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Cawton Report: Vestcor president on project planned for Brooklyn PAGE 10
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JACKSONVILLE
Record & Observer Warehouse planned WHAT’S BEHIND for West THE Record & Observer TRAFFIC MESS Jacksonville Record & Observer JACKSONVILLE
Georgia-based company plans to build 400,000-square-foot speculative facility near Westside Industrial Park.
JACKSONVILLE
BY KAREN BRUNE MATHIS EDITOR
looks like lengthy parking lots. The executive officer of the Northeast Florida Builders Association gets up before the sun rises and is on the road by 5:30 a.m. every weekday to avoid the peak congestion hours. “If I wait and leave, I'm stuck on I-10 with tens of thousands of people sitting bumper-tobumper,” Bill Garrison said. Which raises the question: Why is traffic so
A Georgia-based warehouse developer wants to build about 400,000 square feet of space in West Jacksonville. “Warehouse space overall in Jacksonville is at an all-time low vacancy rate,” said Brian Cooper, Warehouse Rentals director of real estate. Valdosta-based Warehouse Rentals has a contract to buy 50.1 acres at southeast Imeson and Pritchard roads, near Westside Industrial Park. Cooper said the company is working through permitting for the site. He said Warehouse Rentals wants to buy the land by early next year and break ground after the sale. Cooper said plans are to build speculative warehouse space to lease to tenants needing from 20,000 to more than 100,000 square feet of space. The city calculated a mobility fee of $169,187 for the project. Plans show two multitenant buildings east of Imeson Road comprising 219,375 and 192,500 square feet. Tenant sizes are indicated to range from 21,875 to 135,000 square feet. Cooper said that total of 411,875 square feet likely will be reduced closer to 400,000 square feet. “That’s a good start,” he said. Warehouse Rentals will gauge
SEE TRAFFIC, PAGE 8
SEE WAREHOUSE, PAGE 9
JACKSONVILLE
Record & Observer
Photo by Jay Schlichter
Northeast Florida Builders Association Executive Officer Bill Garrison leaves for work at 5:30 a.m. to beat the traffic on his commute to Duval County from Clay.
Who is responsible for clogging Duval’s roads? Many are commuters from the surrounding counties.
BY JAY SCHLICHTER ASSOCIATE EDITOR
D
rivers who travel along Jacksonville’s main highways during the morning and afternoon rush hours know the struggle. Whether it’s via Interstate 95, 295, 10 or another major thoroughfare, vehicles often crawl at a few miles per hour rather than travel at or above the posted speed limits, creating what
The Mathis Report: Industrial park planned near JIA PAGE 4 The C-suite: Mayo Clinic, Haskell make executive moves PAGE 12 OBSERVER MEDIA GROUP
THE BASCH REPORT
Cannae-led group in deal to buy Dun & Bradstreet Plus: CSX decentralizes. PAGE 6 VOLUME 1, NO. 11 • ONE SECTION
Page 2 • Thursday, August 16, 2018
Jacksonville Daily Record/Jacksonville Record & Observer
WHAT’S TRENDING
The right to vote may be priceless, but it does come at a cost
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Jacksonville Daily Record, Jacksonville Record & Observer and Realty-Builder are a division of Observer Media Group Inc. Established in 1912, the Financial News & Daily Record, now the Jacksonville Daily JACKSONVILLE Record, is published Monday-Friday and is the Official Court Newspaper of the Circuit Court and publisher of public notices in Duval County.
MAX MARBUT ASSOCIATE EDITOR
ELECTION COSTS Few would argue that the right to vote in a free election is priceless, but in government, there's a cost for each service provided to constituents. In the case of holding an election in Duval County, that cost is $1.3 million to $1.5 million, according to Supervisor of Elections Mike Hogan. Operating the 18 sites for the 14 days of early voting that began Monday and ends Aug. 26 costs about $420,000. To equip and staff the 199 countywide precincts on primary Election Day, Aug. 28, and for the Nov. 6 general election will cost about $405,000 each day. Hogan said operating the elections call center adds another $250,000 to the cost for early voting and election day. Put that in perspective, based on average registered voter turnout in the past two mid-term elections in 2014 and 2010. Based on the averages, 20 percent for primaries and 50 percent for runoff elections, the cost per vote will be about $3.61 and $1.37, respectively. Of the total, $1.075 million is payroll, with the remainder for costs related to moving voting equipment, printing ballots, delivering and processing “vote by mail” ballots and required voter information materials and publishing public notices for the election as required by state law. When City Council begins reviewing the proposed general fund budget this week, one item on the agenda will be an increase for the supervisor of elections from the past year's adopted budget of $5,874,877 to $9,002,448 for fiscal year 2018-19. That's because there will be three elections in the next budget year
$3.61
The estimated cost per vote cast in this year's primary election in Duval County, based on average turnout.
$1.37
The estimated cost per vote cast in the general election.
Jacksonville Record & Observer is a free weekly business newspaper available in Downtown Jacksonville and key business nodes throughout Jacksonville. To find a location near you, visit jaxdailyrecord.com/rack-locations. Editorial content focuses on news and trends, with a concentration on development, law, companies, economic and industry trends and how local and state government affects business. Realty-Builder is a monthly publication connecting Northeast Florida’s real estate professionals and homebuilders. Content focuses on timely news, information and trends affecting residential real estate sales and construction, as well as events and legal issues impacting the industry. Visit Realty-Builder.com to request your free copy.
