Metro Jacksonville

Potential Bostwick buyers: Not intimidated by historic renovation; money not a problem (http://www.bizjournals.com/jacksonville/news/2013/05/13/potential-bostwick-buyer-were-going.html?page=all)

QuoteAshley Gurbal Kritzer
Reporter-Jacksonville Business Journal

Jacques Klempf’s proposal of renovating the Bostwick Building into a chic restaurant is so cool, so sexy, that some critics think it’s too good to be true.

After news broke that Klempf was under contract to acquire the building, one of his partners in Ovinte Wine Lounge, Chad Munsey, said he had to restrain himself from responding to online comments about the deal.

“It’s a bummer,” Munsey said. “I don’t want to say it’s disheartening, but it’s a bummer to see so many pessimists.

One comment was, ‘This is way too grand of an idea for Jacksonville.’ I think that’s the reason there’s not more things here, because we have that negative attitude. Trust me. I’ve moved away. The grass is not always greener. We have a great city and a lot of great assets. The river, the beach, and there’s some really cool things going on.”

But no matter how fabulous an idea is, in real estate development, it all comes down to one question: Where’s your money coming from? I’ve written several stories that examine the costs and benefits of historic renovations, and it’s neither cheap nor easy, because you never know exactly what you’re getting into. A lot of developers, no matter how good their intentions, just can’t make the numbers work.

Klempf, who is CEO of Dixie Egg Co., doesn’t shy away from questions about his finances or the project. He said he’s been approached by city representatives, pointing out that incentives are available, but he said he doesn’t need incentives to make this project work.

“I just think owning that piece of property, at that location, is a good investment,” he said. “I recognize we’re going to have to spend a lot of money to get it right. Whether we get help â€" that’d be great. If we don’t, our other partner, Fraser Burns, is a very astute businessman as well, and has got a lot of contacts. Between the three of us, we’ll figure it out.”

The three of them opened Ovinte at the St. Johns Town Center five months ago, using their own money, and are pleased with that restaurant’s performance.

“We haven’t been paid back what we’ve invested,” Munsey said, “but we haven’t written any checks to keep it afloat.”

Klempf said he isn’t intimidated by renovating an old building, even with the amount of unknowns that come with the territory, and that today’s interest rates make it an ideal time to pursue the project.

“Money’s real cheap right now,” Klempf said, “If I was ever going to do it, whether it’s my own money or somebody else’s â€" I can borrow it really cheap.”

And you have the ability, I ask, to get a loan like that?

He looks me in the eye.

“I do.”

More on Klempf and his vision for the Bostwick Building will be in the May 17 edition of the Business Journal.

This is exciting.

+1^

This is phenomenal news, and a refreshing read.  Kind of stokes that flame a little bit and gets you more excited about the things starting to happen downtown - even if it's a baby-step at a time!

This can and will work. Nevermind the naysayers. No vision people.

This is great to hear.  Now if we could only get an update about the Trio...

I think baby steps is exactly what dt needs.  Slow movements in the right direction.  Great News.  I have been waiting for the Trio news as well. 

I am so excited to read that the Bostwick could become a restaurant!  Many years ago, when my husband and I were very young and inexperienced in dining at anything nicer than Outback, we went to Philadelphia so I could attend a training workshop.  We decided to treat ourselves to a fancy dinner at a restaurant called Striped Bass in Center City (it has since closed and been replaced by an old-school steakhouse - Butcher & Stinger Steak and Chops). 

The restaurant was located in an historic bank building.  There was an exhibition kitchen in the former bank vault.  This was the first thing I thought of when I heard about the plans for the Bostwick.  (I actually said to my husband a couple years ago "Wouldn't it be cool if someone put a restaurant in the Bostwick?)

Anyway, since then we have eaten at many fine restaurants all over the world, but that experience at Striped Bass forever changed our perception of going to a restaurant and has always stayed with us.  I hope that the Bostwick restaurant will become another wonderful experience.

Quote from: jcjohnpaint on May 14, 2013, 10:00:00 AM
I think baby steps is exactly what dt needs.

A continuous flow of baby steps is how revitalization actually works.  Overreliance on large scale one trick ponies typically results in unrealistic expectations and ultimate failure.

^So which is this, in your opinion?

I'd consider something like the restoration of the Bostwick Building, the CoRK warehouses and even a food truck like Salty Fig opening a brick & mortar restaurant as examples of baby steps.  A one-trick pony would be something like believing immediately throwing up 2,000 residential units or an amusement park on the Shipyards will instantly turn around DT.  While success of such a large scale project would be a benefit, you cross into one-trick pony territory when you start overlooking the Bostwicks, Chomp Chomps, Intuitions, etc. in favor of waiting for one Dan Gilbert falling into your lap.

