Landing bill moves forward without preservation funds, but mayor may veto

[tufsu1]

I've been curious about this...if it is true that the Mayor/COJ took the $ from the account in order to fund the improvements at Metro Park then I take back all of my previous objections/concerns.

[Miss Fixit]

Someone needs to review the actual documents that provide the basis of COJ's obligations regarding parking.  There is a HUGE difference between reimbursing $3.5 million of the cost of a newly constructed parking garage and handing over $3.5 million to allow someone to purchase an existing lot.  And where does the obligation to pay for parking vouchers come from?

[fieldafm]

The mayor's office denies that this is true

Which makes one even more suspicious 

[thelakelander]

Here you go.

2006-957

AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE THE (I) SIXTH AMENDMENT TO DISPOSITION, DEVELOPMENT AND LEASE AGREEMENT ("SIXTH AMENDMENT") BETWEEN THE CITY OF JACKSONVILLE ("CITY"), JACKSONVILLE ECONOMIC DEVELOPMENT COMMISSION ("JEDC") AND JACKSONVILLE LANDING INVESTMENTS, LLC ("JLI") TO AMEND THE CITY'S LEASE WITH JLI FOR THE LAND UNDERLYING THE JACKSONVILLE LANDING BUILDINGS AND TO PROVIDE FOR THE SALE OF THE LANDING "EAST PARCEL" SURFACE PARKING LOT AND LAND UNDER THE MAIN STREET BRIDGE RAMPS ON THE NORTH BANK TO JLI FOR $4,700,000; (II) PARKING OBLIGATION TERMINATION AND MUTUAL LIMITED RELEASE AGREEMENT BETWEEN THE CITY, JEDC AND JLI TO TERMINATE THE CITY'S PARKING OBLIGATIONS WITH RESPECT TO THE LANDING AND RELEASE THE PARTIES' RESPECTIVE PRIOR OBLIGATIONS UNDER THE LANDING LEASE EXCEPT AS SET FORTH IN THE SIXTH AMENDMENT; (III) RELEASE AND CONSENT TO ASSIGNMENT AGREEMENT BETWEEN THE CITY, JEDC, JLI, HUMANA MEDICAL PLAN, INC. ("HUMANA"), HUMANA HEALTH INSURANCE COMPANY OF FLORIDA, INC. ("HHIC"), AND PROJECT RIVERWATCH LLC, A COMPANY OWNED OR CONTROLLED BY CAMERON KUHN ("KUHN"), TO APPROVE OF THE CITY'S AND JLI'S RELEASE OF HUMANA AND HUMANA'S ASSIGNMENT TO KUHN OF HUMANA'S RIGHTS AND OBLIGATIONS UNDER ITS AGREEMENT WITH THE CITY AND JEDC TO CONSTRUCT A PARKING GARAGE ON THE SOUTHEAST CORNER OF BAY AND HOGAN STREETS TO ACCOMMODATE 300 DAILY AND 375 NIGHT AND WEEKEND PUBLIC PARKING SPACES FOR LANDING PATRONS; (IV) SECOND AMENDMENT TO REDEVELOPMENT AGREEMENT BETWEEN THE CITY, JEDC AND KUHN, TO CARRY OVER TO KUHN THE $3,000,000 GARAGE CONSTRUCTION GRANT AND $500,000 PARKING VALIDATION GRANT THAT THE CITY WOULD HAVE PAID TO HUMANA UPON COMPLETION OF THE PARKING GARAGE, AND PROVIDE ADDITIONAL INCENTIVES TO KUHN OF UP TO $500,000 FOR THE RELOCATION OF UTILITIES; (V) FIRST AMENDMENT TO PARKING RIGHTS AGREEMENT BETWEEN THE CITY, JEDC, JLI AND KUHN, TO CARRY OVER TO KUHN THE ABOVE $500,000 PARKING VALIDATION GRANT UPON COMPLETION OF THE GARAGE, PLUS $132,250 PER YEAR BEGINNING IN THE SIXTH YEAR AFTER THE GARAGE COMPLETION AND CONTINUING UNTIL MARCH 2031, FOR THE PARKING VALIDATION PROGRAM TO PROVIDE REDUCED LUNCHTIME PARKING RATES AND FREE NIGHT AND WEEKEND PARKING TO LANDING PATRONS; AND (VI) SETTLEMENT AGREEMENT BETWEEN THE CITY, JEDC, HUMANA AND HHIC, SETTLING HUMANA'S OBLIGATIONS UNDER TWO PREVIOUS DEVELOPMENT AGREEMENTS WITH THE CITY AND PROVIDING FOR HUMANA'S PAYMENT OF $2,558,000 TO THE CITY TOGETHER WITH THE CONVEYANCE TO THE CITY OF A VACANT PARKING LOT LOCATED AT THE SOUTHWEST CORNER OF FORSYTH AND MAIN STREETS; APPROPRIATING THE PROCEEDS FROM THE SALE OF THE LANDING EAST PARCEL AND HUMANA SETTLEMENT AGREEMENT TO THE ACCOUNTS SET FORTH IN THE ORDINANCE; WAIVING SECTIONS 122.421 THROUGH 122.429, ORDINANCE CODE, REQUIRING (1) THE REAL ESTATE DIVISION TO COORDINATE ALL CITY PROPERTY SALES, (2) A DECLARATION BY COUNCIL THAT THE LAND IS SURPLUS TO THE CITY'S NEEDS, (3) COMPETITIVE BIDDING, AND (4) DEPOSIT OF SALES PROCEEDS IN THE RECREATION LANDS AND PARKS ACQUISITION AND MAINTENANCE TRUST FUND; PROVIDING THAT THE REASON FOR THE FOREGOING WAIVER IS THAT (A) THE SALE OF THE LANDING EAST PARCEL IS PURSUANT TO A PURCHASE AND DEVELOPMENT OPTION CONTAINED IN THE ORIGINAL LANDING LEASE, (B) THE SALE IS BEING ADMINISTERED BY THE JEDC, (C) THE JEDC HAS OBTAINED A RECENT APPRAISAL OF THE PROPERTY IN THE AMOUNT OF THE SALES PRICE, AND (D) THE SALE AND THE RELATED TRANSACTIONS DESCRIBED ABOVE WILL RESOLVE THE CITY'S OUTSTANDING PARKING OBLIGATIONS WITH RESPECT TO THE LANDING; PROVIDING FOR THE CARRYOVER OF FUNDS TO FUTURE FISCAL YEARS; AMENDING THE 2005-2010 FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM APPROVED BY ORDINANCE 2005-808-E TO AUTHORIZE PRIORITY 1 STATUS FOR THE PROJECTS ENTITLED "DOWNTOWN GREENING INITIATIVE," "MAIN STREET BRIDGE AND PEDESTRIAN IMPROVEMENTS," AND "FRIENDSHIP FOUNTAIN IMPROVEMENTS"; AUTHORIZING THE EXECUTION OF ALL DOCUMENTS RELATING TO THE ABOVE AGREEMENTS AND TRANSACTIONS, AND AUTHORIZING TECHNICAL CHANGES TO THE DOCUMENTS; DESIGNATING THE JEDC AS CONTRACT MONITOR; PROVIDING AN EFFECTIVE DATE