STAFF that begins Oct. 1, compared to one primary election in the current year: the Nov. 6 general election, a unitary election on March 19 and a unitary general election on May 14. Notes submitted with the proposed budget by the administration indicate an increase of 128.5 percent in the cost of the three elections, primarily payroll and overtime expense. The proposed budget shows an increase of 339 percent for security guard and janitorial expenses related to the additional elections. Employer-provided benefits are projected to increase in cost by about $340,000 — 37.5 percent — based on the higher cost for group hospitalization insurance and in Medicare tax for the increase in part-time hours related to the elections. The supervisor of elections is scheduled to make a 30-minute budget presentation at 9:30 a.m. Wednesday in the council chamber at City Hall. Visit duvalelections.com for early voting hours and locations and other election information. MMARBUT@JAXDAILYRECORD.COM (904) 356-2466
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JOBS Wayfair postings continue to hint at Jacksonville While Boston-based Wayfair Inc. hasn’t commented, the online home-furnishings seller continues to hire for a Jacksonville presence it doesn’t yet have. This week it posted an opening for a human resources generalist for “Wayfair’s Virtual Call Center” in Jacksonville. The HR position includes the duty to “prepare for and assist with new-hire onboarding.” Previously posted positions seek a Wayfair warehouse supervisor for a Jacksonville center to manage and oversee the operations and for a process quality manager. Wayfair describes the HR position as a full-time job. The person would provide HR support to employees and leaders and perform a full range of functions “in an exciting, unique, fast-paced and fun environment.” The position reports to the manager of human resources and functions within a larger HR team based in Boston. Wayfair doesn’t have a warehouse in Jacksonville, although several pending industrial projects could accommodate it. Industry sources said months ago that the $5.7 billion revenue Wayfair retailer was looking at Northeast Florida for a distribution center.
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Thursday, August 16, 2018 • Page 3
Renting on rise in Jacksonville, nation Owners still outnumber renters in Jacksonville
Miami has highest U.S. rental percentage . . .
The percentage of people who rent rather than own their home in Jacksonville has been trending toward renting over the past decade.
Own: 30.1%
43.4%
Rent: 69.9%
34%
BY MARK BASCH CONTRIBUTING WRITER
In the wake of the housing market collapse a decade ago, more Americans are renting rather than owning homes, according to a report released last week by real estate data firm Zillow. The study shows the percentage of renters rose from 2006 through 2016 in all 50 of the largest U.S. cities, including Jacksonville. However, while renters outnumber homeowners in 29 of those 50 cities, Jacksonville remains a city where homeownership is the majority, according to Zillow. The percentage of renters in Jacksonville was steady from 2000 to 2006, increasing from 36.8 percent to just 37 percent. But the percentage of renters in the city began rising in 2008, peaking at 44.4 percent in 2014. The rate edged lower the next two years but was still at 43.4 percent in 2016, the last year for which data is available, Zillow said. That was 6.4 percentage points higher than 2006. The percentage of renters is lower in Northeast Florida out-
30% . . . Virginia Beach the lowest
20%
Rent: 37.8%
10%
Own: 62.2%
0% 2005
2010
2016 Source: Zillow
“The share of U.S. households that rent surged in the wake of the Great Recession, as millions of families were foreclosed upon and younger adults either chose to or had no choice but to rent for longer.” AARON TERRAZAS, ZILLOW SENIOR ECONOMIST
side of the city. Zillow said the rate for all of the Jacksonville metropolitan area was 35.4 percent in 2016, 3.1 points higher than in 2006. Nationally, the renter rate declined from 32.5 percent in 2000 to 31.1 percent in 2006, but it rose 5.2 points over the next decade to 36.3 percent. As expected, the rental per-
centage is high in the largest U.S. cities where real estate is expensive. Renters make up 68 percent of New York residents and 64.1 percent of those in Los Angeles. But it’s a Florida city, Miami, at the top of the list with a renter rate of 69.9 percent in 2016. Virginia Beach had the smallest percentage of renters among
the 50 largest cities at 37.8 percent. “The share of U.S. households that rent surged in the wake of the Great Recession, as millions of families were foreclosed upon and younger adults either chose to or had no choice but to rent for longer,” Zillow senior economist Aaron Terrazas said in a news release.
“Some of this shift is attributable to lifestyle choices, including young adults delaying marriage and starting families, and a strong preference for living in urban cores where renting is often more convenient and financially feasible,” he said. “Some is also driven by economic necessity – quickly rising home values can make it difficult for some to enter the market to begin with – and many previously foreclosed-upon families remain unable to purchase again, even years after foreclosure.” Homeownership among young adults is rising again, but it will take a long time for ownership to get back to its prerecession levels, Terrazas said. A 2017 report by Zillow said having money for a down payment is a major barrier for homeownership for millennials. They also find it more difficult to qualify for a loan. Zillow’s data shows cities with large percentages of renters also have some of the highest rents. The median U.S. monthly rent was $1,440 in June 2018, but many of the majority renter cities have rents above $2,000. San Francisco, with a renter percentage of 62.1 percent in 2016, has the highest current median rent at $4,219 a month. Jacksonville’s median rent is below the national level at $1,193.
ECONOMIC TRENDS
While renters now outnumber homeowners in 29 of the 50 largest U.S. cities, owners still are the majority here.
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Page 4 • Thursday, August 16, 2018
Jacksonville Daily Record/Jacksonville Record & Observer
RETAIL Photo by Karen Brune Mathis
The Walmart Supercenter at The Pavilion at Durbin Park is expected to open this fall and is hiring 350 employees.
