A Brief Look at the Laura Street Trio Incentive Package

[heights unknown]

Ron Salem, Reggie Gaffney, and Joe Carlucci all seem open to the option of demolition for the Trio.

https://www.bizjournals.com/jacksonville/news/2024/07/22/laura-street-trio-special-committee.html

Truly unbelievable.

And then what's going to go in the vacant space? An empty parking lot? Another Park? (as if we need more Parks). I guess it'll sit vacant for the next 30 years or so.

[Jax_Developer]

Another possibility for the Trio emerged when committee member Joe Carlucci challenged Atkins to provide an offer to sell the property to the city.

In an interview afterward, Elsbury said that if Atkins were interested, he would recommend listing the property at $85 million.

The last large property sale Downtown was Wells Fargo Center and two parking garages in April for a combined $46.35 million.

https://www.jaxdailyrecord.com/news/2024/aug/12/council-looking-at-taking-over-on-laura-street-trio-negotiations/

What a joke.

[heights unknown]

Another possibility for the Trio emerged when committee member Joe Carlucci challenged Atkins to provide an offer to sell the property to the city.

In an interview afterward, Elsbury said that if Atkins were interested, he would recommend listing the property at $85 million.

The last large property sale Downtown was Wells Fargo Center and two parking garages in April for a combined $46.35 million.

https://www.jaxdailyrecord.com/news/2024/aug/12/council-looking-at-taking-over-on-laura-street-trio-negotiations/

What a joke.

He's already lined his wallet, pockets, etc. with money that he's not used (hardly/barely) towards the trio (I could be wrong but this is what I see). Yes the DIA is a joke IMO, but HE is a bigger joke. He cares nothing about the trio, downtown, Jacksonville, or the prosperity of our city as a whole; he only cares about lining his wallet, pockets, and his selfish interests.

[thelakelander]

LOL, in what world is that property worth $85 million, in its current state?

Is this the expected profit to be made, if the city served as the bank for this project? Tossing out a number like that is a big red flag.

[Captain Zissou]

If he could get the property appraised for anywhere close to $85M, he would have all the equity he needs to get this deal done.  He's lucky if the property is worth $8.5M in its current state.

In my opinion, if you want to seem like a credible and capable developer, don't bring in Jordan Elsbury to speak on your behalf. 

[jaxoNOLE]

“Everything we’ve been asked to do we’ve done, and frankly, I’m getting tired of working with the City of Jacksonville, and certainly for this project. I have been working on it for years, and have done everything that I could do to make it happen. I have invested millions of dollars out of my own pocket," Steve Atkins, principal and managing director of SouthEast Group, said.

Speaking to the Special Committee on the Future of Downtown, Atkins said the historic buildings have sat empty because of unsuccessful negotiations with the Downtown Investment Authority. Now, he says he’s done working with the DIA.

“I’ll either sit and wait until we can do a deal with the city, or if the city wants to buy me out, they can do that," Atkins said.

https://www.firstcoastnews.com/article/news/community/developer-says-he-wont-work-downtown-investment-authority-jacksonvilles-historic-laura-street-trio/77-3954c8f8-c929-4ad3-b060-5cba62555925

"Everything we've been asked to do we've done..." That would be, except those two prior development deals you negotiated and the city passed in good faith that you utterly failed to uphold your end of the bargain on, Mr. Atkins? Playing the victim card while holding a blighted historical property hostage for $85M (roughly equal to the requested incentives for construction) is more than slightly disingenuous.

[vicupstate]

The Laura Trio is the perfect metaphor for what ails Downtown and why it is in the condition it is in. It literally has every element of the issues that have been dealt with all across DT.

Historic structures, mega incentives, multiple plans and even multiple developers that have all fallen through. The city has been trying to get this redeveloped since 1998, and it is no closer to doing so today than it was then.

[acme54321]

We have precedent on how to deal with this situation from the Bostwick building. 

Do that.

[Joey Mackey]

Atkin is now clearly operating in bad faith. I think City Council needs to start coming up with a plan to rip ownership of the Trio away from Atkins. I'm sure there will be a legal dispute, that will probably settle, but it won't cost the City 85 million dollars.

[Ken_FSU]

Another possibility for the Trio emerged when committee member Joe Carlucci challenged Atkins to provide an offer to sell the property to the city.

In an interview afterward, Elsbury said that if Atkins were interested, he would recommend listing the property at $85 million.

The last large property sale Downtown was Wells Fargo Center and two parking garages in April for a combined $46.35 million.

https://www.jaxdailyrecord.com/news/2024/aug/12/council-looking-at-taking-over-on-laura-street-trio-negotiations/

What a joke.

Is there anything more Jacksonville than Jordan Elsbury offering to sell the Laura Street Trio to the City for $85 million?

[jaxlongtimer]

Not commenting on Atkins but I am wondering, for any developer working on the Trio, would they have a better chance of raising private equity dollars if the Trio was part of a viable, sustainable, thoughtful master plan for Downtown rather than a one-off with uncertainty about what may infill around it over time?  I see Downtown as a ship adrift with no real captain, destination, or way to propel itself. How does that attract investment for any developer on any decent scale?

It will be interesting to see if the Gateway project goes forward.  I would think one thing it has going for it is its size is such that it will create its own ecosystem, not dependent on poor City planning in the rest of Downtown.  It appears to me Khan would be doing the same thing if he builds out an entertainment district at the stadium.

The District on the Southbank fits this same mold.  A somewhat self-contained ecosystem not dependent on City meddling.

These self contained "micro developments" say much about the failure of the City to create Downtown infrastructure to support "wide open" development outside of them.

[landfall]

I think this is beyond fixing now, be as well cutting their losses. Be as well demolishing it and putting out a RFP for a 5 over 1 at this point.

[thelakelander]

Those concrete buildings aren't in danger of falling down. Even in their decayed state, they'll last longer than the junk we build today. Demolition shouldn't even be a part of the discussion.

[landfall]

Should rephrase, I just don't think it has the interest to make it financially workable anymore. They're continually scrapping and being held to ransom by an unreliable developer. That shows how desperate things are to me. Things are past the point of return I feel.

[Ken_FSU]

Be as well demolishing it and putting out a RFP for a 5 over 1 at this point.

Jax needs to fully excuse itself from the speculative demolition business.