Author Topic: JEA hunt for headquarters site is silent on evacuation risk  (Read 7251 times)

Steve

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Re: JEA hunt for headquarters site is silent on evacuation risk
« Reply #30 on: January 10, 2019, 08:18:50 AM »
The only way Khan has enough cash to do anything is if he sells something.  Like most wealthy people, he doesn't have a Scrooge McDuck vault with a diving board.  He might be worth a lot but he isn't liquid.  The Jags alone account for 1/3 of his wealth.  The dude even has to rent our his yacht.

https://www.yachtcharterfleet.com/luxury-charter-yacht-37804/kismet.htm

Not sure you understand Khan’s money. Just because he rents the Kismet II our doesn’t mean he isn’t liquid. This is the guy that bought the Jags for $770 million by writing a check. He didn’t sell anything when he did it.

A few weeks afterwards he sold the Kismet, and the rumor going around was he needed the money after buying the Jags. He laughed when asked in an interview about it. Once the boat sold, he bought the Kismet II.

I’m not going to say he’s a saint and will do anything for Jacksonville, but there’s a reason Forbes said he was the 3rd richest NFL owner. Quite a club to be in the top 3 of. I have no doubt if he needs liquid cash he’ll have it about as fast as I can pull my ATM card out.

CityLife

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Re: JEA hunt for headquarters site is silent on evacuation risk
« Reply #31 on: January 10, 2019, 09:29:19 AM »
The only way Khan has enough cash to do anything is if he sells something.  Like most wealthy people, he doesn't have a Scrooge McDuck vault with a diving board.  He might be worth a lot but he isn't liquid.  The Jags alone account for 1/3 of his wealth.  The dude even has to rent our his yacht.

https://www.yachtcharterfleet.com/luxury-charter-yacht-37804/kismet.htm

Not sure you understand Khan’s money. Just because he rents the Kismet II our doesn’t mean he isn’t liquid. This is the guy that bought the Jags for $770 million by writing a check. He didn’t sell anything when he did it.

A few weeks afterwards he sold the Kismet, and the rumor going around was he needed the money after buying the Jags. He laughed when asked in an interview about it. Once the boat sold, he bought the Kismet II.

I’m not going to say he’s a saint and will do anything for Jacksonville, but there’s a reason Forbes said he was the 3rd richest NFL owner. Quite a club to be in the top 3 of. I have no doubt if he needs liquid cash he’ll have it about as fast as I can pull my ATM card out.

Khan isn't exactly desperate to rent the Kismet out either. He charges $1.2 million per week. I have doubts that he actually even rents it out to anyone. My guess is he uses it as a tool to maintain and build business relationships, and probably as a tax write off. If he lets a business associate or Flex N Gate use it for a week for free, he can probably write off the $1.2 million as a business expense.

The point I was trying to make earlier is that Khan has more than enough cash to self-subsidize a project to make up for existing market deficiencies and he can be patient, which typical development or equity groups cannot do. Ultra-wealthy guys like Khan are far more likely and capable of doing legacy type developments. Will be interesting to see what Khan has up his sleeve and whether or not he is committed to a legacy type project.

Also, I've said it before and will say it again, the changes to the SALT deduction will have huge implications on the business world in the coming years. Everyone has known it is coming, but the financial impacts will not start hitting the pockets of workers in NY, Mass, Illinois, etc until this spring. Illinois has serious long term financial issues coming up related to their pension debt, and now many residents will not be able to write off much of their state and local taxes. Khan will likely have employee retention challenges in Illinois in the coming years. He would be smart to either relocate Flex N Gate HQ or open a large corporate office in Jax. Even if he does not relocate Flex N Gate, he should have a lot of companies from high tax states knocking on his door.

vicupstate

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Re: JEA hunt for headquarters site is silent on evacuation risk
« Reply #32 on: January 10, 2019, 09:53:36 AM »
Quote
For Lot J, I'd love to see something where a portion of the subsidies for the office component are reliant on either net new jobs to Jacksonville, net new jobs to downtown, or net saved jobs (companies that would have left the city otherwise).

I understand the rationale, but this would be far too easy to simply manipulate.  A company that had every intention of moving to JAX, or moving to DT, could easily say the subsidies were the critical component.  No one could prove otherwise. 
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KenFSU

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Re: JEA hunt for headquarters site is silent on evacuation risk
« Reply #33 on: January 10, 2019, 10:57:57 AM »
Quote
For Lot J, I'd love to see something where a portion of the subsidies for the office component are reliant on either net new jobs to Jacksonville, net new jobs to downtown, or net saved jobs (companies that would have left the city otherwise).

I understand the rationale, but this would be far too easy to simply manipulate.  A company that had every intention of moving to JAX, or moving to DT, could easily say the subsidies were the critical component.  No one could prove otherwise. 

For this reason, St. Louis required signed affidavits and I believe actually required companies to be allow full investigation.

But I agree, the opportunity for abuse is definitely there.

Won't pretend to know a thing about Khan's liquidity, but wasn't he trying to buy Wembley for $1 billion in cash just three months ago?

