Urban Construction Update - April 2014

[thelakelander]

Bill, what are SPAR's plans for redeveloping Main and getting businesses like that set up there? As much progress as we've seen, it's never going to achieve the vibe it could if every business keeps opening up on side streets.

No firm plans. There are helpful things that can done, but it's a market issue and largely out of any organizations hands.

I don't mean to criticize, but this is something I just don't get about Springfield. RAP and SMPS put a lot of focus on revitalizing the commercial districts in those neighborhoods. In fact, the efforts of SMPS are one of the main reasons San Marco Square is what it is today and now it's at a point that merchants can fund their own collective projects. Springfield as much as anywhere would really benefit from proactive attention to the commercial districts along those lines.

Springfield's commercial districts (at least 8th & Main Streets) need to be their own TIF districts, IMO. That would go a long way to helping generate the funds necessary to turn them around.

[thelakelander]

The City of Jacksonville owns it and won't allow anyone to do anything with it.

Why not?

To be honest, I have no idea why COJ makes many of the decisions it does.  I can only assume they want more for the property than what the market is willing to pay for it.  Thus, they rather it sit empty.

[Tacachale]

^Both of those issues sound like something SPAR could have a positive influence on.

[CityLife]

Unfortunately, a lot of Main Street's success or failure is tied to Chris Hionedes. He owns a fairly substantial amount of the corridor and bought a lot of lots/properties with the intent of developing or selling them as dense, infill projects similar to 3rd and Main. He's heavily upside down on them and thus has no incentive to rehab them, can't sell them, and the market demand isn't there to do 3rd and Main type projects. I'm sure he was banking on Downtown filling in much more and then spilling over into SPR/Main Street when he bought the properties.

As an example of how his financial situation holds back Main Street, he recently strategically foreclosed on a property that he bought in 2006 for $5.5 million (not in Springfield). It was then bought up before it even went to auction from the bank for $1.1 million and is already entitled for 80 units. It was bought in September of 2013 and was already finished with the PUD process in March of 2014.

If he were to similarly dispose of his Main Street properties, they would be much more likely to be developed if they were purchased at their current market rate. 

[CityLife]

^ All that said, there are still opportunities on Main and 8th Streets. The idea of a TIF should be further explored like Lake mentioned...and frankly the city should be allocating staff in the planning and/or economic development departments to help facilitate redevelopment.

[strider]

To be brutally honest, it was not just Hionedes,  it was also SPAR Council being in the pocket of Mack Bissette.  Everything anyone wanted to do on Main Street was hindered by them if it was something they either did not get a part of or did not like.  I know that landlords were told to get high rents but then they blamed the lack of businesses on the greedy landlords.  I know that fictitious lists of what was legal and what was not were circulated among real estate management, all in an attempt at making sure only the "right kinds" of businesses came to Main Street.  The businesses that were there were often subjected to constant visits by MCCD, complaints often filed by SPAR Council per the inspectors and there were unoffical "boycotts", all to try to move out what some felt were undesirable businesses.  To be fair, I do believe that for the most part, that mentality is changing at SPAR Council. 

9th and Main, however, is a interesting case in point of both the community and the city trying to have their cake and eat it too. The city really should be selling off property like that to the higher bidder like any other commercial real estate in the city.  If it goes for less than invested in it, at least it is being used again and generating tax revenue. Most of us who invested in real estate have had to take our lumps.  The city just had to decide to just sell it.  However, the city and the community leaders wanted FRP's so that they could also control use.  That is the purpose of zoning but by doing RFP"s you can once again make sure only the right kinds of uses are considered. The result is a building sitting and decaying. 

[strider]

And yes, a TIF would be a great start at the city dong something positive.

[urbanlibertarian]

9th and Main, however, is a interesting case in point of both the community and the city trying to have their cake and eat it too. The city really should be selling off property like that to the higher bidder like any other commercial real estate in the city.  If it goes for less than invested in it, at least it is being used again and generating tax revenue. Most of us who invested in real estate have had to take our lumps.  The city just had to decide to just sell it.  However, the city and the community leaders wanted FRP's so that they could also control use.  That is the purpose of zoning but by doing RFP"s you can once again make sure only the right kinds of uses are considered. The result is a building sitting and decaying. 

+1

[Keith-N-Jax]

Nice update, a lot of nice things going on.

[GatorShane]

I just posted this in DT forum. The owners of The Super Food Truck will open a restaurant at 11 E. Forsyth.More good news for DT.

[wordswithenemies]

anyone know what happened to the Taps location that was supposed to start construction next to Orsay?

[NoahDavis]

Pho fever was quite a surprise for me. Not much to look at, but the yummy egg rolls and relaxing music more than made up for that! Give the little guy a chance.