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Mendenhall Report: Higher rents drive Downtown viability
July 18-24, 2019
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Record & Observer Harbert Realty to develop San Marco church site
JACKSONVILLE
Record & Observer Don Wiggins President
Howard Serkin Chairman, advisory board
Asok Chauduri Principal
Dan Edelman Principal
The Charter Co., CFO; Koger Properties, executive vice president
Career highlights: CSX Corp., senior vice president of corporate development, vice president of finance
Career highlights: Presser, Lahnen & Edelman public accounting firm, founder; Dixon Hughes Goodman LLP, Florida managing partner
JACKSONVILLE Career highlights:
Record & Observer Career highlights: University of North Florida, professor emeritus of accounting and finance
The Alabama company proposes 143 apartments at South Jacksonville Presbyterian Church, which will keep its sanctuary.
THEY KNOW EVERYBODY Record & Observer BY KAREN BRUNE MATHIS EDITOR
JACKSONVILLE
HERITAGE CAPITAL GROUP A ‘NEXT CAREER’ FOR BUSINESS LEADERS
Mac Holley Principal Career highlights: Florida Capital Bank, North Florida Region president and CEO; Bank of America, Northeast Florida president
Jerry Mallot Director of Corporate Development Career highlights: JAXUSA Partnership, president; JAX Chamber, executive vice president
BY MARK BASCH CONTRIBUTING WRITER
W
hen longtime Jacksonville business executives Jerry Mallot and Scott McCaleb joined Heritage Capital Group this year, it was a continuation of a trend. The investment banking firm has been building a deep pool of talent with years of experience, includ-
Scott McCaleb Principal
Mary Merrill Principal
Career highlights: Vulcan Lands Inc., president; Florida Rock Industries Inc., vice president of corporate development
Career highlights: Churchill Capital, partner; U.S. Bancorp, commercial lender
ing several people coming from highprofile positions with Jacksonville businesses. “We offer a sort of next career for well-respected business people,” said Heritage Chairman Howard Serkin. Heritage President Don Wiggins recruited Serkin in 1993 to what was then a relatively small Jacksonville firm. Wiggins was a professor of accounting and finance at the University of North Florida and Serkin recently had
joined the faculty as UNF’s first executive-in-residence. Serkin had served in executive roles with several prominent Jacksonville companies, including The Charter Co. in the 1980s and Koger Properties in the 1990s. “I could tell he knew what the hell he was doing,” said Wiggins. “He said ‘Let’s build this little investSEE HERITAGE, PAGE 10
A central site in the historic San Marco neighborhood and shopping area is targeted for redevelopment. Harbert Realty Services has a contract to buy about 2.1 acres from South Jacksonville Presbyterian Church at 2137 Hendricks Ave. to develop Park Place at San Marco, a 143-unit apartment community. The church would retain its sanctuary and two buildings – administration and the community hall - on just under an acre, said church trustees Chair Jeff King, who referred other questions to Harbert. “The location is second to none in terms of walkability and amenities within walking distance,” said Bill Ware, vice president of development with Harbert Realty Services of Birmingham, Alabama. Ware did not disclose the contracted purchase price but estimates that investment in the development will top $30 million. The church property is across Hendricks Avenue from the San Marco Square shopping and entertainment area and serves the residents of the neighborhood. “We are going to do everything we can to maintain the charm and character of San Marco,” said Ware, who moved to Jacksonville SEE HARBERT, PAGE 10
Mathis Report: Culver’s opens Monday in Middleburg PAGE 5 Garwood Report: Health systems deal with repeal of CON laws PAGE 8 Marijuana regulations: Appellate ruling stokes interest PAGE 15
THE BASCH REPORT
CSX CEO: Economic backdrop “one of the most puzzling” Foote forecasts 2019 revenue decline PAGE 6 VOLUME 2, NO. 7 • ONE SECTION
WHAT’S TRENDING
Page 2 • Thursday, July 18, 2019
Jacksonville Daily Record/Jacksonville Record & Observer
Big news doesn’t break just on Thursday. Here’s a look at some of the top stories published over the past week online at JaxDailyRecord.com and in the Jacksonville Daily Record that you may have missed.
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Special to the Daily Record
Florida Cracker Kitchen opened its Beach Boulevard restaurant in 2017.
RESTAURANTS
Florida Cracker Kitchen to San Marco Florida Cracker Kitchen plans to open a second Jacksonville restaurant and taproom, bringing country fried steak and eggs, smoked mullet dip, Okeechobee gumbo and oyster po’boys to San Marco. The city is reviewing a permit for River City Construction Group LLC to renovate a 6,000-square-foot building at 1842 Kings Ave. at a cost of
$230,000. Restaurant owner Blair Hensley, who partners with his brother, Ethan, in the business, said he hopes to open in San Marco by early 2020. That would be two years after they started their first Jacksonville location at northwest Beach Boulevard and San Pablo Road.
The Bread & Board plans Town Center restaurant The Bread & Board, which opened in April 2017 in Five Points, intends to add a location at St. John’s Town Center North. A pending building permit shows that FLC Contracting LLC will renovate the space next to Publix Super Markets Inc. for The Bread & Board, a
sandwich and dining kitchen concept. The Town Center space is at 4413 Town Center Parkway, No. 201. The Bread & Board is owned by Dwayne Beliakoff and Jonathan Cobbs. “The central location was key to us,” Beliakoff said. “This made good sense.”
Southern Grounds on tap for Avondale Property owner-developer Edward Skinner Jones intends to demolish a structure in the Shoppes of Avondale and replace it with a building for the area’s third Southern Grounds & Co. coffee shop. The first two Southern Grounds are in Neptune Beach and the San Marco area. Through Avondale Sogro LLC, Jones bought a 7,200-square-foot building
at 3562 St. Johns Ave. and applied to the Jacksonville Historic Preservation Commission for a certificate of appropriateness to demolish it and construct a coffee bar, a wine bar, a market and tenant space intended as an art gallery. The first two shops also sell beer and wine. Mark Janasik operates Southern Grounds in buildings that Jones owns.
HEALTH CARE Baptist HealthPlace announced for Nocatee Baptist HealthPlace announced it will open a health and wellness center at Nocatee in St. Johns County by summer 2020. The two-story, 83,000-square-foot center is planned on a 12-acre site
west of the Nocatee Town Center. Baptist HealthPlace will offer primary care, behavioral health, orthopedics, cardiology, ENT and OB/GYN care, a YMCA and more.
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To find more business events or to submit your event to the the business calendar, visit jaxdailyrecord.com/calendar. JULY 30 JAXUSA Partnership: Jacksonville’s Smart Region will be the topic at the JAXUSA Partnership quarterly meeting July 30. Panelists Jacksonville Transportation Authority CEO Nat Ford, North Florida TPO Executive Director Jeff Sheffield and JEA CEO and Managing Director Aaron Zahn will discuss Jacksonville’s future with smart sensor technology, autonomous vehicles and more. The location is the Hyatt Regency Jacksonville Riverfront. Individual tickets are $50-$75. Checkin is 11:30 a.m. The program starts at noon. To RSVP, call (904) 366-6600 ext. 7788.
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JULY 31 Destination Downtown Buffalo: JAX Chamber scheduled the 2019 Destination Downtown trip July 31Aug. 2 to Buffalo, New York. The trip is presented by VyStar Credit Union whose president and CEO, Brian Wolfburg, a Buffalo native, will chair the trip. The chamber said attendees will learn about Downtown Buffalo’s transformation and its master plan, the 2005 Buffalo Comprehensive Plan. The cost for chamber members is $1,500 for single occupancy and $1,400 for double occupancy. Attendees are responsible for booking and paying for their own flights. Information: Alanna Hurlbert, (904) 366-6627 or alanna. hurlbert@myjaxchamber.com.
