QuoteCSX could bring 550 more workers Downtown to Northbank
CSX Corp. has a large presence Downtown — and it would like to increase it.
The company is consolidating its operations and seeking to shift at least 550 employees from its Southpoint facilities to a Southside or Downtown site.
The location would provide a "safe, comfortable accessible workplace that promotes collaboration in the best, most cost-effective facilities available," said CSX spokeswoman Melanie Cost in a statement emailed late Monday.
If "all else were equal," she said, that would mean bringing those employees to about 120,000 square feet of vacant space on the Northbank of the St. Johns River...
Full story:
http://www.jaxdailyrecord.com/showstory.php?Story_id=548919
Didn't they recently buy 550 Water St? You'd think that would be where they are going, unless it's full.
Quote from: acme54321 on December 13, 2016, 11:20:43 AM
Didn't they recently buy 550 Water St? You'd think that would be where they are going, unless it's full.
My understanding is that building is full. They need more space.
One Enterprise Center is largely empty and pretty close to their headquarters. Or they can consider adding a 120k sf building on one of their large parking lots along Water St.
How about into the Old Barnett Bank Building? That would give them all the space they need now plus room for further expansion down the road.
Quote from: thelakelander on December 13, 2016, 11:33:36 AM
Or they can consider adding a 120k sf building on one of their large parking lots along Water St.
This was my first thought.
That sea of parking.
(https://snag.gy/7sNQb3.jpg)
If I had my choice and money was no object, I'd elect for expansion on their own land. Placing infill on that lot between the 550 building and the performance arts center would be a positive exceeding job creation for DT. Nevertheless, beggars can't be choosy.
Parking is actually a little bit tight in that corner of downtown, with the Water Street Garage full of Everbank and Citizen's employees.
I think a combination garage / office building on their big surface parking lot would make a lot of sense...
And it could add some street level retail there.
CSX actually has an employee cafeteria, which can't be fun to operate.
Yes combo of garage (4 levels at least) plus office above would work. That's a premium parking lot for CSX folks and the ones who get to park there probably don't want to lose it.
It sounds like they are strictly looking at already built space only. it would eb difficult to build something new and have it ready in time anyway.
Given the high vacancy rate on the Northbank, it is best that they take existing space.
I think it is probably more likely they snag floors 2-9 in the One Enterprise Center which can all be available. In some ways, with that much space, they may want to just buy the One Enterprise Center as well. New construction would be a lot more expensive.
http://www.loopnet.com/xNet/Looplink/Profile/Profile.aspx?stid=cbre&LID=17382420&LL=true
Wouldn't it be better if they went into Suntrust Center so we could get the tenancy up to add the retail in the parking garage? Or did that contract get nullified recently?
Also, since I feel like dreaming a little. How cool would it be to have CSX build a new building / garage / retail on that brown parking lot, if the city helped them fund a large enough garage to turn that black lot into a park that connected to Brooklyn via a second Ped bridge to the north? It would add a HUGE, much needed, green space in the heart of downtown on the river and give an alternate scenic route for cyclists and pedestrians into Brooklyn. The ramps there would provide plenty of shade like the arts market, but unlike the arts market on pleasant sunny days you would have the option of moving into uncovered areas. And the view into downtown would be excellent, similar to the Bicentennial Capitol Mall State Park in Nashville! Ugh... gotta wake up now.
Bank of America tower badly wants CSX:
http://www.jaxdailyrecord.com/showstory.php?Story_id=549024
I know it'll never happen, but how cool would it be for CSX to renovate the old JEA building behind Sweet Pete's in some sort of joint effort that included a garage and retail?
Geez you could get about four scrapers in all those surfaces lots if the market ever picks up
Looks like they are going from +275k square feet of Southside space to less than 140k square feet of Northbank space. The old JEA building is around 162k square feet and 100% empty. Evidently, not only One Enterprise Center but BOA and Suntrust also have +100k square foot blocks of empty space in them too?
Overall, the square footage reduction desired and the amount of empty space in existing buildings are reflections of why we should not expect any speculative highrise office buildings happening locally.
Forgot about the old JEA building. What a great story that would be, but it seems highly doubtful.
