CRBM Consider $ 24.67 Million Incentive Deal for Laura Street Trio | Jax Daily Record | Jacksonville Daily Record
The Mayor’s Budget Review Committee is expected to review a $ 24.67 million taxpayer-funded loan package for SouthEast Development Group LLC’s plans to renovate the historic Laura Street Trio Downtown.
The committee could vote on July 12 on a request from Downtown Investment Authority CEO Lori Boyer to file legislation with city council to approve the deal, according to the meeting’s agenda.
SouthEast’s $ 70.48 million proposal would convert the vacant structures into a 145-room Marriott Autograph hotel with a restaurant, lounge, downstairs store and bodega grocery store.
The Florida Life Insurance, Bisbee, and Marble Bank buildings include the Trio on Forsyth and Laura Streets.
Plans also call for an eight-story addition to complete the hotel.
A legislative backgrounder in the meeting file indicates that the Southeast has accepted as many as 140 hotel rooms with 86 rooms in historic buildings. The remaining rooms would be in the addition planned for the northwest corner of the property.
Restaurant / lounge space will be 21,000 square feet in the Marble Bank building open to the public and a minimum of 8,000 square feet of retail space, according to city documents.
DIA’s board of directors unanimously approved the incentive term sheet on March 17, which includes:
• A forgivable loan of $ 9.377 million over five years.
• A code compliance loan with forgiveness of $ 10 million over five years.
• A deferred capital loan of $ 5.279 million.
Under the agreement, the city will not transfer the loans until construction is completed.
According to documents prepared by the DIA, the city will finance 36.8% of the project. The taxpayer contribution is based on the $ 66.98 million portion of the project paid for through debt financing and government incentives and excludes $ 3.5 million in management and developer fees.
The legislative backgrounder says the $ 19.39 million in code compliance and historic restoration / rehabilitation loans will be forgiven at 20% per annum for five years.
A clawback provision in the agreement allows the city to stop repayment if SouthEast sells or refinances the Trio within that time.
The promoter is required to repay the deferred principal loan of $ 5.27 million over 10 years.
The investment by SouthEast and its Minneapolis-based financial partner, Piper Sandler Companies, includes $ 25.76 million in debt; $ 9.46 million in expected historic federal tax credits; and $ 6.8 million in equity.
In the current deal, the city would require SouthEast to return to the DIA board if the cost of the project drops by more than 10%.
The biggest DIA project
The loans are the largest ever for a single project under DIA’s downtown revitalization and rehabilitation program.
DIA director of downtown real estate and development Steve Kelley said in March the city would earn an 87-cent return on every dollar invested.
The Board approved $ 8.62 million in loans on June 22 for the program’s first funded project – the $ 18.55 million renovation by JWB Real Estate Capital LLC of the Florida Baptist Convention buildings and the Old Federal Reserve Bank in Hogan and Church streets.
SouthEast Managing Director Steve Atkins also owns and spearheaded the nearly $ 70 million renovation of the historic Barnett National Bank building across from the Trio.
The projects were initially tied in a city-backed redevelopment deal, but were split after SouthEast and its former development partner, The Molasky Group of Cos., Missed the schedule to build a parking lot for serve both projects.
This parking structure will be built by VyStar Credit Union and Molasky is not involved in the renovation of the Trio.
Atkins first pitched the idea for the Trio’s renovation almost 11 years ago.
The Trio buildings are locally and federally protected monuments and the restoration project has been approved by the National Park Service.
The Trio Buildings, constructed between 1902 and 1912, are historic structures and contribute to the downtown district of Jacksonville National Register.
Dasher Hurst Architects designed the project and Danis Construction is the general contractor.