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Thursday, July 18, 2019 • Page 3
Market-rate rentals a growing option Downtown
The average rent has reached $2 per square foot, what experts say is the threshold for Downtown market rate viability. In April, 5,220 people were documented living in Downtown Jacksonville. The number of Downtown residents is approaching 10,000 — the residential density many officials, including JAX Chamber CEO Daniel Davis and Downtown Investment Authority CEO Lori Boyer, see as a threshold for housing in the urban core to become self-sustaining. Boyer said 10,000-12,000 residents will allow the Downtown market to attract essential services like grocers and a pharmacy as well as more retail, restaurants and entertainment. “Getting the housing to a robust level is going to make it much easier for those retail businesses to be successful,” Boyer said. Since 2010, much of the demand and construction in Downtown housing has cen-
THE MENDENHALL REPORT
MIKE MENDENHALL STAFF WRITER
tered on multifamily affordable and workforce housing. But there are signs that market-rate rentals Downtown are becoming sustainable and contributing to the urban core’s overall residential mix. For developers to build profitable market-rate rentals Downtown, Boyer said the magic number is rent at $2 per square foot. A report submitted to the DIA from commercial real estate services firm CBRE Jacksonville shows, as of April 1, five Downtown residential projects have hit or exceeded the average $2 per square foot price point: • Vista Brooklyn, a 10-story, 308-unit tower at 200 Riverside Ave. • Bishop Gate, a threebuilding, 145-unit apartment complex in Riverside • Broadstone River House Apartments, a 263-unit apartment community on the Southbank • 1230 Hendricks Ave., with 345 apartments, parking and 5,500 square feet of retail space. • The Residences at Barnett, the 18-story, 107-apartment high-rise at 112 W. Adams St. In 2010, CBRE listed four multifamily residential projects under development. The average rent per square foot ranged from 98 cents to $1.28. By 2014-15, that average rose to $1.22 per square foot on the low end and topped out at $1.57 between six developments. By April of this year, CBRE’s study shows the lowest average rent per square foot in Downtown is $1.57. The highest is Broadstone River House at $2.20 per square foot.
File photo
When renovation is complete, the former Barnett National Bank Building at 112 W. Adams St. will have 107 apartments.
The average rent in Downtown continues to grow along with supply. CBRE listed 24 Downtown residential projects in development or recently completed from the Cathedral District on the Northbank to San Marco on the Southbank. Although market rate is now an option for developers, affordable and workforce housing like Vestcor Companies’ “Loft”-brand apartments in LaVilla and Brooklyn continue to be in demand. Vestcor, a member of the Northeast Florida Builders Association, is one of three companies, including Black-
File photo
A rendering shows the $60 million Vista Brooklyn apartments planned at 200 Riverside Ave.
water Capital LLC and JWB Real Estate Capital, that have submitted bids to develop forsale townhomes on city-owned property in LaVilla. Single-family development is being pushed in LaVilla, and Boyer said it also could be viable in Brooklyn, the Cathedral District and areas of the Southbank. However, property in the Downtown core is “too valuable” for lower density housing, she said. “As Downtown Jacksonville continues to grow and evolve along with the rest of Northeast Florida, the Northeast Florida Builders Association strongly supports the development of new housing, both rental and for sale,” NEFBA President Sean Junker said. “Creating a positive growth environment for residential builders and developers is vital to the economic success of Downtown,” he said. Multifamily housing construction Downtown has largely been for-rent, midrise apartment complexes. But increasing rental prices could bring renewed interest in condominiums, including high-rises, Boyer said in a July 9 interview. A possible location for residential high-rise development is Bay Street at the site of the
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former Duval County Courthouse and former Jacksonville City Hall. CBRE is conducting a highest and best use analysis of the properties, and the city is gathering information on existing easements and utility services. Boyer said she wants the DIA board to have that information by September so parameters for development can be part of requests for proposals from developers by October. “We hope to have it on the market by October. CBRE is doing the marketing for us and they’re doing a highest and best use analysis. But we are hopeful that at least part of that type can be high-rise,” Boyer said. If projects like residential high-rise gain traction, Boyer said it could contribute to reaching higher density Downtown. “And if the area behind the Hyatt (Regency Jacksonville Riverfront) can support high-rise and we can get that increased density, we get to our 10,000 or 12,000 residents Downtown just that much more quickly,” Boyer said.
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Page 4 • Thursday, July 18, 2019
Jacksonville Daily Record/Jacksonville Record & Observer
THE MATHIS REPORT
2M-square-foot warehouse park on track
KAREN BRUNE MATHIS EDITOR
Benderson Development proposes a two-building project at I-95 and Pecan Park Road. A large industrial development continues on its path for North Jacksonville. Benderson Development Co. continues to seek approvals for more than 2 million square feet of warehouse space. The city calculated the mobility fees for two industrial warehouses designed on 46 acres north of Pecan Park Road between Interstate 95 and North Main Street. Benderson’s plans show the 499,000-square-foot Building 100 and the almost 1.54 million-square-foot Building 200. The mobility fees, calculated to mitigate the traffic impact, total $816,445. The applications are for horizontal development and the buildings. Benderson is a private real estate company based in University Park near Sarasota.
Kimley-Horn and Associates Inc. is the civil engineer. The Benderson executive identified as the project representative has not returned two phone calls. Benderson previously submitted plans to the city for the warehouses. As owners of the almost 850-acre undeveloped Pecan Park Regional Activity Center, Benderson entities seek a minor modification to the property’s planned unit development that was approved in 2008. Benderson bought the bulk of the property in 2007 from Bacardi Bottling Corp., which bottles rum, and about 15 acres from an affiliate of Signature Land Co. The Bacardi Bottling Plant is at 12200 N. Main St., south of Benderson’s land. The modification would relocate the site’s mix of commercial, office/business park and residential uses to a central location and places 46 acres of light industrial adjacent to I-95. Submitted with that application was the Bacardi Conceptual Site Plan, dated June 4, showing the two warehouses on the 46 acres. The Pecan Park Regional Activity Center owners are Pecpar LLC and Rum East LLC, associated with Benderson Development Co. LLC. Benderson Development says it owns and manages more than 700 properties totaling more than 40 million square
feet in 38 states. Holdings include retail, office, industrial, hotel, residential and land. Colliers International’s second-quarter industrial report shows a 4.3% vacancy for Jacksonville’s warehouse market. About 3.5 million square feet of industrial space is under construction. “The Jacksonville market is on pace to add the modern industrial stock the region needs to land large-scale operations on tight timelines,” Colliers wrote. “This is a good thing.”
OFFICE NOTES Mortgage for Cypress Point: The Huntington National Bank of Cincinnati issued a $26.85 million mortgage to Viking Partners Cypress LLC for its June 14 purchase of Cypress Point Business Park. Cincinnati-based Viking Partners paid $35.8 million for the eight-building, 344,000-square-foot office property in Southside. McKesson to Center Point: The city is reviewing a permit application for tenant renovations for McKesson Corp. at 4815 Executive Park Court, No. 103, in Center Point Business Park. The plans specify McKesson BioMed. Precise Construction Inc. is the contractor for the $377,099 project to renovate 12,291 square feet. McKesson posted a job openFile image ing for a biomedical technician The site plan for the Pecan Park Regional Activity Center at northeast skilled in the diagnosis and Interstate 95 and Pecan Park Road. repair of simple and complex
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Thursday, July 18, 2019 • Page 5
RESTAURANT NOTES Moe’s in Mandarin: Moe’s Southwestern Grill will build-out at 10502 San Jose Blvd. in Mandarin. Moducomm Development Inc. will make tenant improvements to the 2,250-square-foot space at a cost of $396,656. The city issued the building permit July 12. Moe’s will lease in a 6,000-square-foot building developed at the site of a former Applebee’s. Brewz in Riverside: The city approved tenant build-out July 11 for Brewz, The Filling Station, at 2695 Post St. in Riverside. Bosco Building Contractors is the contractor for the $50,400 project to renovate the 2,335-square-foot space to alter the bar, renovate, paint and update the floors. It is the former Dahlia’s Pour House. Blue Bamboo in Mandarin: The city calculated a mobility fee of $49,904 for Blue Bamboo Land LLC to convert a 4,342-square-foot building and add 3,242 square feet to develop a 7,584-square-foot restaurant at 10110 San Jose Blvd. in Mandarin. Blue Bamboo chef and owner Dennis Chan intends to buy the building and open a second Blue Bamboo. The original is at 3820 Southside Blvd. McDonald’s in St. Augustine: St. Johns County issued a permit for a $300,000 remodeling and drive-thru update for McDonald’s at 2431 U.S. 1 S. in St. Augustine.
medical devices. SS&C in Gramercy Woods: The city is reviewing a permit application for an almost 8,900-square-foot build-out for SS&C Technologies Inc. in Gramercy Woods. No contractor is listed for the $350,000 project at 9000 Southside Blvd. SS&C is expanding at the park. Venus in EastPark: Venus Fashion Inc. continues renovations at its EastPark headquarters at 11711 Marco Beach Drive. The city approved a permit for contractor Richard Claude Haskew to renovate 33,600 square feet for its Venus West Interior Phase 2
project at a cost of $1 million. Venus Fashion President Jim Brewster said in September the company was working on a $9 million renovation of the almost 130,000-square-foot building.