My mother works for CSX and told me they are moving people to the 550 building and plan on building a facility near the convention center
I'm surprised that if they are going to build something it wouldnt be something on top of a garage on one of their surface lots. I guess a mid rise something or another in lavilla would probably be cheaper to build.
I mean, it's 550 people; the 550 Building only makes sense...... :D
I believe 550 is already full.
In 1994-95 I worked for CSX when they were in the old Southern Bell Building, now Everbank Bldg I believe. Great company. Economy is ramping up and it appears they are looking at several options. Most sensible would be to occupy available space in existing scrapers on the Northbank. Next option is space out in the suburbs in which it appears they are mulling that option. Lastly, maybe build their own facility but they'd better make that decision quickly in order to meet the move in deadline. If they chose to build a new facility next to their headquarters and 550 building, I am sure it would be the type of building they could build in less than a year and a half, and hopefully with a built in parking garage below the offices. 25 to 30 stories makes sense to me with the building/scraper being slender in size and not wide or fat. The last option is possible as someone mentioned their Mother who works for CSX stating that they are already moving employees to the 550 building (I thought it was full?). However, they will probably pick SUNTRUST, BOA, or ONE ENTERPRISE to relocate their employees from Southpoint; me personally...I'm hoping they build a new building/facility...a new scraper on the Northbank...haven't seen that since the early 90's. Bring it on.
Oh, they could move their employees to one of the 3 scrapers (temporarily or for an undetermined period), and keep them there while building a new facility. Haven't heard this option mentioned but don't rule it out if they don't or can't get what they need downtown or elsewhere.
I can't imagine them building a skysraper. They only want 100 to 140k square feet. In comparison, the BOA has over 660k square feet of space.
Yes Lake, I will agree that's a pipe dream (scraper or even a new facility on existing land next to 550 water street); we can hope or dream I guess. CSX is a burgeoning, successful company, so I wouldn't rule out a new facility looking at future growth and expansion at the Jax headquarters.
I wouldn't rule out new infill but I would rule out anything coming close to or over 500 feet in height.
I hate to say it but I don't see headcount growth in the future for CSX's Jacksonville overhead/back office operations. Its all using technology to do more with less. That being said I don't think there will be much of a reduction either. Not that I have any real information either way. If rail transport picks up with the economy CSX will experience growth but it will be in the field and the extra crews required to run the trains. Here's hoping the current populist trend doesn't hamper international trade.
Quote from: thelakelander on January 01, 2017, 02:37:48 PM
I wouldn't rule out new infill but I would rule out anything coming close to or over 500 feet in height.
Quote from: banjo on January 02, 2017, 01:36:06 AM
I hate to say it but I don't see headcount growth in the future for CSX's Jacksonville overhead/back office operations. Its all using technology to do more with less. That being said I don't think there will be much of a reduction either. Not that I have any real information either way. If rail transport picks up with the economy CSX will experience growth but it will be in the field and the extra crews required to run the trains. Here's hoping the current populist trend doesn't hamper international trade.
If more business comes to town and starts lighting in the core, along with more residential then we might possibly see scrapers up and over 500 feet; again, pipe dreams.
Looks like CSX has selected BOA:
QuoteBy Karen Brune Mathis, Managing Editor
CSX confirms in letters to the Downtown Investment Authority that it wants to bring 550 employees Downtown to the Bank of America Tower, if the DIA can work with the landlord to make the move from Southside work financially.
That gap as of Jan. 6 is $1.9 million over the seven-year lease term, down from $2.7 million in a November request.
CSX said with an arrangement, it is prepared to enter into a lease for 120,000 square feet of space over multiple floors at the tower in the city's urban core.
http://www.jaxdailyrecord.com/showstory.php?Story_id=549291
Quote from: jlmann on February 06, 2017, 12:05:40 PM
also- that seems like a lot of vacant space- didn't realize boa was so empty, but maybe 120k sq ft in a bldg. that size is less than it sounds
That's about 11% of the building.
Could it all be for naught?
http://news.wjct.org/post/business-brief-csx-board-consider-possible-takeover-friday
Quote from: ProjectMaximus on February 06, 2017, 09:51:56 PM
Could it all be for naught?
http://news.wjct.org/post/business-brief-csx-board-consider-possible-takeover-friday
It wont happen, Mantle owns just under 4% of CSX stock. Definitely not worthy of a board proxy fight.
