JACKSONVILLE, Fla. – Done for good.
The Laura Street Trio development group cited a “lack of communication and respect” during the failed negotiations with the city of Jacksonville on Wednesday.
The city said it is ending negotiations with the developer of the Laura Street Trio, which means redeveloping that area does not have a path forward for the time being.
A city representative told News4JAX Tuesday that the city is planning to refile a foreclosure lawsuit against the owner of the Trio and the development group.
Mayor Donna Deegan expressed her disappointment in the failed negotiations.
Deegan’s Chief of Staff, Mike Weinstein, worked on the negotiations with the development group and a number of other key players. Weinstein, too, expressed disappointment over the outcome.
“We really wanted to do it,” Weinstein said. “I don’t like not succeeding in an effort, but it’s just asking too much at this time.”
Weinstein said a number of factors made a deal challenging including apartment rental rates, hotel rates, and the task of renovating older buildings that have sat vacant for a number of years. Weinstein said a large chunk of city money was needed to make a deal work.
“Each time, it‘s gotten more and more expensive,” Weinstein said. “If you look at the numbers from where it started, it’s 40, 50 million more than it was when it started. It’s just too much of a risk. It’s not our money, it’s taxpayers’ money. So, the numbers have to be really meaningful and attractive as an investment.”
The same lawsuit was dropped in September when it seemed like the sides would be able to figure something out and continue with the project. But once again, things fell apart.
The city released a document that shows the conditions agreed to in principle by the city and the Trio development team to restart negotiations in September.
That foreclosure lawsuit originally filed in August before being dismissed says SouthEast Development Group owes the city $800,000 in unpaid fines for municipal code violations.
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Both sides accused each other of negotiating in bad faith.
The city dropped the lawsuit after a different Jacksonville contracting firm joined in on negotiations, which sparked the possibility that a deal could be reached.
Steve Atkins bought the three buildings in 2013 with hopes of redeveloping the long-neglected properties.
The plans included a four-star hotel, close to 170 apartments, a restaurant, a bar, and other entertainment spaces.
The proposed plan would have cost more than $188 million and the expectation was that it could have been completed within two years.
The city released a document that outlines the approvals for the development made over the years.
The trio of buildings are the First National Bank Building, the Bisbee Building and the Florida Life Building.
They were all built between 1902 and 1912 and are among some of the last unrestored structures built during the years immediately following the 1901 fire that destroyed much of downtown Jacksonville.
Steve Atkins and the SouthEast Development Group released a statement after the negotiations ended that reads in part:
Our team has remained fully committed to moving this critical project forward, even bringing on a new equity partner at the Administration’s request just three months ago to align with evolving market demands. Multiple offers presented to the city have included creative financing structures that significantly pushed the timing of public investments to the end of the project schedule and future city budget periods, along with increased revenues from hospitality bed taxes and unabated ad valorem taxes being paid to the city. Over the last eight weeks however, only one in-person meeting was held with the Downtown Investment Authority (DIA) leadership to discuss the project’s progress. After weeks of waiting, the Administration’s response yesterday was not a courtesy call or constructive feedback, but rather a 30-second notice to SouthEast Development counsel that the City would refile its lawsuit against the property. Following this, the Administration issued a public statement to the press without prior notice to our team.
Steve Atkins, SouthEast Development Group
Atkins cited a “lack of communication and respect” toward developers, builders, and partners.
He said they’re working with the city council on a formal agreement and legislation by the end of the year.
Atkins said City Council Vice President Kevin Carrico has been given the materials presented to the city and is outlining a term sheet for further discussions. In a press release, Carrico expressed disappointment over the administration’s decision to stop negotiations. The release went on to explain that at the request of the Administration, it had been requested that he “take a step back” over the past eight weeks, hoping Weinstein would secure a constructive outcome.
“This lack of responsiveness shows a troubling lack of commitment to preserving our city’s historic sites,” Carrico said in the statement. “By refusing to set aside the looming threat of a lawsuit, the administration is jeopardizing the project and leaving our historic buildings at risk of further deterioration. A lawsuit should not be weaponized to undermine efforts; rather, it should be waived as part of any city incentive aimed at preserving these landmarks.”
“We look forward to collaborating closely with the Jacksonville City Council and the Special Committee on the Future of Downtown to ensure the success of this transformative project,” Atkins said. “Together, we can bring new life to the Laura Street Trio and honor its legacy at the epicenter of Downtown Jacksonville.”
Read the full statement from Atkins and SouthEast Development Group below.
The Mayor‘s Office responded to Carrico’s statement.
It’s simply inaccurate to imply a lack of engagement. As Vice President Carrico well knows, city negotiators met multiple times with the Trio developer and his lobbying team over the past few months. As outlined in our detailed summary, we considered many different deals during that time. However, every time the developer and his lobbyist moved the goal posts the city’s financial contribution and risk exposure kept increasing. Furthermore, the developer broke the terms of agreement that were in place for the city to remove its lawsuit.”
Carrico went on to say the Special Committee on the Future of Downtown would meet Monday, November 25th, at 10:00 a.m. to discuss deal points and seek a resolution.
