Barnett Building Update

[SunKing]

meh.  this doesn't make being a sharpie any more commendable.

yes well the documented facts are against you there my friend.  some people are just better in business than others, but it doesn't make them dishonest.

oh the documented facts eh?  and what are those in this case, sunking?

Or are you weighing in to express some platitude on a pretty complex situation involving the single biggest taxpayer financed individual in Jacksonville?

Why does this guy deserve free land, taxpayer financed billboards, naming rights to the stadium, and apparently an environmental cleanup exactly?

You were for generosity to him, weren't you?  Back when the taxpayers handed over 30 million for his video screen, plus all rights to the income from the screen itself, not to mention paying for the electricity to run that giant revenue producer for Khan.

But you don't feel he should be expected to show any generosity or support at all back to the community?

Because: Hey Profit!

The documented facts that I am referring to are outlined in both court and foreclosure proceedings that you obviously refuse to give any credit to.  They substantiate that the man made deals (through a representative company) with people that didn't follow the terms of their agreements so he took appropriate actions to try to correct them.   

The stadium deal has nothing to do with what we are talking about but now that you mention it, I believe the consensus would be against you there.  It has been and will continue to be a substantial, taxpayer funded success.

But stay on point, one has nothing to do with the other.  Or does it?  HMMM.  I actually do know all the sides, documented or not, and I know where you are coming from as well.  What you are suggesting sir is that Kahn gave the old Laura Trio a cock block and took that money for his stadium.  From a practical matter let me just say that the stadium is city property and he put his own in as well.  Laura Trio is privately held.  Different strokes.

Oh yes and then there is that shipyard deal....vedy interrestink!

This message board is full of whiners complaining about progress in this city.  I for one am impressed with how this guy operates.  Bring on the Bold New City!

[edjax]

yawn. so ed. did khan loan Steve 3.9 for the Barnett? Or 3 mil for all four buildings?  That was the original point after all.  Simply redefining it doesn't make it true.

But hey, since you clearly haven't been paying attention here is what you are referring to.

deliberately screwing outside financing deals so that you can foreclose on the property and take your partners investments away from them. It gets much much uglier.

Stephen, do you have a full story on Khan "deliberately screwing outside deals" that you can report/share or is that another one of your "secrets"? That is a pretty heavy accusation to make and most would consider it unfounded without a proper story to back it up.

I'd love to hear whatever story there is.  I don't doubt your sources or that this is true, it just seems far fetched to me that Khan would do that-- why not just buy the building out right and save himself time, energy, bad PR and lots of attorneys' fees?  Admittedly, I dont know jack about real estate, so maybe i am missing something? I'd really just like to hear what caused all this as it sucks that such a building is just totally falling into further disrepair.

a million dollar loan + foreclosure costs that gives you a giant commercial downtown building?  Not a bad gamble.

3.9 mm for a building that needs 30mm of work=terrible return

It feels as if what Jax dealmakers lack is a sense of urgency. That sounds like the basis for the mojo comments Khan made.

Or its a good reason why he should personally own a lions share of a city's downtown in his own view.


and btw, 3.9 for all four buildings. Not for the single building. If you are going to get something wrong, try not to fudge a fact that is literally on the front page of the daily newspaper.

Not according to the LP filing, but you are the smartest guy in the room.

Maybe this could have been resolved by the developer PAYING his mortgage, just saying.

Meh

[Noone]

At the 6/10/15 Jacksonville Waterways Commission meeting there was a CRA/DIA update presentation. The Northbank TIF is broke to the tune of $10,000,000 subsidized by the general fund each year till 2020. So with Khan now controlling the Shipyards and the Trio it gives him more leverage and control when asking and getting more taxpayer money.

[Non-RedNeck Westsider]

In fact, sun king.  Whats the case number?

http://s3.documentcloud.org/documents/2095736/shad-khans-barnett-building-foreclosure.txt

Edit: 

Still digging, but the above may just be the rest of the filing that may or may not have been filed with the clerk. 

The only actual filing I've found so far is the Lis Pendens which I believe is just the notice that you are being foreclosed on.

http://oncore.duvalclerk.com/showdetails.aspx?id=13662554&rn=4&pi=0&ref=search

[Non-RedNeck Westsider]

In fact, sun king.  Whats the case number?

http://s3.documentcloud.org/documents/2095736/shad-khans-barnett-building-foreclosure.txt

Some excerpts:

6. On or about March 29, 2013, Barnett executed and delivered to Stache a Promissory
Note in the original principal amount of Three Million Dollars (113,000,000) (the ?2013 Note?). A
true and correct copy of the 2013 Note is attached hereto and made a part hereof as Exhibit B.
Stache is in possession of the original March 19, 2013 note.

The Mortgage was recorded on April 2, 2013 in Of?cial RecordsBook 16312 at Page 785 in the public records of Duval County, Florida.
http://oncore.duvalclerk.com/showdetails.aspx?Book=16312&Page=785&BookType=OR

8. On or about June 13, 2014, Barnett executed and delivered to Stache a second
Promissory Note in the original principal amount of One Hundred Sixtwaive Thousand Seven
Hundred Sixty-Four Dollars and Twenty?Nine Cents (the ?2014 Note?). A true and
correctcopy of the 2014 Note is attached hereto as Exhibit D.

