Spence family, which owns the Shipyards property, about the potential project.

In either event, the next building probably would not be completed for at least 20 months, given approvals and construction timetables.

While Foley said the talks are "very, very preliminary," he said that the city and the Spence family would need to "come to us with a proposal" for a Shipyards project.

In the meantime, the company continues to renovate and update its Riverside Avenue campus. As the company moves businesses and functions to Jacksonville, it probably will need to lease temporary office space until a new building is completed.

"We're going to build a building," Foley said. "We're going to know in 30 days."

Jeffrey Spence, chief executive of Shipyards owner TriLegacy Group LLC, said he talked with Foley.

"It's a great opportunity if we do that, if it makes sense for him and us," Spence said.

Spence said that if Fidelity chooses the Shipyards, "it would be an FNF campus, and my interpretation is they would own that and develop it themselves."

Spence said the city was aware of the interest, "but I can't tell you what they are thinking as far as a package" of assistance.

Kirk Wendland, executive director of the Jacksonville Economic Development Commission, said Thursday that he has spoken with Fidelity, but refers questions and comments about the potential Shipyards building to Foley.

Wendland also said that he has discussed the job increases with Foley, but that no incentives package has been designed.

Spence said the Shipyards was designed for office space along with a marina, condos and other development. "I can't crystal-ball what their needs are," Spence said about Fidelity. "We always felt like Class A office space would be on that site."

The Shipyards is the former Jacksonville Shipyards along East Bay Street. TriLegacy bought the almost 45-acre site and announced plans in 2001 for a 10-year development to include two office towers totaling 1 million square feet of first-class space, 662 residential units, 150 boat slips and a 350-room hotel, along with a 16.8-acre city park.

The city agreed to help develop the first phase with $40 million in tax-exempt bonds for the public park and pier improvements. It also agreed to a maximum $35 million tax-increment rebate over 20 years after debt service on the riverfront park is paid. That payment would be based on increased taxes generated by property improvements.

The Shipyards continues to work on plans to develop 99 condo units in One Shipyard Place. Jacksonville Jaguars owners Wayne and Delores Weaver agreed to buy one of the condos.

TriLegacy, formed in 2000 and is the development arm of the Spence family.

Fidelity is No. 326 on the Fortune 500. It sells products and outsourced services to the financial and real estate industries. It provides information-based technology solutions and processing services to financial institutions and mortgage and financial services companies through Fidelity Information Services Inc.

Fidelity Information Services processes almost half of all U.S. residential mortgages and works with 46 of the top 50 U.S. banks.

Fidelity says it also is the nation's largest title insurance company and sells other services such as escrow, credit reporting, property appraisals, flood and other insurance, and more.

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Maybe the city should focus on attracting more Fortune 500 companies to Jax, if they plan t expand like this as soon as they get here.

Really though, I like the idea of Fidelity building a larger tower at the Shipyards site. That stretch of Bay Street will bloom a lot faster with an additional 1,000 well paid employees working there. It might also speed up future condo development plans at the Berkman & Shipyards sites surrounding it. The best thing about Fidelity is they're going to building a tower somewhere downtown soon, because they definately need the extra space.

[JFDinJax]

This is the kind of stuff I've been waiting for! A chance to redevelop a core neighborhood after learning from the mistakes made in LaVilla. AND, finally, focusing on the gap between Downtown and Five Points, and following the Downtown Master Plan's ideas regarding McCoy's Creek.

Worth noting for our non-Jacksonville readers: there is land being set aside in the Brooklyn area, along Riverside Ave, for a future Skyway extension. Of course, there's no funding for it yet, but at least they're planning ahead instead of letting the area build up with no room for it. Hopefully this UDA will implement that into its plan.

