QuoteDowntown Investment Authority CEO Lori Boyer granted performance schedule deadline suspensions to the developers of The District on the Southbank and the Jones Bros. Furniture building on the Northbank because of the COVID-19 pandemic.
The developers requested the suspensions through force majeure clauses in their contracts. A force majeure clause protects contract holders from extraordinary events or circumstances beyond their control.
Boyer said the suspensions, which began March 13, will end when the COVID-19 emergency is lifted by government officials. The performance schedules will resume with the number of days that remained before the emergency, she said.
Full article: https://www.jaxdailyrecord.com/article/dia-grants-suspensions-to-the-district-jones-bros-furniture-projects
I'm with you on the District (and I'm not overly convinced Jones Bros is happening either). But, this was the right thing to do. Nobody's Pro Forma had a contingency for a massive virus outbreak that would virtually shut down everything.
I CAN see The District people milking this for every excuse they can however. They've done next to nothing in a booming economy for years, then this happens, and now, "We were all set before the virus outbreak!"
Here is Florida Association of Realtors Legal Counsel discussing Force majeure and COVID 19, for anyone interested.
https://www2.floridarealtors.org/news-media/video-library/learning/florida-realtors-white-paper-video-coronavirus-force-majeure
I hope the two parties had reasonable legal arguments, you actually need one if it goes to court.
However I too am not surprised. The District looks to be joining the long list of 'Game Changers' that never started......
Are these contracts public? Can we see the actual "Force majeure" language in these contracts? As the video states, its the specific language in the specific contract that matters.
"I CAN see The District people milking this for every excuse they can however. They've done next to nothing in a booming economy for years, then this happens, and now, "We were all set before the virus outbreak!"
Agree 100% , they are probably toasting champagne , "Hell, we were actually going to have to do something, thank God for this virus."
This is why certain people in city government should take their thumbs out of you know what and seize the opportunity when it presents itself relative to new construction, developments, etc.; and like wise to developers, get your thumb(s) out of you know what and move forward instead of taking your time for money/mammon's sake. If you really mean business, build it; if you don't, don't even bother proposing or putting any plans on the table or the media (public).