RD River City Brewery project seeks final DDRB approval

[acme54321]

Back to the ex-RCBC project...

Architecturally it leaves a lot to be desired IMO.  That said part of me is happy to see a rendering that looks like it's already been value engineered vs some flashy thing that you know is going to be completely neutered into the bland box shown. 

[Lostwave]

Another thing to keep in mind about MEC is that the city (from the original lease) was responsible for all upkeep and upgrades to the "practice facility" inside the stadium, which was a big expense every year.  Now with this investment, they don't have to pay for any of that anymore.  The Jags are now responsible for all upkeep and upgrades.  So with this investment the city got a big expense off the books forever.  How long until it adds up to 60m, I have no idea, but it is another reason it helped make sense for the city to chip in.

[acme54321]

Anyone know why there's a big crawler crane out there?  Bulkhead work?  Who's doing it?

[jcjohnpaint]

I saw that too. Area of property closest to the fountain. Remove trees?

[acme54321]

You don't need that to remove trees.   It was over at the corner by the boat ramp and river today.  There was some other equipment staged out there too.  I'd guess it's for bulkhead work.  It was pretty rough where the restaurant used to be.

[Captain Zissou]

I saw a Hal Jones truck or piece of equipment out there.  They do bulkheads and marinas.  That's likely what the work is.

[Charles Hunter]

The Related Group is back with a new, taller, more expensive proposal.
From the Business Journal article

The most recent proposal for the Southbank property included an eight-story, 328-unit multifamily development with a pad reserved for 3,200 square feet of restaurant space.

Now, Related is proposing a 25-story tower with eight floors of no less than 390 luxury units with a minimum of 4,000 square feet of restaurant, a nine-story parking garage and a 1,000-square-foot ship store.

The proposed incentives include a 75% rebate on property taxes over 15 years with a cap of $19.8 million. The incentive request also looks for the city to provide the developer a $39 million completion grant.

In return, the project would have a strict timeline for construction, with work beginning 120 days after permitting is complete and construction finished no later than April 30, 2029.

https://www.bizjournals.com/jacksonville/news/2024/05/03/related-second-river-city-proposal.html?ana=e_JA_me&j=35277666&senddate=2024-05-06&empos=p4

From the staff analysis of the term sheet to be considered by the DIA Strategic Implementation Committee at their next meeting (May 10)

Current Project Proposal
Related has returned with a much more ambitious development proposal that is more impactful on Jacksonville’s
Southbank riverfront and skyline (See Exhibit 1). The development project proposed will be included in the Related
Group’s exclusive Icon, high-end multifamily portfolio. Features of the new design include:
• 25-story main tower with eight stories of residential units along Museum Circle on the south side of the
garage.
• Not less than 390 luxury units with balconies and terraces with the proposed unit mix to include:
o 8 Studios – 569 avg square feet
o 174 1-bedroom units – 774 avg square feet
o 163 2-bedroom units – 1,143 avg square feet
o 48 3-bedroom units – 1,521 avg square feet
• Minimum 4,000 square foot restaurant integral to the building, facing the St. John’s River, with two-story
ceiling height.
• Nine-story parking garage wrapped on the first two floors by utility rooms and screened on floors above.
• 1,000 square foot Ship’s Store
• Shade sails, benches, bike racks, light fixtures along the Riverwalk and waterfront promenade

Total Development Costs (as presented): $202,746,000
Direct Development Cost: $173,597,000
REV Proposed: $19,798,000
REV Structure: 75% / 15 Years
Completion Grant: $39,000,000
Completion Grant Structure: Funded During Construction

https://dia.coj.net/getattachment/41e4242d-c6f6-4ca8-a079-67a040060804/.aspx
The Related proposal starts on page 19 at that link, a Site Plan and renderings are on pages 28 and 29.

[Jax_Developer]

Operating Budget:
Rents at the luxury multi-family complex are targeted to range between $3.13 psf for 3-bedroom units
(approximately $4,320 monthly) to $3.95 psf for Studio units (approximately $2,247 monthly). This rental range is
10-25% higher than rents proposed on other recent development plans reviewed by the DIA. Parking, utility
4
reimbursement, and other income add as much as $218 per unit per month. These measures along with increased
unit count and retail square footage increase the stabilized pro forma Effective Gross Income from $8.2 million,
as projected in 2021, to $14.8 million, an increase of 80.4%. Inclusive of the REV grant offset to property taxes,
pro forma Net Operating Income is forecast at 82.5% above previous models, an increase from $5.7 million to
$10.4 million.

Very questionable rents used in their underwriting. I hope this actually goes.

[Ken_FSU]

There's no universe where we should be handing $40 million in public cash to a developer as a reward for building luxury homes for 390 people.

REV grants are one thing.

A massive completion grant from the general fund just doesn't seem to make sense for this one.

[CityLife]

There's no universe where we should be handing $40 million in public cash to a developer as a reward for building luxury homes for 390 people.

REV grants are one thing.

A massive completion grant from the general fund just doesn't seem to make sense for this one.

There was an article a couple weeks back in the Palm Beach Post about luxury condos in Downtown West Palm Beach and how many projects are currently in the works. Mostly about Related (Not to be confused with Related Group), who are doing an absolutely insane amount of development there. But there was mention of Related Group's Ritz Carlton condo project and if I recall correctly, Related Group said something like: "we have deep pockets, we can be patient with sales" or something like that. Unfortunately, it's behind a paywall for me now and I can't access it, but if you want to Google it, it's titled "Family Church, Related Cos. plan new church school and two condo towers in West Palm Beach".

