RD River City Brewing restaurant proposed

[jaxlongtimer]

No surprise.  Watch Related come back with a project half the size and get the same total dollar incentives from the City.  Just like Khan got more dollars because "his costs rose."  All the risk is put back on the City and the City is putty in the hands of developers.

I am actually glad this project isn't going forward.  Never liked the building design, that it was on, effectively, public park property, and that it was too close to the edge of the river for its height.  So.... good riddance.  The City has held on to $10 million, interest free, for some time.  I say buy it back for the same $10 million, a bargain price, and grow our public access to the river, don't develop it.

Regarding Boyer, I expect if Cumber or Deegan get elected, an early move will be finding a new DIA head.  Boyer was great on the City Council but she is clearly in over her head in this patronage job.  Uncharacteristically, based on her prior history, she kowtowed to Curry which just dug the hole deeper.  DIA should be able to take the long view and be more independent of the whims of the mayor and City Council while being held more accountable for doling out taxpayer dollars to developers.

I expect other projects may die, too, like the Hardwick and the tower for the Landing property.  Only reason I don't include the Four Seasons is Khan has such deep pockets that he can plow through less favorable conditions plus he likely got such a sweetheart deal that it covers even stressed economics with no problem.

In sum, all this represents the continuing failures of the City to master plan a coherent vision for Downtown and to execute effectively.  Most importantly, it demonstrates our failing leadership, once again.

[Ken_FSU]

Lori Boyer isn't the right fit to lead the DIA.

I'm not making an argument either way about the DIA but wondering what your thoughts would be.

I you were in her position, how would you go about resolving the core Related project issue (project not being economically feasible) that appears to have killed it? More extensions? Additional city incentives?

My frustration is less with the project itself falling through, and more with Lori Boyer and the DIA cheerfully going along with the demolition of one of our few remaining riverfront restaurants years before the project was set to break ground.

It's a pattern of destruction and ineptitude we've seen time and time again from Lori Boyer - making near unilateral decisions, with real consequences to downtown vibrancy, based on her own shoddy hunches.

For the Related project, let's not forget that she was fine with letting Related develop the project with no restaurant whatsoever, citing her belief that the apartments might result in a random "fish camp" opening up nearby in an undisclosed location. Oliver Barakat is the one who went to bat for the inclusion of the restaurant. The DIA allowed the 77-year lease to be transferred to Related and River City to be torn down, with limited assurances from Related that the project would actually break ground.

For the Landing, Lori Boyer again definitively stated that if we knock down the Landing immediately and clear out those 30 businesses adding vibrancy to the CBD, the RFP would be much more attractive to private development. So, we rushed to tear down the Landing, got one response to the RFP, and years later, we're no closer to private development.

For the Landing Park, Lori Boyer picked the winning firm, by her own words, because of the "JAX" art installation. As soon as the public started bashing the statue, she claims that it might not even end up in the park, making a total mockery of the RFP process and invalidating the entire reason P+W was chosen to design the Landing Park.

Ford on Bay is on its 3rd RFP, and doesn't appear anywhere close to breaking ground. Despite claiming during the RFP process that she would favor a firm willing to get to work immediately, the timelines for this one stretch out years into the future as well, with substantial changes already being made to the winning bid.

Ditto Berkman 2.

Lori Boyer seems to have unilaterally decided that the site of our current jail is the best place for a convention center - a proclamation not backed by any formal study that's publicly available, and one that's going to add 20 years and a billion dollars to our convention center timeline.

She's allowed an illegal parking lot to operate on the old Greyhound bus site for several years under the ridiculous claim that a Miami developer is going to build an 80-story tower on the site. She doesn't seem to know what a master plan actually is, and remains steadfastly committed to this bloated 10,000-resident magic bullet.

The Friendship Fountain renovation project was supposed to be finished in 2021; the park remains roped off.

To your original question, projects fall through, developers back out, and incentive packages expire. That's fine on occasion. But if you're leading the charge for downtown revitalization in a major Top 40 city during a historic population boom, you've got to be able to close some of these deals, carry them through to construction in a timely fashion, and attract investment from outside of Jacksonville. And in four years, that just hasn't happened as much as it should have.

We're just spinning our wheels, particularly on the riverfront, while cities like Nashville, Atlanta, Tampa, and Orlando just keep building.