In case one might ask, Mr Harrison does have a post employment non-compete clause with CP, but CSX was left off of the prohibited employers list.
While CSX has taken actions to cut some costs during the coal drop off, they are still spending a large amount on getting PTC finished and that has caused a lot of non-operational payroll to increase.
^I hope so. Thanks for the insight.
WARNING: DON'T UNDERESTIMATE HUNTER HARRISON!
The new HQ could well be in Calgary if Jacksonville doesn't have it's 'A' game on.
Railway Age Says:
QuoteBy Tony Hatch
Last week, the Wall Street Journal (WSJ) broke the remarkable — and, as far as I can tell, true — story that CSX Corp. was in settlement talks with E. Hunter Harrison (EHH) and Mantle Ridge LP and thus, one expected, close to a resolution. This, just a couple weeks after various news media reported that EHH was working on an agreement with Mantle Ridge's Paul Hilal to secure a senior management position at CSX.
Here's a summary of what I think is happening, what is likely to happen and what some of the corresponding issues will be along the way:
• This is not about consolidation, which I think (a) would be unlikely, given the stances of most of the related stakeholder groups and (b) is ill-advised, given poor benefit/cost ratio due to the likely penalties (access) and hidden costs involved. Mergers also involve shippers, labor, other railroads, politicians, communities, regulators, etc.
• Already over? There is only one stakeholder group in play here: CSX shareholders, present and future. Most in the financial community already thought that EHH would land at CSX, given his track record and the associated following he has on the Street; the WSJ has advanced that thesis. Many sell-side analysts already have published models with CSX sporting new post-EHH operating ratios (OR).
• The holdup may be about the number of board seats, as the WSJ suggested, and supporters have mentioned full board support as the reason for EHH's more rapid success at CP than in his previous "victories" at Illinois Central and CN. There is more than one reason for the success comparisons — along with that factor (a) must be considered; (b) belief — there is tangible evidence of prior success; and, lest we forget, (c) timing and/or luck as CP at EHH-entry had an artificially high OR that was in the process of self-correcting (to a still higher than EHH-like number).
• CSX is — sorry, folks — different from the railroads in his past successes. This is a mixture of fact and opinion, to be sure, but there are structural differences that may not be insurmountable but at minimum should be considered:
1. It is an eastern U.S. railroad with much higher densities and shorter lengths of haul.
2. It is not "broken" — CSX has improved operations dramatically and made progress through strategic change with its planned "CSX of Tomorrow," which has also allowed them to both cut outright capex and still nurture the core network to an even greater degree (capex being important to me).
3. Its "failure" to reach the long-stated OR target of 65 percent is almost (but I suspect) entirely due to the loss of $2 billion in high margin coal business. This may at last provide the "teaching moment" that the OR is but one ratio by which a railway is judged, not the only one (return on invested capital, among others).
4. It is not poorly managed — not only is the plan (albeit not fully defined) exciting, but CSX has a dynamic new C-Level Team (CMO/CFO/COO). That being said, most railway people believe EHH to be the superior operator who can improve just about anything. In addition, CSX — unfortunately, like most of the railroads — provided fairly tepid "color" on the quarterly call, coming the day before The Big News.
5. It is also a different time. As with the secular decline in coal, the importance of increased service to merchandise and IM customers has never been more critical (and with a longer term threat of AV trucking down the road). CN has prospered in a "kindler/gentler" post-EHH environment; CP has been a huge success, of course, but in terms of marketing and customer relations, the jury is still out — after all, EHH retired there without having named a CMO!
6. Plays well with others? There's also the historical antipathy of EHH to industry organizations such as the Railway Association of Canada, Association of American Railroads, CREATE, etc., in a time of extreme political complexity and national labor negotiations.
On the other hand, I believe that this, from EHH's point of view — and I am speculating here — is about legacy: not of the man, but the idea — that Precision Railroading can work in different environments and times. And, as I have always said and written, one underestimates EHH at one's own risk. For now, we'll wait until the supposed deadline of Friday, Feb. 10.
Update:
Jacksonville-based CSX announces CEO Ward and company President Gooden are retiring
http://jacksonville.com/business/2017-02-21/jacksonville-based-csx-announces-ceo-ward-and-company-president-gooden-are
Layoffs coming as well.