The leaders of Jax are so desperate to claim they get stuff done that they are throwing crazy amounts of money at developers. Like you I'm all for Rev Grants. Heck, I'm even fine with a 100% REV Grant for longer than 15 years, but that completion grant amount feels like U2C level of waste.

[thelakelander]

There's no universe where we should be handing $40 million in public cash to a developer as a reward for building luxury homes for 390 people.

REV grants are one thing.

A massive completion grant from the general fund just doesn't seem to make sense for this one.

Sounds like a we're begging for highrise construction.

[jaxlongtimer]

Between low building standards (waiving setbacks, architecture, zoning, etc.) and throwing money at developers for projects like this and the Four Seasons, Jax is nothing more than a prostitute for developers. 

Using these incentives for infrastructure, green spaces, streetscapes, etc. that benefit the community at large (including not one, but many, developers) would have a far greater ROI than throwing this at private property owners who keep all the benefits of the incentives for themselves.

[Zac T]

Of note in the DIA agenda packet is they're giving The Related Group right of first refusal on the MOSH site should it be made available for private development

ADDITIONAL REQUIREMENTS:
COJ/DIA shall grant to Related a right of first refusal (“ROFR”) for a period of ten (10) years from the
Effective Date of the RDA to purchase the MOSH site in the event such site is made available for private
commercial redevelopment to be more fully defined in the RDA. The ROFR shall require Related to match
not only the cash purchase price to be paid for the land but also to commit to construction of commercial
improvements of equal value and similar use as to that proposed, on the same or shorter performance
schedule, resulting in a similar tax revenue to COJ. Such right of first refusal shall not be applicable to any
sale, lease or redevelopment for civic use, park space or other use in which the public is invited to visit such
as a museum, aquarium, gallery, etc. The CEO shall be authorized to further negotiate the terms of the
ROFR with Related and shall bring any material changes to the Board for approval. The ROFR shall
terminate at the earlier of a sale of the property or the 10th Anniversary of the Effective Date of the RDA.

[Ken_FSU]

Of note in the DIA agenda packet is they're giving The Related Group right of first refusal on the MOSH site should it be made available for private development

ADDITIONAL REQUIREMENTS:
COJ/DIA shall grant to Related a right of first refusal (“ROFR”) for a period of ten (10) years from the
Effective Date of the RDA to purchase the MOSH site in the event such site is made available for private
commercial redevelopment to be more fully defined in the RDA. The ROFR shall require Related to match
not only the cash purchase price to be paid for the land but also to commit to construction of commercial
improvements of equal value and similar use as to that proposed, on the same or shorter performance
schedule, resulting in a similar tax revenue to COJ. Such right of first refusal shall not be applicable to any
sale, lease or redevelopment for civic use, park space or other use in which the public is invited to visit such
as a museum, aquarium, gallery, etc. The CEO shall be authorized to further negotiate the terms of the
ROFR with Related and shall bring any material changes to the Board for approval. The ROFR shall
terminate at the earlier of a sale of the property or the 10th Anniversary of the Effective Date of the RDA.

This whole thing is such a perfect example of why, despite pumping hundreds of millions into downtown, Jacksonville has nothing to show for it.

1. Ford on Bay is RFP'd. Related proposed a market-appropriate 350-unit multifamily development with retail fronting the riverwalk. DIA chooses a less realistic Spandrel project instead that never materializes.

2. Ford on Bay is RFP'd again. Related Group, despite a solid track record in Florida, is passed over again by the DIA in favor of a Carter development that fails to materialize.

3. MOSH plans a major $40 - $60 million renovation of their Southbank museum, in conjunction with improvements to Friendship Park.

4. Related takes over and demolishes the River City Brewing Company site, without a development agreement in place, with promises of building housing and a restaurant to serve museum and park visitors.

5. The City secretly agrees to pay MOSH $20 million to flee the Southbank and move behind a partially abandoned highway ramp on the Northbank to help provide foot traffic for a Lot J development that never comes to fruition.

6. Related is dumbfounded that no one told them the museum was moving.

7. A two-year project to restore Friendship Fountain and build a park supporting it turns into a 7-year project, including a four-year park closure.

8. Related's parkfront restaurant gets moved to the opposite side of the building, removing all interaction with the city's $10 million+ investment in restoring Friendship Park. No one in leadership cares.

9. In order to remove the current blight from the leveled waterfront restaurant that we gleefully demolished, we are now being asked to give Related SIXTY MILLION DOLLARS in completion grants and REV rebates to build a luxury high-rise in an urban area with so much vacant horizontal property that it looks like a moonscape.

10. On top of that $60 million, including $40 million in cash straight from the general fund, because why the hell not, we're also throwing in right of first refusal for the old MOSH site, because if the Ford on Bay/Hyatt situation has shown us anything, it's that nothing catalyzes development like locking prime land behind complex ROFR agreements.

All in, that's close to $100 million in city money we've put down to eliminate a vibrant museum/restaurant anchor for the south end of the Main Street Bridge, replace it with luxury housing, and lock up the MOSH site in arbitration for the next decade.

Toss in what's we've spent on the other side of the Main Street Bridge to buy out Toney Sleiman, demolish the Landing, redevelop it, and eventually subsidize whatever goofy high rise ends up on the private development pad, and we're likely looking at a total of nearly $200 million dollars just to replace what was currently there with something less vibrant.

We could have fully funded the MOSH's Southbank improvements, given Toney Sleimain the subsidy he wanted to redevelop the Landing with parking, and still had over $100 million left over to build out our park system, subsidize historic rehab, put extra police officers on the streets, rebuild James Weldon Johnson Park, two-way the streets, etc.

Wildly asinine.

[Jax_Developer]

Could not agree more with you on the MOSH site Ken. Absolute dumpster fire. Along with several other things.