Metro Jacksonville

Its not looking good for the Shipyards.

QuoteThe developer of The Shipyards in downtown Jacksonville technically defaulted on its agreement with City Hall because it is late paying 2008 property taxes, according to the city.

The taxes became delinquent April 1 and the bill is $485,000, according to Duval County Property Appraiser's Office records. Other expenses facing LandMar Group are an upcoming $3.15 million debt payment to the city, and a $993,000 construction lien placed on the property by a marine contractor.

Jacksonville Economic Development Commission officials are meeting weekly with Jacksonville-based LandMar to see if there’s a way to keep the jinxed project on track.

“At this juncture, I don’t have any reason to believe they’re not going to work the issue out,” JEDC Executive Director Ron Barton said Monday. “But we’re going to have to see.”

LandMar is the second developer to take a shot at The Shipyards, located along the St. Johns River between Berkman Plaza and Metropolitan Park. Plans envisioned a luxury condominium tower along with a mix of commercial, hotel and office space. None of that has occurred.

In a 2005 agreement, Jacksonville-based LandMar took ownership of the property and agreed to spend tens of millions of dollars on public improvements such as bulkheads, extending the riverwalk, Bay Street streetscaping, a riverfront pier and pocket parks. LandMar also agreed to take over debt obligations of the previous owner, TriLegacy Group, for bonds City Hall issued in the prior attempt to redevelop the property.

Barton said LandMar has been a “good partner” fulfilling its end of the deal, but it appears the recession and real estate meltdown are taking a financial toll. He said he would be open to discussing different terms for the deal, such as possibly giving more time to complete the rest of the public improvements.

“We need to hear from them about what works for them,” he said. “They’ve met all their obligations to date. They’ve spent just short of $20 million on improvements the public will benefit from.”

LandMar did not return a phone call for comment. LandMar is allied with Crescent Resources in the development, which is being done under the name North Bank Developers LLC.

In a default, the city could regain ownership of the land, along with nearly $20 million in improvements paid for so far by LandMar. But that outcome would leave the city with no one to pay back the bonds originally issued for the project when TriLegacy was the developer. So far, LandMar has made about $12 million in debt payments.

The next payment will be due around June. Future annual payments of about $3.15 million per year will be due through 2032.

In addition to the delinquent property taxes, the construction lien put LandMar in default on the agreement with the city, Barton wrote in a letter last week to City Council members.

Misener Marine obtained the claim in February and said North Bank Developers owes about $993,000 from an $18.5 million contract for construction at The Shipyards. Barton said the lien is the kind of payment dispute that is not uncommon in the construction industry.

http://www.jacksonville.com/business/2009-04-20/story/landmar_misses_property_tax_payment_on_the_shipyards_project

Yawn....

The Shipyards has gone from epic riverfront skyline altering mega development downtown savior to another peice of razed vacant overgrown potential.  Add to that the courthouse property, Brooklyn Park, Old JEA generation station, and LaVilla.

I really had high hopes for this as well as Brooklyn Park.  I guess we'll just have to hold out and wait for the next great mega development to get our mouths watering (after Peyton and Co are gone..).

My guess is that the true boom will continue to take place in the neighborhoods just outside downtown.  Even with the economy on its knees, there is still a decent amount of small projects moving forward.  This is because they still have a good amount of building stock that can be put to use by just about anyone.  The continued demolition of structures in the downtown core has turned it into a place that will largely live and die with the success and failure of mega development.  Unfortunately, the small guy with a limited bank account, has been priced out of downtown for the most part.  With this said, it may be more important for the future of downtown to better connect it to the surrounding neighborhoods (ex. Riverside, San Marco, Springfield, etc.) than it is for those places.  If you can tie it in with the energy the surrounding neighborhoods still have, it will make DT more attractive for large infill projects to move forward in the future.

I hope FSCJ opens up the corridor between Springfield and Downtown, making it more pedestrian friendly.  Have you heard any feedback about that Stephen? I know it has been discussed before.

