The District sets timeline for infrastructure construction

[Kerry]

Yeah. Literally every major Great Lakes, Pacific, Gulf and Atlantic coast city had old port facilities that were either rebuilt or relocated with containerization. Jax literally has no excuses outside of putting its own feet in its mouth when it comes to the activity level of the downtown waterfront.

Even river ports are included.  New Orleans built an aquarium on their old waterfront, Memphis built housing and parks, Vicksburg and Shreveport put in casinos and riverwalks, and Chattanooga did parks and riverwalks.  Sacramento has Old Towne .

And Jax put in empty lots!

With fences around them.

[CityLife]

Six years after Jacksonville developer Peter Rummell began laying out a plan for what could occupy JEA's former Southside Generating Station property on the Southbank, the financier of what is now called The District is taking the reins.

Preston Hollow Capital — the Dallas-based finance company that loaned Elements Development around $20 million for the project — will be assuming the rights under the redevelopment agreement with the city, Elements Development partners Peter Rummell and Michael Munz announced today.

Munz and Rummell will continue to work with Preston Hollow in order to provide "support, counsel and development expertise" as the project moves forward.

Sounds like a PR way of saying Munz and Rummell defaulted on their portion of the agreement with Preston Hollow...

[MusicMan]

I had sort of guessed this in a parallel thread.

[thelakelander]

So we have a new timeline again. The hope is that they secure money to start construction on the site infrastructure by the end of the year:

The slow-moving development known as The District will have until the end of the year to borrow money needed for $32 million of new streets, drainage and utilities in order to keep alive an agreement approved by the city in 2018 for the most ambitious project in the works for downtown Jacksonville.

The Downtown Investment Authority had put the The District on notice that its development team needed to close on the bonds by the end of September. But after a significant change in leadership control of the development two weeks ago, the expectation is that if bonds are issued, it will take a few months to get that financing in place.

https://www.jacksonville.com/story/news/local/2020/09/16/district-gets-reprieve-financing-downtown-jacksonville-project/5820699002/

[marcuscnelson]

Sure…

[MusicMan]

Did this site flood during Irma?

[thelakelander]

No, the majority of this site is not in the flood zone.

[Steve]

Is it just me or does anyone actually believe any of these timelines at this point?

[thelakelander]

This is a project I'll need to see something coming out of the ground vertically before I believe it materializes. Closing by the end of the year means even the long delayed breaking ground of infrastructure work won't take place until sometime in 2021.

[CityLife]

I don't see this one happening. It has been Rummell's baby all along, and he essentially just gave up on it. If the market was there, I don't see any reason why he would have bailed out. I believe Kitson & Partners bailed at some point too, but don't think that was ever announced publicly. The development program is to have 134k square feet of retail and 200k square feet of office.That was probably already ambitious pre-Covid, but has to be a complete non-starter now. Due to work from home (decreased office demand) and uncertainty over retail/dining, a lot of mixed-use projects are scrambling to convert office/commercial to residential. Those conversions can work in environments that already have a cluster of mixed uses and attractions in close proximity. However, with this project, the mix of commercial/office uses was really driving the demand for 950 residences and 147 hotel rooms. So it really doesn't work as a project with 1,500 dwelling units and 200 hotel rooms and no mix of commercial uses.

Preston Hollow is not really a developer, so they essentially have to either cut the losses Rummell and co spent on design and entitlements; or find a viable developer/partner before issuing the bonds. I'll bet on the former....or DIA continuing to extend the project timelines out.

[MusicMan]

This was a cluster f%ck in the making. It should have never taken 4 years+ to close on it. Especially after all the boasting done by Elements...

I honestly would love to see something along the lines of Amelia Park in Fernandina Beach on this site. Residential with lower density, the prices would be strong. Place a community center with pool and tennis courts  etc... along the river. Maybe a 30-40 slip marina. There could be a small HOA fee paid to JEA to offset the "loss" from the Elements deal.

[marcuscnelson]

I honestly would love to see something along the lines of Amelia Park in Fernandina Beach on this site. Residential with lower density, the prices would be strong. Place a community center with pool and tennis courts  etc... along the river. Maybe a 30-40 slip marina. There could be a small HOA fee paid to JEA to offset the "loss" from the Elements deal.

Just spent a hot minute going back in time.

When the initial proposals went out for this, RocaPoint proposed something along those lines:





Also found a rather poignant statement from RocaPoint's attorney:

During the presentations, attorney Steve Diebenow, who represented RocaPoint, advised board members they should select the proposal with the soonest closing date in order to put the transaction on JEA’s books in the current fiscal year and avoid the possibility that Elements’ later closing date could lead to the project not being finished or even not begun at all.

“How much do you want to gamble on the economy?” he said. “The goal is to develop a project that can be delivered in this economic cycle.”

Diebenow’s argument did not sway the board, which voted unanimously in favor of Elements’ proposal.

[thelakelander]

LOL, we love gambling with development deals. We're just bad at it.

[Jagsdrew]

Dealer: King of hearts, 10 of spades
Jacksonville: HIT ME!
Dealer: You have 20, Jacksonville
Jacksonville: HIT ME!
Dealer: 25, bust.

LOL, we love gambling with development deals. We're just bad at it.

[itsfantastic1]

Dealer: King of hearts, 10 of spades
Jacksonville: HIT ME!
Dealer: You have 20, Jacksonville
Jacksonville: HIT ME!
Dealer: 25, bust.

Dealer: 25, bust.
Jacksonville:...
Jacksonville: Hit me.