http://citycirc.coj.net/coj/2006/Minutes/187-AUGUST-22-2006.htm

[thelakelander]

Here are some old articles from the Metjax days.

City, Kuhn, Humana, Landing close on development deal

February 9, 2007

by Mike Sharkey

Staff Writer

Months after announcing the deal, the City, Jacksonville Landing, Inc., the Kuhn Companies and Humana closed Thursday on the commercial real estate agreement that will pave the way for major changes in the area around the Landing and the SunTrust building, formerly the Humana building.

“Kuhn’s acquisition of the Humana building is the most significant,” said Ron Barton, executive director of the Jacksonville Economic Development Commission, at Thursday’s JEDC meeting. “This allows us to move forward on the River Watch project. It’s a much more significant development because it will have a residential, commercial and retail component. It’s one thing to put these documents together. It’s another to actually close.”

None of the principals from any of the four parties attended the closing. John Germany, an attorney with the Office of General Counsel, works closely with the JEDC. He said it’s common in deals with multiple partners for the attorneys for each party to attend the signing.

River Watch at City Centre is a two-building, $100 million project that includes the renovations of the SunTrust building and the construction of an adjacent office tower on the surface parking lot just west of it. The first few floors of the new tower will be a parking garage, and those spaces will satisfy the City’s obligation to provide parking for the Landing.

Mayor John Peyton said he was glad to see the deal done and even happier to end the decades-old parking issue at the Landing.