THE MATHIS REPORT
Park 295 planned for North Jacksonville
Walmart preparing store at Pavilion at Durbin Park Wal-Mart Stores Inc. filed a fictitious name with the state for Walmart #928, its Supercenter set to open at 845 Durbin Pavilion Drive in St. Johns County. A temporary hiring center is open 8 a.m. to 5 p.m. Monday through Friday in Panther Plaza at 10440 U.S. 1 N., Suites 120-121. Applicants also may apply online at careers.walmart.com. Walmart said most of those hired will begin work in September to prepare for the grand opening.
for development of the 69,900-square-foot retail center on 11 acres at northeast Beach and Kernan boulevards. England-Thims & Miller Inc. is the agent. The property owner is Tamaya Loan Acquisition LLC of Daytona Beach. The Cantrell & Morgan real estate company is marketing the planned project for lease. CEO Chris Morgan said in May the site is under contract and he expected it to close in several months. He did not identify the 30,000-squarefoot grocery anchor.
Park 295, outlined in red, is in North Jacksonville near JIA and the Amazon fulfillment center.
KAREN BRUNE MATHIS EDITOR
NorthPoint Development buys 175 acres of land, plans to build 553,000-square-foot warehouse. Park 295 Industrial Park is on the way. NorthPoint Development bought the North Jacksonville property it intends to develop into Park 295, shown on plans as 1.8 million square feet of industrial space. Through NP Jacksonville Industrial LLC, NorthPoint paid almost $4.77 million for about 175 acres in a sale that was executed Friday and recorded Tuesday. It bought the land, along Interstate 295 at southwest Duval and Armsdale roads, from HG Industrial Commons LLC and HG Industrial Partners LLC, both of Elgin, Illinois, near Chicago. The site is across I-295 from
Retail notes
Amazon.com’s North Jacksonville fulfillment center and is near Jacksonville International Airport. NorthPoint, based in Kansas City, Missouri, intends to start construction with an almost 553,000-square-foot warehouse. No tenant was identified. Representative Ladson Montgomery, senior vice president and principal of Newmark Phoenix Realty Group, said previously the building would be speculative and completed in the first quarter of 2019. Newmark Phoenix Realty Group was the exclusive agent for the land. NorthPoint Development
LLC, identified in public records as the project developer, wants to build a high cube warehouse, which is a distribution center primarily used for storage or consolidation of goods before distribution. At an industry estimate of $40 to $50 per square foot, the project cost of the first warehouse could reach $27 million. The St. Johns River Water Management District is reviewing a modification to a stormwater system for the property. A marketing brochure shows five buildings on the site: The first 552,634-square-foot Building B; 463,100-squarefoot Buildings C and D; Build-
ing A at 104,965 square feet; and Building E at 260,400 square feet. Montgomery, Richard Antczak and John Richardson, all with Newmark Phoenix Realty, represent the park. The city is reviewing civil plans for the project, showing it will be developed on Ignition Drive. Prosser is the civil engineer.
Tamaya groceryanchored shopping center in review
Tamaya’s retail center is progressing toward development. The city calculated a $261,809 mobility fee
n Encore Capital Management and Twin Creeks Development Associates, the developer of Beachwalk, chose Colliers International Northeast Florida as the exclusive retail leasing brokers for the St. Johns County project. Colliers will be responsible for leasing 450,000 square feet of retail space surrounding the Crystal Lagoon in Beachwalk as part of the first phase of commercial development. Beachwalk’s retail center is designed to look like a seaside village in the Caribbean. The Colliers team will be led by Nancy Sumner and Katy Figg, vice presidents of retail services, who are focused on bringing in a specialty grocer, movie theater, restaurants, health and wellness and home improvement options. n Another Wawa is planned
ENTERTAINMENT
The Escape Game coming to Town Center The Escape Game LLC is coming to St. Johns Town Center. The Escape Game, based in Nashville, intends to open later this year. It will be the second Florida location. The first is in Orlando. The 3,743-square-foot project will be built-out for The Escape Room LLC at a cost of $400,000. The address is 4720 Town
Crossing Drive, No. 107, where Gretchen’s Hallmark operated. Plans show five “escape” rooms and other functions. “We look forward to bringing our epic interactive experiences to the Jacksonville area,” said marketing manager Max Magura. The Escape Game identifies nine locations at its theescapegame.com site. Special to the Daily Record
Jacksonville Daily Record/Jacksonville Record & Observer for the area. Bartram Market, under development in northern St. Johns and southern Duval counties, is slated for Wawa, Wendy’s and Dunkin’ Donuts, among other stores, including a grocer. Eastland Development Manager John Dodson III said the group is working on leases with those retailers and other companies. Construction is planned to start on the 38-acre, 79,460-acre center in September. It is near The Pavilion at Durbin Park. n Making way for Whole Foods Market, Office Depot will relocate in Jacksonville Beach within Pablo Plaza at 1822 Third St. S. into a smaller 17,422-square-foot space at a 10-year lease. Colliers International Northeast Florida said it facilitated the lease as part of a redevelopment of the center. Jason Ryals and Gary Montour of Colliers International Northeast Florida represented the tenant. Stephanie McCullough of The Shopping Center Group represented the landlord, Regency Centers. The lease was finalized July 26. n CVS Pharmacy continues making progress toward opening a new East Arlington store. The city calculated a mobility fee of $132,701 for CVS to build a 13,259-square-foot pharmacy on 2.14 acres at southwest McCormick and Monument roads. Bohler Engineering FL LLC of Tampa is the agent for property owner Brightwork Real Estate, through BW McCormick LLC, also of Tampa. Brightwork is developing a Wawa gas station and convenience store at the corner of the site. n