Steve

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Re: JEA hunt for headquarters site is silent on evacuation risk
« Reply #34 on: January 22, 2019, 02:36:04 PM »
JEA Narrows Down the Site list to 3:

1. Lot J
2. Redevelop Existing Building/Build on the W Adams Street Lot
3. Kings Avenue

https://www.jaxdailyrecord.com/article/jea-pares-list-of-new-headquarters-sites-to-three

dp8541

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Re: JEA hunt for headquarters site is silent on evacuation risk
« Reply #35 on: January 22, 2019, 02:55:15 PM »
I am not familiar with the Kings Ave site proposal.  Is this on the parking lot across the street from the Bearded Pig?  The address listed on the Daily Record Article lists the address of the two hotels already there (1201 Kings Ave).

Steve

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Re: JEA hunt for headquarters site is silent on evacuation risk
« Reply #36 on: January 22, 2019, 03:03:10 PM »
I am not familiar with the Kings Ave site proposal.  Is this on the parking lot across the street from the Bearded Pig?  The address listed on the Daily Record Article lists the address of the two hotels already there (1201 Kings Ave).

I haven't seen the rendering but that's my understanding. It's a good development site...if it didn't involve taking existing people out of the core.

thelakelander

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Re: JEA hunt for headquarters site is silent on evacuation risk
« Reply #37 on: January 22, 2019, 03:32:15 PM »
So what happens when the new headquarters at Lot J is flooded during the next hurricane or tropical storm? Logically it's pretty stupid to build a utility's headquarters on low lying land. If the decision is Lot J, blowing up the JEA Tower or Kings Avenue tower, I may become a fan of Kings Avenue. At least it's directly connected to the Northbank via the Skyway. No matter what JTA does with that U2C thing, it will still operate on grade separated right of way there.
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CityLife

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Re: JEA hunt for headquarters site is silent on evacuation risk
« Reply #38 on: January 22, 2019, 04:50:47 PM »
Good question Lake about flooding and storms. Interestingly, FPL is building a large new campus in Palm Beach Gardens near PGA/95. FPL’s current HQ is wedged between the Intracoastal, Ocean, and Lake Worth Lagoon. Not an ideal location for storm events and potential sea level rise. They are maintaining their current HQ, but I believe plan to slowly move HQ to the new campus. The new campus is designed to withstand 500 year storm events and category 5 Hurricanes.

JEA and Khan can likely build the facility itself to handle any flood events and wind, but whether employees and emergency personnel would even be able to access the site is another question.

jaxlongtimer

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Re: JEA hunt for headquarters site is silent on evacuation risk
« Reply #39 on: January 22, 2019, 07:12:13 PM »
I am not familiar with the Kings Ave site proposal.  Is this on the parking lot across the street from the Bearded Pig?  The address listed on the Daily Record Article lists the address of the two hotels already there (1201 Kings Ave).

FYI, I have it on very good authority that this site is, indeed, the parking lot across from the Bearded Pig and next to the hotels.  I, too, was scratching my head about the possibility of tearing down two large and relatively new hotels and still making the numbers work for this project so I investigated a little further to confirm the answer here :).  Per Property Appraiser, the hotels are about 150,000 square feet, so not much smaller that the 200,000 square feet JEA is desiring.  This adds to the absurdity of tearing down one modern structure to replace it with another of not-much-larger size.

Interesting note, too:  JTA apparently owns all of this property and leases it to Kings Avenue Redevelopment.  They, in turn, are subleasing to the hotel owner about 1/2 of the property and still control the other 1/2 being offered to JEA.  Will be interesting to see if JTA has agreed to sell, rather than lease, the property to get this deal done.

The property does appear to have some unique characteristics such as being adjacent to an already large parking garage, being along side the I-95 overland bridge giving it outstanding visibility (but, not so sure about the traffic noise factor - will require quite a bit of soundproofing) and being connected to the (underutilized) Skyway.  Main downside could be the "San Marco Train" [https://twitter.com/sanmarcotrain?lang=en ](and its horns).  Being across from the Bearded Pig might be help clinch the deal though :).


KenFSU

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Re: JEA hunt for headquarters site is silent on evacuation risk
« Reply #41 on: January 22, 2019, 09:52:48 PM »
Would love to see whatever scoring matrix they used to shortlist down to three. The Atkins plan could have been transformational for the CBD. Conspiracy theorist says that if the fix is in for Lot J, then it makes sense to cut the strongest competition upfront before the public can get behind it.

Worth watching what happens to the JEA Board between now and a final decision being made. A member stepped down today citing a conflict of interest, and Curry will be appointing the replacement.

Charles Hunter

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Re: JEA hunt for headquarters site is silent on evacuation risk
« Reply #42 on: January 22, 2019, 10:49:29 PM »
To the conflict of interest, from the TU, not with the HQ proposals, but because his wife will be on City Council.
Quote
In other news, board member Husein Cumber resigned from the board on Tuesday effective immediately.

In his resignation letter he sent to Mayor Lenny Curry, Cumber said he is stepping down because his wife, LeAnna Cumber, will join the City Council later this year. Although the city elections are on March 19, LeAnna Cumber won her race earlier this month by default, as she was the only candidate who qualified to run.

“After careful thought, my wife’s election to the Jacksonville City Council this month may cause some perceived and/or unintended conflicts,” Cumber wrote.

marcuscnelson

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Re: JEA hunt for headquarters site is silent on evacuation risk
« Reply #43 on: January 22, 2019, 11:23:44 PM »
All I can say is that I'm incredibly disappointed that Atkins' offer was dropped, and that I hope his project can still work out independent of JEA.

tufsu1

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Re: JEA hunt for headquarters site is silent on evacuation risk
« Reply #44 on: January 23, 2019, 08:24:07 AM »
This may have been the easiest shortlist to predict ever