Brooklyn designer named

http://www.jaxdailyrecord.com/showst...Story_id=40393

by Bradley Parsons
Staff Writer
The City selected Pittsburgh design firm Urban Design Associates to redesign the Brooklyn and Riverside Avenue District. The proposal, approved earlier this month by Mayor John Peyton, seeks to use Brooklyn’s natural assets to attract mixed–use development.
Peyton chose UDA from eight candidates. The firm’s proposal emphasized past projects in Norfolk, Va. and Nashua, used access to waterways to spur housing, retail and commercial development. UDA’s package pointed to the St. Johns River, McCoy’s Creek and Brooklyn’s proximity to the central business district as potential drivers for the neighborhood’s revitalization.
Brooklyn has lagged behind the adjacent Riverside neighborhood, which in recent years has become home for some of Jacksonville’s leading businesses — St. Joe, Blue Cross/Blue Shield, The Haskell Company and Fidelity National Financial. The selection of UDA was the first step toward capitalizing on Brooklyn’s potential said mayor’s office spokesperson Heather Murphy.
“People ask ‘Why that area?’ and the reason why we’re focusing there is because it’s one of the key areas where we want to attract infill housing,” said Murphy. “The idea is to make the area more attractive to bring people there.”
The UDA proposal called Brooklyn and Riverside “two different worlds.” While Riverside has thrived, Brooklyn has become enveloped by “blight, vacancy and an aura of neglect.”
UDA pointed to transportation projects — an I–95 interchange and the current widening of Riverside Avenue — as obstacles to Brooklyn development. That sentiment was echoed at Wednesday’s Downtown Development Authority board meeting.
“We’ve sat here, basically doing nothing, while major highways and roads have been built across McCoy’s Creek,” said board member Gerry Nichols. “It makes it more difficult to do anything with it.”
As the DDA reviews downtown’s master plan, former City chief of staff Audrey Moran said the area should be developed as “a prominent gateway” to downtown’s west end. DDA managing director Al Battle said the City could connect McCoy’s and Hogan’s creeks with walkways, encouraging pedestrian traffic. UDA’s plans appear to mesh with those concepts.
In addition to accessible waterways, UDA’s proposal said the designer will capitalize on Brooklyn’s proximity to the Osborn Center in LaVilla, the neighborhood’s history and a strong employment base along Riverside Avenue to attract development.
According to initial estimates, the redesign will cost $205,000. UDA also asked to be compensated for travel, long–distance communication and photography.
The planning process will span three phases. First, UDA will collect land–use, traffic and transit data and interview neighborhood stakeholders. Following a phase-two trip to the City to test design theories, UDA will prepare a draft plan. That plan will be amended through meetings with City planners, culminating in the project’s final draft. Additional public forums may be added at the City’s discretion.
The final draft should be ready in five or six months, according to UDA.
The firm’s previous designs used prominent riverfronts to revitalize residential, shopping and commercial districts in Norfolk Va., Nashua, N.H., and Cincinnati.

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Also, on the Fidelity article, I too would rather see them build along Bay Street, even moreso now that there's more focus on Brooklyn. The only reason I would favor them expanding in Brooklyn/Riverside instead of Bay St is because it would bring some kind of development to that area... but it'll get it anyway. Well, that, and it'll apparently be a taller project if they go for Bay St.

[Sunstorm]

I would love to see Fidelity build their headquarters at the Shipyards instead of Riverside. This would be a huge boost to the Midtown area.

I also have felt for a very long time that Jax should be more aggressive in going after Fortune 500 company headquarters. Hopefully, landing Fidelity will let the city know how beneficial it is having a new corporate headquarters in town can be.

[JFDinJax]

Hopefully Mayor Peyton's legacy will be attracting a few new corporations and businesses to Jacksonville during his term(s). That seems to be one of his goals anyway.

[Lakelander]

City, Maxwell House may swap land
2 March 2004

The City and Maxwell House may soon swap four parcels of land if a bill under review by the City Council is approved later this month.

According to recently filed documents, the proposed land swap includes land bordering the coffee plant on East Bay Street. The purpose, said Council president Lad Daniels, is to increase access to the Sports Complex.
“From what I understand, we were going to try to have something like this in place in time for the Super Bowl,” said Daniels. “It’s very important for us to improve access near (Alltel Stadium).”
According to the Council’s Research Department, once a deal is finalized — neither entity stands to make a profit — the City will construct an East Adams Street loop around the plant and reconnect east of Palmetto Street near the Sports Complex.
The City will also install a security fence along the northern edge of the Maxwell House plant.
At the request of Kraft Foods, owner of the property, a 500-foot segment of East Adams Street was permanently closed in 2002.
Kraft had voiced concerns about outgrowing the site, and there were discussions about the plant relocating.
“Again, I think it’s very important for us to have more access in and out of the Sports Complex,” said Daniels. “I’m a big supporter of that. If Kraft is fine with this. I’m fine with this.”
Council member Jerry Holland said bill benefits both parties.
It was unanimously recommended for approval, and Holland expects similar approval from the full Council.
“We looked at it as a simple land swap that will properly align those roads and improve traffic in the area,” he said. “It doesn’t appear anyone is losing anything because of the bill.”
A funding source for the estimated $1.5 million project will be identified and requested in a later bill. No construction starting date has been decided.
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This isn't real big news, but reconnecting the street grid will help blend the sports district in with downtown more in the future.

