Downtown Construction Update - September 2008

[ProjectMaximus]

I'm totally ignorant on this matter but here's a story I found on jacksonville.com:

http://www.jacksonville.com/tu-online/stories/102207/met_210061625.shtml

vic, can you please elaborate on your TIF knowledge.  I can't find any information on the city website about any TIF areas that have been created in the past.  What developments in the core are a result of TIF?  Where are the established districts in the urban core? 

[jeh1980]

I would guess the City would do ... nothing.  Eventually the owner will resume construction.

Nothing?!? WHAT!!! I have to disagree on that. They'll get that building built one way or another.

[brainstormer]

Thanks Maximus.  The article helped bring some insight to a newcomer.  If you read the article however, Mr. Barton at the JEDC says the city has taken more of a "pay as you go" approach.  I guess this explains why nothing is happening.  If you have no extra money, it is hard to invest.  He also states, "In our case, we've recognized the needs of our downtown are much greater than what a TIF can do."  And when we look at all of the blighted blocks of downtown, it looks like they gave up.  What I know from other cities I've lived in, is that city cooperation with private investors and creation of TIF districts really helped to jump start some large redevelopment projects, which in turn sparked even more.  I noticed the article is from 2007.  Apparently we haven't come up with many good alternatives in the past year.

[Basstacular]

Jeh, listen to the man, the city won't have to do anything, because the developer is going to finish the project.  This is something I have been preaching since the accident.  Understandably, there is some doubt, but have a little faith.  The developer will finish the project, hence the city doesn't have to do anything.

[jaxtrader]

As I understand it (granted this is third hand information), the developers of the Berkman have a tax abatement deal with the city that requires Berkman 2 to be complete in 2010. Should  this deadline expire (which I regard as a near certainty), the city could attach a lien on the project for the entire amount of forgiven or abated tax. Moreover, since there has been no progress on BP 2 for nine months, since the crane is still standing motionless with its Christmas lights illuminated (does anyone on this forum know the daily expense of a crane that size?), and since the building has sat derelict all this time, exposed to the elements, it is no stretch to say the entire undertaking is in quite desperate straits. At this stage, i would lay the odds of completion at no better than one in two.

[Basstacular]

That may very well be true, because I know the developer's were given a tax break upon the commencement of their plans.  However, enlight of the stuggling real estate market and the lack of options Downtown, it leads me to raise one issue on your question.  Would the City really shut down or take over a project for Downtown residents that is already 18 stories out of the ground because of a 2010 completion stipulation and the accident that happened.  I really wish people would please keep in mind the fact that these developers were the FIRST to come and build a major tower downtown upon the approval of the BJP.  Since then they have completed one tower, built 20 prestine town homes and started construction on a 2nd tower, which had a major accident, but will continue and flourish.  There is still a STRONG amount of contracts on BP2 and the project is going foraward and will be completed by the developer.  As I have said in the past, this project will finish.  This 2010 tax incentive break deadline could very well be true, but again I pose this question.  If the developer (someone I know and respect in the highest regard) thought construction could not be completed or a tax break deadline would jepordize its completion.  Why would he have paid for the demolition of the remaining garage and spent the last 9 months doing nothing but getting this project back on track?

[jaxtrader]

Well Bass, you are certainly right that the city would have the option of extending the deadline (should one exist) and that would probably make the most sense should that situation arise. However, it has been several months since OSHA cleared  BP2 to resume construction, yet no progress has been made.  What is the impediment?

[Basstacular]

If I had to make a "guess", I would say all the insurance companies involved have handcuffed them and a possible GC change, which would make a lot of since for the delay.  Also OSHA had and took the entire 6 months they were allowed to complete their investigation.  So if the above factors are in play, 3+ months to address those issues seems reasonable. 

[Jason]

This is off topic but I must commend you two (JaxTrader & Basstacular).  That was possibly the most pleasant "argument" I have seen on this site in quite sometime.  To all that are reading, THAT is how a civil discussion takes place.

Back to topic, I would have to agree that the Berkman developers are doing all that they can to get the building completed and honor the unit contracts they still have.  If the developer fails to finish they stand to lose much more than they would by paying fines for a late completion.  Also, the city had nothing to do with the garage collapse and should not have to extend the developers completion deadline.  But because of the developer's relationship with the city I woudn't be suprised to see an extension (if there is a dealine).  We all know the core needs more residents downtown and the Berkman developers are taking a large risk in a now sketchy market.

[BridgeTroll]

This is off topic but I must commend you two (JaxTrader & Basstacular).  That was possibly the most pleasant "argument" I have seen on this site in quite sometime.  To all that are reading, THAT is how a civil discussion takes place.

Concur

[italianny07]

Downtown Jax needs to build UP instead of building across. ya kno. they need more bigger buildings. We have the potential to be a Miami, Philly, Tampa. all these different cities and we are like the least visited city by tourists.

[brainstormer]

Great point Italian.  That's why our mayor designed a new 4 story courthouse that takes up half of Lavilla.  Such a visionary, that Peyton!

[Ocklawaha]

Great point Italian.  That's why our mayor designed a new 4 story courthouse that takes up half of Lavilla.  Such a visionary, that Peyton!

Hey I've got it, why not take the Peyton Courthouse and stand it on end? 4 city blocks high! Wow, someone please do the math, my brain hurts.


HEE HEE HEE!