Culver’s to open Monday in Middleburg
Culver’s will open its first Northeast Florida restaurant Monday at 1767 Blanding Blvd. in Middleburg. Don and Lori Lichte and their daughter, Sophie, are developing the initial location of the Wisconsin-based restaurant,
Special to the Daily Record
Don, Sophie and Lori Lichte intend to open the area’s first Culver’s restaurant Monday in Middleburg.
which features its signature ButterBurger, cheese curds and frozen custard. Several more sites by other franchisees are in review, including in Duval County at Collins
Town Center at Interstate 295 and Collins Road and in St. Johns County at The Fountains at St. Johns off County Road 210 West. The ribbon-cutting will be 9 a.m. and regular hours will be 10
a.m.-10 p.m. daily. KMATHIS@ JAXDAILYRECORD.COM @MATHISKB (904) 356-2466
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Page 6 • Thursday, July 18, 2019
Jacksonville Daily Record/Jacksonville Record & Observer
THE BASCH REPORT
Uncertain economy clouds CSX outlook
MARK BASCH CONTRIBUTING WRITER
CEO Jim Foote says the economic backdrop “is one of the most puzzling I have experienced in my career.” CSX Corp. reported higher earnings for the second quarter as it continued to improve its operating efficiency. However, revenue declined in the quarter and an uncertain economic outlook has the Jacksonville-based railroad company forecasting a continued drop for the rest of this year. “Both global and U.S. economic conditions had been unusual this year to say the least and have impacted our volumes,” CEO James Foote said Tuesday in a conference call with analysts. “The present economic backdrop is one of the most puzzling I have experienced in my career,” he said. Foote said the company started 2019 expecting revenue to grow by 1% to 2% but now it is forecasting the opposite, a decline of 1% to 2%. He said natural gas prices are “expected to continue to impact both domestic and export coal, intermodal is showing little seasonal recovery and many of our industrial customers’ volumes (are) continuing to show weakness with no concrete signs of these trends changing.” CSX’s second quarter revenue fell by 1% to $3.06 billion. Despite the revenue drop, earnings rose by 7 cents a share to $1.08 as its operating ratio (expenses divided by revenue) fell to 57.4%, from 59.5% in the first quarter. However, earnings were 3 cents lower than the consensus forecast of analysts, according
to Zacks Investment Research. “We are not necessarily being pessimistic about the second half of the year but inasmuch we need to adjust guidance, we’re just setting out the obvious. This outlook is based on current business levels and there is upside to this forecast if conditions improve in the second half,” Foote said. “We are seeing a range of conflicting data points and economic indicators and regularly speak with customers who, despite the recent slowdown, remain cautiously optimistic about the second half,” he said. CSX is continuing to cut its employment level, but the company is attempting to do that through attrition rather than job eliminations. Total employment at CSX, which operates throughout the Eastern U.S., was 21,541 at the end of the second quarter, down from 22,001 at the end of the first quarter. CSX, which employed about 26,000 before a new management team started cutting jobs in 2017, has previously said it is targeting employment of 21,000 by the end of 2020. “We feel it is most prudent to actively manage expenses to today’s volumes rather than take a wait-and-see approach,” Foote said. “Our planned cost reduction initiatives will not impact safety or service and will ensure the business is positioned to handle any additional volumes when things pick up.”
Fidelity earnings beat forecasts Fidelity National Financial Inc. reported second-quarter adjusted earnings of 92 cents a share, 6 cents higher than last year and 8 cents higher than the average forecast of analysts, according to Zacks. The Jacksonville-based title insurance company said Tuesday its pretax earnings and profit margins were its best quarterly performance since 2003. Fidelity said title insurance orders opened for home purchases fell by 2% but orders for refinancings jumped by 51%, due to the persistent decline in mortgage rates. “With strong second quarter
refinance orders opened, an improving trend in purchase orders opened and continued strength in commercial orders opened, we are well positioned to continue to produce strong financial results in our title business as we enter the second half of 2019,” Chairman Bill Foley said in a news release.
Jacksonville-based GuideWell had $19 billion in revenue
Last week, we told you Jacksonville-based Florida Blue would be a Fortune 500 company if it was publicly traded, based on an estimate by Florida Trend magazine that it had $9.3 billion in revenue last year. As it turns out, the health insurer’s parent company, which also is headquartered in Jacksonville, is much bigger than that. GuideWell Mutual Holding Corp. last week sent proxy voting materials to its members, which included a link to a company fact sheet. While the fact sheet doesn’t offer full financial statements, it does say GuideWell had $19 billion in revenue and $1 billion in earnings last year. That makes GuideWell by far the largest company based in Jacksonville. The largest public company, CSX, ranked 260th in the Fortune 500 with $12.25 billion in revenue last year. With $19 billion, GuideWell would rank 165th if it filed public financial statements. Besides health insurance, GuideWell provides other services to health care companies including marketing and administrative functions. It has more than 12,000 employees in 34 states, according to the fact sheet. As a mutual holding company, it is owned by its members, which is why its insurance customers received proxy materials to vote on the company’s board of directors.
J&J Vision Care sales up operationally
Johnson & Johnson said Tuesday second-quarter sales at its Jacksonville-based vision care business fell 1% to $1.16 billion, due to the impact of foreign exchange rates on its
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File image
CSX CEO Jim Foote forecasts a revenue decline for 2019.
international sales. However, excluding currency impacts, sales were up 1.5% for the quarter on an operational basis. During the global medical products giant’s quarterly conference call, Chief Financial Officer Joseph Wolk said underlying demand for the company’s contact lenses remains strong. However, inventory adjustments from the first quarter to the second quarter impacted sales. “We thought it was going to be more of a hard Brexit, which impacted some of the first quarter levels of inventories,” he said. Johnson & Johnson’s total sales rose by 1.6% on an operational basis to $20.6 billion in the quarter, with adjusted earnings growing by 48 cents a share to $2.58. Zacks said earnings were 16 cents higher than the average forecast of analysts.
Fortegra buys European insurer Fortegra Financial Corp. last week said it acquired Defend Insurance Group, which provides automotive specialty insurance solutions in the Czech Republic, Poland, Hungary, Slovakia and the United Kingdom. Terms of the deal were not announced. Fortegra, a Jacksonvillebased insurance services company, formed a European subsidiary last year. “Defend complements our existing operations in Europe and, given their expertise, may contribute to our global strat-
egy,” CEO Richard Kahlbaugh said in a news release. Fortegra is a subsidiary of Tiptree Inc., which acquired the then-publicly traded company in 2014 for $218 million.
Brightway premiums reach $600 million
Jacksonville-based Brightway Insurance last week said it has reached $600 million in annualized written premiums. The property/casualty insurance distribution company has a network of nearly 900 workers in 21 states, including about 250 at its Jacksonville headquarters.
