City will seek Proposals for Shipyards + Met Park Combined Development

[KenFSU]

We discussed this briefly when word broke of the new RFP a week or two back, but it looks like the DIA will be formally voting tomorrow on issuing a new RFP for what basically amounts to development of the entire riverfront stretching from Berkman II east. Details below, courtesy the T-U. Curious what you guys think results of this. Is the RFP a mere formality necessary to allow Khan to develop Met Park? Who else possibly bites when a) Shipyards remediation cost remains unknown, b) Hart Bridge ramp situation remains unknown, c) the legality of development at Met Park hasn't been vetted. Does Khan even want the entire riverfront?

City will seek proposals for bringing development to Met Park

The city of Jacksonville will combine Metropolitan Park and The Shipyards into a huge chunk of valuable riverfront that master developers can take a shot at winning the right to shape.

The Downtown Investment Authority is scheduled to vote Wednesday on authorizing staff to issue requests for proposals.

It would be the city's first step toward opening Metropolitan Park to full-bore development. However, the city still must get the National Park Service's blessing for converting the park into something other than an outdoor recreational area.

Mayor Lenny Curry and Jacksonville Jaguars owner Shad Khan have been in serious talks about Met Park. It is located directly across Gator Bowl Boulevard from Daily's Place, the new amphitheater and indoor "flex field" being built in a partnership between the city and Khan.

Khan has said he is interested in continuing that development toward the river.

In 2015, the Downtown Investment Authority selected Iguana Investments LLC, which is controlled by Khan, as the top choice for developing The Shipyards, which past developers tried and failed to get off the ground. The city never finalized negotiations with Iguana Investments.

The Downtown Investment Authority board will vote Wednesday on terminating the selection of Iguana Investments for The Shipyards. Along with that termination, the board will add Met Park to the Shipyards and open a new round of applications from developers.

The Shipyards covers 46 acres when counting both uplands and river-submerged property. About 30 acres of the Shipyards is on land. Met Park is roughly 27 acres. Curry has touted it as a transformational area for downtown.

While the combined properties bring a big chunk of riverfront into play, both properties have challenges for development.

A $1.7 million federal grant awarded in the early 1980s for Metropolitan Park requires the park to be used for public, outdoor recreation unless the National Park Service agrees to shift that requirement to other property that has comparable value.

The Shipyards suffers from environmental contamination from when the property was an actual shipyard. The city has $13 million set aside for cleaning up the contamination, but it's not clear that would be enough money to do the job.

In addition, Curry has said he wants to tear down a portion of the Hart Bridge Expressway that runs past Met Park and a portion of The Shipyards. He is asking state lawmakers to provide $50 million for demolition, construction of new ramps to the remaining elevated portion of the expressway system and to the Hart Bridge, and work on improvements to Gator Bowl Boulevard and Bay Street.

The Downtown Investment Authority will rank applicants for The Shipyards/Met Park venture based on experience and qualifications, redevelopment vision, and financial capacity.

The city will give developers at least 30 days to respond to the request for proposals. The Downtown Investment Authority will select a top-ranked choice and then enter into negotiations for an agreement.

[Westside Guy]

Seems like an awful large tract of land for just one RFP.  I think we would be better off keeping the two properties separate.  Let Khan have Met Park since he seems to be more interested in that property, but keep the Shipyards in case the NPS is not willing to budge on the public waterfront space or let someone else develop it.  I love Shad Khan and all that he has done for this city, but trying to develop both properties at once would be a lot of anyone and it would take years to do in phases.  We need to strike while the iron is hot downtown, so let's keep them separate and see if we can't get another developer to bite on the Shipyards, or parcel it out like has been suggested on this site many times before.

[KenFSU]

^I agree, it's a lot of land for a single RFP.

Did see this quote from the Times-Union last month, which leads me to believe that Khan could potentially make a play for the entire strip:

Mayor Lenny Curry is in talks with Jacksonville Jaguars owner Shad Khan about developing a long stretch of valuable, city-owned land that encompasses Metropolitan Park and The Shipyards, two tracts that haven't lived up to their potential for pumping activity into downtown.

