THURSDAY June 21-27, 2018
Mathis Report: Their business wants to ‘float away’ your stress PAGE 4
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Record & Observer Curry’s Northbank focus JACKSONVILLE
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With The District on the Southbank moving forward, projects along the St. Johns River Northbank from the Jacksonville Landing to TIAA Bank Field are moving to the redevelopment forefront. FOUR NORTHBANK PROJECTS
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Record & Observer JACKSONVILLE
Record & Observer The Landing
Berkman Plaza II
New convention center
Developing Lot J
Last Thursday, Mayor Lenny Curry’s team unveiled to the Daily Record an early concept to replace the Downtown riverfront Jacksonville Landing with a large urban park and private development toward the back of the property. Curry called the concept “the beginning of the discussion.” He said he’s confident city attorneys will prevail in two pending lawsuits against the Landing’s operators.
The Berkman Plaza II project along East Bay Street remains unfinished a decade after construction came to a halt. Curry said the “eyesore” and “blemish to Downtown” is close to being redeveloped. He said the city has advised the owner, Choate Construction Co., that the city is prepared to act, “whatever that looks like,” if a deal is not reached soon.
Environmental Holdings Group LLC scored the highest among the Request for Proposal bids unsealed Wednesday for the demolition of the old City Hall and courthouse annex buildings along East Bay Street. Curry said those bids, along with another RFP for both demolition and redevelopment, coming due in August show a “sense of urgency” by his team. “We have options,” he said. Curry said his team will go with whatever option can result in action the fastest.
In April, the Jacksonville Jaguars showcased plans to develop the parking lots on the west side of TIAA Bank Field, as the first phase of a larger $2.5 billion project to activate the Northbank. Curry disagrees with criticism that building an entertainment complex near the stadium rather than the urban core will dilute Downtown redevelopment. “People that are big believers will experience the entirety of downtown as it catches fire,” Curry said.
BY DAVID CAWTON STAFF WRITER
A
s Jacksonville Mayor Lenny Curry heads into the final year of his first term in office, he says he’s firmly focused on turning around the Downtown Northbank. “It’s been three years since I’ve been in office,” he said. “Down-
town has been a focus, and we’ve taken significant bites out of the apple, but that’s not enough.” Curry spoke with Jacksonville Daily Record/Record & Observer reporters Wednesday about what he envisions for Downtown, specifically along the Northbank of the St. Johns River. Unlike the Southbank, with residential and office towers and ground-level retail and housing
development, the Northbank and urban core remain a challenge for new investment. Curry said he can spend more energy there now that reforms to the city pension system and children’s programs are behind him. “We finally have a budget that can handle not only our basic services but invest in projects because of the pension reforms,” he said.
Curry’s team wants to turn around the Jacksonville Landing, a landmark structure that opened 31 years ago and finds itself featured on postcards, TV shots and murals that depict Downtown. The riverfront mall is tangled in two lawsuits between the city, which owns the dirt underneath it, and the building’s owners, a Sleiman Enterprises company called Jacksonville Landing
Investments Inc. “The Landing is the front door. It’s our front porch, the entrée to the core of Downtown,” Curry said. “It’s been mismanaged.” Although both lawsuits began under his watch, Curry said Toney Sleiman’s companies battled with previous administrations since they purchased the buildings SEE CURRY, PAGE 10
Cawton Report: Former Mayor Jake Godbold critiques Curry PAGE 8
Job market shows no signs of cooling
Trending: What the Bentley deal means for the region PAGE 2
Construction leading employment surge in Northeast Florida. PAGE 3
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VOLUME 1, NO. 3 • ONE SECTION
Page 2 • Thursday, June 21, 2018
Jacksonville Daily Record/Jacksonville Record & Observer
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Special to the Daily Record
An artist’s rendering of the Jacksonville Bentley Motors dealership planned along Bonneval Road at Butler Boulevard and Interstate 95.
WHAT’S TRENDING
What getting a Bentley dealership says about city
KAREN BRUNE MATHIS EDITOR
Brickell Motors sold on area’s growth and demographics to sell cars that start at $200,000. There’s something to be said about Bentley Motors opening a dealership in Southside to sell its expensive cars. That something is Bentley thinks people here can afford them, or enough people in the market area will make the trip to spend their money. That’s a trend that local leaders want to believe and hope to bank on. Mayor Lenny Curry said he met with the dealership executives “and their data and analysis” tells them “they’re going to be successful in Jacksonville.” Otherwise, why would Brickell Motors LLC out of Miami choose Bonneval Road, at Butler Boulevard and Interstate 95, for a location to sell the handcrafted British cars that start about $200,000? “I’ve looked at this market for a long time,” Brickell Motors President and CEO Mario Murgado said Monday at a news conference to announce the dealership. “This is a brand that’s never been here and this makes a statement for Jacksonville,” he said, adding that he began proposing Jacksonville for a Bentley dealership more than a year ago. Murgado said he was sold on the area’s economic capability to maintain a high-end brand like Bentley and he believes the city has the growth and demographics to support a full-service dealership. When the dealership opens next year, Murgado’s theory will be tested. Jacksonville will be the seventh Bentley dealership in Florida. Bentley and Brickell didn’t share demographics or other data at the news conference that drove their decision. There’s at least one driver already. Jacksonville Daily Record/Record & Observer Managing Editor Monty Zickuhr passed a Bentley on Beach Boulevard as he headed to his daughters’ dance recital about 6 p.m. Friday. It was occupied by an older couple.
There’s no science in that, but it did show the brand is on the road. So, who will buy the Bentleys here? Ask around and you’ll hear theories about possible buyers: The Jacksonville Jaguars and owner Shad Khan (who are tagged as potential customers for all pricey purchases); well-known businessmen and women (they know who they are) and some not-so-wellknown but even more affluent individuals; those with inherited family wealth; people who have first, second and third homes in coastal areas, like Ponte Vedra Beach and Amelia Island; anyone with a luxury plane or yacht who might enjoy another purchase; or maybe the people next door who saved well and want to spend their children’s inheritance, which becomes a used Bentley. A 2008 Forbes.com article about “What Your Car Says About You” explores the Bentley buyer. Forbes contacted luxury and nonluxury automakers to profile the kinds of people who typically buy which cars. The information came from purchasing demographics supplied by the automakers who responded. Buyers of Bentleys, such as the $246,990 Bentley Arnage T cited in the report, tend to be highly successful, with a net worth on the average of $30 million, Forbes found. It said Bentley believes most buyers likely are self-made executives and business owners who worked their way up the ladder. “They are much less interested in impressing others with their wealth and success than they are in rewarding themselves,” Bentley believes, according to Forbes. In the U.S., 58 dealerships sell Bentleys. A conversation with a Bentley dealer, who didn’t want to be identified by name or geography, said Jacksonville’s dealership can serve the market from Orlando to Atlanta, which is a large area for prospective buyers. How many cars are sold at each dealership depends on the area, but it generally is not a volume as high as, say, the dealership where Zickuhr bought his Prius. One Bentley is equal in price to about 10 of the hybrid cars. Murgado asks people to consider what the Bentley dealership says about Jacksonville. “Choosing a Bentley,” he said, “is not just a purchase, it’s an experience.” Most likely it is, and so is your daughters’ dance recital. KMATHIS@JAXDAILYRECORD.COM @MATHISKB (904) 356-2466
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Jacksonville Daily Record/Jacksonville Record & Observer
Thursday, June 21, 2018 • Page 3
Job market showing no signs of cooling CONSTRUCTION LEADS THE WAY Construction jobs in the Jacksonville area are up 8.1 percent from last May.