[Jax_Developer]

I am usually a viewer and not a contributor, but this deal just feels so wrong. The economics are there to develop Riverfront Multifamily & Retail spaces. The Southerly at Southbank is nearly 95% occupancy and was sold for over $300k per unit... not to mention this project was intended to be higher end, with a better location! Not to mention the slew of incentives...

I just can't wrap my head around how the economics are all of a sudden unviable. If anything these recent sales have set a really solid ground floor for pricing.. Southerly was sold during the higher interest environment so that's not a reliable copout.

I think a user earlier hit it on the head. The developer knew their terms sheet had the language to allow for this situation. A luxury brand can essentially wait on A+ prime land with now more leverage against the city?

Seems as though we are begging and pleading for these companies to build on sites with already existing strong economics. This is the Southbank... on the River...

[vicupstate]

No surprise.  Watch Related come back with a project half the size and get the same total dollar incentives from the City.  Just like Khan got more dollars because "his costs rose."  All the risk is put back on the City and the City is putty in the hands of developers.

I am actually glad this project isn't going forward.  Never liked the building design, that it was on, effectively, public park property, and that it was too close to the edge of the river for its height.  So.... good riddance.  The City has held on to $10 million, interest free, for some time.  I say buy it back for the same $10 million, a bargain price, and grow our public access to the river, don't develop it.

Regarding Boyer, I expect if Cumber or Deegan get elected, an early move will be finding a new DIA head.  Boyer was great on the City Council but she is clearly in over her head in this patronage job.  Uncharacteristically, based on her prior history, she kowtowed to Curry which just dug the hole deeper.  DIA should be able to take the long view and be more independent of the whims of the mayor and City Council while being held more accountable for doling out taxpayer dollars to developers.

I expect other projects may die, too, like the Hardwick and the tower for the Landing property.  Only reason I don't include the Four Seasons is Khan has such deep pockets that he can plow through less favorable conditions plus he likely got such a sweetheart deal that it covers even stressed economics with no problem.

In sum, all this represents the continuing failures of the City to master plan a coherent vision for Downtown and to execute effectively.  Most importantly, it demonstrates our failing leadership, once again.

Agree 200%.  The DIA is not and never will be 'independent' in any sense.  It is 100% an arm of the city and unlike most cities, JAX has a Strong Mayor form of government that exceeds the power invested in the mayor's office in nearly any city. 

If Curry wanted the Landing gone, there was no way the DIA was not going to advocate for that. For years I have advocated for a non-profit organization to represent DT businesses, residents and property owners be formed.     

[Ken_FSU]

^Preach. Totally agree.

For this Related project in particular, the mayor's office badly undercut the DIA from the get-go. While Related and the DIA were negotiating the project with the understanding that MOSH was building their museum of the future adjacent the proposed residential development, the mayor's office was secretly planning to pay MOSH $20 million to move across the river to Khan-land. DIA seemed fairly blindsided when the MOSH news broke.

[vicupstate]

Honestly, the city should concentrate on the true Northbank core and just forget about the riverfront sites for the next 8-10 years. Once the area between State/Union and Bay are revived, the riverfront sites will command top dollar and top flight projects. But everyone knows the NB core is a dead zone.  DIA needs to concentrate on getting more projects done within 4-5 blocks of Hemming Plaza (including First Baptist). JWB and others are already investing there. Get the two way streets done and work on the smaller buildings to infill between the big ones (Old Federal Reserve, Old Independent Life, Ambassador Hotel, etc.)   

[heights unknown]

Lori Boyer isn't the right fit to lead the DIA.

I mean that with no disrespect toward her personally, and recognize that she's done some good blocking and tackling with beefing up the historic preservation fund.

She just doesn't operate with any urgency, and the vast majority of her high-profile RFPs have gone up in flames. Private development at critically important Landing, Ford on Bay, Berkman II, Laura Street Trio, and Related sites is YEARS away. She has supported the rushed demolition of active riverfront businesses at the Landing and River City and allowed these properties to sit vacant for YEARS and is toothless when a developer illegally tore down the old Greyhound station to replace it with a parking lot. She's working on a Convention Center plan in a vacuum that necessitates a billion dollar jail relocation before a dime is spent on the CC. Public projects at Friendship Park and the Times-Union Center have dragged on for YEARS. The retail corridor program has brought almost no new business to the CBD. There's still no true master plan.

