Bostwick Buyers Respond to Skeptics

[edjax]

I see per Biz Journal where the due diligence has been extended another six weeks through end of July.  It seems the lawsuit for water intrusion by owner of adjacent building is still the hold up on it. Nothing in this town is easy. 

[spuwho]

Ovinte at SJTC took over the "Original Pancake House" and has been doing very well with the Thurs-Sat crowd. In fact their parking is overflowing into TigerDirect, Wendys and Thomasville Furniture on the weekends.

I don't know what their take during the week is, but they are certainly pulling them on the weekends.

I hope he can bring the same level of business to the Bostwick. He certainly isn't lacking in confidence.

[Noone]

Potential Bostwick buyers: Not intimidated by historic renovation; money not a problem

Ashley Gurbal Kritzer
Reporter-Jacksonville Business Journal

Jacques Klempf’s proposal of renovating the Bostwick Building into a chic restaurant is so cool, so sexy, that some critics think it’s too good to be true.

After news broke that Klempf was under contract to acquire the building, one of his partners in Ovinte Wine Lounge, Chad Munsey, said he had to restrain himself from responding to online comments about the deal.

“It’s a bummer,” Munsey said. “I don’t want to say it’s disheartening, but it’s a bummer to see so many pessimists.

One comment was, ‘This is way too grand of an idea for Jacksonville.’ I think that’s the reason there’s not more things here, because we have that negative attitude. Trust me. I’ve moved away. The grass is not always greener. We have a great city and a lot of great assets. The river, the beach, and there’s some really cool things going on.”

But no matter how fabulous an idea is, in real estate development, it all comes down to one question: Where’s your money coming from? I’ve written several stories that examine the costs and benefits of historic renovations, and it’s neither cheap nor easy, because you never know exactly what you’re getting into. A lot of developers, no matter how good their intentions, just can’t make the numbers work.

Klempf, who is CEO of Dixie Egg Co., doesn’t shy away from questions about his finances or the project. He said he’s been approached by city representatives, pointing out that incentives are available, but he said he doesn’t need incentives to make this project work.

“I just think owning that piece of property, at that location, is a good investment,” he said. “I recognize we’re going to have to spend a lot of money to get it right. Whether we get help â€" that’d be great. If we don’t, our other partner, Fraser Burns, is a very astute businessman as well, and has got a lot of contacts. Between the three of us, we’ll figure it out.”

The three of them opened Ovinte at the St. Johns Town Center five months ago, using their own money, and are pleased with that restaurant’s performance.

“We haven’t been paid back what we’ve invested,” Munsey said, “but we haven’t written any checks to keep it afloat.”

Klempf said he isn’t intimidated by renovating an old building, even with the amount of unknowns that come with the territory, and that today’s interest rates make it an ideal time to pursue the project.

“Money’s real cheap right now,” Klempf said, “If I was ever going to do it, whether it’s my own money or somebody else’s â€" I can borrow it really cheap.”

And you have the ability, I ask, to get a loan like that?

He looks me in the eye.

“I do.”

More on Klempf and his vision for the Bostwick Building will be in the May 17 edition of the Business Journal.

This was added to the OED document "Authorization to Negotiate and Engage on Various Downtown Projects" at the 7/24/13 DIA Board meeting.

[fieldafm]

This was added to the OED document "Authorization to Negotiate and Engage on Various Downtown Projects" at the 7/24/13 DIA Board meeting.

I believe they need to work through a resolution with the City for a repair to the sidewalk/portion of building foundation due to some kind of flooding problem that occurred a few years ago.