AutoZone wants to build near a RaceTrac gas station and convenience store at southwest Beach and Forest boulevards. The city calculated a $39,555 mobility fee for construction of the 7,381-square-foot store on 1.2 acres. Goodson, Nevin & Associates Inc. is the agent for property owner Fowler Properties Inc. n RaceTrac Petroleum Inc. continues to work toward development of a gas station and convenience store at Merrill and Fort Caroline roads in the Buck Business Park in Arlington. RaceTrac, based in Atlanta, plans to build a 5,500-square-foot store on almost 3 acres on the property, owned by Buck Business Park LLC. The city calculated a mobility fee of $263,779 for the project. n Soft Surroundings will build-out at 4790 River City Drive in St. Johns Town Center. Horizon Retail Construction is the contractor for the $527,556 project. Soft Surroundings, which expects to open the store this winter, sells women’s clothSoft Surroundings, which sells women's clothing along with jewelry, accessories and bedding and home goods, is coming to St. Johns Town Center. File image
ing, swimwear, shoes, jewelry and accessories and fragrances as well as bedding and home goods, beauty and personal care products and travel wear and wares. The company is based in Creve Coeur, a St. Louis suburb. n Duval Station Developers plans a retail center along Lady Lake Road off Duval Station Road in North Jacksonville. The 11,000-square-foot building will sit on 1.39 acres. The city calculated a $70,974 mobility fee. Proposed are a 6,000-square-foot veterinarian clinic, 2,500-square-foot sushi restaurant, 1,500-square-foot hair salon and 1,000-squarefoot nail salon. The agent is shown as Bakkar Group through RBSSSS LLC. n Gateway Village at Town Center, where RaceTrac is under construction, soon will see walls rising for a 9,520-square-foot multitenant retail shell building at a cost of $1.14 million. North Coast Construction Co. is the contractor for the project on 1.77 acres. It is part of an 18.5-acre project area at southwest Gate Parkway and Deerwood Park Boulevard. Developer Cantrell & Morgan submitted plans for the building, which will feature Burrito Gallery and M Hospitality Restaurant & Catering Group by chef Matthew Medure.
Development notes n T&C Metals will move by Nov. 1 from 5220 New Kings Road about 6 miles south to 6746 Stuart Ave. “Our business is growing at a tremendous pace and we need more room to bring in more product,” said Thomas DeSaulniers, branch manager for T&C Metals. It sells wholesale metal products and is a division of ABC Supply Co. Inc. DeSaulniers said the West Jacksonville move into 60,000 square feet of space almost doubles T&C’s current space of 38,000 square feet. “To continue our growth, we need this facility,” he said. He said the new address has an additional 17,000 square feet that he hopes to use in two or three years. n Becknell Services LLC landed St. Johns River Water Management District approval for its proposed 186,000-square-foot speculative Becknell Industrial warehouse in Westlake Industrial Park. The district said Aug. 10 that it is giving notice of its decision to grant the permit. Becknell Industrial, based in Lyons, Illinois, partnered with Norfolk Southern to develop the transportation company’s Westlake Industrial Park.
Thursday, August 16, 2018 • Page 5
RESTAURANT NOTES
Photo by Karen Brune Mathis
Zeus Pizza Grill & Buffet intends to take over the former Kitchen on San Marco at 1402 San Marco Blvd.
Zeus Pizza Grill & Buffet coming to San Marco Zeus Pizza Grill & Buffet is slated to take over the former Kitchen on San Marco at 1402 San Marco Blvd. Erkan Enterprises LLC, led by Erkan Cakar, applied for a certificate of use to open Zeus Pizza Grill & Buffet in the 4,550-square-foot space. Cakar said Tuesday he hopes to open in midSeptember. “It’s a good location,” Cakar said, citing the hospital and medical development in the area. The Baptist MD Anderson Cancer Center operates across San Marco Boulevard and is building a nine-story addition across Children’s Way. The Kitchen on San Marco closed in the wake of damage from Hurricane Irma in September. In a Facebook post, Kitchen on San Marco announced the storm caused extensive damage when floodwaters engulfed part of the building and that it would close permanently. Cakar said he had some work to do. A certificate of use application shows Zeus will comprise 150 seats. The menu has not been completed, although Cakar said it would comprise Italian and Mediterranean food. Cakar previously owned Vinos Pizza Grille San Marco Inc. at 1430 San Marco Blvd., on the other end of the block. He said he sold the business several months before the hurricane. He said the owner closed after the hurricane and has not reopened. Kitchen on San Marco opened in April 2015 and was owned by Education Corporation of America, which also operates Virginia College, a
for-profit, private institution. The Jacksonville location was one of three “Kitchen on” branded restaurants in the U.S. along with Kitchen on George in Mobile, Alabama, and Kitchen on Cary in Richmond, Virginia. It also functioned as an employment pipeline and learning lab for culinary and pastry students at Culinard, the Culinary Institute of Virginia College campus in Jacksonville.
Notes
n Buck Business Park, already slated for a RaceTrac gas station and convenience store, will gain a Popeyes Louisiana Kitchen at the Arlington property along Merrill Road just west of Fort Caroline Road. The city calculated a $94,289 mobility fee for the 2,265-square-foot restaurant on 0.76 acres. Verdad Real Estate of Southlake, Texas, is the developer. The property is owned by Buck Business Park LLC. KimleyHorn and Associates is the civil engineering consultant. n Ruth’s Chris Steak House will renovate the interior of its Ponte Vedra Beach restaurant at a construction cost of $800,000. The restaurant is at 814 Florida A1A N., Suite 103. n McDonald’s intends to remodel its Town & Country Shopping Center restaurant at 1001 University Blvd. N. to update the drive-thru area and bringing the site into ADA compliance. n Pizza Hut intends to build-out a carryout and delivery location in West Jacksonville at 11043 Crystal Springs Road, Suite 8. It’s a $200,000 project.
