Khan's Jacksonville Shipyards Plans Revealed

[finehoe]

Here is how it all broke on our local FOX affiliate last night...  The first BREAKING NEWS!

http://www.fox30jax.com/news/news/local/new-proposal-submitted-shipyards-bringing-total-3/nktxN/

Not sure how the reporters kept from laughing out loud but this is good... Meet the man of the "THIRD PROPOSAL!" 

This is Must see material... and veeeery Jacksonville... 

http://www.fox30jax.com/videos/news/third-shipyards-proposal/vDPdny/

Oh. My. God.

And it's not even April Fools Day.

[fieldafm]

Strongly disagree that the 30 day window had anything to do with the lack of interest. Everybody on this message board has known for almost a year that the RFP was coming sooner than later.

Just a point of clarification, as this is my field of work.

Developers aren't browsing MetroJacksonville trying to find large, contaminated pieces of land to invest money in. The entire process over the last few years was designed for Khan to act as a master developer on the land. To say anything differently just doesn't reflect reality.

Now, about that ark...

No one in their right mind would look for a contaminated piece of land, Field.  Why are you being so rude lately?  Did you wake up to find your britches several sizes too small or something? I know thats always annoying.

I'm not being rude at all. I'm relaying my experience working on deals like this.

[I-10east]

^ come on Lake....with sea-level rise, having Noah's Ark so close to my house could be invaluable!

I think that you're on to something. Technically, building an ark is 'progressivism' since everything in the US outside of MST is gonna flood in 100 years, or whatever the hell...

[hiddentrack]

Strongly disagree that the 30 day window had anything to do with the lack of interest. Everybody on this message board has known for almost a year that the RFP was coming sooner than later.

Just a point of clarification, as this is my field of work.

Developers aren't browsing MetroJacksonville trying to find large, contaminated pieces of land to invest money in. The entire process over the last few years was designed for Khan to act as a master developer on the land. To say anything differently just doesn't reflect reality.

Now, about that ark...

I don't think he was implying developers would be out there scouring local message boards for potential projects, just that any developer on the lookout for large projects would have been as aware of the property as people here. It's no secret that it was there for the taking.

Khan mentioned his initial interest in the property almost two years ago, and if I'm recalling correctly, Mark Lamping made comments several times since then that they'd get involved only if no one else stepped up to the plate. Two years sounds like plenty of notice to me...

Do we really think more time to ask for proposals would've generated any other offers? Look at what we got over the last two years. It's hard to believe there was any serious interest out there.

There's been plenty of time if there was someone else out there with enough interest. If anything turned people off, I'd put that on the history of failure with the property rather than this claim that the whole process has been set up to favor Shad Khan.

[thelakelander]

I understand what Field was saying. You're simply not going to attract much private investment interest in a contaminated piece of dirt in a small market like Jax......especially considering how we've basically left the property in limbo for a good decade. Contaminated, in a dead DT environment, no flexibility (all or nothing approach with land assembly), with no real plan or vision for the property's future or the land surrounding it, etc. If you have a few million to light on fire, the Shipyards property is a great way to achieve that goal. After all, there's a reason Khan wants the property given to him with the city taking all the risks. If you what more interest, there are other proven methods of generating that interest that provides you with options to not wait for the sugar daddy (TriLegacy, LandMar, Khan) to figure out what to do with all +40 acres. However, putting the wheels in motion begins with the public sector. That process has never taken place, so it's not hard to understand the overall lack of interest.

[Tacachale]

^Yep, pretty much.

[CityLife]

Let me ask a hypothetical question for those disagreeing with Field...if you were trying to get The Shipyards in the hands of private developers and were at a conference with the largest developers in Florida and the Southeast, would you aggressively market the property to them?

[TimmyB]

I would love to see the Ark at the top of the needle. I vote for that.

How's this, Maximus?  I tried to mix together the best of the proposals that we have seen, so far.

[PeeJayEss]

That looks like the perfect project^

^ The randomness of including volleyball courts is what really cracks me up.

I've been heavily involved in the sport of volleyball for most of my adult life, and this saddens me greatly!   

I'm unclear which part saddens you greatly: the volleyball courts being included, KenFSU's comment, or the fact that you have been "heavily involved in the sport of volleyball for most of my adult life."

[Non-RedNeck Westsider]

Short of selling out with a complete marketing campaign from the city nation-wide to garner interest prior to setting out a 'legitimate' RFP, I don't believe it would have mattered if there was a 30 day window or a 30 year window.  The property has been sitting vacant for 2 decades with a handful of pie-in-the-sky development proposals that were relying on a housing market that this nation has never seen before. 

Khan's interest in the property is based on a more realistic and sustainable idea - enhancing his other major investment in the city.

