By 2005, when the coin flips for Super Bowl XXXIX in
Jacksonville, some of the area surrounding Alltel Stadium might look a lot more
like Boston or San Francisco than the River City.
Specifically, if the ambitious plans become a reality, the new look will be
found on the Northbank of the St. Johns River, currently vacant lots that were
once home to the Jacksonville Shipyards.
Developers envision marinas and piers with boat slips, providing new slots
for dozens of private boat owners. And loft-style homes, occupied by young
families and the thousands of newcomers expected to move to Florida. And to top
it off, plans are in the works for a massive park, sprinkled with imposing Oak
trees and a jogging path alongside the St. Johns River.
The $860 million project -- aided by up to $75 million in city support,
approved for the first time yesterday -- is the most expensive private
development ever attempted in the city.
"This is a key growth development project," said Paul Krutko, senior director
of the Jacksonville Economic Development Commission. "We are developing one of
the highest quality areas you will see in the United States over the next
decade."
But before the first boat docks, the project has several financial,
logistical and regulatory hurdles, including a lengthy approval process and
potential environmental issues.
Totaling 45 acres, the project -- that for now retains the Shipyards name --
will be built between Berkman Plaza and Metropolitan Park, in the old
Jacksonville Shipyards property, and will go up in three phases. By 2010,
developers and city officials expect to have a trio of condominiums and homes, 1
million square feet of office space, a 350 room-hotel, 100,000 square feet of
retail space, almost 4,000 parking spaces and a 16.8-acre riverfront park.
Roughly 60 percent of the project, from lawns to the piers, will be public
property.
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More downtown
development
Another downtown riverfront project, the $41 million Assembly Lofts at
Commodore Point is seeking a $9 million cash infusion from the city.
Some of the details
The redevelopment of the Jacksonville Shipyards is expected to be done
through three phases, with work beginning by the end of 2001 and running until
2010. The project still needs to be approved by the Jacksonville Economic
Development Commission and the City Council.
Phase I: $121.7 million: This part is designed mostly around the construction
of 16.8-acre public park, and the entire phase is expected to be completed the
month before Super Bowl XXXIX, is played in Jacksonville in 2005. This phase
includes 72 condominium lofts, 150 boat slips and an 8,000-foot extension of the
Northbank Riverwalk.
Phase II: $554.9 million: The most expensive part of the project. It is
scheduled to be worked on from 2003 to 2008, and includes a trio of high-rise
condominium towers, 58 townhouses and 910,000 square feet of office space.
Phase III: $105.8 million: The highlight of this phase, scheduled to take
place from 2008 to 2010, is a 350-room hotel. Phase also includes about 90,000
square feet of office space and 50,000 square feet of retail space.
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"This is a monumental development," Jacksonville Mayor John Delaney said.
"Let's face it, this is a world-class opportunity. How many cities are there
three-quarters of a billion-dollar developments ... in which two-thirds of the
land is public?"
Developers hope to begin construction on the first phase of the project later
this year.
And city officials consider the Shipyards project to be the final piece of
redevelopment in that area, that stretches from the Main Street bridge through
the shipyards, and includes the recentlyd Adams Mark Hotel and the pending
Berkman Plaza condominium project. Delaney called it the "billion-dollar mile,"
comparing it to the 1980s, which was known as the million-dollar decade in
Jacksonville because of other re-development projects.
A long list of approvals and signatures is needed for the project to get off
the ground. It picked up its first win yesterday when the Downtown Development
Authority, a five-member panel, unanimously approved the project, including the
public assistance. It still needs approval from the DDA's parent group, the
JEDC, as well as City Council and a host of other regulatory agencies.
Mike Weinstein, executive director of the JEDC, said this deal is good for
both the developers of the project -- TriLegacy Group, an arm of several local
businesses run by Jacksonville's Spence family -- and the city. If it's
successful, then both sides win. If it fails, the city will not be left hanging
financially, Weinstein said, because only money from the tax increment created
by the improvements to the land would be used in the city's contribution.
The incentives will be divided up throughout the early life of the project.
Roughly $40 million in bonds will be provided during the first phase, and it
will be used to help pay for park construction and pier improvements. The
remaining $35 million will be provided through a grant in tax rebates, paid out
over 20 years.
"The real answer is, if we don't build," said Ham Traylor, chief financial
officer of TriLegacy Group, "we don't make any money out of the project."
According to the JEDC, the project is expected to create $502 million in
property taxes over its first 30 years, including $213 million to the public
school system and $260 million to Duval County.
Beyond issues of money and approvals, there are other hurdles, most notably
its location: The Jacksonville Shipyards, where workers once built vessels for
both world wars, has been inactive for about 10 years, and that inactivity has
brought environmental concerns.
The company has spent about $500,000 on remedying environmental contamination
at the site, Traylor said. Two environmental "hot spots" had to be fixed, and
more problems are bound to pop up. But the property has shown less environmental
problems than feared, he said.
Jeff Spence, president and CEO of TriLegacy, said all the concerns will be
secondary after the project is completed.
"We are pleased to be part of the new downtown," Spence said in a statement.
"We live, work and raise our families here, and we're thrilled to be building
this legacy."
Times-Union staff writer David DeCamp contributed to this report.