“I am thrilled that the parking issues with the Jacksonville Landing that have existed for 20 years have been resolved and that development of the River Watch at City Centre project is moving forward, adding to the transformation and growth of our urban core,” said Peyton. “The offerings of new residential, office and retail [space] will continue to invigorate Downtown and respond to our vision for Downtown.”

When completed, the River Watch at City Centre will consist of a 33-story residential tower with 188 riverfront units, 78 loft-style units, a deck, 16,000 square feet of retail space and a 1,050-space parking garage. Kuhn is currently marketing the 23-story SunTrust tower as office condominiums.

“We are ready to move forward on the development of the River Watch at City Centre project and look forward to satisfying the growing residential, office and retail needs of Jacksonville’s Downtown,” said Kuhn Vice President of Development George Moore.

The closing also included a $2.5 million payment from Humana to the City that resolves past parking obligations Humana didn’t fulfill, including an agreement to build a parking garage on the lot at the corner of Bay Street and Hogan Street.

http://www.jaxdailyrecord.com/showstory.php?Story_id=46855

More parking at Landing a step closer

August 4, 2006

By JOE LIGHT

The Times-Union

Officials from the Mayor's Office and the owners of The Jacksonville Landing have finalized agreements that they hope will ultimately resolve a dispute that has stumped mayoral administrations for decades and held up several downtown projects.

If the Jacksonville Economic Development Commission approves the plan, which it will consider Aug. 10, it would release at least two downtown development projects from political limbo and end years of wrangling between the city and owners of the Landing.

Both the redevelopment of the Landing and the construction of a condominium tower adjacent to the SunTrust building are awaiting agreements to be signed before moving forward.

"We're still working on some tiny wording but I think we're close," said Mitchell Legler, an attorney for the Landing owners, on Thursday afternoon. "None of the negotiations have been hostile. Every party has been cooperative."

The final agreements closely mirror the tentative deal announced by the Mayor's Office in March, according to Legler and George Moore, vice president of Kuhn Development.

Kuhn Development, which intends to build a parking garage and condominium tower across from the Landing, would reserve 300 daytime parking spaces and 375 night and weekend spaces in its garage for Landing patrons.

Jacksonville Landing Investments LLC, which owns the open-air mall under the leadership of developer Toney Sleiman, would have the right to buy the surface parking lot next to the Landing for $4.7 million, the fair market value pegged by a city appraiser.

For his part, Sleiman, who at one time planned a $250 million renovation of the Landing, hasn't decided what to build on the parking lot next to the Landing, Legler said.

Landing owners have been in talks with the owners of the Hyatt next door to see if a project could be done jointly, but Sleiman might wait for the real estate market to improve, Legler said.

The amount of land that Sleiman could develop might also increase, if Mayor John Peyton proceeds with a plan to remove traffic ramps branching off the Main Street bridge. If the city removes the ramps, the land underneath them would be reappraised, and Sleiman would pay for the land's increase in value.

"We are in an unusual real estate environment right now so we can't tell you what would be appropriate for that property," Legler said. "We might wait until the world evolves a little."

The parking deal required contracts between multiple parties, all of whom have an interest in the property, which lies in the heart of downtown.

Although Sleiman owns the Landing, he leases the land that it sits on from the city. His lease requires the city to provide several hundred parking spaces in addition to those next to the Landing, but despite several attempts, the city hasn't been able to fulfill the obligation.

In one attempt in 2001, Humana, which owns the land on which Kuhn wants to build his tower, agreed to provide parking in a garage on the SunTrust site in exchange for about $3.5 million from the city once the garage opened.

Kuhn officials, who intend to buy the site before the end of the year, would get the same deal under the new agreement, said city attorney John Germany. The city would also give up to $500,000 to move utilities from the site, which is now a parking lot.

In a settlement, health services provider Humana will pay the city about $2.56 million. In a news release, the Mayor's Office announced its intention to use the money from the settlement and the land sale to fund various mayoral initiatives, such as the modification of the Main Street bridge and Friendship Fountain and the greening of downtown.

Cameron Kuhn, who runs Kuhn Development, has said that he intends to break ground on his new tower by the end of the year, but the lengthy negotiations may have upset that timeline, Moore said.