Webstar CEO Stingone dies Webstar Technology Group Inc. said in a Securities and Exchange Commission filing last week that former CEO Joseph Stingone died. The company said in a previous SEC filing that Stingone was replaced by an interim CEO on June 27 because of an “unexpected illness.” Donald Roberts was named last week as permanent CEO of the Jacksonville-based company, which is developing technology applications and has been attempting to go public. Roberts is a longtime banker who has served in executive roles with several Jacksonville area institutions, as well as banks in Texas and Georgia. MBASCH@ JAXDAILYRECORD.COM
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Record & Observer
Jacksonville Daily Record/Jacksonville Record & Observer
Thursday, July 18, 2019 • Page 7
BY SCOTT SAILER • STAFF WRITER
Here are the top 10 commercial real estate sales in Northeast Florida, comprising Baker, Clay, Duval and St. Johns counties. The sales were recorded July 8-12.
File image
Capital Plaza at 10401 Deerwood Park Blvd. sold for $51.47 million, 114% more than its previous $24 million sale price in 2016.
$51,469,000
$10,111,200
$6,583,500
$2,233,000
$1,720,997
10401 Deerwood Park Blvd., Jacksonville, Duval County
County Road 2209, St. Augustine, St. Johns County
Deerfield Forest Drive, St. Augustine, St. Johns County
Eight locations Duval County
Type: Capital Plaza Size: 417,513 square feet Buyer: SPI TCM Capital Plaza LLC Seller: 10301 Jacksonville Office LLC Previous sale: $24,000,000 in 2016
Type: Timberland Size: Not available Buyer: JEN Florida 37 LLC Seller: White’s Ford Timber LLC
1147 St. Thomas Island Parkway, St. Augustine, St. Johns County
$1,600,000
$1,555,892
$1,246,705
$1,150,000
$1,080,000
North Main Street, Jacksonville, Duval County
Seven locations, Middleburg, Orange Park and Green Cove Springs, Clay County
9591 Normandy Blvd., Jacksonville, Duval County
1502 Jessie St., Jacksonville, Duval County
9802 Old Baymeadows Road, Jacksonville, Duval County
Type: Undeveloped Size: 9 acres Buyer: Coastal Regions Northside LLC Seller: Old No. 1 Partners LLC
Type: Seven single-family homes Size: Not available Buyer: CPI/Amherst SFR Program Owner LLC Seller: MUPR 3 Assets LLC
Type: Undeveloped Size: 61.29 acres Buyer: KB Home Jacksonville LLC Seller: R. Timothy Carter and the R. Timothy Carter Revocable Trust
Type: Farm Share warehouse Size: 1.16 acres Buyer: Rogers Campus II LLC Seller: LSS Property Management Inc. Previous sale: $525,000 in 1989
Type: Financial institution Size: 0.97 acres Buyer: Jax Federal Credit Union Seller: Ameris Bank Previous sale: $650,000 in 2011
Type: Timberland Size: Not available Buyer: JEN Florida 37 LLC Seller: White’s Ford Timber LLC
Type: 29 single-family lots in Deerfield Meadows Phases 1 and 2 Size: Not available Buyer: Richmond American Homes of Florida LP Seller: Deerfield Holdings LLC
Type: Eight single-family homes Size: Not available Buyer: CPI/Amherst SFR Program Owner LLC Seller: MUPR 3 Assets LLC
COMMERCIAL REAL ESTATE
Top commercial sales of the week
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Page 8 • Thursday, July 18, 2019
Jacksonville Daily Record/Jacksonville Record & Observer
HEALTH & BUSINESS
Temperatures rise on repeal of CON laws
KATIE GARWOOD STAFF WRITER
Opponents predict oversaturation of the health care market while proponents see more access. While the Northeast Florida health care market has been busy the past several years, a bill that took effect July 1, repealing most of Florida’s certificate of need laws, may make it even busier. Florida was one of 35 states with a certificate of need law. It required hospitals to receive authorization from the Agency for Health Care Administration before building hospitals or expanding medical services once it was determined the demand in the area would be sufficient for the project’s construction. HB 21, which Gov. Ron DeSantis signed into law in June, eliminated CON laws for general hospitals and “tertiary services,” which can include transplant services, neonatal intensive care units and open-heart surgery, among others. The second part will take effect in 2021, repealing
CON requirements for specialty hospitals. Under the previous law, hospitals needed to apply for a CON, which could take months or years. It allowed for other hospital organizations to appeal the decision, which often led to legal battles between hospitals and the state’s Agency for Health Care Administration. In the past, area hospitals like UF Health and Baptist Health faced difficulties obtaining a CON. UF Health’s initial plans to build its UF Health North faced challenges in 2014 from Memorial Hospital Jacksonville that were later dropped. In 2015, Baptist Health was denied a CON to build a hospital at its Clay County medical facility. With the CON, it could be difficult to land approval in areas that were growing, but not yet fully established, since there needed to be a demonstrated, unmet need for the services. Bryan Campbell, CEO of the Duval County Medical Society, said with the repeal, it could be easier to build hospitals in growing areas like Clay County or Nocatee. “This allows for companies to be more strategic, and get out in front of it instead of having to come back in after the fact and fight with all the CON rules,” Campbell said. “This will allow them to get out front and lead that development.” For UF Health Jacksonville, the repeal won’t change its plans to continue developing its UF Health North campus, completing construction at Wildlight
File image
UF Health North opened in 2017 after Memorial Hospital Jacksonville filed and later dropped a challenge to the approval of its certificate of need.
and working with the city to improve its Downtown campus, said CEO Leon Haley. It would consider looking at more options for expanding in Nocatee, where it opened a primary care facility earlier this year. Campbell said his organization was in favor of repealing the CON law, which is in line with the Florida Hospital Association’s stance. Some critics of the bill fear that repealing the CON will lead to an oversaturated health care market and a decline in the quality of care. Proponents say an increase in competition will lead to lower prices for consumers and more access to care. “There’s some people that
have really drawn their line in the sand, and getting rid of CON is going to be the end of medicine as we know it, and there’s going to be a hospital on every corner like there’s a Walgreens,” Campbell said. “On the flip side, there’s a lot of people in town that have to travel a long way to their closest appropriate care. I think this is an opportunity to provide better care to those individuals.” Campbell said while it’s not clear what every company will choose to do, he expects some will take more advantage of the laws than others, but he doesn’t see the repeal leading to having too many hospitals. Haley said he was skeptical that the repeal would bring lower
prices for consumers, or to a surplus of hospitals in Jacksonville. South Florida, he said, could end up with too many hospitals. But Jacksonville “is already a fairly competitive market,” he said, which could become more so in the coming years. “Now the risk is that more of them will add facilities, and the risk for us is that the patient pie gets smaller,” Haley said. “And I think that our ability to be profitable may have some challenges.” KGARWOOD@ JAXDAILYRECORD.COM (904) 356-2466
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Jacksonville Daily Record/Jacksonville Record & Observer
Thursday, July 18, 2019 • Page 9
INDUSTRIAL CubeSmart, 8552 Baymeadows Road, contractor is Shamrock Building Systems Inc., 37,950 square feet, new building, $1.6 million. Voss Inc., 4526 St. Augustine Road, contractor is MKC of The Treasure Coast Inc., 2,400 square feet, new storage building, $50,000. OFFICE, BANK, PROFESSIONAL City of Jacksonville, 1000 Water St., contractor is Warden Contracting Corp., parking lot improvements at the Prime F. Osborn III Convention Center, $69,725. Sadhana Beauty Salon Inc., 510 Airport Center Drive, contractor is Ccmi Corp., 1,365 square feet, tenant build-out, $16,380. ROOFING Jacksonville Port Authority, 2085 Talleyrand Ave., contractor is Polo International Inc., apply silicone roof coating, $1.14 million. GSJ LP Apartments, 7743 India Ave.,
contractor is Tusk Roofing LLC, six permits for roof replacements and roof coatings, $79,500. Talleyrand Food Mart, 777 Talleyrand Ave., contractor is Childers Roofing & Sheet Metal Inc., roof replacement, $39,250. Valencia Way Apartments, 1214 Labelle St., contractor is Jenkins Roofing Inc., two permits for roof over existing, $36,400. Advantage Unlimited Inc., 6720 Arlington Expressway, contractor is Jack C. Wilson Roofing Co., roof replacement, $10,985. Baxter’s Barber Shop, 2056 Emerson St., contractor is Jack C. Wilson Roofing Co., roof replacement, $10,795. STORES, MERCANTILE Oakleaf Station Land Trust, 8324 Merchants Way, contractor is Target Contractors Inc., 10,500 square feet, new retail building, $561,976. Compiled by Scott Sailer
BUSINESS IN BRIEF First Florida Credit Union: First Florida Credit Union opened its 16th location in Florida on July 1 at 11467 San Jose Blvd., Suite 2, in Mandarin. The Jacksonville-based credit union has more than 53,000 members and assets of nearly $1 billion.