Despite Florida absolutely booming since the pandemic, the only substantial investment in downtown Jax under her watch has come from local developers like VyStar, Corner Lot, JWB, Vestcor, and Iguana.

Keep her in the DIA to work on legislation and to green stamp 75% REV grants after 12 months of glacial negotiations if you want, but this job demands someone with a proven track record of revitalizing major urban areas elsewhere in America. Depressing to think what the guy from Kansas City could have done had we gone thought big instead of small when filling the position.

I agree wholeheartedly. I'm beginning not to like Lori Boyer and/or the DIA.

[Captain Zissou]

I expect other projects may die, too, like the Hardwick and the tower for the Landing property.

The Landing tower is already dead, but that was obvious from the get go.  The per unit cost was way too high for that to work in Jacksonville.  It's not going forward as apartments, but will hopefully come back as a hotel or other use.

[Ken_FSU]

I agree wholeheartedly. I'm beginning not to like Lori Boyer and/or the DIA.

I don't dislike her at all.

I quite like her personally, and I think she's a good asset for the DIA to have for some of that work in the Northbank core that Vic is referencing.

But in terms of leading the downtown charge and helping Jacksonville finally fulfill its potential, especially on the riverfront, I think we need someone with an actionable, efficient vision, a proven track record of turning a major metro's downtown around, and a rolodex (e.g. iPhone) full of national and international investors and developers on speed dial. To use a Jags reference, we need a Howie Roseman, not a Gene Smith.

We can't afford to spin our wheels for another ten years.

As a Dad, it's depressing to think that 9 years ago, I thought to myself, "I can't wait to enjoy the downtown riverfront with my daughter when she's 8 or 9." Nearly a decade later, I'll be lucky if we activate our riverfront by the time she leaves for college. These are the real-world consequences to citizens as we watch demolition after demolition and failed RFP after failed RFP. Definition of insanity is for this DIA to keep doing what they're doing.

Brooklyn's doing just fine. San Marco's doing just fine. Riverside is doing just fine. The Town Center is doing just fine. The Beaches are doing just fine. The ex-urbs are doing just fine. Meanwhile, action on our riverfront has just dragged on for years and years and years with nothing vertical to show for it except 80 acres of brownfields and some conceptual plans to build a whole lot of low-cost parks for quarters on the dollars.

[heights unknown]

"To your original question, projects fall through, developers back out, and incentive packages expire. That's fine on occasion. But if you're leading the charge for downtown revitalization in a major Top 40 city during a historic population boom, you've got to be able to close some of these deals, carry them through to construction in a timely fashion, and attract investment from outside of Jacksonville. And in four years, that just hasn't happened as much as it should have.

We're just spinning our wheels, particularly on the riverfront, while cities like Nashville, Atlanta, Tampa, and Orlando just keep building."

SHE'S IN OVER HER HEAD AND IT APPEARS THAT SHE HAS LITTLE TO NO VISION LET ALONE POOR ORGANIZATIONAL AND MANAGEMENT SKILLS FOR A TOP 40 MAJOR CITY WHICH IS BOOMING IN POPULATION. SHE NEEDS TO BE LET GO.

[Steve]

Yea, clearly we're not learning here. don't demolish something until the developer is truly breaking ground.

Look, RCBC wasn't some award-winning restaurant. But it's more vibrant than what's there now.

I don't mind the development fell through - let's be real, this development wasn't transformative. But it's an example that we just can't seem to learn.

[vicupstate]

I expect other projects may die, too, like the Hardwick and the tower for the Landing property.

The Landing tower is already dead, but that was obvious from the get go.  The per unit cost was way too high for that to work in Jacksonville.  It's not going forward as apartments, but will hopefully come back as a hotel or other use.

I never thought that project would work, but has it officially been canceled?  I don't remember that.

[JaGoaT]

A BIGGER AND BETTER OPPORTUNITY IS ABOUT TO PRESENT ITSELF

Really now? Do you know something that we don't? So.......why don't you NOT TELL US ABOUT IT.

[jaxlongtimer]

So Boyer says a better project could result from this deal failure.  If so, why didn't DIA insist on the "better project" to begin with?  She is basically admitting they approved a lesser quality project just to get something through.  Another example of the City having no backbone to insist on high quality profile projects for Downtown (or anywhere else for that matter).  Development for the sake of development.

More details in this article...

A subsidiary of Related Group will remain in control of the former city-owned Southbank site of River City Brewing Co. after the Downtown Investment Authority canceled a deal with the Miami-based developer to build a 326-unit apartment.