BY MARK BASCH CONTRIBUTING WRITER
Employers are creating jobs, area workers are taking them and there’s no sign that will stop. “The local labor market performance in Jacksonville has been outstanding so far in 2018,” said University of North Florida economist Albert Loh. Jacksonville’s already low unemployment rate fell even more in May, as new high school and college graduates entering the labor force seemed to be able to find jobs. The unemployment rate in the Jacksonville metropolitan area (Duval, Baker, Clay, Nassau and St. Johns counties) fell from 3.2 percent in April to 3.1 percent, the Florida Department of Economic O p p o r t u n i ty said Friday. The state agency does not adjust the data for seasonal factors, such as the Loh typical spring increase in people looking for work as students search for permanent or summer jobs. However, even when the data is seasonally adjusted, the Jacksonville area jobless rate fell from 3.24 percent in April to 3.12 percent last month, according to the University of North Florida’s Local Economic Indicators Project. The Department of Economic Opportunity said Duval County’s unemployment rate was unchanged, without seasonal adjustment, at 3.3 percent in May. But after adjusting for seasonal factors, the rate dropped sharply from 3.44 percent in April to 2.97 percent last month, LEIP said. “The data seem to suggest that job seekers can find work relatively quickly and that growth in jobs is seen in more than just a selected few nonagricultural sectors, which points to a solid economy,” Loh said. The Department of Economic Opportunity’s monthly survey of nonagricultural businesses showed strong job growth in the Jacksonville area, with a net gain of 22,400 jobs from May 2017 through May 2018, a 3.2 percent growth rate.
NORTHEAST FLORIDA JOB MARKET
Counties ranked by unemployment rate Florida’s 67 counties posted May unemployment rates of 5 percent to 2.6 percent. Here’s where the Jacksonville Metropolitan Statistical Area counties ranked from highest to lowest. St. Johns was the lowest statewide at No. 66. The numbers are not seasonally adjusted. Unemployment Rank County Rate No. 34 Duval 3.3%
DOB: 7/13/92 Hair: Dark Blonde Eyes: Hazel
The trend in Northeast Florida jobs shows an increase in the size of the labor force and the number of people working or looking for work. The number of unemployed people continues to decline, as does the unemployment rate. Month
Labor Not Unemp. force Employed employed rate
May 2017
761,571
732,372
29,199
3.8%
April 2018
770,729
746,351
24,378
3.2%
May 2018
782,868
758,356
24,512
3.1%
Clay
3.0%
No. 53
Nassau
3.0%
No. 58
Baker
2.9%
Industry
No. 66
St. Johns
2.6%
Construction 3,500 8.1%
Source: U.S. Department of Labor, Bureau of Labor Statistics, Local Area Unemployment Statistics Program and the Florida Department of Economic Opportunity Bureau of Labor Market Statistics
The biggest gains came in the construction sector, which increased jobs by 8.1 percent in the 12-month period. Other strong gains came in professional and business services, up 5.4 percent, and leisure and hospitality, up 4.6 percent. The only major private-sector industry losing jobs was the information sector, down 1.1 percent. Jacksonville’s job growth beat
Last seen Feb. 10, 2005 at Paxon Middle School on westside of Jacksonville, FL
Where the Jacksonville jobs are Growth Percent May-May increase
Retail trade
4,300
5.5%
Professional and business services
5,600
5.4%
Leisure and hospitality
4,000
4.6%
Education and health services
2,600
2.5%
Florida’s statewide growth rate of 2.1 percent in the 12 months through May. The Jacksonville area unemployment rate also was better than the statewide rate. Florida’s seasonally adjusted jobless rate fell by 0.1 percentage point to 3.8 percent last month, the Department of Economic Opportunity said. St. Johns County’s unemployment rate fell by 0.1 point to 2.6
If you have any information, please call Jacksonville Sheriff ’s Office 904-630-0500 or Crime Stoppers 1-866-845-TIPS.
Photo age progressed to 22 yrs
Jobs by the numbers
No. 53
MISSING • $10,000 REWARD
MARK ANTHONY DEGNER
ECONOMIC TRENDS
Unemployment rate in Jacksonville metropolitan area falls to 3.1 percent in April.
percent in May, without seasonal adjustment, tying it with Okaloosa County for the state’s lowest jobless rate. Baker County also dropped below 3 percent, falling by 0.1 point to 2.9 percent. Clay County fell by 0.1 point to 3 percent, and Nassau County was unchanged at 3 percent. MBASCH@ JAXDAILYRECORD.COM
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Photo age progressed to 18 yrs
DOB: 12/18/91 Hair: Red Eyes: Green
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Page 4 • Thursday, June 21, 2018
Jacksonville Daily Record/Jacksonville Record & Observer
THE MATHIS REPORT
Couple’s Mandarin investment is one that holds water
KAREN BRUNE MATHIS EDITOR
Indigo Float franchisee Matt Stewart found relief in floating, so he’s investing in the concept in Northeast Florida. Until two years ago, Matt Stewart was writing commercial insurance for a living, married with three children, coaching sports and, in general, “trying to do it all.” Now 35, Stewart said he hit a point where he was starting to break down. His physician prescribed an antidepressant, Stewart did his research and took a different path. He dropped all prescription drugs and lost 60 pounds. On his path to do that, he discovered yoga and then, floating. “It was like a lightbulb went off,” he said. Floating typically is done in a water-filled pod in which the customer floats alone for an hour, in the dark if preferred, to encourage relaxation. His first float was in Denver, the second in Orlando. “I knew it was exactly what I needed,” he said. So much so that he bought the franchise for Northeast Florida for Indigo Float, the Denver startup that expanded into territories in Orlando and Jacksonville.
