Laura Street Trio in Trouble? Updated status of six key Downtown projects

[Tacachale]

I don't think the Trio is a matter of money. It's a matter of whether we can be sure the investment will pay off. This means that we have to be sure the proponents really can and will pull it off. We don't want to be in the position of putting $8 million into the project only to have it fail. It's an important project, but we've heard a lot of announcements for the last 4 years and still no movement.

I hear you.  And honestly, I'm skeptical, and this is also my own line of work, but I do believe that if priorities were on fixing downtown, there would be some acknowledgment that some money in the beginning is going to go down the drain.  DT Jax absolutely relies on public subsidy, and that notion.  It's so far gone no amount of private sector interest alone is going to bring it back.

But aren't the Jags kind of a sunk cost, and particularly unnecessary as they are so well capitalized as it is?  It's really a double standard.

One big difference is that Khan's obviously good for his part of the stadium district deal. If it gets approved we can expect it to happen. It sucks but I'm not sure that can be said about the Trio's owners.

[ProjectMaximus]

^unless Khan becomes the Trio's owner. 

[Captain Zissou]

I just looked at the Barnett's website, it has a proposed layout consisting of:

Floor 3: Classrooms
Floor 4: Office
Floors 5-6: Co-work Jax
Floor 7: Kyn
Floor 8: One Spark
Floors 9-16: Apartments
Floor 17: Office Space
Floor 18: Conference and collaboration space

I hope this is out of date, but if not, it sounds very suspect to me.  Kyn and One Spark have pretty spotted track records and I doubt they would inspire confidence with financiers. 

[edjax]

I just looked at the Barnett's website, it has a proposed layout consisting of:

Floor 3: Classrooms
Floor 4: Office
Floors 5-6: Co-work Jax
Floor 7: Kyn
Floor 8: One Spark
Floors 9-16: Apartments
Floor 17: Office Space
Floor 18: Conference and collaboration space

I hope this is out of date, but if not, it sounds very suspect to me.  Kyn and One Spark have pretty spotted track records and I doubt they would inspire confidence with financiers.

Pretty sure that was based upon his last and best great announcement. I am not sure if that was the one 6 months ago, 1 year, 18 months, 2 years or 4 years ago. ............ Does Kyn even exist any more?

[Captain Zissou]

Pretty sure that was based upon his last and best great announcement. I am not sure if that was the one 6 months ago, 1 year, 18 months, 2 years or 4 years ago. ............ Does Kyn even exist any more?

I didn't think so, but I wasn't sure if this was going to be the dramatic resurgence of the hipster business incubator we all love.

[simms3]

Well the simple fact that they have apparently already designated the office space to go to local non-profits with recent shaky histories and backing is a major faux pas.  It implies they already have a rent in mind that these lessees will pay, rather than designating some space as commercial space and marketing the space through traditional means to get the best tenants/terms/credit available.  I would expect a launch to already include a broker from a legitimate office in Jax, and to include a link to a flyer, if there were anything serious about the proposal.  Clearly you have a 1-2 man shop with an idea and limited web development skills, and that's about it.

So yea, right off the bat the whole business plan is amateur hour at best.  Also, sandwiching residential in between floors of commercial?  Amateur hour at best there, too.  Creating stacks in a building that small, with a mix of uses, will be quite a challenge.  Clearly they have not spoken to anyone who has done this before, or any architects or engineers.  But they do have a web design guy who can create a very very basic website using a cheap domain host (the website doesn't even work for me).

Yea, nothing about any of these plans is confidence boosting.  But I wish the city would signal that they would be serious about being a partner in these rehabs to attract someone who is a little more serious/experienced.  Right now, the best we can get are some local guys with some basic experience in small projects and a lot of hope that somehow something will happen for them (I mean truth be told, I know college students who can actually get something done here...I know people who have < 22 years of age done stuff of this magnitude).  There's no leadership from the city that screams: anyone with experience and deeper pockets, please come help us and we will help you!

[Non-RedNeck Westsider]

To find out more.... 

http://barnett-trio.com/

[jaxlore]

http://jacksonville.com/business/real-estate/2015-11-10/story/laura-street-trio-developer-has-new-partner-wants-8-million

Atkins said some tenants for the buildings remain the same: A 131-room Courtyard by Marriott hotel in the Bisbee and Florida Life buildings topped with a rooftop bar and the Bullbriar restaurant in the Marble Bank Building.