KMATHIS@JAXDAILYRECORD.COM @MATHISKB (904) 356-2466
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Page 6 • Thursday, August 16, 2018
Jacksonville Daily Record/Jacksonville Record & Observer
THE BASCH REPORT
Group led by Cannae Holdings agrees to buy Dun & Bradstreet
MARK BASCH CONTRIBUTING WRITER
Fidelity National Financial Inc. spinoff is minority owner in $6.9 billion deal. When investment company Cannae Holdings Inc. was spun off from Fidelity National Financial Inc. last fall, its most interesting holding was its stake in several restaurant chains. However, the now independent investment company, which continues to be run by executives of Jacksonvillebased Fidelity, made a bigger splash last week. Cannae is leading an investment group that agreed to buy business data firm Dun & Bradstreet for $6.9 billion. Dun & Bradstreet has been providing information to the business world since 1841 and was one of the go-to sources for Wall Street long before the internet came around. “We see a significant opportunity to grow the company, increase their operating efficiencies and improve the D&B customer experience by providing enhanced business solutions,” Cannae Chairman Bill Foley said Monday in the company’s quarterly conference call. “This is a terrific opportunity for Cannae to make a scale investment in partnership with like-minded investors that we know well,” he said. Cannae is a minority investor in the deal. Foley said the firm’s investment commitment is $900 million, and it expects to syndicate $400 million to $600 million of that to other investors. However, Cannae will take an active role in managing Dun & Bradstreet, at least in the early stages after the deal is complete. “The present plan is that I would be executive chairman,” said Foley, adding that Dun & Bradstreet currently is run by an interim CEO. “We’ll bring in a CEO and some other individuals,” he said. The new investment comes at a time when Foley seemed to be stepping back from some of his activities. Foley told the Jacksonville Daily Record in May, as his Las Vegas Golden Knights hockey team was get-
ting ready to play in the Stanley Cup finals, that he was focused more on the hockey team than some of his other businesses. The 73-year-old remains chairman of Fidelity and another Jacksonville-based company spun off from the title insurance company, mortgage technology firm Black Knight Inc. Cannae is headquartered in Las Vegas, where Foley now lives, but Fidelity executives play a significant role in the investment firm. Cannae President Brent Bickett is executive vice president of Fidelity. Foley said in Cannae’s conference call that Dun & Bradstreet is “similarly situated” to where Black Knight was a few years ago. “Their sales efforts are siloed as opposed to cross-selling,” he said. The firm has also been dealing with management problems, Foley said. “They have had a series of CEOs over the last seven or eight years, so leadership has been a little bit of an issue with the company,” he said. “I just believe that we can bring some focused leadership to the organization.” Dun & Bradstreet reported second-quarter adjusted revenue of $394.4 million, down 3 percent after the foreign exchange impact, and flat adjusted earnings of $1.40 a share. Foley said the investment group expects to bring 3 percent to 5 percent annual growth to the company. “We’ve spent enough time in the company that we’re confident we can get all those things accomplished,” he said. Other major investors in the deal include Thomas H. Lee Partners, which has been involved in deals with Fidelityrelated companies in the past, and CC Capital. CC Capital is an investment firm founded by Chinh Chu, who partnered with Foley to start another publicly traded investment firm in 2016 called FGL Holdings. The investment group agreed to pay $145 a share to buy Dun & Bradstreet, which said that represents a 30 percent premium to its price when it announced in February it would look at a possible buyout. Dun & Bradstreet closed at $122.80 on Aug. 8 before the buyout agreement was announced.
Activist fund sheds Black Knight stake After briefly holding shares in Black Knight, activist hedge fund Third Point LLC’s latest quarterly Securities and Exchange Commission filing shows it has shed its stake in
File image
“We see a significant opportunity to grow the company, increase their operating efficiencies and improve the D&B customer experience by providing enhanced business solutions,” Cannae Chairman Bill Foley said of the Dun & Bradstreet acquisition.
Second-quarter adjusted revenue:
$394.4 million the Jacksonville-based mortgage technology company. Third Point’s first quarter filing said it had 1.25 million Black Knight shares, but its second quarter filing last week does not list any Black Knight stock. The 1.25 million shares would be less than 1 percent of Black Knight’s stock, and Third Point never made any other filings or made any statements about Black Knight. Third Point’s fund manager, Daniel Loeb, is a well-known activist investor. His latest public move was a call last week for Campbell Soup Co. to put itself up for sale.
GEE Group HQ is now Jacksonville Jacksonville can now lay claim to another public company headquarters, as recent SEC filings by Gee Group Inc. list its principal office in Jacksonville. GEE Group is a staffing company that has been headquartered outside of Chicago in Naperville, Illinois. However, Jacksonville executive Derek Dewan became its chief executive officer in 2015 after the company, then known as General Employment Enterprises, bought Jacksonville-based Scribe Solutions Inc., which was run by Dewan at the time. Dewan, former CEO of Jacksonville-based MPS Group Inc., has continued to work out of Jacksonville and has brought in additional local executives to GEE. Another former MPS official, George Bajalia, became president of GEE last year, and Kim Thorpe became chief financial officer in June. Thorpe was previously a chief financial officer of Jacksonville-based
Flat adjusted earnings per share:
FPIC Insurance Group Inc. Most of GEE Group’s headquarters operations are continuing in Naperville, but GEE Group’s top executives are all in Jacksonville, Thorpe said this week. The company’s office is listed at 7751 Belfort Parkway in its latest SEC filings. Thorpe said no decisions have been made on moving more operations to Jacksonville, but the company could move all of the headquarters functions here. “We are considering it,” he said. GEE Group’s last annual report said the company had offices in 16 U.S. states.