Special to the Daily Record
Matt Stewart and his wife, Jacki, bought the Northeast Florida territory for Indigo Float. Stewart estimates the investment at $500,000.
Indigo Float intends to buildout at Riverplace Shopping Center at 11111 San Jose Blvd. in a spot near Stein Mart. The city is reviewing an application for a $190,000 tenant improvement for 1,842 square feet for the business. Matt approached his wife, Jacki, with the idea and she said yes. He stopped selling insurance to set up the franchise, while she continues her career in IT audit. The children are 19, 9 and 7 – the youngest a girl. The Denver center opened in December, Orlando opens in about two months and Jacksonville’s first Indigo Float could open in August or September. Stewart estimates the investment at $500,000. He said the center will operate 9 a.m.-9 p.m. or later, depending on demand. He anticipates six employees. Indigo Float is a center that allows customers to float in pods of water, which indigofloat.com calls “restricted environmental stimulation therapy.” Customers float in a shallow pool of water suspended with 850 pounds of Epsom salt, which is magnesium sulfate. Plans for the Jacksonville center show four oval pods and five float rooms. Stewart said the fifth room is an open float room with a big tub designed for customers with special needs or for couples’ floating. The pods, from Budapest, are 10-feet-long and filled with 250 gallons of water made denser with Epsom salts. Indigo Float says “magnesium is exceptional for the rejuvenation of skin, hair, nails and bones, while the sulfate pulls toxins, lactic acid, heavy metals, and other impurities from the body.” It says customers will float “effortlessly on the surface,” eliminating stress on bones, muscles and organs “in an environment that’s free from the distractions of light, sound, touch and gravity.” Indigo Float claims the experience can reduce stress, detoxify the body, improve sleep, increase performance and creativity, reduce joint and muscle pain, sharpen focus, improve memory and cognitive performance and improve “chemo-fog.” “It’s a noninvasive way to deal with wellness,” Stewart said. “I can see a day when doctors say, ‘go take a float.’” Indigofloat.com says its floatSPA pod completely removes and filters the water between float sessions. Stewart said staff wipes down the pods between uses. The water doesn’t fill until a customer is showering before using the pod. Stewart says the customers can float with the lid closed or open and lights on or off. They can float in their bathing or birthday suits. Stewart said the float rates will be $49 for a one-hour float for members, and for a first-time floater. Indigo Float will offer
Special to the Daily Record
At Indigo Float, customers can unwind in pods filled with water made denser with Epsom salt. The franchise plans to open in the Riverplace Shopping Center at 11111 San Jose Blvd.
packages, such as $99 for three floats per month. Stewart said the float-owner community is tightknit. He knows the owner of H20m Float, which also offers massage therapy, along St. Johns Bluff Road and he is familiar with another center planned in Riverside. Stewart’s Indigo Float territory is Jacksonville, Gainesville, Tallahassee, St. Augustine and Savannah. Riverplace Shopping Center is represented by the Franklin Street commercial real estate company. Director Whitney Butler said Riverplace is a neighborhood center for Mandarin residents as well as a regional center. The center is along San Jose Boulevard just south of Interstate 295. “They will do well there. It’s a perfect opportunity to reduce stress, detox your body and continue on a path of wellness. It’s right in the trend of what we are seeing with lifestyles,” Butler said. Butler with Franklin Street represented the landlord. Retail Associate Katherine Goodwin of Colliers International represented the tenant.
Land sold for Oasis at Town Center Members of the Skinner family sold property to Oasis at Town Center LLC on June 13 for $7 million for development of the 362-unit Oasis at Town Center apartments south of Topgolf along Brightman Boulevard. The $22.7 million construction project comprises eight apartment buildings, five garages, clubhouse, pool cabana and other structures on 15.49 acres at 10667 Brightman Blvd. Picerne Real Estate Group of Altamonte Springs is developing the project through The Oasis at Town Center LLC. EnglandThims & Miller Inc. is the civil engineer. Picerne Construction Corp. of Altamonte Springs will be the contractor and Picerne Management Corp. will handle leasing and management.
FOOD NOTE Pita Pit is taking the former Firehouse Subs space in Centurion Square at 8380 Baymeadows Road, No. 8. The city issued a permit for Suncoast Industrial & Construction Services to build-out the 1,763-square-foot space at a cost of $139,859. Firehouse Subs opened a new location across the street in Baymeadows Corner.
1 spec warehouse OK’d for construction; 2nd permit in review Two speculative warehouses are nearing construction in a city where industrial vacancy rates are at historic lows. One was approved for construction at Westside Industrial Park in West Jacksonville and another is in permit review for the Jacksonville International Tradeport in North Jacksonville. Arco Design/Build Inc. of Atlanta is the contractor for the 272,480-square-foot speculative building at 6282 Imeson Road at a construction cost of $6.26 million. Atlanta-based Pattillo Industrial Real Estate is developing the park. Senior Vice President Peter Anderson said previously the center can be divided for multiple tenants at a minimum of 90,000 square feet. Plans show two 6,186-squarefoot office areas as future additions. A truck court and dock doors are shown on plans. Atlanta-based Pattillo developed Westside Industrial Park at northwest Interstate 295 and Pritchard Road. Anderson said no tenants have committed. Dallas-based Jackson-Shaw applied for a permit to build a 93,600-square-foot speculative warehouse at 1594 Transport Court in Jacksonville International Tradeport. Haskew Company & Associates is the contractor for the warehouse on 7.72 acres at a construction cost of $4.1 million. Plans show 25 dock doors. Tradeport is at southwest I-95 and Airport Road.