Somebody still has to build on all those vacant lots (Brooklyn, LaVilla, Sugar Hill, Northbank core, Sports District, Cathedral District, etc.) and pay for the restoration of large deteriorating buildings.  Without proper planning, it will be more of the same.  A collection of isolated projects that ignore their surroundings, which in turn, limits their ability to stimulate the synergy and cohesiveness needed to create a community of place and interest.

QuoteWith this said, it may be more important for the future of downtown to better connect it to the surrounding neighborhoods (ex. Riverside, San Marco, Springfield, etc.) than it is for those places.  If you can tie it in with the energy the surrounding neighborhoods still have, it will make DT more attractive for large infill projects to move forward in the future.

Perfect segway into the use of Trolley's to connect downtown with the immediate suburbs. RAP won't let the City or anyone tear up the streets and put in a rail system. We have a rail system in place in San Marco already with plans to go to the development (now mounds of dirt) on US1. Anyone want to destroy all the effort that has been put forth from 1st to 12th street along Main, for a rail system?

Come on, Trolley buses are the way to go, see if the people use them before making catastrophic expenses that the city does not have money for, and frankly, we have come a long way since being embarrassed nationally by the Skyway, and people still do not use it. They use buses. Call it the education of our people, but they understand a bus easier than they do a rail car, AND the gas tax pays for the roads, and the JTA, so use the taxes wisely, put in the bus trolleys to connect to downtown.

Shipyards, JEA, Laura Trio, Barnett, Cameron Kuhn, Courthouse, Lavilla, Brooklyn, the list goes on and on and on. Had it not been for the State of Florida and the 10/95 project, downtown might as well have shrivelled up in terms of construction work. No collapse in commerical will bring enough people downtown. You gotta have residents before you can have commercial. You need more residents to expand the offerings of commercial, and there is absolutely NO incentive to live downtown right now. Shops are closing, services are being cut, it is not the time of growth, it is now the time to batten down the hatches and SURVIVE.

They tear up those medians along Main street then change their minds and redo them every 10 years anyway.
The Trolley buses from five points to the Landing have look successful. so I am guessing you would be in favor of replacing them with real streetcars to capture the development potential along with the riders.
Down town has expanded nicely in the last ten years the current slow down is due to larger economic conditions.

Quote from: mtraininjax on April 23, 2009, 01:20:26 AM
RAP won't let the City or anyone tear up the streets and put in a rail system. We have a rail system in place in San Marco already with plans to go to the development (now mounds of dirt) on US1. Anyone want to destroy all the effort that has been put forth from 1st to 12th street along Main, for a rail system?

Rail is not rail, depite what JTA has said in the past.  Urban Streetcars are not very intrusive, like heavy freight/commuter rail is.  I think RAP would consider something like Little Rock has set up - see the link below:

http://www.metrojacksonville.com/content/view/980/116/

If actual rails would be contested by RAP then at least some true electric trolly busses powered by overhead wires (ock has posted gobs of pics of them).  That would be a more permanent system that would allow the future installation of rails along the electric route as demand and pouplarity increased.

I seriously doubt RAP or SPAR for that matter would contest a streetcar line being built in their neighborhoods. When did JTA say rail wasn't rail, Steven? I am a little confused by that sentence.

I think Steve is referring to a comment made by Ed Castellani, during the time when Metro Jacksonville first started questioning the BRT plan.  It was a crazy statement that was made during a shouting match at Boomtown or a public hearing at the Library.  It helped launch our attack on the overall plan.

Oh ok. Back in those days.

Good Stuff from the   http://www.jaxdailyrecord.com/  today.


http://www.jaxdailyrecord.com/showstory.php?Story_id=52546

I say go for it - at least in the interim - hell, put something there please........

This idea, if implemented, would be an excellent way to jump start development in this area.  With the riverwalk extension we could start to connect the performance venues around the Stadium/Met park with the rest of downtown.  Picture the Shipyards becoming an area with shops, restaurants, residences, a new hotel etc.  Add a skyway or streetcar stop, usable open space areas, the ideas are endless.  If the land goes back to the city, I hope they support this and do everything possible to make it work.

Full steam ahead!!