Related acquired the 3.02-acre property from the city in August 2021 when it bought the restaurant's leasehold for $10 million.

DIA CEO Lori Boyer notified Related executives in a letter Jan. 11 that it was terminating its redevelopment agreement for failing to meet performance benchmarks in the deal.

City Council approved the deal in May 2021

Boyer said Jan. 26 said it was "premature" for the city and DIA to exercise the option in the redevelopment agreement to repurchase the site from Related Group, which she said would cost the city nearly $11 million.

According to Boyer, Related recently informed DIA that it is redesigning the project and could consider building a high-rise residential complex instead.

She said he expects the new project to be submitted to DIA in spring 2023.

"I think we should look at their new plans first," Boyer said.

"We're disappointed that this particular project didn't get off the ground before interest rates were higher, but ultimately it could be a win," Boyer said.

"We could end up with a better project."

The city's $18.27 million redevelopment agreement with the Related subsidiary did not automatically return ownership of the land to the city if the site was not developed, but it does allow the city to repurchase it.

Boyer said that would include Related's $10 million cost for the leasehold buyout plus the value of the city's remaining interest in the land when it was acquired by the developer.

River City Brewing Co.'s parent company, Maritime Concepts LLC, completed the $10 million transaction with Related in August 2021 to buy out the restaurant's leasehold with the city on a 3.34-acre property.

The developer bought the remaining 76 years of a 99-year land lease with the city from Maritime Concepts.

Related deeded back nearly 0.33-acre of the original restaurant site to the city to increase the size of St. Johns River Park and the Southbank Riverwalk that runs adjacent to the property.

With the deal canceled, Related will not receive the $12.99 million property tax refund or the $1 million in project completion grants for a proposed park-front restaurant and site infrastructure work.

The remaining money in the agreement was for improvements to the 29-slip public marina; increased maintenance on the adjacent park; and the city lease revenue loss. Those were considered incentives to build the apartment complex.

Plans called for an eight-story apartment building, a 511-space attached parking garage and a park-front restaurant.

Related and the city executed the development agreement in June 2021.

Boyer said she asked Related whether it intended to put the property back on the market.

"They said no. They have way too much invested in it," she said.

A representative for Related did not immediately return requests for comment Jan. 26 on the contract cancellation or the company's plans for the property.

Related Group contracted Jacksonville-based ELEV8 to demolish the two-story River City Brewing Co. restaurant building for $110,000 completed in late 2022.

The developer had also started the city's permitting process to build the mid-rise apartment building and had received final design approval from the Downtown Development Review Board.

Boyer's letter to Related Development LLC Vice President Jeffery Robbins and RD River City Brewery LLC President Steve Patterson said the DIA supported the company's desire to redesign the project.

The letter said the existing apartment plan is not financially viable in the current economic market.

"Following my agreement to several extensions to the Performance Schedule, we both acknowledged that the Performance Schedule would neither be met as required, nor could it be within a reasonable cure period since due to changes in market conditions the current project is not economically feasible in the immediate future."

As to the economic viability of a residential or mixed-use tower on the property, Boyer said adding more units to the site could allow Related to control its cost per unit.

Boyer said "she didn't want to guess" on what the city's timeline or strategy would be to repurchase the property if it sits idle.

"If all the other developments on the riverfront are moving forward and getting financing, then there is no reason this project shouldn't be moving forward," she said.

River City Brewing Co. co-owners Anthony Candelino and Eugene Van closed the restaurant July 18, 2021, after operating the business for 27 years.

Related was founded in 1979 by Chairman and CEO Jorge M. Perez. The development company's focus is Southeast Florida with an emphasis on luxury high-rise condominiums.

The company lost a bid in February 2020 to redevelop the former Jacksonville City Hall and Duval County Courthouse site on the Downtown Northbank that now is under contract for development by Atlanta-based Carter.

https://www.jaxdailyrecord.com/news/2023/jan/26/dia-ceo-related-group-not-planning-to-sell-river-city-brewing-site-despite-canceled-deal/

[thelakelander]

I wouldn't get my hopes up too high with this one. Any outcome of something advancing to construction in the near term (i.e. by 2024) on this site is highly unlikely. Related has no good reason to sell the property and reworking a plan means starting the process over when it comes to financing, DDRB, permitting, negotiating incentives, etc.