Jacksonville Daily Record/Jacksonville Record & Observer
Thursday, June 21, 2018 • Page 5
DEVELOPMENT NOTES n SunTrust said there are no immediate changes in its Downtown location or building signage in the wake of VyStar Credit Union agreeing to buy and move its headquarters into the 358,278-square-foot SunTrust Tower at 76 S. Laura St. The lease expires in July 2019. VyStar President and CEO Brian Wolfburg said SunTrust leased about 65,000 square feet of the building until it sublet space to Jacksonville University. Wolfburg said SunTrust’s lease will drop to about 35,000 square feet. A SunTrust spokesman said the company will provide an update about its office space in the coming months. n VyStar Credit Union is preparing to build a 2,800-squarefoot branch in Bartram Park. The city issued a Conditional Capacity Availability Statement for the 1.4-acre project. Prosser Inc. is the civil engineer. The site is in the Shoppes at Bartram Park. VyStar bought the property in May from 121 Financial Credit Union for $1.5 million. n The deed was recorded Friday for Caliber Collision, through Cross Development CC Jacksonville St. Augustine LLC, to buy the Boxtown Brite Lite LLC facility at 3633 St. Augustine Road to develop a nondrive collision-repair center. Caliber Collision paid $1.31 million on June 4 for the 1.14-acre property. n Liberty Storage Jacksonville San Marco LLLP of Orlando bought 2.5 acres at 1820 Kings Ave. in the San Marco area for development of a self-storage center. It bought the land June 12 for $1.42 million from Finley & Shell Properties LLC. n Mueller Industries Inc. is joining Alta Lakes Commerce Center in North Jacksonville. The city issued a permit Monday for Dav-Lin Interior Contractors Inc. to build-out space for the Memphis-based industrial manufacturer at a cost of $402,225. The company will lease 48,075 square feet of warehouse and office space at 2550 Cabot Commerce Drive in Building 2. Mueller Industries makes plumbing, HVAC, refrigeration and industrial products. Plans show Mueller Industries is one of four tenants in the building.
Special to the Daily Record
The Wawa property at 9731 Beach Blvd. is for sale for $4.8 million. Wawa’s lease on the property runs through November 2038. This is a rendering of the project under construction.
Jackson-Shaw President and CEO Michele Wheeler said previously the company is developing the building because of “strong demand in Jacksonville” and “to address growing tenant leasing needs.” It is called International Distribution Center 5. She anticipates construction to begin in June and be completed in January. Plans show 83,600 square feet of warehouse space and 10,000 square feet for offices. Wheeler said it will be Jackson-Shaw’s eighth building in Jacksonville.
Wawa site at Beach and Southside is up for sale
The Wawa Inc. gas station and convenience store under construction and scheduled to open this fall at 9731 Beach Blvd. is for sale. The site, at northeast Beach and Southside boulevards, is
where the Southside Estates shopping center was partially demolished to make way for the new development. The Franklin Street real estate firm listed it for sale on behalf of property owner 9731 Beach Blvd LLC. The LLC, led by Justin Ashourian, bought the site in November 2014. Ashourian is listing the property, subject to a ground lease to Wawa, for sale. The Wawa lease runs through November 2038. The Franklin Street real estate company is listing the property at almost $4.8 million. The 6,119-square-foot building was developed on 1.75 acres. Franklin Street Director Chad Atwood is the listing broker. Ashourian said Tuesday that Wawa’s construction should be completed by early October. He said he was selling the property “just to move on to new ventures,” but doesn’t have any to discuss. “I don’t have anything on the
front burner right now,” he said. Wawa is being built at the corner of the Southside Estates center, a retail plaza developed in 1962. Spokeswoman Lori Bruce said Tuesday that most of Wawa’s Florida openings are land leases with its development partners, who may opt to sell the real estate once the store opens for business. “It does not impact the store,” she said. She said three Jacksonville area stores will open this year, tentatively in the fourth quarter. Those are at Beach and Southside boulevards in Jacksonville and two in Clay County – one in Middleburg and one in Orange Park.
Arium Town Center sold for $55.6M A Chicago real estate firm associated with New Yorkbased Blackstone investment
group paid $55.64 million for the Arium Town Center Apartments at 10135 Gate Parkway N. In a sale executed May 25 and recorded with the Duval County Clerk of Courts on June 14, BREIT MF Arium Owner LLC bought the 36.7-acre property from the Carroll Organization of Atlanta. The Carroll Organization paid $40.9 million for the property in
2014. It was built in 1996. BREIT MV Arium Owner is part of LivCor, a Chicago-based real estate firm formed in 2013 as a portfolio company of The Blackstone Group. The apartments were built in 1996. KMATHIS@JAXDAILYRECORD.COM @MATHISKB (904) 356-2466
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Page 6 • Thursday, June 21, 2018
Jacksonville Daily Record/Jacksonville Record & Observer
THE BASCH REPORT
Starboard impacted Fidelity-Stewart deal
MARK BASCH CONTRIBUTING WRITER
Sale was sped up by activist investor attempting to elect members to Stewart’s board of directors. With Starboard Value LP possibly pressuring Web.com Group Inc., it is worth noting that Starboard already had an impact on another major deal involving a Jacksonville-based company. Before Fidelity National Financial Inc. agreed to buy Stewart Information Services Corp. for $1.2 billion, Starboard was pushing Stewart to make some kind of a deal. Starboard, a well-known activist fund, revealed two weeks ago in a Securities and Exchange Commission filing it has acquired 9.4 percent of Web. com’s stock, prompting speculation that Starboard will be pressuring Web.com for some type of action. Starboard had been invested in Stewart for at least two years and in October 2016, it reached an agreement that put three new independent directors on Stewart’s board. However, the fund apparently wasn’t satisfied and in January 2018, Starboard indicated in another SEC filing that it would nominate three new directors to Stewart’s board at the company’s annual meeting. Houston-based Stewart already was negotiating with Fidelity and several other parties about a possible buyout by then. Stewart’s proxy statement for the Fidelity deal, filed May 30, said it first contacted Fidelity in September 2017 and was talking to several other unnamed parties about a deal in the months after that. Starboard’s attempt to nominate new directors sped up the process. “In light of this development and the Stewart board’s view that a concurrent proxy contest was likely to substantially complicate any negotiations with other third parties, the Stewart board affirmed its desire to proceed expeditiously with the strategic alternatives process in order to conclude the process in advance of the timeline of any potential proxy solicitation pursued by Starboard in connection with electing such nominees at the annual meeting,” the proxy said. Fidelity and Stewart agreed in March on the merger, a deal which would extend Fidelity’s share of the U.S. title insurance market from about 32 percent to 42 percent. However, because of Fidelity’s dominant position in the title insurance market, it expects regulatory agencies to require divestitures of some operations before approving the deal. The merger agreement includes provisions that could reduce the price, depending on the amount of divestitures.
File image
Fidelity National Financial Inc. agreed to buy Stewart Information Services Corp. for $1.2 billion in March.
Fidelity said in an SEC filing it received a request May 31 from the U.S. Federal Trade Commission for additional information as it reviews the deal. Because of the long regulatory process, Fidelity does not expect to complete the merger until the first half of 2019. Starboard had 9.7 percent of Stewart’s stock when it threatened the proxy fight in January. A March SEC filing by Starboard indicated it sold off most of its shares after the Fidelity deal was announced. Other than buying shares, Starboard has not announced any action regarding Web.com.