Parkway in St. Johns County. An open house is scheduled 9 a.m to noon Aug. 5. Chappell Longleaf will enroll children from 6 weeks old through VPK and will service six local elementary schools with before and after care, as well as a summer and holiday camp program.
Jax Federal Credit Union: Jax Federal Credit Union completed the purchase of a 5,150-square-foot building on almost an acre at 9802 Old Baymeadows Road. After renovations, it will open in October as the credit union’s ninth location. The building previously was a Fidelity Bank branch.
Crowley awarded: The Jones F. Devlin Award was presented to 104 vessels owned or managed by Crowley Maritime Corp. The award recognizes the ships’ combined 737 years of incidentfree service through 2018. The award is given to manned merchant vessels, operating for two years or more, without a crew member failing a full turn at watch because of an occupational injury.
Chappell Schools: Chappell Schools will open Aug. 5 at 1520 Longleaf Pine
Promotions, hirings and happenings for business people in Northeast Florida. Send items to ssailer@jaxdailyrecord.com Jacksonville-based sales and marketing company Acosta named Darian Pickett as chief executive officer. Pickett, a 28year veteran of the company, succeeds Pickett Alejandro Rodriguez Bas, who joined the company a year ago. Pickett most recently served as chief client officer for Acosta. Bank of America Merrill Lynch named Mark K. Bennett as Southeast Region executive for business banking. Based in Jacksonville, he will lead commerBennett cial banking teams serving companies throughout the Southeast with annual revenue of $5 million to $50 million. Before joining the bank in 2003, Bennett was an assistant to Florida State University head football coach Bobby Bowden. Bob Hitchcock joined Brightway Insurance as the company’s first chief technology officer. He was chief technology officer and vice president of technology at Fanatics Inc.
Hitchcock
Coldwell Banker Vanguard Realty promoted three people in the market development division: Mona Gardella was promoted to vice president from director of marketing development. She manages the Fleming Island, Avondale and Oakleaf offices. Laura Ranneklev was promoted to vice president, managing the Mandarin and St. Johns offices, from director of marketing development of the same areas.
Jennifer Bresnahan was promoted to assistant director of market development for the Fleming Island, Avondale and Oakleaf offices. Leadership Jacksonville announced its officers and new board members for 2019-20. Rosa Beckett, an executive with the Jacksonville Aviation Authority, is president. Bruce Fafard, CEO of 121 Financial Credit Union, is president-elect. Kathy Miller, senior vice president of financial servics and tax with Regency Centers Corp., is secretary-treasurer. Clark Robertson, COO of the Port of Corpus Christi, is the immediate past president. New board members are: Mark Bennett, Southeast region executive for business banking, Bank of America Merrill Lynch; Linda Lindenmoyer, vice president of relocation for Berkshire Hathaway, HS Florida Network Realty; Ron Pellum, president, Ennis Pellum & Associates, CPAs; Maria Ruiz, bridge engineering associate, RS&H; Ryan Wannemacher, CFO, JEA; and Andrea Williams, director of community relations, Jacksonville Jumbo Shrimp. Terrence Curran will become associate vice president of enrollment services at the University of North Florida as of Sept. 9. He currently is the associate Curran provost for enrollment management at Western Michigan University. Cmdr. Marcy Morlock was appointed director for admissions at Naval Hospital Jacksonville. Morlock was director for admissions at U.S. Naval Hospital Yokosuka. Compiled by Scott Sailer
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DEVELOPMENT TODAY These are the largest commercial building permits by job cost issued Tuesday by the city of Jacksonville.
Page 10 • Thursday, July 18, 2019
Jacksonville Daily Record/Jacksonville Record & Observer
Harbert CONTINUED FROM PAGE 1
three years ago from Alabama and lives in San Marco. The Park Place site is bordered by Hendricks Avenue, Alford Place, Mango Place and Mitchell Avenue. The buildings that Harbert will buy will be demolished for the redevelopment. Matthew’s Restaurant, which is separately owned, sits on a corner and is not involved in the project. Harbert intends to build oneand two-bedroom units in the four-story apartment building. An attached three-story parking garage will comprise four levels. Eight apartments will be built against the garage facing Mitchell Avenue to maintain the residential character, Ware said. The garage will provide parking on the ground floor for the church. The apartments will front Hendricks Avenue and Alford and Mango places, while the garage will border Mango Place and Mitchell Avenue, Ware said. One targeted market for the apartments is professionals, including those working in Southbank medical centers. Rents and sizes have not been determined. The market-rate units will include the “full array of amenities” found in other San Marco and Southbank apartment projects. “We are planning to do some upgrades in recognition of where we are here at ‘Main and Main’ in the heart of San Marco, so we are going to be amenity-heavy for our residents,” Ware said. The site is near Atlantic Boulevard and Hendricks Avenue, where one corner has been designed for a Publix Super Markets Inc.anchored retail center. Ware said the Publix, which he expects will
Heritage CONTINUED FROM PAGE 1
ment bank,’ ” Serkin said. Heritage is an investment banking and financial advisory firm serving middle-market and emerging growth companies mainly in the Southeast U.S. The firm has offices in Orlando and Savannah and also is a member of Oaklins, a global business advisory firm. Over the past 26 years, Wiggins and Serkin have recruited executives with a wide range of experience to serve businesses in different sectors. “Here you’ll find all types of industries represented,” said Asok Chaudhuri, a former senior vice president of corporate development at Jacksonville-based railroad giant CSX Corp. Chaudhuri joined Heritage as a principal in 2005 but the firm has really been on a growth spurt in the past decade. “We grew fairly rapidly in the past nine years or so,” Wiggins said. Wiggins said the group made a decision about 10 years ago to grow in the North Florida area and has expanded into Central Florida and Southeast Georgia. It added principals and industry specialists to support the growth. Heritage Capital has 36 people, including 16 principals and seven industry specialists along with five staff, four transaction support personnel, three interns and a marketing person. Former Mayor John Delaney, also former president of UNF, said Wiggins and Serkin “built a fasci-
Photo by Karen Brune Mathis
Bill Ware, center, vice president of development with Harbert Realty Services, and George Leone, left, COO of Corner Lot Development Group, and Andy Allen, Corner Lot CEO, intend to redevelop the South Jacksonville Presbyterian Church site to include 143 apartments. The church will keep a sanctuary and two buildings on the property.
soon be built, will be another amenity. Ware said there are plans to relocate the South Jacksonville Presbyterian Preschool to the Southside Baptist Church property a block north at 1435 Atlantic Blvd. “The plan is for the preschool and staff to be relocated to Southside Baptist as it maintains a continuing relationship with the families that have been coming to South Jacksonville for generations,” he said. Project renderings aren’t available. Asked if the site could accommodate retail or services development, Ware said Harbert was focused on apartments “at this time.”