While the plans for the Barnett National Building once included the offices of One Spark, CoWork Jax and KYN, Atkins said a major financial institution will take the first two floors. But that company wants to make the announcement itself, he said.

CenterState Bank has agreed to put a branch on the first floor, but is not the major tenant. Vagabond Coffee has committed to a coffee shop in the lobby.

Floors three-seven would be commercial space, and 110 apartments would take the top 11 floors.

[CCMjax]

Make a deal with Khan and do the stadium projects at the same time as the Trio!!!!!  As I said before, and Simms reiterated, the Trio is peanuts compared to the city's investments at the stadium, both already done and yet to be done.  Find a way to roll them into one.  Somehow get Khan involved with both the stadium and the Trio.  The Barnett can wait, since what occupies it eventually seems in flux and since it currently kind of looks occupied so it's not such an embarrassment.  The appearance of the Trio on the other hand just screams out "this city can't get its act together!"  And the uses and tenants seem more realistic and reliable.

The Trio is not going to a gigantic financial success, it will most likely lose money, but it is a necessary project for the betterment of the city and one that the city needs to help out on.  Consider it required maintenance just like a road.

[Tacachale]

God, I'm rooting for this, but this line...:

http://jacksonville.com/business/real-estate/2015-11-10/story/laura-street-trio-developer-has-new-partner-wants-8-million

SouthEast and Molasky will invest $20 million in equity into the project, Atkins said. Another $9 million would come from tax credits. U.S. Bank has provided term sheets for $40 million that it would lend the project.

That leaves $8 million coming from the city.

That means the $8 million from the city would be in addition to tax credits, meaning $17 million total.

[simms3]

God, I'm rooting for this, but this line...:

http://jacksonville.com/business/real-estate/2015-11-10/story/laura-street-trio-developer-has-new-partner-wants-8-million

SouthEast and Molasky will invest $20 million in equity into the project, Atkins said. Another $9 million would come from tax credits. U.S. Bank has provided term sheets for $40 million that it would lend the project.

That leaves $8 million coming from the city.

That means the $8 million from the city would be in addition to tax credits, meaning $17 million total.

Good let's do it.  US Bank underwrote this deal, so the city should sign off just based on the competency that is now providing additional backing.

[simms3]

Make a deal with Khan and do the stadium projects at the same time as the Trio!!!!!  As I said before, and Simms reiterated, the Trio is peanuts compared to the city's investments at the stadium, both already done and yet to be done.  Find a way to roll them into one.  Somehow get Khan involved with both the stadium and the Trio.  The Barnett can wait, since what occupies it eventually seems in flux and since it currently kind of looks occupied so it's not such an embarrassment.  The appearance of the Trio on the other hand just screams out "this city can't get its act together!"  And the uses and tenants seem more realistic and reliable.

The Trio is not going to a gigantic financial success, it will most likely lose money, but it is a necessary project for the betterment of the city and one that the city needs to help out on.  Consider it required maintenance just like a road.

Credits/city loans can be assumed and paid off with interest, not losing the city any money and allowing developers/new buyers to still make the returns they need to pencil out the project.  I think it's safe to say it sounds like we're in a good place for all parties here at this point.

[simms3]

http://jacksonville.com/business/real-estate/2015-11-10/story/laura-street-trio-developer-has-new-partner-wants-8-million

Atkins said some tenants for the buildings remain the same: A 131-room Courtyard by Marriott hotel in the Bisbee and Florida Life buildings topped with a rooftop bar and the Bullbriar restaurant in the Marble Bank Building.

While the plans for the Barnett National Building once included the offices of One Spark, CoWork Jax and KYN, Atkins said a major financial institution will take the first two floors. But that company wants to make the announcement itself, he said.

CenterState Bank has agreed to put a branch on the first floor, but is not the major tenant. Vagabond Coffee has committed to a coffee shop in the lobby.

Floors three-seven would be commercial space, and 110 apartments would take the top 11 floors.

Well this solves all the amateur hour stuff brought up less than an hour ago.  No more sandwiching uses.  Sounds like a credit tenant in the office space is already signed on.  The news coming out today is the best I've ever heard for either project.  Congrats team working on this.

[thelakelander]

"We couldn't get anything done with the last administration," Atkins said. "But we're looking at this as a new day."

Interesting. I wonder why they could not get anything done with the last administration?

[ronchamblin]

I like this .. from CCMjax.

"The Trio is not going to a gigantic financial success, it will most likely lose money, but it is a necessary project for the betterment of the city and one that the city needs to help out on.  Consider it required maintenance just like a road."