It will be interesting to see what happens here. I hope the layoffs are kept to a minimum.
If Jax lost CSX, it would be absolutely devastating. ???
Here they are:
http://www.bizjournals.com/jacksonville/news/2017/02/21/csx-announces-the-reduction-of-1-000-management.html?ana=e_jac_bn&u=XALuhoKTfQRT3OObZ9UHWw0505842d&t=1487695084&j=77450021
So was this Lease deal just a pawn in a chess game to avoid the takeover or hasten the end result?
I can't think of any good reasons that CSX management would want to relocate the headquarters. Perhaps someone could enlighten me?
As for the layoffs, I know that these type of layoff announcements often have the effect of boosting the share price, but in situations like this, where the to-be-layedoff employees don't know who specifically will be axed, it seems like it would create a serious morale problem until the layoff occurs. I imagine a lot of people at CSX are going to spend their lunch break fixing up their CV.
^If they eventually merged with another railroad, what's the chances that Jax would remain the combined company's headquarters?
Quote from: thelakelander on February 21, 2017, 11:59:01 AM
^If they eventually merged with another railroad, what's the chances that Jax would remain the combined company's headquarters?
I have no doubt, if merged, it would likely relocate, but I don't think DOJ (due in part to political pressure) would allow a merger to happen.
Quote from: remc86007 on February 21, 2017, 12:09:27 PM
I have no doubt, if merged, it would likely relocate, but I don't think DOJ (due in part to political pressure) would allow a merger to happen.
Would a Trump DOJ allow it?
Quote from: vicupstate on February 21, 2017, 11:52:08 AM
So was this Lease deal just a pawn in a chess game to avoid the takeover or hasten the end result?
The lease deal is immaterial. As is CSX's purchase of 550. Jax real estate isn't going to be factor in deciding the future of CSX.
Quote from: Lunican on February 21, 2017, 01:21:50 PM
Quote from: vicupstate on February 21, 2017, 11:52:08 AM
So was this Lease deal just a pawn in a chess game to avoid the takeover or hasten the end result?
The lease deal is immaterial. As is CSX's purchase of 550. Jax real estate isn't going to be factor in deciding the future of CSX.
I realize it is pennies in a jar to CSX, but why even pursue it if this was on the horizon?
Quote from: Lunican on February 21, 2017, 01:20:04 PM
Quote from: remc86007 on February 21, 2017, 12:09:27 PM
I have no doubt, if merged, it would likely relocate, but I don't think DOJ (due in part to political pressure) would allow a merger to happen.
Would a Trump DOJ allow it?
That's an interesting and frightening thought. My guess would still be no, especially if the merger could result in job losses (especially if it in turn involved giving any advantage to a foreign corporation). I'd be willing to bet that Gov. Scott would pressure Trump to prevent a merger from happening. I imagine that Trump isn't worried about overall economic efficiency as much as he is keeping his base happy and having employment stats to brag about. Plus, he can't afford to piss off NE FL prior to midterms and potentially a 2020 run (God help us all).
Quote from: vicupstate on February 21, 2017, 01:46:44 PM
I realize it is pennies in a jar to CSX, but why even pursue it if this was on the horizon?
I think it's because they still don't know exactly what is going to happen. A special shareholder meeting has been called for mid-march to decide whether to install Hunter Harrison (or the terms of installing him). Although management has been signing leases and moving forward with the status quo, the direction of the company will be determined by a decision at the shareholders meeting.
Can someone explain to me why if CSX merges with another railroad the headquarters is as good as gone? It seems to me that it would be the other way around, CSX is larger than any possible merger partner, wouldn't that mean the headquarters would stay here? Can a merger even happen? I imagine that if CSX tried to merge with someone like CP, the other three major railroads would cry foul and it would be challenged in court, just like what happened with Conrail. My biggest concern is that the new leadership at CSX just decides to unilaterally move the headquarters somewhere else.
I don't personally think CSX would leave Jax under any of the potential scenarios, but for the sake of argument, here are the potential merger partners I can think of and some thoughts:
BNSF - I don't know anything about this, but a quick internet search doesn't bring up any credible rumors of interest.