[Lakelander]

City housing on track, says DDA director

2 March 2004

The Downtown Development Authority’s managing director assured the City Council Monday that the City was following the right track, building downtown’s revitalization on a residential foundation.
Al Battle told the City Council’s Finance Committee the Jacksonville Economic Development Commission was following downtown’s master plan in focusing first on downtown housing.
Restaurants, supermarkets and nightlife would follow, he said.
To encourage developers to jump into what had been a stagnant market, the JEDC has subsidized much of the recent residential development. Battle said eight of 10 downtown housing projects had received City money.
Those incentives were beginning to look like “corporate welfare,” said Council member Glorious Johnson, who demanded to know when “we are going to stop just giving money?
“I’m overwhelmed by constituents who think we’re just part of a corporate welfare system,” she said. “How many times are we going to have to prime the pump?”
Johnson’s comments came as the committee considered an incentive package for Riverplace Properties’ San Marco Place. The deal, which ties the City’s subsidy (up to $3.6 million) to the number of market–rate units available in the development, has been considered a model for future incentive packages. Johnson eventually agreed to support the deal, which passed the committee unanimously.
Battle said the package was evidence of a smarter JEDC. If the City spends money on San Marco Place, he said, it will return cheaper housing to the downtown market.

“We’ve realized we want to target market–rate housing,” said Battle. “Most of the projects so far have been at the luxury end.”
Of the 2,300 units being planned or developed for downtown, Battle said about 1,800 of them were aimed at the market’s high end. Battle previously said the sought–after market rate ranges from $220,000 for a 1,000 square–foot unit to about $260,000.

Although the money spent so far has brought development downtown, Johnson said she wanted to see whether the buildings would fill up before spending more. Council member Gwen Yates echoed Johnson’s concerns.
“We have all this housing, but nobody moving in,” she said. “We’re all pushing, trying to make it a viable downtown, but is there any concern we’re at a saturation point? I’m worried about a housing glut.”
Coming from a residential market that was essentially non–existent five years ago, Battle said he considered about 600 downtown residents, “a great response” to development already underway.

The JEDC was evaluating the consumer response to downtown’s market said Battle. He said the current market could support another 2,000 units in addition to the 2,300 already being built.

The City wants to ultimately bring 10,000 units downtown.
San Marco Place developer Jay Southerland said he and partner Mike Balanky originally envisioned an office building on the tract of land just off Prudential Drive near Morton’s Steakhouse. He said the design was changed to residential at the urging of City planners, who emphasized the need for cheaper housing.
Like many downtown developments, San Marco Place incorporates retail space into its design. The mixed–use building would generate more money through property taxes than the parking lot that currently occupies the land, said Southerland.
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Since when was $200,000 for 1,000 sf considered market-rate. That sounds pretty high rate to me. What about the average local citizen who makes around $30,000 that will be supporting those art galleries, bars, & restaurants? If any project should get city money, it should be those that cater to real "affordable housing"

[Lakelander]

Anybody know anything about this!

a quote from the Jax Daily Record (2/26/04)

The Jacksonville Historical Society may soon find themselves the owner of the Old St. Luke’s Hospital, which is currently located near the new arena. A local developer is planning a 60-unit condominium near the hospital and is negotiating a deal with JHS board members so they can purchase the historic building.
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This must be somthing vertical, because there's not much land surrounding that old hospital.

Update on the Parkview Hotel project my firm is working on.
The developer still hasn't paid the money he owe's my firm, so don't expect to hear anything about it soon, even though he has signs on the vacant buidling.

[Captain Obvious]

Re: affordable housing -
Actually I disagree. I think that $200,000 for a 1,000 sqft high-rise condo is insanely cheap! Even the cheapest cookie-cutter suburban sprawl going up in St Johns County is still costing $140,000-$160,000 for crappy housing not much more than 1,500 sqft. San Marco place has the benefit of great views, no commute, fabulous restaurants within walking distance, and I would suspect better communal amenities such as a pool, gym, etc.

Re: Old St. Lukes -
My mother works with the Jax Historical society, so I've known about this one for a few months; however, they really wanted it to be kept secret until the deal went through.

Basically, long story short, they feel that SMG corp (I've forgotten the name; I think that's it?), the people who manage the sports complex parking lots and food services, are complete assholes. The historical society has been concerned for years that SMG will try to buy up all the land surrounding Old St. Lukes and turn it into surface parking (they sort of have!). There has also been fear that SMG would convince the city to either demolish or move Old St. Lukes in order to provide more parking lots.

Consequently, the Historical Society is very excited about the developers proposal, but have been quietly debating its feasibility, because they didn't want to tip-off the parking lot barons and their suburban city hall supporters. I have no idea where the project stands at the moment. I'll ask around.