"I will tell you everything is on the table and we are in discussions with Shad Khan and his organization about how to get the whole entire area developed, which could include some new use for Met Park," Curry said.

[Tacachale]

Seems like a similar situation to the last time the Shipyards was put up for bid, when the RFP was written with Khan's project in mind. The difference is that it's now apparently Metro Park rather than the Shipyards proper that's targeted for development, with the Shipyards replacing Metro Park as park space.

Nothing will ever happen at Metro Park without a land swap (if anything happens there at all). However, the better state of Metro Park for development compared to the Shipyards may mean we'll see some additional interesting bids.

[KenFSU]

Seems a little draconian, no? Being at the mercy of an ill-advised $1.4 million grant that was made 35 years ago? I understand the intent, but things can change a lot over the decades. If it was me, I'd petition hard for obsolescence before being bound to an acreage swap. Don't get me wrong, I'd still want an urban park as part of the Shipyards, but I also wouldn't want to keep playing hot potato every few decades when land use patterns or economic realities shift.

[spuwho]

"Khan's not buying, he's selling" ooops, I mean Potter.


https://www.youtube.com/v/OQEWVDZme4A?t=1m15s

[Tacachale]

Seems a little draconian, no? Being at the mercy of an ill-advised $1.4 million grant that was made 35 years ago? I understand the intent, but things can change a lot over the decades. If it was me, I'd petition hard for obsolescence before being bound to an acreage swap. Don't get me wrong, I'd still want an urban park as part of the Shipyards, but I also wouldn't want to keep playing hot potato every few decades when land use patterns or economic realities shift.

NPS has no incentive to go along with any plan that doesn't involve a land swap, and they control Metro Park. One of the reasons the amphitheater plan of the 1990s failed was because they didn't want to accept the city's exchange out in the county (which was for a lot more land than Metro Park proper). I think it would be better to have (more) land out saved farther out and develop Metro Park, but such negotiations are complicated.

[vicupstate]

Yeah, it is a shame all these strings are attached to Met Park when the city only got $1.7mm in the first place. Albeit that was a lot more money in the 80's than it is now.

This looks like a mere formality to me. Khan will be the only bidder or the only legit one, and he will be awarded the winner. 

It will be interesting to see how he proposes to fill all that land and what he is expecting from the city. AT this point we know a Hotel is involved. I can't imagine it would be less than 200 rooms to be worthwhile.  That is a significant addition to a tepid market.   

[MusicMan]

Where is the RFP posted? Any place outside of Jacksonville? New York Times, Chicago Tribune, Miami Herald?  Are they truly reaching out to all potential developers or is this a case of trying to keep it local?  If your job is to put this RFP in front of as many interested partners as possible and you get one meaningful proposal, did you fail?

[KenFSU]

DIA signed off on the new RFP this afternoon.

Bidding will be open from Jan 4th to March 20th.

Sounds like proposals will need to include enough public space to offset the closure of Metro Park.

http://www.bizjournals.com/jacksonville/news/2016/12/14/the-shipyards-met-park-redevelopment-plans-finally.html

[Keith-N-Jax]

Great news, lets hope for some awesome proposals that actually get done.

[vicupstate]

So I guess we won't know Shad's plans until at least March now? With 18 months of negotiations afterwards?

[Keith-N-Jax]

Better than 10yrs I guess

[Jax-Nole]

So I guess we won't know Shad's plans until at least March now? With 18 months of negotiations afterwards?

We knew his original plans for the Shipyards before the last RFP went out. It will likely be announced during the State of the Franchise presentation. That though is anything but a sure date. The last 3 starting with this year have been January 29th, May 13th, and February 17th. It's anyone's guess when they hold it this year. Likely after they hire a new coach.

[RattlerGator]

And I *highly* doubt the National Park Service is going to be any problem whatsoever on this project. The times, they are a-changing.