JEA Selects Downtown For New Corporate Headquarters

[thelakelander]

That's JEA's plan now from what I understand.

[thelakelander]

JEA plans to put its current headquarters building, which includes two towers and a parking garage, up for sale. The Jacksonville Historical Society put the building on its list of the city's "most endangered buildings" that calls attention to structures that are historically significant and are in danger of being lost.

https://www.jacksonville.com/news/20190402/jea-board-selects-new-hq-site-near-courthouse

JEA anticipates $1 million in operating and maintenance savings by selling the properties, which include 9201 Atlantic Boulevard (five acres), 13601 Normandy Boulevard (305 acres), JEA's downtown office tower and parking space and 4215 Talleyrand Avenue (48 acres).

https://www.bizjournals.com/jacksonville/news/2019/03/26/jea-to-sell-100-million-in-real-estate.html

Howard said JEA will sell the Church Street headquarters as part of a larger divestment strategy that could result in $100 million of unused or excess JEA real estate being sold.

"If we could sell it tomorrow and lease it for three years while the new office is being built, we'd do it," Howard said.

The campus includes the 19-story tower and a six-level customer service center built in 1967. JEA has occupied the space since 1988.

https://news.wjct.org/post/business-brief-why-adams-street-prevailed-jeas-choice-new-headquarters

[acme54321]

I doubt it but I'd bet whatever the number is, it would be cheaper than demolishing the structure and building the same amount of square footage and parking on the site from scratch. As long as this building goes into private hands, reuse will be fully vetted. It's when things fall into COJ's hands, with people making decisions with other's money (ex. tax money) is where politics get into pay at the expense of actual market feasibility.

To confirm, now that Ryan Companies is buying the lot for the new building, the "land swap" thing that was discussed a while back is off right? In other words, JEA could do the right thing and just RFP the existing building right?

They don't have to put out an RFP for anything.  They're just going to sell the building to whoever ponies up the cash.

[itsfantastic1]

One step forward, two steps back...
https://www.bizjournals.com/jacksonville/news/2019/06/25/jea-board-sets-the-stage-for-changing-its-charter.html?iana=hpmvp_jac_news_headline

Doing that, said CEO Aaron Zahn, would require a "non-traditional strategic plan" — one that removes what he said were many of the constraints that stop the utility from thinking innovatively.
"This means we have to proactively create the circumstances that will allow us to remain relevant today, tomorrow and into the future," he said.

This has to be some of the strongest non-speak I've ever heard from a terrible CEO. What innovations at JEA are currently being hampered by the way they are running business? If this related to the ballooning payments of JEA to the city and a desire to sell JEA, just say that, you coward. He won't because he knows the public has no desire for that, so now they are attempting to change the rules.

Among the constraints listed in a presentation to the board were the state constitution, the city charter, Florida statues and bond resolutions.

So basically everything that keeps it a public asset, instead of a private business.

Staff will also begin laying the groundwork for the "traditional response." That including preparing to abandon its plans for a downtown headquarters, a process JEA has already set the stage for: During the negotiations of its lease with Ryan Co., which is building the new facility, the utility put in a termination clause that would allow it end the project.

That's a nice downtown you have there, it would be a shame if something happened to it.

[KenFSU]

^Clock is ticking.

JEA has less than 90 days to terminate the lease agreement with Ryan.

Hopefully it's just posturing, though the land they were hoping to sell to help fund the new HQ didn't exactly command the offers they were hoping for.

If this is all some kind of political game, shame on JEA for doing this to their staff and threatening a 35% reduction in employees.

[vicupstate]

What a cluster. If this utility can't be managed any better than this, maybe they should sell it. Put the proceeds in a lockboxed Trust Fund that only the interest can be spent.

[Jagsdrew]

Energy sales are sliding, layoffs are on the horizon and your corporate HQ is going to be moved to the Southside FAR FROM THOSE WHO ACTUALLY NEED TO PAY IN PERSON.

What a company. What a city.

[Papa33]

Blame everything and everyone but management.  First thing first, they need to get rid of the clowns and incompetence at the top.

[Kerry]

Gotta save Lot J and the Jags somehow.  The City didn't even decide on the 1/2 sales tax for schools ( I believe in case we need to fork over some dollars for Lot J and stadium improvements).

The wife semi-joked about moving to Tennessee last night.  At some point the joke half won't be there.

[DrQue]

The more I learn about the issues facing JEA and the utility world in general, the more I am eager to see how this all plays out. I do think Zahn is actually approaching this in the right way and I am willing to give them time to plot a new course.

Let Melissa Dykes run the day-to-day while Zahn focuses on long term strategy. Makes sense for the time being.

