Author Topic: The District wants $26 million in public incentives  (Read 39919 times)

KenFSU

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Re: The District wants $26 million in public incentives
« Reply #180 on: July 14, 2018, 01:31:50 PM »
I'm just very doubtful that the District gets off the ground and that the deal looks anything like it's described today.  Will the city build a street grid on the District property so that once Elements fades, we are left with urban plots for other developers?

All due respect, but if you're going to be doubtful, at least be informed of the facts :)

The city's going to build three riverfront parks totaling 3.5 acres, a 1-acre pocket park, a 1,900-foot expansion of the riverwalk, a public walking trail around the District, a 100-space parking lot, and expand three roads for public access.

Elements will be responsible for horizontal construction, including the street grid, sidewalks, etc., funded by issuing $30 million in bonds through the CDD.

And the bonds will be repayed through REV grants, contingent on construction and increased property value as the District is completed.

The city doesn't own the land to hand out to other developers, Elements put down $18 million for it this week.

Even though there were clear signs that continual progress was being made (environmental due diligence, the very lengthy, very expensive DDRB approval process, negotiations with tenants, marina permitting, etc.), I understand the skepticism when the sale kept getting delayed.

But now that the sale is closed, the details of the agreement are in the open, and it's crystal clear that the only way for Elements to get full incentives for this project is to keep their foot on the gas and build what they've promised, what the city has approved, and what public infrastructure will be constructed to accommodate, I just don't get the pessimism.

People who have done a lot of the good things for the city over the last 20 years have dedicated years of their lives to making the District vision a reality.

You don't do that to just randomly bail.

I've said it for years, but I'l say it again.

The District will be largely finished by the time you see anything go vertical across the river at the Shipyards.

« Last Edit: July 14, 2018, 01:36:20 PM by KenFSU »

Steve

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Re: The District wants $26 million in public incentives
« Reply #181 on: July 14, 2018, 02:06:14 PM »
You may end up being right, but I’ve been skeptical too-not just because of the amount of time but we’ve gone through a few different financial structures. I certainly respect Peter Rummell and his business experience, but it’s been quite painful to get to this point.

I’d love to be wrong but at this point give me a few more Ambassador Hotel projects.

Kiva

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Re: The District wants $26 million in public incentives
« Reply #182 on: July 14, 2018, 02:45:49 PM »
One optimistic sign to me is that we have projects in Brooklyn, Laura street trio, Ambassador hotel, the District and eventually the Shipyards all involving different groups. If so many companies think they can make money downtown that is a great sign. Often, once one developer shows an interest in an area others will soon follow.

edjax

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Re: The District wants $26 million in public incentives
« Reply #183 on: July 14, 2018, 02:47:11 PM »
ANd the Ambassador is a sure thing?  Hopefully it is but what happens if they don’t get the incentives?

MusicMan

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Re: The District wants $26 million in public incentives
« Reply #184 on: July 14, 2018, 05:11:27 PM »
I'm SO pleased!!!!

Ha. Tell you what. Lets negotiate a price for your house today. I'll pay you in 4 years if I can find the financing. Deal?

The article is so funny too.

"The hardest thing to do is start, and we look forward to starting now and being part of the great upturn in Jacksonville’s future that is taking place — for both downtown and all of the city,” Rummell said."

Seems like the hardest thing to do was close on the vacant parcel. 4 years. Let's see what he can accomplish in the next 4.......

"“The nice thing about this is we control much more the time frame on the activities now that the land is in our hands,” he said.

WTF does that mean. They kept pushing the closing off, nobody else. 

Anyway, we are still years away from anything on that parcel. Let's see how long before the first crane goes up. In the meantime you fellas can enjoy your Champagne.   8)

remc86007

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Re: The District wants $26 million in public incentives
« Reply #185 on: July 14, 2018, 05:48:14 PM »
^What I found most frustrating about all the delays was that Rummell could probably have cashed in a small portion of his Disney stock and had the money to close in his checking account in a couple days. I know rich people don't become rich by risking their own money, but Rummell isn't a spring chicken, so if I were him, I would have started this thing years ago rather than haggling over financing arrangements for years.

Steve

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Re: The District wants $26 million in public incentives
« Reply #186 on: July 15, 2018, 01:29:11 PM »
ANd the Ambassador is a sure thing?  Hopefully it is but what happens if they don’t get the incentives?