CSX decentralizes operations More than a year after CSX Corp. shook up its executive suite, the Jacksonville-based railroad company continues to overhaul its management structure. CSX last week announced a realignment to decentralize operations, which it says will make the company more efficient. The new alignment for the railroad, which operates throughout the eastern U.S., includes creation of an east and west structure with two longtime CSX executives in charge of the regional operations. Bob Frulla was named senior vice president for the east and Jermaine Swafford was named senior vice president of the west. “This is a proven model that pushes decision making closer to the day-to-day field operations and eliminates bureaucracy and long-standing silos within our business,” CEO James Foote said in a news release.
$1.40 ADT falls again ADT Inc.’s stock took another hit last week when the security company reported an unexpected second-quarter loss. The stock fell $1.01 to $8.47 last Thursday after reporting a loss of $67 million, or 9 cents a share, for the quarter. ADT went public in January for the second time in five years and the stock has been nothing but a disappointment all year. The company had hoped to sell its shares at $17 to $19 each but had to reduce the price to $14 when the initial public offering hit the market. The stock dropped even lower on its first day of trading, closing at $12.39, and has continued to perform poorly. Boca Raton-based ADT is one of Jacksonville’s largest employers with more than 3,000 workers
Drone Aviation reports loss Drone Aviation Holding Corp. reported minimal second-quarter revenue, but it was higher than the second quarter of 2017. This year’s quarterly revenue was $42,000, up from $13,876 last year, according to its quarterly report filed with the SEC. The Jacksonville-based company, which had $911,023 in revenue for the first half of 2018, said it expects sales to increase because of a pipeline of contracts announced for its aerostat and drone products. Drone Aviation reported a net loss of $1.08 million, or 12 cents a share, for the second quarter. MBASCH@ JAXDAILYRECORD.COM
Jacksonville Daily Record/Jacksonville Record & Observer
Thursday, August 16, 2018 • Page 7
OPINION / OUR VIEW
Election 2018: We recommend … Florida voters often know little about their state constitutional office candidates. Perhaps our rating system can offer some insight.
MATT WALSH PUBLISHER
P
rimary elections are always confusing. Talk about throwing darts. Just look at the two major parties’ gubernatorial races. Eight candidates are seeking the Republican nomination for governor, and seven are seeking the Democratic Party’s nomination. On the Democratic Party side, five of the seven gubernatorial contenders have garnered some name recognition via the news media, but none of them has broken out as the clear frontrunner. Whom do you pick? On the Republican side, have you heard of candidates Don Baldauf, Timothy Devine, Bob Langford, John Joseph Mercadante, Bruce Nathan or Bob White? Give them credit for at least stepping into the arena. But most Floridians who follow the news know the Republican race is a contest between Commissioner of Agriculture Adam Putnam and U.S. Rep. Ron DeSantis. But even that — Putnam versus DeSantis — is a difficult choice for Republicans (more on that below). Just as the gubernatorial race is for Democrats. The decision-making becomes even more challenging when selecting candidates for commissioner of agriculture and attorney general. We would bet most of the 9.2 million registered Republicans and Democrats have no clue who the seven candidates are for commissioner of agriculture or the four vying to be attorney general. And yet, these are big decisions that will influence the quality of your life. To that end, we hope we can offer some insight into which candidates are best suited for office. That’s why we are continuing our tradition of recommending candidates. But caveat emptor: The Observer Media Group is unapologetically one-sided. Our politico-economic philosophy always has aligned with that of economist Friedrich Hayek: “… [A] policy of freedom for the individual is the only truly progressive policy.” We also subscribe to what the Founders crafted in 1789 — a vision for a strictly limited government. The closer a candidate is to the Hayek philosophy of individual freedom and the Founders’ vision of limited government, the better. What’s more, rare is the partisan election that we recommend a Democratic Party candidate. While most Democratic candi-
dates are well-intentioned, good people, by virtue of aligning with the Democratic Party those candidates have declared allegiance to a philosophy that embraces a state-controlled society, which we reject. With all of that as context, here, then, are our recommendations for the Aug. 28 primary election for the statewide offices:
disrupter than the establishment candidate, Bill McCollum. Scott won, twice, with his more conservative philosophy. On our liberty spectrum, DeSantis has the edge.