Citigroup sees automation job cuts Another global bank with a major Jacksonville operation is talking about job cuts, but this time the talk is more speculative. In an interview with the Financial Times last week, Citigroup President Jamie Forese said automation could result in major reductions in its technology and operations staff in the next five years. As many as 10,000 jobs could be affected, he said. Forese was talking mainly about the company’s investment banking business. Citigroup’s Jacksonville operations center handles credit card processing. A Citigroup spokeswoman said by email the company has nothing to add about the potential impact of automation on its Jacksonville operations in the Flagler Center on the Southside. Citigroup has operated a major credit card operations center in Jacksonville since 1997, when it bought AT&T’s Universal Card business, and it has grown to become one of the city’s largest employers. The company added 500 jobs in 2015 and in 2016 announced plans to add another 800 to its Jacksonville operation to support business growth. Citigroup’s employment in Jacksonville is more than 4,000. The New York-based company’s total employment was 209,000 at the end of last year, according to Citigroup’s annual report. Forese’s forecast came about a month after Germany-based Deutsche Bank said it would reduce its global employment
from 97,000 to below 90,000. Deutsche Bank employs about 2,000 people in Jacksonville.
Fed approves Ameris’ Atlanta deal The Federal Reserve Board last week approved Ameris Bancorp’s pending acquisition of Hamilton State Bancshares Inc., a deal which will greatly expand Ameris’ operations in the Atlanta market. Ameris currently has a small presence in the market but the Fed’s order said the merger will move Ameris up from 57th largest in the Atlanta area to 17th, with $1.3 billion in deposits in the market. The deal also will make Ameris the 136th largest U.S. bank with assets of about $9.6 billion, the Fed said. Ameris officially is headquartered in Moultrie, Georgia, but its executive offices are in Jacksonville. The company in January announced the agreement to buy Hamilton for about $406 million in cash and stock. Ameris expanded in the Jacksonville market last month by completing its acquisition of Atlantic Coast Financial Corp.
FIS adds two new directors Fidelity National Information Services Inc., or FIS, added two new directors to its board, including one from a prominent investment banking firm. One of the new directors is Alexander Navab, former head of the Americas private equity business of Kohlberg Kravis & Roberts & Co. He left the firm in July 2017 as co-founders Henry Kravis and George Roberts promoted two other KKR executives in a succession plan. The other new director is Brian Shea, former vice chairman and chief executive officer of investment services for The Bank of New York Mellon Corp. “Alex brings incredible longterm investment and M&A experience with a proven track record of leadership, strategic development and long-term value creation for KKR’s investors, as well as employees, customers and other stakeholders of KKR’s portfolio companies, while Brian brings tremendous banking
EARNINGS
Winn-Dixie parent reports loss under Chapter 11 Southeastern Grocers LLC has projected it will be profitable after emerging from bankruptcy but in its final full month operating under Chapter 11, it reported a net loss of $52,500. The Jacksonvillebased supermarket operator’s monthly report filed with the U.S. Bankruptcy Court for the District of Delaware shows $654 million in sales for the period from April 19 to May 16. Southeastern, which operates Winn-Dixie and three other supermarket chains, emerged from Chapter 11 on May 31.
technology and global operational experience to our board,” FIS Chairman and CEO Gary Norcross said in a news release. The two new directors are not replacing any FIS board members, so the appointments increase the board from eight to 10 directors.
International Baler sales drop International Baler Corp. reported a net loss for the second quarter ended April 30 after a sharp drop in sales. The Jacksonville-based maker of industrial balers used for recycling and other waste disposal said sales in the quarter fell 26 percent to $1.96 million. That led to a net loss of $52,472, or 1 cent per share, in the quarter. International Baler said in its quarterly report filed with the SEC that market conditions, including lower prices for recycled materials, resulted in lower equipment shipments in the quarter.
Shepherd’s Finance earnings rise Shepherd’s Finance LLC reported first-quarter earnings rose by about 50 percent to $287,000. The Jacksonville-based company is a commercial lender focused on businesses in residential construction and development. The company in a news release said loan growth in the quarter led to increases in interest income. MBASCH@ JAXDAILYRECORD.COM
Jacksonville Daily Record/Jacksonville Record & Observer
Thursday, June 21, 2018 • Page 7
REAL ESTATE
Top 10 sales of the week BY SCOTT SAILER • EDITORIAL RESEARCH DIRECTOR
Here are the top 10 real estate sales in Northeast Florida, comprising Baker, Clay, Duval, Nassau and St. Johns counties. The sales were recorded June 11-15.
Special to the Daily Record
Arium Town Center Apartments at 10135 Gate Parkway N. sold for $55.64 million, a 36 percent increase from its sale price in 2014.
$55,640,000
$13,750,000
$7,000,000
$3,800,000
$2,861,978
10135 Gate Parkway N., Jacksonville
14701 Philips Highway, Jacksonville
Brightman Boulevard, Jacksonville
7357 Digital Circle, Jacksonville
122 W. Eighth St., Jacksonville
Type: Arium Town Center Apartments Size: 36.7 acres Buyer: Breit MF Arium Owner LLC Seller: CH Realty VI Carroll MF Jacksonvile Town Center LLC Previous sale: $40,900,000 in 2014
Type: Dream Finders Homes office Size: 16.19 acres Buyer: CS1031 Jacksonville FL HQ DST Seller: DFH Office LLC
Type: Vacant land Size: 15.5 acres Buyer: Oasis at Town Center LLC Seller: Arthur C. Skinner Jr., Charles B. Skinner, and Mary V. Skinner Jones
Type: Office/ light manufacturing Size: 9.49 acres Buyer: Beacon Dock Holding LLC Seller: Source One Direct Inc. Previous sale: $3,000,000 in 2014
Type: Dozier Apartments Size: 0.66 acres Buyer: Dozier Apartments LLC Seller: Operation New Hope Inc.
$2,509,804
$2,500,000
$2,150,000
$1,800,000
$1,585,000
2676 Race Track Road, St. Johns County
917 First St. S., No. 1001, Jacksonville Beach, Duval County
681 Ponte Vedra Blvd., Ponte Vedra Beach, St. Johns County
203 Lemon St., Neptune Beach, Duval County
11865 Industry Drive, Jacksonville
Type: Condominium Size: 5,315 square feet Buyer: Michelle P. and Peter A. Harbeck Seller: Shereth L. and Yank D. Coble Jr. Previous sale: $2,100,000 in 2012
Type: Condominium Size: 2,900 square feet Buyer: John F. Flournoy Seller: Asa V. and L. Rebecca Swift Previous sale: $1,270,000 in 2013
Type: Single-family Size: 0.19 acres Buyer: Kathleen S. Cole Seller: Louis Stuart and Louis Stuart Jr.