nating company with Heritage.” “They followed the model for Charter: Assemble talent. And in this case, very diverse talent in terms of backgrounds and experience,” Delaney said. “And the people have an uncommon ethical core. Clients can trust their advice and valuations without question. They have a band of valuations that they focus on and have an incredible track record,” said Delaney, a shareholder with the Rogers Towers law firm and a principal with The Fiorentino Group government relations firm. Scot Ackerman, medical director of the Ackerman Cancer Center, turned to Heritage for help as he invests in specialized equipment that can cost from “a couple of million” dollars up to $30 million. That can’t always be financed with traditional bank loans, he said. “I have a practice that’s very capital-intensive,” Ackerman said. “They know the capital sources,” he said. “They helped to match me with a source of capital.” Wiggins said Heritage Capital has expanded substantially, both in the size of the group and in revenue, which he said has grown at almost 20% a year. Mallot, former president of JAXUSA Partnership, and McCaleb, a former executive with building materials firm Vulcan Materials Co., are the most recent additions. Other Heritage principals who joined after long Jacksonville business careers include former banker Mac Holley, former Jacksonville Jaguars Chief Financial Officer Bill Prescott and Dan Edelman, founder of a Jackson-
He said Harbert formed an entity with San Marco-based Corner Lot Development Group, led by CEO Andy Allen and COO George Leone, to develop Park Place at San Marco. Harbert will be the managing partner. Ware said EnVision Design + Engineering is the civil engineer and Group 4 Design is the architect. Both are based in San Marco. Ware said Harbert is working with lawyers Paul Harden and Zach Miller with The Law Offices of Paul M. Harden to work through entitlements for a partial land use change and rezoning to planned unit development. Ware expects to submit the PUD application to the city by the end of the month. Harbert will close on the purchase after the land use
change and rezoning are approved. Ware is working with Harden, Miller and Corner Lot to set up meetings with Mayor Lenny Curry; District 5 City Council member LeAnna Cumber, who represents San Marco; At-Large Group 4 council member Matt Carlucci; and Downtown Investment Authority CEO Lori Boyer. The development team also intends to meet with the San Marco Preservation Society, the San Marco Merchants Association and residents. Boyer, who just completed two terms as the District 5 council member, said she was not aware of project specifics, but in general, she would be interested in the zoning, land use and other factors to see what is permissible.
K.C. Caldabaugh Principal
Bill Prescott Principal
Career highlights: The Charter Co., vice president of corporate development; Charter Oil Co., vice president and treasurer
Career highlights: Jacksonville Jaguars, CFO; Liz Claiborne Footwear, treasurer
ville accounting firm. Heritage also has gone outside of Jacksonville to recruit additional principals including Mary Merrill, who had been a managing director of an investment banking firm in Minneapolis. “We’ve been very fortunate with the people we’ve added,” said Wiggins. Serkin said four of Heritage’s principals sit on boards of New York Stock Exchange-listed companies. “That’s a pretty big deal,” he said. “I use that as one of the validations that we have been successful in attracting some amazing talent.” While most of the principals bring financial expertise, Mallot brings experience in recruiting businesses to Jacksonville in his role as Heritage’s director of corporate development.
“We really started emphasizing marketing eight or nine years ago. Jerry is an extension of that,” Wiggins said. The backgrounds of the principals and industry specialists show the depth of knowledge and familiarity that Heritage Capital has within industry, especially in Jacksonville where many of the executives served in top-level positions. Among them, they have had direct contact with much of Jacksonville’s corporate leadership of the past 30 to 40 years. “Relationships have a tremendous impact on investment banking,” Wiggins said. “Since most of our business comes from referrals from former clients, and business, social and academic contacts, we try to expand our contacts and maintain relationships.”
“Generally, the folks in San Marco are concerned not just about density and parking but also about architecture,” Boyer said. “It’s not that they are opposed to new things, but they want to make sure they enhance the character. It’s a question of how it’s executed and what is envisioned,” she said. Ware said he wants the meetings to help build relationships “to be sure we capture all of what San Marco is and has been and will continue to be.” Allen said the project provides an option for people “to live near the action and amenities of San Marco.” Pending approvals, Ware would like to break ground late in the first quarter. Construction could take 16 months, which indicates the project could be completed in summer 2021. South Jacksonville Presbyterian Church was established in 1913. King said previously the campus was built for a membership of up to 2,000 and the congregation is less than 250. Church leadership decided about two years ago to consider another use for the site while hoping to continue to use the sanctuary. The church property was built in the 1930s and into the 1980s. Ware said that through mutual relationships, he heard about the church’s interest in redevelopment. “Conversations led to action and actions led to more interest and we developed a good working relationship,” Ware said. He expects Harbert Realty Services to pursue more area projects. “There is active predevelopment,” he said. “I am working on some potential projects.” KMATHIS@ JAXDAILYRECORD.COM (904) 356-2466
Charlie Tomm Industry specialist, automotive Career highlights: Brumos Automotive, president and CEO; Coggin Courtesy subsidiary of Asbury Automotive Group, president and CEO
He said being a member of Oaklins International also added to growth significantly. Wiggins and Serkin said they’ve built the firm by recruiting people as they’ve become available. Wiggins said the group identifies and recruits primarily through networking and its contacts. “We didn’t have a written strategic plan,” Serkin said. “We’re very opportunistic,” he said. “We’ve worked hard for 26 years at building the team.” “The company has gradually grown. We’ve grown in stages,” Wiggins said. “We didn’t plan it that way. That’s the way it worked out.” MBASCH@ JAXDAILYRECORD.COM (904) 356-2466
Jacksonville Daily Record/Jacksonville Record & Observer
Thursday, July 18, 2019 • Page 11
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THE SAILER REPORT
Page 12 • Thursday, July 18, 2019
Jacksonville housing market is ‘pretty normal’
SCOTT SAILER STAFF WRITER
Supply of newly built homes is at 2½ months, which means area is “in good shape.” “Pretty normal” is how a regional data analyst describes the health of the Jacksonville housing market. “When I look at the market here, it is pretty normal. It’s a good thing,” said David Cobb, regional director with Metrostudy. Cobb presented national and local data about residential real estate June 26 to the Northeast Florida Builders Association. Jacksonville-area first-quarter housing starts totaled 8,269, about half of the peak in 2007 before the Great Recession. The number of houses that
are newly built but not occupied stands at a normal 2½-month level. “Three months and higher, that’s bad news. When we value our quarterly surveys, we make note of that special category,” Cobb said. Compare that with the first quarter of 2010, when the supply of finished unoccupied homes was almost six months, he said. “We don’t want that, so we are in good shape here,” Cobb said. The creation of new lots has grown again since those leftover from the recession have been developed, he said. The supply of Jacksonville area vacant lots ready for development is normal at 24 months, he Cobb said, which is up 12 percent over the year. The largest number of future lots is in St. Johns County, he said, “close to 10,000 between equipment and paving. That’s a bunch.” As for housing starts and closings, Nocatee tops North-
Jacksonville Daily Record/Jacksonville Record & Observer
WHERE THEY’RE BUILDING AND FOR HOW MUCH North Florida housing starts by price range in the first quarter of 2019 by county, according to Metrostudy. Prices are in the thousands.
1,250 Clay Duval
1,000
Nassau 750 St. Johns 500
250
0
$1-$199
$200-$249
$250-$299 $300-$349 $350-$399
east Florida with 986 annual housing starts and 927 annual closings. Cobb said Clay County, “the fastest growing county in the state,” will become a robust housing market because of the First Coast Expressway and the development it attracts. Cobb reviewed the current transactions in the Jacksonville MSA, saying new homes are selling for a little more than resales. “But when we factor in the price per square foot, there is only about a $5 per-square-foot difference.” He indicated there is some
growth doesn’t mean CONSTANT CHANGE
$400-$449 $450-$499
$500 Over
Duval prices average $275,804 because of the “introduction of more affordable product,” he said. Metrostudy, a Hanley Wood data analysis company, provides research and expertise to support business decisions at the local, regional and national market level of the residential construction real estate and housing market.
stressed inventory overhang because 8% of the existing home transactions are lenderowned or foreclosures. That should “be around 3%, but your new home proportion is 19% and nationally it’s 15%, so builders are taking more market share than the average. It’s good,” Cobb said. The prices of new homes in the Jacksonville market generally are between $250,000 to $350,000. “That’s your sweet spot in the market,” Cobb said. St. Johns County prices top the market at an average $402,742, followed by Nassau at $379,616.