Attorney General
Governor This race is a reflection of the national political environment. Third-term Congressman Ron DeSantis is the unequivocal Trump guy. His campaign platform has three acclamations: President Donald Trump has endorsed him; he calls himself the No. 1 conservative; and he is an Iraq War veteran, having served as a military lawyer with a Navy SEAL team in Fallujah. To buttress his conservative bona fides, DeSantis notes in the first paragraph of his website that not only does President Trump endorse him, but so do two leading, national media Constitutionalists, Fox News’ Sean Hannity and Mark Levin. And how’s this for in-yourface, here’s proof that I’m a tough conservative appealing to Trump’s base. From the second paragraph of his online bio, DeSantis lists almost every national issue that would rally diehard conservatives behind him: “… [L]ed efforts to impose term limits on members of Congress, cut taxes, repeal ObamaCare, relocate America’s embassy in Israel to Jerusalem, assist veterans suffering from post-traumatic stress, prevent American tax dollars from being sent to Iran, combat radical Islamic terrorism, stop illegal immigration and defund sanctuary cities, and conduct oversight over agencies such as the IRS and Department of Justice, including the investigation into Uranium One, the use of the Clinton-funded Steele dossier against Donald Trump, and the failure to prosecute the criminal activity of terrorist group Hezbollah by Eric Holder’s DOJ.” The only thing he didn’t mention was his support for the Second Amendment. But Adam Putnam has made sure Republicans know he’s a 100 percent Second Amendment guy. On his website homepage: Adam Supports “GUN RIGHTS • VETERANS • THE ECONOMY” And let’s not overlook Putnam’s Republican credentials. At the tender age of 26, Putnam was elected to Congress in 2000, the youngest in office. Six years later, he became the House Republican Conference chairman, the third-highest ranking member in the House. After 10 years in Congress, he returned to Florida and won two terms as agriculture commissioner. No doubt about it, DeSantis and Putnam are top-tier Repub-
File image
Florida guberatorial candidate Ron DeSantis is endorsed by President Trump.
lican candidates. But we all have flaws. Who is Ron DeSantis, age 39? He tells his audiences he was born and raised in Florida and played Little League in Pinellas County. Beyond that and his frequent appearances on Fox News, few Floridians know him. Go to congressional District 6, which covers Flagler and Volusia counties, and you’ll find hardly anyone knows DeSantis. Says Brian McMillan, longtime executive editor of our sister newspaper, the Palm Coast Observer: “It’s not like he’s a local figure.” And that’s the point: What has DeSantis done in Florida that makes voters believe: “Yeah, he’s a Floridian. He’s one of us. He knows us … That he knows what ails Gadsden County; where Waldo is; or what to do when the next Irma hits? It’s one thing to question FBI liars at congressional hearings in D.C. It’s quite another to be a leading policymaker; CEO of an entire state bureaucracy; chief financial steward of an $80 billion budget; a governor responsible for the safety of 20 million people; and the leading sales executive for the state. And then there’s Adam Putnam. Give him this: Putnam knows Florida. He knows where Waldo is. And when you’re Florida’s ag commissioner, your job isn’t just about growing oranges and cattle. The ag commissioner is a CEO in his own right, overseeing a sprawling statewide bureaucracy that touches every aspect of Floridians’ lives. But in the case of Putnam, there is also this: From age 22 to now, at age 44, Putnam has been an elected politician. The dreaded career politician. And until DeSantis came along, Putnam’s candidacy had the aura that this
was his turn to be the anointed Republican nominee. He’s the “establishment” Republican. On our politico-economic scale, DeSantis is the candidate whose philosophy and record most closely align with freedom for the individual and the limited government the Founders envisioned. According to the Washingtonbased Club for Growth, which scores members of Congress on votes on “economic policies that strengthen the economy and shrink the size of the federal government,” in three terms DeSantis has earned a 94 percent rating. Putnam’s rating was 68 percent. Which presents this conundrum for Republicans: Of the 12,927,318 registered voters in Florida, 37 percent are Democrats; 35.3 percent are Republicans; and 27 percent are Non-Party Affiliates (NPAs). To win the gubernatorial election, the Republican candidate must persuade roughly 15 percent of NPAs and/or Democrats to his side. And most of those conversions likely would have to include philosophically moderate voters, who are more likely in tune with Putnam’s philosophy. Which brings to mind the “Buckley Rule.” In 1967, the late William F. Buckley, godfather of modern American conservatism, said: “I’d be for the most right, viable candidate who could win. If you could convince me that Barry Goldwater could win, I’d vote for him.” Buckley recommended Richard Nixon. By that measure, Buckley would recommend the more moderate Putnam. But if you think back to Rick Scott in 2010, he was a far more conservative candidate and
The standard themes continue in the races for attorney general: The two Democratic Party candidates want an activist government that curbs individual freedoms; the Republican candidates focus on wanting to enforce the laws, which is the job of the attorney general. With that, the Republican race between former Hillsborough Circuit Court Judge Ashley Moody and Rep. Frank White, a first-term legislator who is general counsel of his fatherin-law’s auto dealerships in the Panhandle, comes down to Moody the candidates’ breadth of experience in the justice system. White is more conservative than Moody. But more important, Moody has experience as a federal prosecutor in Jacksonville and Tampa, where she tried all manner of criminal cases. And while a judge, she developed a stellar reputation for fairness in the juvenile, family and felony divisions. In this job, courtroom prowess counts. We recommend: Ashley Moody
Commissioner of Agriculture
There is much more to this job than citrus and cattle. As noted above, Florida’s commissioner of agriculture and consumer services is the CEO of a vast army of inspectors and regulators whose job is to protect Florida consumers. As such, it makes sense for the ag commissioner to have knowledge of every aspect of agriculture Grimsley — from seed to shipping overseas; to understand the legislative challenges of balancing farming, the environment, water and urban needs; and have had experience as a CEO of a multifaceted business enterprise. The Democratic candidates have no agriculture experience. Three of the four Republican candidates have ag roots and experience, with little separating Denise Grimsley, Matt Caldwell and Baxter Troutman. Indeed, either Grimsley or Caldwell would serve Floridians well. But when we weigh the full breadth of knowledge, experience and accomplishments of those two, one has a teeny edge. We recommend: Denise Grimsley
Page 8 • Thursday, August 16, 2018
Baker
Work outside county
Jacksonville Daily Record/Jacksonville Record & Observer
Clay
Duval
Nassau
Putnam
St. Johns
17%
Work inside
43%
59%
44%
41% 83%
57%
Cross-county commuting According to the the 2017 North Florida Household Travel Survey, the majority of workers who live in the counties surrounding Duval commute outside their county. For most, their destination is Jacksonville.