Type: Advance Auto Parts store Size: 1.31 acres Buyer: Jennie L. Irigaray Testamentary Trust, Dan F. Lutz Bypass Trust and Legatum Investments LLC Seller: M&P Race Track LLC and Linda Ginsberg
Type: Warehouse Size: 5.98 acres Buyer: Sass Land LLC Seller: M. Gay Constructors Inc. Previous sale: $489,600 in 2004
BE THE FIRST TO KNOW: BASCH REPORT Columnist Mark Basch tracks the growth and changes at the region’s public companies.
CAWTON REPORT Staff Writer David Cawton uncovers how government impacts business.
MATHIS REPORT Editor Karen Brune Mathis is always first to report new projects changing Jacksonville’s economy and landscape.
THE DATA PAGE Research Director Scott Sailer shows in snapshot graphs the economic data business leaders need to know.
YOU SHOULD KNOW Profiles of business leaders making a difference at work and in the community.
Introducing
TOP 10 REAL ESTATE SALES The biggest real estate transactions over the past week in Duval County.
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Page 8 • Thursday, June 21, 2018
Jacksonville Daily Record/Jacksonville Record & Observer
THE CAWTON REPORT
Godbold critiques Curry, reflects on record
DAVID CAWTON STAFF WRITER
Former Jacksonville mayor says his relationship with council members was “honest and open.” When former Jacksonville Mayor Jake Godbold speaks, people listen. “I’m not going to make a big speech or anything, I just want to touch on a few topics,” Godbold said Monday to about three dozen former and current City Council members, candidates running for various offices, retired city employees and those who didn’t want to miss hearing the outspoken former mayor speak his mind. The group, the Former Council Presidents club, meets regularly at The Mudville Grille in St. Nicholas. Godbold hadn’t addressed the group “in some time.” “I don’t show up at these things because if I do, I’m gonna tell you how to run things and that might make y’all mad,” he joked. “So, I tend to keep to myself unless I feel the need to say something.” Godbold recently has given his opinions on the potential sale of JEA, the ongoing legal battles between the city and the Jacksonville Landing operators and the disconnect between council President Anna Brosche and Mayor Lenny Curry. Godbold spoke about what he feels are Curry’s few shortcomings since taking office in 2015, including the tense relationship with Brosche. Godbold said times were different during his two terms in office, from 1978 to 1987. “I learned two rules that I wish Curry would learn,” he said. “One is you don’t get involved with who will be the next president,” he said. “And you don’t get involved in trying to take their meetings over.” Godbold described his relationship with council members and presidents as open and honest. “Everything we did, if it was (Joe) Forshee, (Bill) Basford, or Lynwood (Roberts), I had those presidents in my office letting them know what was going on,” Godbold said. “They knew as much about the next project we were going to do as I did, whether it was the Riverwalk, or the Landing, or the convention center,” he said. Godbold said he believes Curry has struggled to detach himself from his days as chairman of the Republican Party of Florida, a post he held before pursuing public office. “You have to remove the hat of head of a party,” he said. “When you become mayor, you become mayor of all the public.” Critiques aside, Godbold said
Photo by David Cawton
Former Jacksonville Mayor Jake Godbold speaks Tuesday to the Former Council Presidents club at The Mudville Grill in St. Nicholas.
he supports Curry. “I think he’s been a very good mayor,” he said. “I think he’s made good decisions, decisions I’ve believed in.” Curry on Wednesday said in response, “Everyone is entitled to their opinion.” For two hours, Godbold weaved stories, touching on the milestones and struggles he said defined his terms as Jacksonville’s second mayor after consolidation. One issue complicating his job in the late 1970s, according to Godbold, was that he felt the city “oversold consolidation.” “We told people we were going to cut taxes,” he said. “So, every year we cut taxes and let the infrastructure go to hell.” He said at the time, business groups like the chamber of commerce were frustrated with the state of Downtown because promises made during the pitch to consolidate the county and city governments were not fulfilled 12 years after voters approved the move. “About 10 days after I was elected, a guy named Albert Ernest came to see me,” said Godbold, referring to the former Barnett National Bank president and CEO. Godbold said Ernest impressed upon him the need to be a strong mayor and one that can speak on behalf of the local government and the business community. “He said the Legislature doesn’t know who’s leading the city,” Godbold said. Ernest told him that if he would make the choice to lead, the chamber would follow. “You’ve got to be the leader. Consolidation is a strong mayor government,” he said. “If the mayor’s not strong, the charter’s not working the way it’s supposed to.” Toward the end of the discussion, Godbold turned his attention to the possible privatization of JEA. In April, Godbold sent Curry a letter suggesting that the
mayor was not acting in the best interest of the city and not being honest with his public statements on the matter. “Despite your frequent statements that you’ve not made up your mind on the JEA’s future, I am one of a whole lot of people in Jacksonville who are having a hard time believing you,” he wrote. Godbold said Monday that public utilities like JEA should be mindful, especially of its water assets. He said water, not electricity, is the commodity with the most uncertainty for the future. “I don’t want to turn our water rights over to a board that has one interest and that’s money,” he said. “So they can ship water to Georgia, South Florida or anywhere else they want to.” Finally, Godbold touched on the changes to the Jacksonville Landing teased by Curry’s office last week. A version of that idea – an urban park in place of the threebuilding mall complex – is something Godbold considered in the early 1980s. “The federal park service wanted to build it to show that you could have urban parks and still be safe,” he said. Godbold had secured federal funding for the “St. Johns River Esplanade,” but because of state budget shortfalls, the idea evolved. The Rouse Co. eventually built the Jacksonville Landing in 1985. The mall’s owners, Jacksonville Landing Investments Inc., continue to engage in two lawsuits with the city over parking and breach of contract. Godbold did not say who he thinks should operate the mall, other than he’d “hate to see something we worked so hard to build get torn down so easily.” DCAWTON@ JAXDAILYRECORD.COM @DAVIDCAWTON (904) 356-2466
IN BRIEF
Fant drops out of AG race State Rep. Jay Fant announced Wednesday he is dropping out of the attorney general’s race, two days before the Friday deadline to qualify. Instead, Fant will apply to become Florida’s next commissioner of the Fant Office of Financial Regulation. The post has been vacant since May 31 when former commissioner Drew Breakspear stepped down. Fant, a Republican, represented Florida House District 15.
City Council committees wrap The five City Council subcommittees have concluded business for the 2017-18 council year ahead of a two-week break and installation of new leadership in July. Council Presidentdesignate Aaron Bowman Bowman and Vice President-designate Scott Wilson will take over July 1. Bowman hasn’t said who he will assign to the committees or appoint as chairs. The leadership’s installation ceremony is 6 p.m., June 28 at the Times-Union Center for the Performing Arts.