Or patiently waiting for Disney to leave Orlando for DT Jacksonville.  I think what Chamblins is doing is a wonderful step in the right directions.  Our leaders would not would not even recognize something like this, but 5 projects like this will make a huge difference. 

Roof top bar on this location, I think it's a fantastic idea. I really hope this would work out.

http://www.bizjournals.com/jacksonville/news/2013/05/14/two-things-the-potential-bostwick.html

"One comment was, ‘This is way too grand of an idea for Jacksonville.’ I think that’s the reason there’s not more things here, because we have that negative attitude."

Actually it's the 50 years of terrible urban planning and lack of leadership to get things right. Downtown Jax is a mess and it didn't happen (1) overnight and (2) by accident.

Negativity and defeatism is absolutely one of the biggest problems we face.

I see per Biz Journal where the due diligence has been extended another six weeks through end of July.  It seems the lawsuit for water intrusion by owner of adjacent building is still the hold up on it. Nothing in this town is easy. 

Ovinte at SJTC took over the "Original Pancake House" and has been doing very well with the Thurs-Sat crowd. In fact their parking is overflowing into TigerDirect, Wendys and Thomasville Furniture on the weekends.

I don't know what their take during the week is, but they are certainly pulling them on the weekends.

I hope he can bring the same level of business to the Bostwick. He certainly isn't lacking in confidence.

Quote from: JFman00 on May 13, 2013, 08:56:14 PM
Potential Bostwick buyers: Not intimidated by historic renovation; money not a problem (http://www.bizjournals.com/jacksonville/news/2013/05/13/potential-bostwick-buyer-were-going.html?page=all)

QuoteAshley Gurbal Kritzer
Reporter-Jacksonville Business Journal

Jacques Klempf’s proposal of renovating the Bostwick Building into a chic restaurant is so cool, so sexy, that some critics think it’s too good to be true.

After news broke that Klempf was under contract to acquire the building, one of his partners in Ovinte Wine Lounge, Chad Munsey, said he had to restrain himself from responding to online comments about the deal.

“It’s a bummer,” Munsey said. “I don’t want to say it’s disheartening, but it’s a bummer to see so many pessimists.

One comment was, ‘This is way too grand of an idea for Jacksonville.’ I think that’s the reason there’s not more things here, because we have that negative attitude. Trust me. I’ve moved away. The grass is not always greener. We have a great city and a lot of great assets. The river, the beach, and there’s some really cool things going on.”

But no matter how fabulous an idea is, in real estate development, it all comes down to one question: Where’s your money coming from? I’ve written several stories that examine the costs and benefits of historic renovations, and it’s neither cheap nor easy, because you never know exactly what you’re getting into. A lot of developers, no matter how good their intentions, just can’t make the numbers work.

Klempf, who is CEO of Dixie Egg Co., doesn’t shy away from questions about his finances or the project. He said he’s been approached by city representatives, pointing out that incentives are available, but he said he doesn’t need incentives to make this project work.

“I just think owning that piece of property, at that location, is a good investment,” he said. “I recognize we’re going to have to spend a lot of money to get it right. Whether we get help â€" that’d be great. If we don’t, our other partner, Fraser Burns, is a very astute businessman as well, and has got a lot of contacts. Between the three of us, we’ll figure it out.”

The three of them opened Ovinte at the St. Johns Town Center five months ago, using their own money, and are pleased with that restaurant’s performance.

“We haven’t been paid back what we’ve invested,” Munsey said, “but we haven’t written any checks to keep it afloat.”

Klempf said he isn’t intimidated by renovating an old building, even with the amount of unknowns that come with the territory, and that today’s interest rates make it an ideal time to pursue the project.

“Money’s real cheap right now,” Klempf said, “If I was ever going to do it, whether it’s my own money or somebody else’s â€" I can borrow it really cheap.”

And you have the ability, I ask, to get a loan like that?

He looks me in the eye.

“I do.”

More on Klempf and his vision for the Bostwick Building will be in the May 17 edition of the Business Journal.

This was added to the OED document "Authorization to Negotiate and Engage on Various Downtown Projects" at the 7/24/13 DIA Board meeting.

QuoteThis was added to the OED document "Authorization to Negotiate and Engage on Various Downtown Projects" at the 7/24/13 DIA Board meeting.

I believe they need to work through a resolution with the City for a repair to the sidewalk/portion of building foundation due to some kind of flooding problem that occurred a few years ago.