[thelakelander]

Khan is essentially adding a practice football facility and attempting to bring in other developers to add additional uses that the market can handle. Most likely, when reality hits, half of the stuff shown on those renderings will be "value engineered" out of existence. Master plans rarely turn out how originally sold during the conceptual promotional stage.

[hiddentrack]

If you what more interest, there are other proven methods of generating that interest that provides you with options to not wait for the sugar daddy (TriLegacy, LandMar, Khan) to figure out what to do with all +40 acres. However, putting the wheels in motion begins with the public sector. That process has never taken place, so it's not hard to understand the overall lack of interest.

I agree completely. Maybe I heard what I wanted to hear from him, but I interpreted Khan's initial comments as a way to get those wheels in motion, to generate interest that might push the city to move. The problem was - as usual - nothing happened.

As it stands now, the entire property needs to be cleaned up. I don't see the city making that kind of investment without knowing what will happen to the property. That seems like it would rule out carving it up and developing it piece by piece.

That leaves the property to be developed by someone needed to take the lead on the whole thing. It's not ideal, but it feels like all we have available to us. If it can happen - and so far Khan seems to be a mad of his word - I don't want to squander that opportunity.

Let me ask a hypothetical question for those disagreeing with Field...if you were trying to get The Shipyards in the hands of private developers and were at a conference with the largest developers in Florida and the Southeast, would you aggressively market the property to them?

Definitely. I'd also like to know why it wasn't done before, or if it was, why nothing happened. Anyone know?

Most likely, when reality hits, half of the stuff shown on those renderings will be "value engineered" out of existence. Master plans rarely turn out how originally sold during the conceptual promotional stage.

I worry you're right, but I really really hope you end up being proven wrong.

[I-10east]

Arkglass!!! ROTF!

[thelakelander]

Btw, what's this all about?  I guess we're really down to one proposal.

Khan in February unveiled his vision, a mixed-use site that could incorporate more than 650 residential units, some commercial space, an upscale hotel, multilevel practice facilities, marine and parks.

Khan submitted a term sheet soon after, leading to the DIA meeting March 6 to talk about the next steps for selecting a developer and issuing a request for proposals.

During that meeting, Patrick Mullen, CEO of Shitaki Enterprises, told the board of his idea to invest $1.4 billion over five years to develop a boatyard and marina for mega yachts, along with a festival marketplace.

He, too, is one of the three who responded by Wednesday. His pitch, though, remains relatively unchanged from a PowerPoint his company submitted to DIA CEO Aundra Wallace about the same time. Four pages of background on luxury yachts replicated information on a Wikipedia page about the topic.

Eric Smith, an attorney representing Mullen and Shitaki, submitted a letter to Wallace saying the original submission stands. The letter went on the say the city failed to properly provide necessary information on environmental remediation for the site, making it "impossible for my client to submit a detailed proposal."

The third group to respond, In Him, is new to the scene. Calls and emails placed to Stephen Grenda on Wednesday and Thursday morning went unreturned.

Full article: http://www.jaxdailyrecord.com/showstory.php?Story_id=545264

[thelakelander]

If you what more interest, there are other proven methods of generating that interest that provides you with options to not wait for the sugar daddy (TriLegacy, LandMar, Khan) to figure out what to do with all +40 acres. However, putting the wheels in motion begins with the public sector. That process has never taken place, so it's not hard to understand the overall lack of interest.

I agree completely. Maybe I heard what I wanted to hear from him, but I interpreted Khan's initial comments as a way to get those wheels in motion, to generate interest that might push the city to move. The problem was - as usual - nothing happened.

As it stands now, the entire property needs to be cleaned up. I don't see the city making that kind of investment without knowing what will happen to the property. That seems like it would rule out carving it up and developing it piece by piece.

That leaves the property to be developed by someone needed to take the lead on the whole thing. It's not ideal, but it feels like all we have available to us. If it can happen - and so far Khan seems to be a mad of his word - I don't want to squander that opportunity.

When I look at the Khan proposal, he's basically doing what the city should have over the last decade. He's not spending his cash developing the property. He's parceling it out and marketing it for others to come in and invest in projects of their own.  For example, if he wants a shopping center, he's not developing it. An entity like Sleiman would. If it works, he makes money and increases the value of this existing investment in Jax. If it doesn't, then the city has assumed all the risks anyway. Thus, don't get too upset if the "placeholder" renderings of things like that hotel and filled in areas of the river.....never materialize.

Most likely, when reality hits, half of the stuff shown on those renderings will be "value engineered" out of existence. Master plans rarely turn out how originally sold during the conceptual promotional stage.

I worry you're right, but I really really hope you end up being proven wrong.

I've done the master site planning for several large developments over the last decade. Most, never turned out as originally conceived. If I'm wrong on this one, I'll be the first to buy you a beer from a restaurant inside the shopping center under that practice football field.