Nothing is a sure thing until it’s done. Not even The District.

heights unknown

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Re: The District wants $26 million in public incentives
« Reply #187 on: July 15, 2018, 04:12:31 PM »
In my opinion, if no cranes or any other activity has not happened within a year, the District will NEVER happen; and that goes for any other proposed development in downtown Jacksonville. And yes I am optimistic, but our hearts have been broken, along with promises to retain that optimism.
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KenFSU

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Re: The District wants $26 million in public incentives
« Reply #188 on: July 15, 2018, 05:46:40 PM »
^See: Laura Street Trio.

Same years of skepticism.

Same back and forth over financing (plus a foreclosure on the Barnett).

Same trickle of tenant announcements over the years.

And now, the Barnett is ahead of schedule are we're months away from groundbreaking on the Trio proper.

And the Trio probably would already be under construction if not for the logistics (the Trio is being used to stage construction for the Barnett).

Biggest similarity though is that both projects are led by long-time Jacksonville residents personally invested in seeing our downtown flourish.

Have some faith, friend.

This ain't the same city it was even 15 years ago.


heights unknown

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Re: The District wants $26 million in public incentives
« Reply #189 on: July 16, 2018, 11:10:05 PM »
^See: Laura Street Trio.

Same years of skepticism.

Same back and forth over financing (plus a foreclosure on the Barnett).

Same trickle of tenant announcements over the years.

And now, the Barnett is ahead of schedule are we're months away from groundbreaking on the Trio proper.

And the Trio probably would already be under construction if not for the logistics (the Trio is being used to stage construction for the Barnett).

Biggest similarity though is that both projects are led by long-time Jacksonville residents personally invested in seeing our downtown flourish.

Have some faith, friend.

This ain't the same city it was even 15 years ago.


Thanks Ken; you're right, so I'll try and continue to "hold" and "retain" optimism.
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ralpho37

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Re: The District wants $26 million in public incentives
« Reply #190 on: September 28, 2018, 12:37:30 PM »
Anything ever going to happen with this "District"? Or have we all been fooled by the fancy artist renderings and newspaper articles again?

jaxnyc79

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Re: The District wants $26 million in public incentives
« Reply #191 on: September 28, 2018, 01:33:24 PM »
Anything ever going to happen with this "District"? Or have we all been fooled by the fancy artist renderings and newspaper articles again?

My gut tells me this project will never get built, but in the press release post the approval of City Incentives, there was the mention of many steps before any construction could get underway in earnest.  Elements doesn't expect to begin horizontal construction until at some point between 2019 and 2021...again just a beginning of construction might take until 2021...

"before any work on the project can be done, a Community Development District will need to be formed to issue up to $30 million in bonds, which would help pay for horizontal construction. The CDD board would be selected by the developers, for as long as Elements is still a majority owner of the property.

Those bonds would be repaid through the application of 75 percent of the tax rebates granted to the project. The rebates would not kick until until vertical construction begins, an incentive for the developers to quickly make use of the vacant land. If there are any shortfalls in the debt repayment, the CDD can impose fees and charges on property owners in The District to make up the shortfall.

The company will also need to close on the purchase of the JEA-owned land by July 18. In the past, JEA has granted an extension on the deadline for Elements to buy the property at a cost of $18.5 million, but there is no indication that would happen again.

Elements hopes to begin horizontal construction between 2019 and 2021. The developers do not anticipate vertical construction, some of which will occur simultaneously with horizontal construction, to begin before late 2020 or 2021.

Earlier this year, Elements brought on the development company behind the nation’s first solar-powered town, Kitson & Partners, to execute The District development plan."
« Last Edit: September 28, 2018, 01:34:55 PM by jaxnyc79 »

thelakelander

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Re: The District wants $26 million in public incentives
« Reply #192 on: September 28, 2018, 01:38:30 PM »
In the meantime, the Marriott in Brooklyn that was recently approved by the DDRB has already submitted their plans to the St. Johns River Water Management District.
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KenFSU

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Re: The District wants $26 million in public incentives
« Reply #193 on: September 28, 2018, 02:42:13 PM »
Anything ever going to happen with this "District"? Or have we all been fooled by the fancy artist renderings and newspaper articles again?

Or, are the developers simply following the plan that they very publicly put out in July that involves filing the necessary paperwork to establish a CDD, issuing bonds to fund horizontal construction, and then phasing in vertical construction once horizontal infrastructure is in place? Just because you don't see a bulldozer out there right now doesn't mean that nothing is happening.

Captain Zissou

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Re: The District wants $26 million in public incentives
« Reply #194 on: September 28, 2018, 03:02:54 PM »
I can see the property from my office and there has been work going on every day for the last few weeks.  Likely testing and what not.