Canadian National - Seemingly a less likely target than Canadian Pacific, and I don't think the current administration would have DOJ approve this.
Canadian Pacific - CSX rejected this potential merger a few years ago, I imagine those reasons still exist, but since Harrison formerly was here, it seems the most likely target and could be pushed through by Harrison and his board. I just don't think Trump, as mentioned in my prior post, would allow this to happen.
Kansas City Southern - too small of an operation in Kansas City; joint headquarters would likely be Jax.
Norfolk Southern - DOJ would likely not allow this merger for competitive reasons.
Union Pacific - I don't know anything about this either, but a quick internet search doesn't bring up any credible rumors of interest.
Quote from: remc86007 on February 21, 2017, 01:52:04 PM
Quote from: Lunican on February 21, 2017, 01:20:04 PM
Quote from: remc86007 on February 21, 2017, 12:09:27 PM
I have no doubt, if merged, it would likely relocate, but I don't think DOJ (due in part to political pressure) would allow a merger to happen.
Would a Trump DOJ allow it?
That's an interesting and frightening thought. My guess would still be no, especially if the merger could result in job losses (especially if it in turn involved giving any advantage to a foreign corporation). I'd be willing to bet that Gov. Scott would pressure Trump to prevent a merger from happening. I imagine that Trump isn't worried about overall economic efficiency as much as he is keeping his base happy and having employment stats to brag about. Plus, he can't afford to piss off NE FL prior to midterms and potentially a 2020 run (God help us all).
Heaven forbid a President care about the middle class instead of Wall Street 1%ers. It seems like just 3 months ago this is what The Left thought they were voting for.
Quote from: Kerry on February 21, 2017, 04:33:53 PM
Quote from: remc86007 on February 21, 2017, 01:52:04 PM
Quote from: Lunican on February 21, 2017, 01:20:04 PM
Quote from: remc86007 on February 21, 2017, 12:09:27 PM
I have no doubt, if merged, it would likely relocate, but I don't think DOJ (due in part to political pressure) would allow a merger to happen.
Would a Trump DOJ allow it?
That's an interesting and frightening thought. My guess would still be no, especially if the merger could result in job losses (especially if it in turn involved giving any advantage to a foreign corporation). I'd be willing to bet that Gov. Scott would pressure Trump to prevent a merger from happening. I imagine that Trump isn't worried about overall economic efficiency as much as he is keeping his base happy and having employment stats to brag about. Plus, he can't afford to piss off NE FL prior to midterms and potentially a 2020 run (God help us all).
Heaven forbid a President care about the middle class instead of Wall Street 1%ers. It seems like just 3 months ago this is what The Left thought they were voting for.
Let me clarify; I said it is frightening because Trump does not, in my opinion, act consistently and seems to often not be aware of the consequences of his actions. I very much want a president who cares about the middle class instead of wall street, but I don't think we have that. I would hope that any president would would have their DOJ block a merger of any of the major railroads.
Quote from: Westside Guy on February 21, 2017, 03:24:08 PM
Can someone explain to me why if CSX merges with another railroad the headquarters is as good as gone? It seems to me that it would be the other way around, CSX is larger than any possible merger partner, wouldn't that mean the headquarters would stay here? Can a merger even happen? I imagine that if CSX tried to merge with someone like CP, the other three major railroads would cry foul and it would be challenged in court, just like what happened with Conrail. My biggest concern is that the new leadership at CSX just decides to unilaterally move the headquarters somewhere else.
Headquarters decisions post merger typically have no consistent pattern and are somewhat subjective and political at the same time.
AT&T moved its HQ to San Antonio Texas because the CEO of SBC, Ed Whitacre lived there and didn't want to move to Bedminster, NJ where the AT&T HQ had been. Randall Stephenson moved it to Dallas, TX to improve their "reach".
When Boston Market separated from McDonalds, the new CEO they hired refused to move from Denver to Chicago, so he convinced them to move the HQ to Denver instead.
When Chicago based OfficeMax merged with Office Depot, the CEO tried to get incentives to keep the HQ in Illinois, Illinois refused, so the CEO moved to the Office Depot HQ in Boca Raton with no incentives.
