Shipyards Legal Decision

[Cheshire Cat]

Failed shipyards developer agrees to pay city $13.4 million
By Christopher Hong Tue, Apr 22, 2014 @ 5:45 pm | updated Tue, Apr 22, 2014 @ 6:06 pm

The bankrupt company that failed to develop the Shipyards, a 40-acre plot of downtown riverfront property, has agreed to pay the city of Jacksonville $13.4 million that it invested in the controversial project.

The city reached a settlement in bankruptcy court last week with Crescent Resource, the parent company of Jacksonville-based LandMar Group. LandMar bought the land in 2005 but was never able to start developing it.

The payment settles LandMar's unsecured debt it owed to the city.

In the deal it made with the city to develop the property, Landmar agreed to pay off the bonds the city previously issued to finance the project, which at the time were worth $88 million in principal and interest.

The city has received a check from the company and is now waiting for council approval to deposit it, said city General Counsel Cindy Laquidara.

LandMar took over the Shipyards project after the high-profile failure of the TriLegacy Group, the previous developer.

LandMar planned to build a luxury condominium tower and a mix of commercial, hotel and office space.

The company never started construction, and in 2009, it defaulted on its annual $3.15 million debt payment to the city. LandMar later filed for bankruptcy, and the development of the Shipyards has since stalled.

Check back for updates.

Christopher Hong: (904) 359-4272

http://members.jacksonville.com/news/metro/2014-04-22/story/failed-shipyards-developer-agrees-pay-city-134-million

[JayBird]

I am happy the city got money back. But I am disappointed on the timing. This will no doubt be spun as "Mayor Brown Got the Money Back" and the masses who only read news in 140 characters will eat it up. This will (wrongfully) go in his plus column.

[TheCat]

Who wants to make bets that the money is going straight to the stadium?

[thelakelander]

It will be interesting to see where it goes.  Since it was intended for a downtown project, will it go to help resolve the financial gap that's keeping several other proposed downtown projects on paper?

[tufsu1]

^ I'd like to see some of it used to cap the new seawalls so the riverwalk can be extended

[thelakelander]

Some council members have ideas on how this money should be spent!

Several other council members had early ideas on where such a windfall could be used.

"I like money," said Council President Bill Gulliford. "I think it's great and wish it was more."

He said he thought the money should be used for capital improvements, not operating dollars, and that vehicle purchases to help the city's fleet system could be an idea.

Council member Reggie Brown said infrastructure improvements, particularly in underserved areas, needed to be a priority.

Council Vice President Clay Yarborough said a consideration should be made to use it to offset the city's actuarially required pension contribution, estimated to be $11 million.

full article: http://www.jaxdailyrecord.com/showstory.php?Story_id=542776

[duvaldude08]

Who wants to make bets that the money is going straight to the stadium?

Here we go 

[I-10east]

"Mayor Brown Got the Money Back"

That has gotten very old Jay, just sayin'.

[JayBird]

"Mayor Brown Got the Money Back"

That has gotten very old Jay, just sayin'.

Oh okay. Thanks for bringing me up to date. Silly me, I thought forums were for posting our own thoughts and ideas.

[I-10east]

^^^Feel free to express your own thoughts and ideas. I'll just get prepared for every situation where the city makes a step in the right direction, then twelve people says "Mayor Brown did this" or "Mayor Brown Presents", there's nothing monotonous about that...I agree with most that you say BTW.

[CityLife]

Some council members have ideas on how this money should be spent!

Several other council members had early ideas on where such a windfall could be used.

"I like money," said Council President Bill Gulliford. "I think it's great and wish it was more."

He said he thought the money should be used for capital improvements, not operating dollars, and that vehicle purchases to help the city's fleet system could be an idea.

Council member Reggie Brown said infrastructure improvements, particularly in underserved areas, needed to be a priority.

Council Vice President Clay Yarborough said a consideration should be made to use it to offset the city's actuarially required pension contribution, estimated to be $11 million.

full article: http://www.jaxdailyrecord.com/showstory.php?Story_id=542776

No, No, and maybe partially.

That $13.4 could be a huge boost to downtown if invested/managed properly. It was originally intended for downtown and I like to see it stay that way. 

[edjax]

I like Cresembeni's idea to at least use part of it to reinstate what was slashed from the DIA pot last year.

[JayBird]

^^^Feel free to express your own thoughts and ideas. I'll just get prepared for every situation where the city makes a step in the right direction, then twelve people says "Mayor Brown did this" or "Mayor Brown Presents", there's nothing monotonous about that...I agree with most that you say BTW.

Instead of being like everyone else and just calling you a troll, I usually like your opinions as well so I'll explain why you're perceived as a troll by me in this instance. I started out by saying that I was happy the city was getting money back. Then I stated how the timing was just bad timing politically for anyone considering a run against the mayor, and then I went further to explain why I thought that. But see, when you select one phrase out of a paragraph and put your own spin on it, it clouds things. It causes people to think you're attacking them. You would've been completely on the right had my post been solely your quote. You also would've been in the right had when you quotes me, you included how you were tired of people using that as an excuse. But you didn't. You simply did what is called "baiting" or "goading" in order to spark some kind of response. You may not realize how you come across sometimes, I usually don't until someone points it out to me, however this may be why you seem to be constantly attacked (sometimes unfairly, sometimes rightfully) and called out as a troll.

As for Mayor Brown, yes in my opinion he is a puppet who cares more about headlines and photo ops and self promotion than anything else. I will continue to say that because it effects how his every decision is made.

[JayBird]

I like Cresembeni's idea to at least use part of it to reinstate what was slashed from the DIA pot last year.

Agreed, it rightfully is theirs, or at least something towards downtown improvement.

[mtraininjax]

Its money from a downtown investment, should remain downtown. I am not for spending more money on sea walls for the riverwalk, let's use the money to get a return that generates ongoing tax revenue, not more capital projects that have no revenue stream. A million here to get three million there. Invest in residential projects that will expand the tax base!