Plans are under way to spend $900 million to convert the former Jacksonville
Shipyard site near Alltel Stadium into park space, homes, boat slips, offices,
not to mention a little retail space, over the next 10 to 12 years.
"What we are essentially proposing is two development plans that have to
coexist," said Ham Traylor, general counsel and chief financial officer of ICS
Logistics, the flagship company of the Spence family of Jacksonville.
The family is spearheading the redevelopment effort through its TriLegacy
Group LLC.
"The first is that we are trying to fulfill a commitment to the city to
continue to provide the Riverwalk along the edge [of the property]; public
access to the Riverwalk at more than a beginning and an endpoint, and
significantand park space for the people of downtown Jacksonville to
enjoy," Traylor said.
Traylor said the plans are still being developed, with full details scheduled
to be disclosed next month.
The site, which is split by the outlet of Hogans Creek into the St. Johns
River, is made up of 27.5 land acres and 16.5 submerged acres that also belong
to the Spences and can be filled in.
The site stretches from Berkman Plaza, which is under construction next to
the Duval County courthouse, up to Metropolitan Park.
About 60 percent of the project will bepublic space and views over the
water, Traylor said.
"Then on top of that you have a private development scheme that is going to
encompass residential, office, some retail component --although not
significant-- and, hopefully, a hotel component down the road," he said.
Traylor said plans call for 600 residential units and about 1 million square
feet of office space.
The two big sheds on the site are strongly constructed buildings under their
current exterior corrugated metal sheathing and could be converted into
residential space.
The residential and other private projects will account for the remaining 40
percent of the site.
"It's not a real dense project. That is what we promised the city that we
would do and develop," Traylor said.
"The total tab, as we figure, if we develop it in accordance with our concept
plan, is roughly $900 million. That's our best guess right now," he said.
Traylor said he expected ground to be broken this year.
"I would expect by 2004 you wouldn't be able to recognize the site," he said.
Traylor said TriLegacy is in negotiations with staff at the Jacksonville
Economic Development Commission to develop a proposal that will go to Mayor John
Delaney and the commission and then will be considered and voted on by the City
Council.
The Spences have recruited Lambert Development Group of New York to act as
developer of the project. The firm is headed by Henry Lambert , a 25-year
veteran of big development projects.
Specialists working with the Spences at present include Sasaki Associates, a
Boston-based international planning firm, and the Jacksonville engineering firm
of Bessent, Hammack & Ruckman.
This is all high-priced help.
The Spences are funding the project out of their personal resources, Traylor
said.
The shipyard property also has a mortgage, on which the Spences make the
payments.
"As development occurs, I am sure we will seek appropriate financing,"
Traylor said.
TriLegacy also is navigating its way through the development requirements of
various regulatory authorities, including the Army Corps of Engineers, the
Florida Department of Environmental Protection and the St. Johns River Water
Management District.
Traylor said the company was not concerned about the environmental condition
of the site but had budgeted to fix any surprises that might surface.
More information about the project, including information about any financial
incentives requested, will be available in 30 to 45 days, when TriLegacy expects
to conclude its negotiations with the city.
So far the plan is winning rave reviews from senior city officials.
"It will be unbelievable," said Mike Weinstein, executive director of the
Jacksonville Economic Development Commission late last year.
The Spence companies include Industrial Cold Storage, Jaxport Refrigerated
Services, ICS Logistics Transportation and Global Stevedoring Inc., all part of
LCS Logistics. Other companies include Pelican Atlantic Services Inc. and Beach
Trading Co.
Chairman of the flagship company, ICS Logistics, is Carlton Spence. Jeffrey
Spence is chief executive officer.
The Spences made their initial investment in the shipyard in the spring of
1999 and last year bought out the remaining interest in the property owned by
developer Jay Hanan.
Hanan's development company, Jacksonville Riverfront Development Ltd., bought
the shipyard in 1995 with an IOU for $3.8 million due in one year. Hanan planned
to find investors to pay for development of the property but could not.
Unable to pay the note and the interest, Riverfront Development sought the
protection of the bankruptcy court in 1997.