Regarding a brand new expensive HQ, from a practical standpoint that is probably not the best decision for a company that is facing price hikes and layoffs in the not-so-distant future. Unfortunate for downtown? Absolutely.

[Snufflee]

Can someone with more knowledge than me please explain the JEA Charter.. As a both a public benefit company and a public utility, is the goal to generate some form of value for shareholders or is it meant to remain in the public domain to provide a service and remain profit neutral?

[Steve]

The more I learn about the issues facing JEA and the utility world in general, the more I am eager to see how this all plays out. I do think Zahn is actually approaching this in the right way and I am willing to give them time to plot a new course.

Let Melissa Dykes run the day-to-day while Zahn focuses on long term strategy. Makes sense for the time being.

Regarding a brand new expensive HQ, from a practical standpoint that is probably not the best decision for a company that is facing price hikes and layoffs in the not-so-distant future. Unfortunate for downtown? Absolutely.

Explain how a board in April was all for the HQ project, yet two months later JEA is in a dire situation.

[KenFSU]

The more I learn about the issues facing JEA and the utility world in general, the more I am eager to see how this all plays out. I do think Zahn is actually approaching this in the right way and I am willing to give them time to plot a new course.

Let Melissa Dykes run the day-to-day while Zahn focuses on long term strategy. Makes sense for the time being.

Regarding a brand new expensive HQ, from a practical standpoint that is probably not the best decision for a company that is facing price hikes and layoffs in the not-so-distant future. Unfortunate for downtown? Absolutely.

Explain how a board in April was all for the HQ project, yet two months later JEA is in a dire situation.

Further, explain how you put out an RFP, allow six different developers to put tens of thousands of dollars into responding, pare the list down to three, go through two rounds of public presentations and negotiations, select a winner, allow Ryan to go through with purchasing the land, sign the lease agreement, then suddenly say, "Welp, guess we're moving to the Southside."

It's gotta be a power play, right?

[itsfantastic1]

The more I learn about the issues facing JEA and the utility world in general, the more I am eager to see how this all plays out. I do think Zahn is actually approaching this in the right way and I am willing to give them time to plot a new course.

Let Melissa Dykes run the day-to-day while Zahn focuses on long term strategy. Makes sense for the time being.

Regarding a brand new expensive HQ, from a practical standpoint that is probably not the best decision for a company that is facing price hikes and layoffs in the not-so-distant future. Unfortunate for downtown? Absolutely.

Explain how a board in April was all for the HQ project, yet two months later JEA is in a dire situation.

Further, explain how you put out an RFP, allow six different developers to put tens of thousands of dollars into responding, pare the list down to three, go through two rounds of public presentations and negotiations, select a winner, allow Ryan to go through with purchasing the land, sign the lease agreement, then suddenly say, "Welp, guess we're moving to the Southside."

It's gotta be a power play, right?

That's what is most frustrating. Why would you ever respond to anything city-related as a company if this is standard operating procedure. You won the JEA headquarters competition, just kidding, we don't need it. You have the best unrealistic convention center design, naw just kidding you aren't Shad. We need to remove contaminants at the shipyards; nah, let it sit; it helps the land value. We need $12 mil to redevelop the Landing, nope; we'll tear it down for $18 mil. The city seems to becoming it's worst enemy.

[DrQue]

The more I learn about the issues facing JEA and the utility world in general, the more I am eager to see how this all plays out. I do think Zahn is actually approaching this in the right way and I am willing to give them time to plot a new course.

Let Melissa Dykes run the day-to-day while Zahn focuses on long term strategy. Makes sense for the time being.

Regarding a brand new expensive HQ, from a practical standpoint that is probably not the best decision for a company that is facing price hikes and layoffs in the not-so-distant future. Unfortunate for downtown? Absolutely.

Explain how a board in April was all for the HQ project, yet two months later JEA is in a dire situation.

Further, explain how you put out an RFP, allow six different developers to put tens of thousands of dollars into responding, pare the list down to three, go through two rounds of public presentations and negotiations, select a winner, allow Ryan to go through with purchasing the land, sign the lease agreement, then suddenly say, "Welp, guess we're moving to the Southside."

It's gotta be a power play, right?

I don't know how the board did not nip it in the bud much earlier. However the board members themselves do not appear to be utility experts. They probably do not know much beyond what management is feeding them, and management's position seems to have changed drastically in recent months.

It will be completely poor form for them to go this far down the line and pull-out. This city on the whole has a horrible record with RFPs (or lack thereof) and this one will probably take the cake as biggest failure if it falls through. All that being said, if the facts around the entity's long term structure and viability are changing, then so should the HQ plans. Hopefully it is not southside though.