Boeing moved their HQ from Seattle to Chicago because the executives needed better travel access to foreign markets, the CEO moved as well. But then moved their HQ for their Defense Division from St Louis to Washington DC.
Caterpillar is currently planning to move their Peoria, IL HQ to Chicago for the same reason Boeing did. The execs need better travel options for foreign markets.
HSBC is moving its banking HQ from London to Hong Kong because they don't like UK tax regulations.
As far as Hunter Harrison goes, he sold his home in Connecticut for under $50m but spends most of his time at his home on a golf course in Wellington, Florida. He just listed his nearby 33 acre ranch in Florida for $33m. He lived in Chicago during his IC days and continued to live there off and on when he took the reins at Canadian National (CN) and spent time in Montreal.
So if he becomes CEO of CSX, I would say there is a high probability the HQ would stay here unless he flips it to another railroad.
I know very little of the railroad industry, but it seems to me that a railroad company's headquarters would be less mobile than the headquarters of something like a restaurant chain. Restaurant chains and retail headquarters in general likely have roughly the same employee needs as many other businesses and therefore could hire the necessary people easily in a new market. CSX, on the other hand, likely employs many people with specialized skills and backgrounds (e.g. logistics people) that would require either trying to drag the existing employees with them or expend a lot of time and resources to replace.
http://jaxdailyrecord.com/showstory.php?Story_id=549398
QuoteCSX's 1,000 management job cuts called 'aggressive move'
I don't think those 550 employees will be coming downtown...
Quote from: FlaBoy on February 22, 2017, 03:57:49 PM
http://jaxdailyrecord.com/showstory.php?Story_id=549398
QuoteCSX's 1,000 management job cuts called 'aggressive move'
I don't think those 550 employees will be coming downtown...
Regardless of the cuts, I believe they are still trying to move the entirety of their Southpoint office downtown. Although, with 1000 people leaving, one would imagine there would be room in CSX's existing space to accommodate them.
Was poking around looking for more information... (there aint much) and found this...
http://csx-sucks.com/prof/
$300 million compensation package, while 1000 people lose their jobs. Makes me sick!
I heard from someone that works there, that "manager" could be anyone. They call everyone a manager, even if you have no reports. So these could be low level employees.
To be fair, it is often necessary, to maintain the competitiveness of an organization of this size, to do large scale layoffs with some regularity. Otherwise, corporations would age to a point of paying their older employees too much and not being able to get rid of them without fear of legal action. I have no doubt that these layoffs will be targeting the older employees. For many of them, I'm sure they'll land on their feet (severance +pension+401k).
I do, however, agree with the above poster that our current situation where CEO pay is extreme and other salaries are low in the name of shareholder value is screwed up. The problem, as I perceive it, is due to a misconception that shareholders and boards and executives seek long term value, but often their interests are far shorter term than the employees. I don't know what the solution is; perhaps employee representation on the board?
Quote from: coredumped on February 24, 2017, 08:45:26 AM
I heard from someone that works there, that "manager" could be anyone. They call everyone a manager, even if you have no reports. So these could be low level employees.
If you aren't a train conductor/engineer/mechanic, you're a "manager."
As expected, there's no need for the extra space, considering the amount of layoffs coming:
QuoteBy Karen Brune Mathis, Managing Editor
In light of CSX Corp.'s intention to cut 1,000 management jobs, it appears the Jacksonville-based company won't need to lease space in the Bank of America Tower Downtown after all.
CSX spokesman Gary Sease did not directly address the question of how the cuts would impact interest in that building, but it seems doubtful a deal would go forward.
"Last week's difficult decision to reduce our management workforce by approximately 1,000 positions has resulted in the need to reassess our Jacksonville headquarters office space needs," Sease said by email.
http://www.jaxdailyrecord.com/showstory.php?Story_id=549453
Quote from: Josh on February 24, 2017, 01:44:18 PM
Quote from: coredumped on February 24, 2017, 08:45:26 AM
I heard from someone that works there, that "manager" could be anyone. They call everyone a manager, even if you have no reports. So these could be low level employees.
If you aren't a train conductor/engineer/mechanic, you're a "manager."
Or an A.R.M., Assistant to the Regional Manager.
https://youtu.be/6tQG15iM1UI (https://youtu.be/6tQG15iM1UI)