Daily Record Financial News &
Thursday, November 12, 2015
Vol. 102, No. 259 • One Section
35¢ www.jaxdailyrecord.com
Atkins’ partner sees the vision Vegas developer wants Laura Street Trio, Barnett beautiful again By David Chapman Staff Writer Bradley Sher said he isn’t a “vision” type of guy. Yet, when he walked into Downtown’s Marble Bank Building in early September, he could see Steve Atkins’ plan for the historic space. A lively restaurant in the long dormant space. “I fell in love,” said Sher, chief financial officer of the Molasky Group of Cos. “I could almost picture the restaurant humming with activity, a fine dining establishment.” After that, Sher toured the rest of the Laura Street Trio, with its
Sher
plans for a Marriott hotel, bodega grocery and more. Then he headed across Laura Street to the Barnett Bank building. He again was immediately struck by the possibilities. “I don’t know if you can replicate that space,” he said. “It’s one of the most beautiful branches I’ve ever seen.” A bank branch, commercial space, 110 loft units — all in a historic venue. The plans and firsthand view were key to Molasky, a Las Vegas-based real estate development firm, feeling comfortable enough to partner with Atkins’ SouthEast Group on the almost
$78 million revitalization. “We don’t let geography get in the way,” Sher said. “It’s a great project and a great location.” Sher called Molasky and SouthEast “true partners” for the endeavor. He said Atkins’ passion was evident when the two first talked on the phone. The business relationship began after a mutual industry acquaintance paired the two. “It’s a great company,” Atkins recently said of Molasky. “They’ve done a ton of really large, high-profile projects.” Additionally, Molasky has prominent experience in publicprivate partnerships.
The project itself is what caused the relationship to grow, though. Both companies have construction and financing responsibilities. Of the nearly $78 million, the two firms would partner for $20 million in private equity and another $40 million through commercial loans. The remaining would be offset by about $9 million in Federal Historic Tax Credits and an $8 million ask from the city for public funding. Molasky has done a host of government projects, including FBI centers in San Diego, Cincinnati and Minneapolis. It’s done retail like big-box strip centers. Developer continued on Page A-2
Mix of Marching for veterans CSX exec positives, named to concerns pension for JEA board
Bond agencies to hear strong financial report but also board upheaval
By David Chapman Staff Writer
It’s better to have it and not need it than to need it and not have it. That will be the mindset when a delegation from JEA and the city travel to New York City in December to meet with bondrating agencies and bankers. The mission will be to sustain JEA’s AA bond rating and its $300 million operating credit line. Paul McElroy, the utility’s CEO, said JEA does not plan to issue any bonds in the next year, but maintaining the credit line helps sustain the AA rating. “Credit rating agencies look at our liquidity — our ability to draw funds,” he said. Jacksonville University professor Richard Cebula said the agencies also look at the capacity to pay back and pay on time. He said other factors are whether revenue sources are dependable, McElroy if they are subject to changes in the economy and the prognosis for growth in population and tax base. “The outlook for the local economy is good in North Florida,” said Cebula, the Billy J. Walker/Wells Fargo endowed chair of finance in JU’s Davis College of Business. When McElroy, several other JEA officials, Mayor Lenny Curry and a City Council member yet to be named meet with the agencies, they will have several positive financial aspects to share. There also will be some issues that may draw concern from the agencies. On the positive side, JEA’s combined JEA cont inued on Page A-4
Public
Jacksonville’s annual Veterans Day Parade wound through the streets of Downtown on Wednesday from EverBank Field to the Prime Osborn Convention Center. Thousands of people lined the route to see the procession of military hardware, college and high school ROTC students, classic automobiles, motorcycles and marching bands. See more pictures on Page A-3.
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Photo by Max Marbut
By Max Marbut Staff Writer
The city-side makeover of the Police and Fire Pension Fund board should be done by the end of the year. City Council President Greg Anderson this week introduced a bill appointing Richard Patsy to the five-member group that has fiduciary responsibility for retirement plans of public safety members. Patsy is assistant vice president of pensions and investments at CSX Corp. He’s responsible for the company’s $2.5 billion defined benefit plan, $2.2 billion 401(k), $1.3 billion operating fund and $100 million captive insurance and investment portfolio of the CSX Foundation. With recent pension reform having the board work exclusively on financial and actuarial aspects of the plan, Anderson said he wanted to find someone who had “vast experience with public sector pensions.” He found that in Patsy, who has 24 years of experience and currently serves as vice chairman of the city’s General Employee Pension Plan. Patsy will replace Adam Herbert, who was appointed by former council President Stephen Joost in 2012. Herbert’s term was set to expire in 2016, but he said in a resignation letter he wanted to conclude his service by Dec. 31. Anderson also replaced Walt Bussells, Joost’s other appointment, at the same time. Bill Scheu, who served as chair of former Mayor Alvin Brown’s Retirement Reform Task Force, was confirmed by council in September to replace Bussells. Appointing Patsy to the public safety pension fund opened a hole on the general employee’s side, but Anderson has that covered. He’s appointing Augustine Asset Management CEO Jeffrey Bernardo to fill the role. Bernardo has led the company since 2008 and has experience with companies like Trinity Capital and JP Morgan Asset Management. dchapman@jaxdailyrecord.com (904) 356-2466
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