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Jacksonville Daily Record/Jacksonville Record & Observer
Thursday, July 18, 2019 • Page 13
BY SCOTT SAILER • STAFF WRITER
Here are the top 10 single-family residential real estate sales in Northeast Florida, comprising Baker, Clay, Duval and St. Johns counties. The sales were recorded July 8-12.
$5,104,058 815 Ponte Vedra Blvd., Ponte Vedra Beach, St. Johns County Type: Single-family Lot size: 1.61 acres House size: 7,498 square feet Buyer: Kevin J. Klempf Living Trust Seller: Foodonics International Inc. Previous sale: $4,250,000 in 2015
About the property: Five-bedroom, 6½bath home has 200 feet of ocean frontage. Built in 1992 and renovated in 2015, it features a secondary master suite, library, exercise room, four fireplaces, elevator and a four-car garage.
$2,225,000
$2,200,000
$1,942,500
1157 Ponte Vedra Blvd., Ponte Vedra Beach. St. Johns County
5390 Atlantic View, St. Augustine St. Johns County
910 Spinnakers Reach Drive, Ponte Vedra Beach St. Johns County
Type: Undeveloped singlefamily lot Lot size: 1.6 acres Buyer: Aztec Viking Children Irrevocable Trust Seller: Kevin P. and Eileen P. Van Fleet Previous sale: $2,100,000 in 2017
Type: Single-family Lot size: 0.18 acres House size: 4,583 square feet Buyer: Christopher C. and Janet C. Reid Seller: Neil B. and Ann Marie Wein
Type: Windemere 1 Condominium Condo size: 2,510 square feet Buyer: Gene and Sophia Martire Seller: Dryan A. and Iris M. Ellis Previous sale: $525,000 in 2010
$1,100,000
6110 St. Andrews Court, Ponte Vedra Beach St. Johns County
224 Sea Island Drive, Ponte Vedra Beach St. Johns County
Type: Single-family Lot size: 1.81 acres House size: 5,721 square feet Buyer: Jeffrey and Jessica Salazar Seller: Joseph and Marzena J. Mignone Previous sale: $800,000 in 2009
Type: Single-family Lot size: 0.44 acres House size: 3,671 square feet Buyer: Pamela K. and Robert K. Ohno Seller: Tristan T. Anowar Previous sale: $692,500 in 2017
$1,675,000
$1,025,000
21 Oasis Club Drive, Ponte Vedra St. Johns County
104 Linkside Circle, Ponte Vedra Beach, County
Type: Single-family Lot size: 0.46 acres House size: 4,509 square feet Buyer: James and April Tanner Seller: Glenn Layton Homes LLC
Type: Single-family Lot size: 1.22 acres House size: 4,911 square feet Buyer: Christopher C. and Charlette S. Kohler Seller: Marc E. and Cynthia Taffin Previous sale: $1,065,000 in 2006
$1,120,000
$1,000,000
5202 Commissioners Drive, Jacksonville Duval County
5008 Yacht Club Road, Jacksonville Duval County
Type: Single-family Lot size: 0.5 acres House size: 3,838 square feet Buyer: Christopher T. and Laura J. Clark Seller: Jaroslaw T. and Malgorzata A. Dabek Previous sale: $1,075,000 in 2018
Type: Single-family Lot size: 0.61 acres House size: 3,434 square feet Buyer: Bruns Family Trust Seller: Tracy E. Coleman, John Wiley and The Coleman and Wiley Revocable Living Trust Previous sale: $690,000 in 2017
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Page 14 • Thursday, July 18, 2019
Jacksonville Daily Record/Jacksonville Record & Observer
THE MARBUT REPORT
Jacob Brown elected to chair JNC MAX MARBUT ASSOCIATE EDITOR
He is beginning his second term on the 4th Circuit Judicial Nominating Commission. Jacob Brown, a partner in the Akerman law firm’s Jacksonville office, was elected Tuesday to chair the 4th Circuit Judicial Nominating Commission. He is deputy chief of the Bankruptcy and Reorganization Practice Group and was appointed to the commission in 2016 by then-Gov. Rick Scott. He was reappointed this month by Gov. Ron DeSantis. Courtney Grimm, county attorney in Clay County, was elected vice chair. The commission convenes when there is a judicial vacancy on the 4th Circuit or Duval County Court, solicits and reviews applications, interviews candidates and then submits as many as six nominees to the governor, who appoints judges to succeed those who have left the bench. When Patrick Kilbane, Ullmann Brown Wealth Advisors general counsel and immediate past chair of the JNC, handed over the leadership of the ninemember commission, he said he was honored to have done the administrative work for the commission. Kilbane said the Jacksonville Lawyers Chapter of the Federalist Society will present “an inside look at judicial appointments” at 5:30 p.m. Aug. 22 at The River Club. He and Joseph Jacquot, general counsel for DeSantis, and Katherine Hurst Miller, chair of the 7th Circuit Judicial Nominating Commission, will explain the judicial appointment process from application to selection. Visit https://www.eventbrite.com/e/an-inside-look-
Photo by Max Marbut
From left, Courtney Grimm, Jacob Brown and Patrick Kilbane. Brown was elected 2019-20 chair of the 4th Circuit Judicial Nominating Commission, succeeding Kilbane. Grimm was elected vice chair.
at-judicial-appointmentsunder-governor-desantistickets-65410974987 for registration information.
Two vacancies on 1st DCA There’s an opportunity for Northeast Florida to increase its influence on the state appellate court. With the resignations of Judge Allen Winsor and Judge T. Kent Wetherell II, the 1st District Court of Appeal Judicial Nomination Commission has been asked by Gov. Ron DeSantis to provide nominees for the vacant positions on or before Aug. 30. Applicants must have been members of The Florida Bar for at least 10 years, registered to vote in Florida and a resident of the 1st District before taking office. The commission will accept applications until 6 p.m. Aug. 2 and then will schedule interviews with applicants. Visit floridabar.org to download the judicial application and instructions.
Chris Hand honored by Leadership Florida Jacksonville attorney Chris Hand received the 2019 “But
Joel Settembrini, Jr.
for Leadership Florida” award from Leadership Florida. The award is presented to alumni members who have used specific knowledge gained and/or relationships built through his or her Leadership Florida experience to improve the lives of fellow Floridians. Hand helped launch a campaign in 2018 that led Hand to posthumous pardons for four African American men who were convicted of rape in 1949 in a racially charged trial in Groveland. Hand leveraged contacts made with his Leadership Florida classmates to convince the Florida Board of Executive Clemency and Gov. Ron DeSantis to pardon the men, which he did Jan. 11, according to a news release from Leadership Florida.
Deadline extended for Florida Legal Services vacancy
The deadline for applications for a vacancy on the Florida Legal Services Inc. board of directors has been extended to 5 p.m. Aug. 16.
CERTIFIED STATE AND FEDERAL MEDIATOR Qualifications
• Board Certified in Business Litigation by The Florida Bar with 35+ years of litigation and trial experience at Saalfield Shad (2013-present), Smith Hulsey & Busey (1987-2013) and Office of Chief Counsel, IRS (1983-1987). • Listed in Best Lawyers in America, Florida Legal Elite and Florida Super Lawyers and rated AV Preeminent by Martindale-Hubbell.
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Great job today Joel. I have a tough client who put a lot of faith in your analysis. Will put you on the firm list of go-to guys in Jax. – Michael D. Sechrest, Esq. Warner, Sechrest and Butts, Gainesville
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You truly did a great job. No one would have handicapped it as an easy one to settle. Your adjustment to the situation is what got it done. – Juan M. Muñiz, Esq. Gunster, Miami
Contact Information Saalfield Shad, P.A.