"Every time we've told somebody that we'll be done by a particular date, it hasn't come through," he said. "We'd love to start by that time, but we'll have to see what the JEDC and City Council have to say."

http://www.jacksonville.com/tu-online/stories/080406/met_4226552.shtml

JEDC OKs Landing parking agreement

August 11, 2006

By JOE LIGHT

The Times-Union

The Jacksonville Economic Development Commission approved several projects at its meeting on Thursday.

The Jacksonville Landing deal: Commissioners approved the agreements between the owners of the open-air mall, the city, Humana and the Kuhn Cos.

If approved by City Council, city officials say the agreements would end a decades-old failure of the city to provide adequate parking for Landing patrons, something required by the Landing owner's lease.

In the new deal: Kuhn Cos. would dedicate parking in a garage planned for a condo tower across the street. The city would pay Kuhn $3.5 million for parking and another $500,000 to move utilities from where the garage would go. The Landing owners, who actually lease the land the mall sits on, would purchase the surface parking lot that currently serves the mall for $4.7 million.

http://www.jacksonville.com/tu-online/stories/081106/bus_4336792.shtml

[Coolyfett]

You really dont have wonder now if you had in the past. I mean the Landing is the one place your going to take a visitor on their first visit here. Its gotta start there and then branch out. Peyton has been a nightmare for this city, a city already decades behind.

How much time does he have left in office?

[tufsu1]

at least 1 more year...and maybe 18 months depending on whether voters approve a measure to move elections to the fall

[Charles Hunter]

Did Toney kick little Johnny's puppy when they were kids?  sheesh
tufsu1 - I heard Council is considering amending the referendum so the 2011 election would stay in the spring, and the Mayor/Council elected then would serve the extra months to move the 2015 election to the fall.

C'mon people (that is - the Council) settle this

[fieldafm]

John Peyton via Jax Daily Record

What’s it going to take to make Downtown a success?

There are a lot of things we should focus on and we need to use this down market as a time to get organized and to plan to execute when the money becomes available.

We need to focus on walkability and the Laura Street project is a good first start. Laura Street and Bay Street offer the best opportunities for what I call “pockets of success.”

We also need to focus on the public spaces. We will be hard pressed to convince someone to come here and invest capital dollars if the City doesn’t step up and take care of everything around it.

We have to have a conversation about the convention center. What we have today is not successful. It is missing the three key ingredients. You need plenty of exhibition space, you need an entertainment district and you need an adjoining hotel.

Because the Hyatt offers (almost) 1,000 rooms on the river and the land next to it is coming available, we should seriously consider a convention center being in that location. The conventioneer traffic would be great for Bay Street and Laura Street and the Landing.

We need to think carefully about how we program the shipyard property because that land is going to come back into our domain. How we connect Downtown to the Sports Complex is going to be critical to our success.

I also think we’re going to have to subsidize affordable workforce housing initially.

The challenge we have now is we’re in an environment where resources are so limited. The notion of issuing a $300 million dollar bond for a convention center is not in the cards right now, but this is a good time to plan and build community consensus around what we want to do and how we want to do it.

I have enlisted the help of some key business leaders to help foster that and I’ve enlisted the help of the Civic Council. I think that kind of planning needs to be done outside of City Hall.

The discouraging thing is from statements he has made over the last few days, Mayor Peyton seems dug in on the MetroPark money issue.  Even though, every major study done on downtown emphasizes that spreading out the money/development over too large an area is the wrong idea. 

[JeffreyS]

Call me naive but I think this time
The council will approve it
The Mayor will sign it
The Landing will use it to get some popular tenates it could not sign previously.

[Keith-N-Jax]

Remember where you are - Jacksonville.

[Jason]

I'm with Jeffrey on this one.  Too big an issue to just veto. 

Furthermore, the city's loudest critics (MetroJacksonville.com) is garnering quite a bit of respect these days and they'd be ill advised not to listen.

[Mattius92]

Thanks Jason, and we never forget that the respect is coming from the strength of our arguments, not the size of our hammer.

Now that more like it, if Metro Jacksonville and the crew were in charge of city planning I think things would be much different.

[Mattius92]

I figured it was the execution, our political leaders dont always seem to work with our planners. However anyone could use help, even Bill Killingsworth.

[CS Foltz]

That would be about par for the course with John Boy! It has allways amazed me that his pet projects somehow seem to come up with the funding or his network just happens to get projects that the taxpayer gets to fund, but something like the Landing is a sink or swim situation! Silly Johnny! Smoke and Mirrors won't last forever!