Council to consider development agreements City Council members will vote on three separate economic development agreements at the last full meeting of the council year 5 p.m. Tuesday: n The University of North Florida seeks a $380,000 forgivable loan to build-out space Downtown at the Barnett National Bank Building for its Entrepreneurial Development and Business Incubation Center. n The North Florida Land Trust has agreed to lease historic Brewster Hospital for five years. n The Downtown Investment Authority wants council to approve an agreement to bring the retired U.S.S. Charles F. Adams warship to the Downtown Northbank so it can be used as a floating museum.
Jacksonville Daily Record/Jacksonville Record & Observer
Thursday, June 21, 2018 • Page 9
BY KAREN BRUNE MATHIS • EDITOR
Brian Wolfburg joined Jacksonville-based VyStar Credit Union on Oct. 31 as president/CEO, succeeding Terry West, who retired. Wolfburg previously was COO for Alaska USA Credit Union. He’s making changes, including a high-profile move Downtown. VyStar intends to buy the 23-story SunTrust Tower and move its headquarters, now along Blanding Boulevard, and up to 700 employees there.
ABOUT WOLFBURG Title: President/CEO Organization: VyStar Credit Union Age: 41 Education: Bachelor of Science, Business Administration, University of New York at Buffalo; MBA, New York University Stern School of Management. Family: Married to husband, Jake, for more than seven years; son, Asher, 2; and three dogs Hometown: Buffalo, New York Hobbies: Running
I had been in Alaska working for a similarly sized credit union for the past five to six years, most recently as their No. 2 position, the chief operating role. We had a change in our family, adopted a son, and while Alaska is a great place to live, we decided to get back down to the lower 48, closer to family, and found the opportunity at VyStar. We moved to Jacksonville about seven months ago specifically for this role. I’m originally from upstate New York, just outside of Buffalo. I used to work for some of the largest international banks and spent time in London, Hong Kong and South Korea and then here in the U.S., worked out of Buffalo, New York, Denver and Seattle. I was always very business-minded, more from an entrepreneurial perspective. When I was very young, I started a variety of businesses. I created local neighborhood newspapers, I made chocolate candies and sold them at the holidays, I worked for all my neighbors. I asked some of my friends to work for me and paid them to do things, so I knew I loved business. There was no question that was what I would pursue. My predecessor and his leadership team have done an amazing job with the organization, built the connection with the community and left it in great shape in regard to the products and services and infrastructure and financial safety and soundness. That said, over my career I have been someone who does spot opportunities and drives projects and works to achieve results. I saw some opportunities for improvement, and that was simply based off a fresh set of eyes on the organization. We achieved some quick results in renegotiating a lot of our contracts with our vendors, using the savings from those to improve our reach to members and eliminate a lot of our service fees. In fact, we eliminated over a half of our service fees to members in the last three to six months. We’re expanding our ATM network to be nationwide and expanding
YOU SHOUD KNOW
BRIAN WOLFBURG
Special to the Daily Record
the days and hours of service for our call center. We’ve moved on to some bigger things with our organizational structure, long-term space planning, employee benefits improvements and core operating and technology improvements. We’re getting ready for continued growth in size and geographically. I’ve gotten involved in JAX Chamber and JAXUSA Partnership and joined the Jacksonville Civic Council. We’ll continue to look for ways to get involved and engaged. We’ve built some good relationships with the leadership team at JASMYN and the Youth Crisis Center, trying to make sure that VyStar and my family and I get involved in the community and play a part in helping to make it better a place to live. I’ve been married to my husband for about eight years. We adopted a son about two years ago. Our son, Asher, is 22 months old. He is a ball of energy. We spend a lot of time at swimming lessons, the beaches and pools and the parks. We also have three dogs. I love to run and I’m getting back into that when I can find the time and the weather cooperates. KMATHIS@JAXDAILYRECORD.COM @MATHISKB (904) 356-2466
DEVELOPMENT TODAY These are the largest commercial building permits by price issued Tuesday by the city of Jacksonville. HOSPITAL, INSTITUTIONAL Orange Park Medical Center Inc., 5773 Normandy Blvd., contractor is Batson-Cook Co., 8,600 square feet, site demolition, $40,000.
INDUSTRIAL Jacksonville Aviation Authority, 13480 Speicher Drive, contractor is Charles Construction Group LLC, install paint booth, $92,000. Ron Chamblin, 2050 Forest St., contractor is Breaking Ground Contracting Co., renovation, $40,000. OFFICE, BANK, PROFESSIONAL The Woods Community Association, 1604 The Woods
Drive, contractor is Hoffman Commercial Construction LLC, 233 square feet, building demolition, $227,160. The Conlan Co., 10752 Deerwood Park Blvd., No. 105, contractor is The Conlan Co., renovation, $96,383. ROOFING IM6282 LLC, 6282 Imeson Road, contractor is Mid-South Roof Systems Inc., roof, $568,520.
Ravella at Town Center Apartments, 4674 Town Center Parkway, contractor is The Roof Depot Inc., new roof, $546,000. Lowe’s Home Centers Inc., 12945 Atlantic Blvd., contractor is North American Roofing Systems Inc., roof over existing, $190,506. Eagle Gardens Apartments, 1591 Lane Ave. S., contractor is Alton Roofing Services LLC, roof replacement, $18,000.
SIGNS Pet Angels Animal Hospital, 7067 Collins Road, No. 302, contractor is Custom Graphics & Sign Design Inc., three permits for wall signs, $30,000. Ameris Bank, 8048 Normandy Blvd., contractor is Taylor Sign & Design Inc., two permits for wall signs, $1,000. Compiled by Scott Sailer
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Page 10 • Thursday, June 21, 2018
Jacksonville Daily Record/Jacksonville Record & Observer
Curry: ‘We have to think big’ on Northbank CONTINUED FROM PAGE 1
from Rouse-Jacksonville in 2003. Curry wants control of the Landing buildings at 2 Independent Drive near the Wells Fargo Center and SunTrust Tower. Curry said his staff and Sleiman’s team have talked the past two years, but are shielded by a nondisclosure agreement Sleiman requested. “But that’s not a reason not to pursue what’s in the best interest of the public and their land,” Curry said. A conceptual drawing of Curry’s vision for the 6-acre property, should the city gain control, show an urban park with some private development to replace the existing complex. Curry called the drawing a launching pad for discussion about the property’s future. “This is the beginning of the discussion and the good part about this is some like it and some criticize it, and that’s OK,” Curry said. “That was the point of all this, versus the conversation just being the city and the Landing are battling,” he said. Curry said he thinks the two sides can come to an agreement, “in a way that is respectful of each other.” “It’s not where we are right now, but I think that’s still possible,” he said. After Curry took office in 2015, the city sued JLI for failing to close on the $4.7 million sale of a parking lot adjacent to the Landing. The city claims the company took possession of the land anyway in 2007 and failed to pay property taxes, despite collecting parking fees. Earlier this month, city attorneys decided to amend the city’s complaint and are working with the company to come to a repayment agreement and again take control of the 1.6-acre site. In November, JLI sued the city in a separate matter. Both sides have accused the other of breaching terms of the 1985 lease agreement. The city believes JLI isn’t keeping up with the maintenance of the buildings, while the company insists Curry’s administration intentionally is
Photo by Karen Brune Mathis
Mayor Lenny Curry said he thinks the city and the Jacksonville Landing can come to an agreement “in a way that is respectful of each other.”