18. On December 5, 2014, Stache noti?ed Barnett that it had failed to make any
payments under the terms of the 2013 Note and demanded immediate payment of the amounts due
and owing at that time $3,765,038.15. A true and correct of the December 5, 2014 demand letter is
attached hereto as Exhibit E.

43. On December 5, 2014, Stache noti?ed Barnett that it had failed to make any
payments under the terms of the 2014 Note and demanded inmlediate payment of the amounts due
and owing at that time $169,978.87. A true and correct of the December 5, 2014 demand letter is
attached hereto as Exhibit F.

[heights unknown]

Stache needs to be stashed. (no pun intended).

[heights unknown]

So that is investment #2 of Stache that has failed. (Edgewood Bakery being the other)

Interesting.

All Stache did was loan money. The only thing they failed (to date) on was making a return on their loans.
Just my opinion, but I suspect Stache new both these ideas weren't home runs or no brainers, but rather they really wanted to buy some goodwill more than anything. Showing that they are (or were) willing to invest their money in Jax.

I'll bet Stache stashed most of that money.

[ProjectMaximus]

So far, local businesses and projects Khan has invested in:

• US Culinary and Beverage LLC
  Casework of America Inc
  Heritage Farms Jacksonville
  L&J Diesel Service Inc
  KYN
  Edgewood Bakery
  Barnett Bank Building and the Laura Street Trio
  

Looks like those last three have soured. Any updates on the rest? Things quietly going smoothly?

US Culinary and Beverage is the same people/company as Edgewood Bakery. That was the veggie smoothie/muffin/healthy school lunch part of it. If I'm not mistaken.
Never heard of the other three.

I just culled this list from the bizjournal articles. Dont really know the story behind most of them. L&J Diesel I do remember though. I think was Khan's first investment, unsolicited, because he was "interested in new tech." L&J was working on some revolutionary sort of fuel injection in car engines...of some sort. I'm not a car guy.

[SunKing]

hmm.  really?  So which part of the court proceedings, that you have read are you referring to exactly?

And you are incorrect about my take on it.  I have simply said that this is a complicated issue and that Khan doesn't seem to be the kind of guy whose good faith you should take for granted.

So much public money going to this one guy. In return, not so nice to the locals.  I find it strange that you admire this.

I wouldn't think you've actually read any of the court 'proceedings'. (there haven't been, there has been a filing) btw.

Nice try.  The court proceeding was the preliminary hearing held over the bakery dispute(Judge Daniel presiding).  You have your lis pending for Barnett which is the foreclosure proceeding that I was referring to.  I suggest that you read them yourself and then explain to everyone why Kahn should stop being so mean.

[SunKing]

Oh and if I don't respond for a while its bc I am either working or paying bills.  So take your time.

[Steve]

So, I fail to see why this is shocking for anyone. Generally, investors like Stache Investments take on riskier things than traditional banks do. If it was a slam dunk, then Atkins would just go to the nearest bank and be done with it. They approached Stache likely because a traditional bank wouldn't, and that inherently carries more risk.

Tell me this....if Wells Fargo foreclosed, would there be a backlash here? Or, if you'd rather, Shad Khan could just keep his money to himself and not invest in higher risk things.

[duvalbill]

The foreclosure action is still proceeding and Barnett hasn't even filed an Answer to the Complaint yet.

There's an Order to Show Cause scheduled for July 7, 2015, where the Court will either enter judgment at that time unless Barnett Towers files a verified Answer why judgment should not be entered.

If Stephen's innuendos prove accurate, it will be public record shortly.

Case Number is 16-2015-CA-003312-XXXX-MA.

[Non-RedNeck Westsider]

I don't find it particularly interesting either.

Someone had posted something along the lines of 'what else has gone on that we don't know about' and I started scratching the surface a little bit and shared what I believed was relevant. 

I'm pretty sure that I'm on the 'it's business as usual' side of things regarding Khan:

apache people would describe this as sharp and opportunistic business practices.  That doesn't make someone 'evil'. It means that you have to carefully consider how you do business with them.

In the words of a frequent poster on this site, "meh".

From my vantage point (behind my keyboard), he was a successful business person long before he floated into town;  He has put together a team that has pulled an absolute 180 with the perception of the jaguars franchise.; And the other moves Khan has made that I've read about, on the local scene and including those that are non-Jaguar specific, have had the look and feel of being genuine.   He has fronted money that, in many cases, the banks have or would decline.  The only ones that we continually read about in the [sarcasm]news[/sarcasm] are the deals that have gone sour:  Edgewood Bakery, KYN & (now) the Trio.  All 3 cases have one similar theme

Khan has pulled the plug and cut ties after non-performance. 


That doesn't seem 'sharp and opportunistic' as much as it seems common sense.  He's given a few people the rope they asked for; what they've done with it has been totally on them.

[Jax-Nole]

Why hasn't anyone brought up the fact that if the bank had supplied the loan, they would have foreclosed long before now? It has been two full years since the initial loan without a payment. Most banks would probably foreclose in a year or less. Clearly Shad Khan waited longer than most banks and now, after two years and no visible progress, he decided to collect his money back by foreclosing.

Just imagine being in Shad Khan's shoes here. What would you do here if you had given someone that much money and you haven't received even a penny back 2 years later? The answer should be pretty obvious.

[duvalbill]

It's hard to take you seriously when all you do is insinuate some alleged bad act that hasn't come to light in the Court proceeding, or from anyone else besides yourself.  But please, keep reminding everyone that you're privy to some information that no one else can confirm on the record.