Third and Main Project - Ahead of their time as Main Street still reeling...

[mtraininjax]

 

http://jacksonville.com/business/2015-06-23/story/third-and-main-developer-seeks-more-time-repay-850000-loan-city

Third and Main developer seeks more time to repay $850,000 loan from city

The developers of Third and Main in historic Springfield are asking for more time to repay an $850,000 loan the city gave for construction of the multi-story building, which houses the popular Uptown Kitchen & Bar.
The loan was due to be paid in full by last month, but Third and Main LLC is asking for a multi-year extension so it can shore up the finances of the building, which opened in 2009.

The Northwest Jacksonville Economic Development Trust Fund Board agreed Tuesday to back an 11-year extension for repayment of the loan. The board's recommendation will go next to the City Council.

When Third and Main, which takes its name from the corner where it stands, opened six years ago, city officials hailed it as a sign of Springfield's revival because it marked brand-new commercial construction on the neighborhood's main thoroughfare.

As it turned out, the $7.2 million project has faced a tough slog. But Bill Cesery, who is the developer behind the project, told the board that he thinks it is turning the corner and reaching a break-even point.

City officials said they want to help the project be successful.

"The project really has been an anchor in the Springfield neighborhood," said Alex Rudzinski, director of development for the Office of Economic Development.

The building combines ground-floor retail with second-floor residential, and also has an outdoor dining area along Main Street.

"I'm amazed every time I go there," said Joe Whitaker, chairman of the board for the Northwest Jacksonville Economic Development Trust Fund. "It feels like a little piece of Europe."

The trust fund relies on repayment of loans to replenish the fund's ability to assist other applicants, so delays in recouping loans from recipients like Third and Main limit how much the trust fund has available for businesses that seek grants and loans. The trust fund currently has about $4.5 million that can go toward future applicants.

Third and Main accounts for about 60 jobs on site, which has exceeded the minimum 12 jobs required by the development agreement. Those jobs stem from businesses that have leased storefront space.

The rest of the building space involves 36 extended-stay apartments geared toward patients from the UF Health Proton Therapy Institute, which is located about a mile away.

The proposed restructuring would allow Third and Main LLC to keep paying just the interest amount owed on the $850,000 for another two years. The corporation then would pay principal and interest for another nine years, which would reduce the debt. At the end of the 11th year, the company would either pay the remaining amount of the debt or the city could decide to further extend the payment schedule.

Cesery said allowing interest-only payments for two years would enable him to set aside money for replacing worn items in the fully furnished residences.

Nothing like betting taxpayer funds on whether or not people will stay in your residences.....Meanwhile, Main Street is still waiting on its rebirth....

[Adam White]

"I'm amazed every time I go there," said Joe Whitaker, chairman of the board for the Northwest Jacksonville Economic Development Trust Fund. "It feels like a little piece of Europe."

I wonder how much time he's spent in Europe.

[thelakelander]

^LOL, I noticed that too! I assume......none.....

[Adam White]

^LOL, I noticed that too! I assume......none.....

I'm not saying it's not European - but the first thing that would've occurred to me was, "Wow - this is just like the sort of thing you see in countless cities and towns across the USA".

[MusicMan]

Well it's definitely one of the brightest spots on Main Street. Do not want to see it close it's doors.

[strider]

It would be interesting to know how the place is actually doing in it's chosen markets.  I think the commercial aspect is only at about 50% leased?  And the residential component - how is the agreement with the Proton folks working out?  Perhaps they need to look at alternative uses as they are obviously struggling to meet their obligations.

[Bill Hoff]

It would be interesting to know how the place is actually doing in it's chosen markets.  I think the commercial aspect is only at about 50% leased?  And the residential component - how is the agreement with the Proton folks working out?  Perhaps they need to look at alternative uses as they are obviously struggling to meet their obligations.

It was 100% leased until this week, when the yoga studio (connected to the project at 1st & Main) moved out.

TerraWise has out grown it's space there, and will be a tenant in the SPAR office soon, which will open another space at the Third & Main development.

[Adam White]

It would be interesting to know how the place is actually doing in it's chosen markets.  I think the commercial aspect is only at about 50% leased?  And the residential component - how is the agreement with the Proton folks working out?  Perhaps they need to look at alternative uses as they are obviously struggling to meet their obligations.

It was 100% leased until this week, when the yoga studio (connected to the project at 1st & Main) moved out.

TerraWise has out grown it's space there, and will be a tenant in the SPAR office soon, which will open another space at the Third & Main development.

That's a shame - I hope the development is successful. It's really nice and definitely a positive step for Springfield.

[strider]

It would be interesting to know how the place is actually doing in it's chosen markets.  I think the commercial aspect is only at about 50% leased?  And the residential component - how is the agreement with the Proton folks working out?  Perhaps they need to look at alternative uses as they are obviously struggling to meet their obligations.

It was 100% leased until this week, when the yoga studio (connected to the project at 1st & Main) moved out.

TerraWise has out grown it's space there, and will be a tenant in the SPAR office soon, which will open another space at the Third & Main development.

So for some amount of time, the commercial was doing good and so the issue seems like the residential.  Perhaps a new market for that component needs to be pursued.  Small, furnished inefficiencies - sounds like a good fit for the VA programs out there.

[menace1069]

^LOL, I noticed that too! I assume......none.....

I'm not saying it's not European - but the first thing that would've occurred to me was, "Wow - this is just like the sort of thing you see in countless cities and towns across the USA".

As someone who has lived in Europe, unless he's referring to the areas that were still in shambles from the WWII bombing, I see that Main Street is nothing like Europe.

[cline]

Nothing like betting taxpayer funds on whether or not people will stay in your residences

Yawn. The city has no problem bending over backwards for a billionaire so I don't see what the issue is for allowing more time for him to repay the loan. It is not like he's asking to default. The development has been a positive for the neighborhood.

[blfair]

I'm not saying it's not European - but the first thing that would've occurred to me was, "Wow - this is just like the sort of thing you see in countless cities and towns across the USA".

Until Putin decides Russia is part of Europe again, I think this comparison is invalid.

[Adam White]

I'm not saying it's not European - but the first thing that would've occurred to me was, "Wow - this is just like the sort of thing you see in countless cities and towns across the USA".

Until Putin decides Russia is part of Europe again, I think this comparison is invalid.

Visit Romford sometime and see if you still feel that way.

[Bill Hoff]

It would be interesting to know how the place is actually doing in it's chosen markets.  I think the commercial aspect is only at about 50% leased?  And the residential component - how is the agreement with the Proton folks working out?  Perhaps they need to look at alternative uses as they are obviously struggling to meet their obligations.

It was 100% leased until this week, when the yoga studio (connected to the project at 1st & Main) moved out.

TerraWise has out grown it's space there, and will be a tenant in the SPAR office soon, which will open another space at the Third & Main development.

So for some amount of time, the commercial was doing good and so the issue seems like the residential.  Perhaps a new market for that component needs to be pursued.  Small, furnished inefficiencies - sounds like a good fit for the VA programs out there.

The development has been doing fine over the last year. It's the years prior which created the deficit, and need for extension, I believe.

As of a few months ago, they're not interested in renting their apartments to the general public, just for short-terms medical stays.

[blfair]

Visit Romford sometime and see if you still feel that way.

I was agreeing with you.. I quoted the wrong person and made things confusing.