letting the surrounding property go to waste. THE BERKMAN
The unfinished Berkman Plaza II condominium building along East Bay Street is in Curry’s line of sight. “It’s an eyesore, it’s a blemish and it’s embarrassing for Downtown,” he said Wednesday. Construction on the project stopped in 2007 after an adjoining parking garage collapsed dur-
ing construction, killing one and injuring several workers. Curry said the owner, Choate Construction Co., told his administration recently it expects to close soon on a deal for the site. “We’ve made it very clear to them that if this deal doesn’t close, the city will act,” he said. “Whatever that looks like.” Curry declined to say what that action could be. When asked if that meant condemning the structure or purchasing it directly from Choate, he said. “I think all options are on the table.” “The most important thing for your readers to understand is that it’s not an option for that to sit like it has for another year,” he said. Curry said he believes in letting the private sector dictate development, but that his administration has given the company ample time to figure it out. He would not say how soon the city could “take action,” other than that he is confident the company will close on its pending deal this year. A NEW CONVENTION CENTER
Photo by Karen Brune Mathis
The city is working to remove the Hart Bridge ramps coming into Downtown. It recently failed to win a $25 million federal grant for the project.
Last summer, the city earmarked $8 million to demolish the old City Hall and Duval County Courthouse buildings along East Bay Street. The structures were vacated after a new City Hall and Duval County Courthouse were built. On Wednesday, the city unsealed bids from contractors responding to a Request for Proposal to demolish the buildings. Morrisville, North Carolinabased Environmental Holdings Group LLC submitted the lowest bid, at $7.985 million, and could be selected to perform the work. The city is seeking another set of bids for companies who could
tear down the buildings and redevelop the property into a new convention center and hotel. Those bids are due in August. Curry said issuing simultaneous RFPs gives the city options and demonstrates a sense of urgency. “If we get a proposal that looks like it works and we can move and it makes sense, then let’s go,” he said. “If we get proposals that are going to take time, we’re going to move and demolish.” Although his team can’t speak with interested developers during the RFP process, Curry said plenty of companies showed interest beforehand. PURSUING LOT J
On June 8, the U.S. Departm e n t o f Tra n s p o r ta t i o n announced nearly $1.5 billion in proposed Infrastructure for Rebuilding America grants for projects across the country. Jacksonville was not among the winners. In November, the city along with the Florida Department of Transportation and JaxPort applied for a $25 million grant to help finance the removal of the Hart Bridge exit ramps coming into Downtown. “We didn’t get the grant, but we’re pursuing additional federal grants,” Curry said. He said the process has begun to secure a Better Utilizing Investments to Leverage Development, or BUILD, grant from the U.S. Department of Transportation. The state earmarked $12.5 million to remove the ramps and Curry plans to set aside the same amount in his upcoming budget proposal to City Council. “With that, we can start what we call Phase I,” he said. Curry maintains removing the
ramps and grading the expressway into Gator Bowl Boulevard will benefit the Talleyrand port area. “There’s also economic development value for Downtown,” he said. “Both points matter.” The economic development is related to Jacksonville Jaguars owner Shad Khan’s $2.5 billion proposal to redevelop the Metropolitan Park area, the Shipyards and Parking Lot J west of TIAA Bank Field into a mixed-use, entertainment-focused complex. It would include hotels, office towers, entertainment venues and some residential components. The team is partnering with Baltimore-based The Cordish Cos., which has a track record of developing sports and entertainment complexes near major league sports venues. Curry said negotiations continue between the Downtown Investment Authority and Jaguars President Mark Lamping on the first part of the project, which is developing Lot J. “We’re as ready to go as they are,” he said. Responding to public suggestions that investment should be made in the urban core rather than the sports complex to the east, Curry said Khan’s project will lead to more development overall. “We have to think big,” Curry said. “If it’s there, they will come.” He said the developments will make for a stronger Northbank from one end to the other. “People that are big believers will experience the entirety of Downtown as it catches fire.” DCAWTON@ JAXDAILYRECORD.COM @DAVIDCAWTON (904) 356-2466
Jacksonville Daily Record/Jacksonville Record & Observer
Thursday, June 21, 2018 • Page 11
Office space average asking rate* by area
BY SCOTT SAILER EDITORIAL RESEARCH DIRECTOR
In the first quarter of 2018, the average office vacancy rate for Duval County was 12.25 percent. Arlington had the highest vacancy — and the lowest lease rates. The Northside has the least amount of office space while the the Interstate 95 / East Butler area and the Central Business District comprise nearly 80 percent of Jacksonville’s office space. Source: CBRE Research *Per square foot
$11.73
Arlington
$24
$20.29
$20.52
$20.55
Central Business District
I-95 East Butler
Westside
THE DATA PAGE
Duval County office market, first quarter 2018
$25.89
$16.53 $14.22
$12
Northside
Southside
Mandarin
East Butler
Market breakdown Absorption square feet
Average asking rate*
Submarket Inventory
% of total inventory
Total vacancy
Central Business District
7,411,273
31.91%
13.6%
Arlington
984,122 4.23% 38.4% 13,094 0
Beaches
793,775 3.41% 12% -4,350 32,000 $25.89
East Butler
230,876
1% 2.4% 9,913 0 $24
Interstate 95 / East Butler
1,1101,916
47.8% 11.2% 10,065 205,000 $20.52
Mandarin
544,543 2.34% 8.9% -10,394 0
Northside
95,600 0.41% 0% 14,100 0 $12
Southside
1,695,694 7.3% 18% -7,884 0 $14.22
Westside
367,096 1.6% 5.8% 6,692 0 $20.55
52,695
Under construction
Beaches
0
$20.29 $11.73
$16.53
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