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Endorsements
The 15-member board provides judicial advocacy through co-counseling with local program attorneys and volunteer attorneys to provide legislative and administrative advocacy on policies impacting the legal rights of the poor, as well as provide civil legal assistance to indigent people who would not otherwise have the means to obtain legal counsel. Visit floridabar.org to download the Application for Special Appointment.
Bankruptcy court introducing student loan debt program
The U.S. Bankruptcy Court for the Middle District of Florida will offer as of Aug. 1 an opportunity for individual debtors to seek options for the repayment of student loans under the administrative oversight of the court. The new procedure will use an online portal for secure communications between debtors and student loan lenders and will facilitate the parties in reaching mutually beneficial agreements for the payment of student loans. According to an administrative order issued by Chief U.S. Bankruptcy Judge Michael Wiliamson, the goal of the program is to help communication,
exchange information in an efficient and transparent manner and encourage the parties to find a feasible and beneficial agreement. “The court should be commended for proactively crafting a program to begin to address what has become a national crisis. The order appears a workable alternative for a borrower who may not be eligible for a hardship discharge,” said Katie Fackler, a partner at the Akerman law firm in Jacksonville who practices bankruptcy and reorganization law. “The portal structure, which is similar to the mortgage modification portal, requires a proactive and attentive borrower. I think the success of the program will depend in large part on the willingness of the borrowers and lenders to work collaboratively under the program. There are obvious positive aspects for both sides – restructured and/or reduced debt for the borrower and collection on a debt that might otherwise be written off for the lender,” she said. Visit flmb.uscourts.gov for details. MMARBUT@ JAXDAILYRECORD.COM (904) 356-2466
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Jacksonville Daily Record/Jacksonville Record & Observer
Thursday, July 18, 2019 • Page 15
Court declares marijuana regulations unconstitutional BY SALLY KENT PEEBLES SPECIAL TO THE JACKSONVILLE DAILY RECORD/JACKSONVILLE RECORD & OBSERVER
I receive calls almost daily from hopeful canna-curious people interested in opening a medical marijuana business in Florida. Usually just back from a trip out West where the industry is thriving, they are considering the prospect of opening their own dispensary, or maybe a small craft cultivation, back home. I have had to curb their enthusiasm as Florida’s current medical marijuana laws are restrictive, providing little entry to new players. Even if they could obtain a medical marijuana treatment center license, the endeavor would Peebles be incredibly expensive as the state currently requires operators to be vertically integrated, operating the entire process from cultivation to distribution. However, on July 9, in a move that shocked Florida’s cannabis community, the 1st District Court of Appeal issued its long-awaited opinion in Department of Health v. Florigrown, which could have a substantial impact on the state’s medical marijuana program. The DCA upheld, in part, a decision issued by 2nd Judicial
Circuit Judge Charles Dodson, agreeing with the trial court’s ruling that two critical aspects of Florida’s medical marijuana statute required vertical integration and that the cap on the number of licenses allowed, are unconstitutional. The appellate court examined the conflicting use of the words “or” and “and” in the constitutional amendment and the medical marijuana statute, respectively, and determined that it was intended for a medical marijuana treatment center to be permitted to handle just one component of the operations process, if desired. Further, the DCA found that allowing only a handful of licenses to serve the entire state simply is not reasonable. Notably, the DCA did not agree with the trial court that the state Department of Health must begin “registering” licenses to anyone who wants one. The amendment specifically directs the department to “establish standards…to ensure proper security, record keeping, testing, labeling, inspection, and safety,” giving the department gatekeeping discretion to regulate the treatment centers to ensure that certain standards in these noted areas are met. The immediate effects of the ruling are unclear, but I predict that the state will appeal this decision, perhaps just to bide time to determine next steps. Whether or not the state appeals, they likely will begin strategizing how best to adjust the industry’s regulatory scheme so it is in line with the opinion, creating a horizontal license
120
Number of Florida dispensaries
Appellate ruling could open more opportunities for businesses.
119 100
80
60
40 20
34 Apr. 2018
Jul. 2018
Oct. 2018
Jan. 2019
Apr. 2019
Source: Florida Office of Medical Marijuana Use
structure and coming up with a reasonable number of licenses to issue that would adequately support patient demand, yet not place Florida in the same overproduction scenario that states like Oregon are experiencing. If the state appeals and chooses not to issue new rules, it will be up to the Legislature to create its own fix next session. What is clear, to quote Bob Dylan, is that “the times, they are a-changin’.” To those interested in entering this new and growing industry, this opinion signals a welcome
change and promise for a more open capitalistic program. With more licenses, competition may force businesses to create better and more innovative products and prices may fall, benefiting some of our most vulnerable residents, the patients. On the other side of the issue, the existing 22 medical marijuana licensees, many of whom spent several years and millions of dollars to enter the industry, may feel compelled to fight this change. “It is their golden geese that may be killed – or at least be
devalued – if the oligopolistic statutory scheme established by the Legislature to implement the [Amendment] is ultimately invalidated,” the DCA opined. SALLY KENT PEEBLES IS A PARTNER WITH VICENTE SEDERBURG AND MANAGES THE COLORADO-BASED CANNABIS LAW FIRM’S JACKSONVILLE OFFICE. SHE IS A MEMBER OF THE FLORIDA MEDICAL CANNABIS ADVISORY COMMITTEE.
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IN THE LAW
Page 16 • Thursday, July 18, 2019
Jacksonville Daily Record/Jacksonville Record & Observer
EARL GOOGE JR.
EARL GOOGE JR. Shareholder, Smith Hulsey & Busey
BY MAX MARBUT • ASSOCIATE EDITOR
Earl Googe Jr. joined the Smith Hulsey & Busey law firm after he graduated from law school at the University of Florida. He recently celebrated his 30th anniversary with the firm. Who or what inspired you to become a lawyer? As a member of the baby boomer generation that grew up on impactful television shows, I was inspired by Perry Mason. He always was able to identify the true cause, even when something else seemed to be the obvious answer. Mason defended dozens of falsely accused people and managed to clear each and every one of them, usually by drawing out the real facts and circumstances through investigation and examination.
Age: 58 Education: University of Florida College of Law, J.D.; Duke University, bachelor’s in history and public policy Hometown: Jacksonville Family: Wife, Kelly, and three children, Corrine, Patrick and Evan
How do you relate your undergraduate degree to your practice of law? I studied public policy at Duke University. An integral part of public policy involves “decision analysis,” which I often have to employ. By its very nature, decision analysis comprises the philosophy, methodology and professional practice necessary to address important decisions, a core element of the law.
Someone other than my spouse who inspires me: My law partner, William Kuntz
How did you decide your practice area? And why have you chosen that? Medical malpractice defense challenges me to put facts together in an interesting way that helps provide a compelling argument for my clients. The successful defense of professional malpractice claims requires experience, intuition and attention to detail, which I employ in all matters of my defense work.
Book I’m reading now: “American Ulysses: A Life of Ulysses S. Grant” by Ronald C. White
Favorite book: “Netter’s Clinical Anatomy”
Special to the Daily Record
What has been the biggest change in your practice area since you passed the Bar? The intricate and elaborate ways medical malpractice litigation is regulated.
standard used by a trial judge to assess whether an expert witness’s scientific testimony is based on scientifically valid reasoning that can properly be applied to the facts at issue. Now that the court has adopted the standard to screen invalid opinions out of cases, Daubert will be an important component of the medical malpractice landscape.
What do you think will be the next biggest change in your area of law? Daubert – the
What community service have you pursued and why that? I am a board member of
Volunteers in Medicine, which provides free primary and specialty medical care for the working uninsured. The organization helps those who are trying, working and need a hand up. What’s your advice for new lawyers? Get involved in groups that your clients are members of and support those groups. You won’t be able to meet the needs of your clients without knowing what those needs are.
App I can’t live without: Pandora (the Bessie Smith channel) Favorite nonwork activities: Playing golf with my two sons
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