56%
Where workers live ...
48%
52%
54%
46%
. . . And where they work Baker
Clay
Duval
Nassau
Putnam
St. Johns
Other
Varies
Home office
Baker 25% — 37% — — — — 20% 18% Clay
1%
26% 39% —
1%
1%
4%
12%
15%
Duval — 2% 68% 1% — 2% 1% 12% 15% Nassau —
—
Putnam —
3% 7% —
37% 7% 14% 17% 15%
St. Johns —
1% 33% —
1%
24% 41% —
—
5%
29% 2%
15%
19%
15%
17%
Traffic: Duval jobs a commuter magnet “Transportation funding is really in trouble because vehicles are getting more efficient,” she said. And those that don’t use gas don’t pay gas taxes. That and the possibility of more hybrid and electric cars hitting the streets over the next several years means something has to be done soon, she said, adding that the federal government is reluctant to establish a mileage-based tax. “So it may have to be done state-by-state,” she said, adding that if that ever happens in Florida, the gas taxes would be eliminated.
CONTINUED FROM PAGE 1
congested in Northeast Florida, particularly Duval County? One likely explanation could be the significant population living in a metropolitan region. But a recently released report shows it has more to do with the commute of drivers from adjoining counties to jobs in Jacksonville, including some who travel significant distances. HEADING TO DUVAL
The 2017 North Florida Household Travel Survey shows that one-quarter of working residents from Nassau and at least onethird of workers from Baker, Clay and St. Johns counties travel to Duval for work. The statistics verify the frustration of some that outsiders clog Duval's roads, such as the Jacksonville City Council member who represents the Mandarin area and sees cars using San Jose Boulevard, which also is Florida 13, to commute. “(They're) screwing up my roads,” said Matt Schellenberg. “All those people moving to St. Johns County are using my roads, using our services and using up public safety.” Schellenberg’s district sits at the southern end of Duval, with the San Jose Boulevard bridge connecting Duval with St. Johns County. The North Florida Transportation Planning Organization conducted a study that found Clay County has the highest proportion – 39 percent – of workers commuting to jobs in Duval. Baker County was second at 37 percent, St. Johns was third at 33 percent and Nassau was fourth at 24 percent. Only 7 percent of Putnam County working residents commute to Duval County. However, nearly 70 percent of Duval workers stay in Duval for their job. The study was conducted over several weeks in late 2017 by mailed surveys. More than 376,000 households were invited to participate and 3,874 completed the survey. It found that 15 percent of workers from the six counties work from home. And 14 percent have a workplace that varies, such as a contractor or taxi driver. WHERE THE MONEY IS
One of the primary reasons for the commute into Duval is that’s
USING THE DATA
Photo by Jay Schlichter
Northeast Florida Builders Association Executive Officer Bill Garrison commutes 80 miles round-trip a day from Clay to Duval County. “I have to go to Jacksonville because that’s where the money is,” he says.
where the highest pay is. “Ideally, we would all work in the same county,” said Denise Bunnewith, a planning director with the North Florida TPO. “Our journeys to work would be short. But most high-paying jobs are in Duval.” Garrison is an example of an employee who drives into Duval from an adjoining county. His daily commute is about 40 miles each way from his home in Clay to the organization's Jacksonville offices on Century 21 Drive in Arlington. “I don't spend two hours in my car every day because I like it,” he said. “I live where I want to live because I like it there. And I have to go to Jacksonville because that's where the money is.” According to the U.S. Department of Labor's Bureau of Labor Statistics as of September, the average weekly wages in Northeast Florida were: n Duval, $951. n St. Johns, $830. n Nassau, $727 n Clay, $705. n Baker, $629. Florida’s average weekly wage was $896, ranking 29th in the country. Commuters also leave money in Duval. Garrison said many of those who come from other counties are buying fuel at gas stations in Duval, lunch at restaurants and shopping at the area's retail stores.
NO QUICK SOLUTION
One potential solution to reduce commuting is for economic developers, such as chambers of commerce, to recruit or encourage more high-paying jobs in Duval's neighboring counties, Bunnewith said. “I think the chambers are working to that end, but that doesn't happen overnight,” she said. Also contributing to the road congestion is the number of solo commuters. The survey showed that 85 percent of commuters use their own household vehicle and that 90 percent drive alone. But commuters help to generate the need to build and maintain more roads and raise questions about how to pay for those. Schellenberg said toll roads aren't the solution and that there's little money that can be collected from those who use the roads and other services in Duval. COLLECTING TAXES
Every time a driver gases up their vehicle, federal, state and county governments collect a portion via fuel taxes. In 2018, the federal tax rate is set at 18.4 cents per gallon and the state rate is 13.7 cents. County governments are allowed to collect up to 12 cents per gallon in three separate taxes. Duval and St. Johns counties set the rate at 6 cents per gallon, while Baker and Nassau take 7
cents and Clay collects 12 cents. A Florida Department of Transportation report shows that the majority of federal gas taxes collected fund road and bridge projects, while 15 percent of the state fuel sales tax is dedicated for public transportation. The remainder can be used for any “legitimate state transportation purpose.” The local option, or county, fuel taxes can be used for “any legitimate county or municipal transportation purpose” and small counties may also use funds for other infrastructure needs. Hampton Ray, a public information officer with FDOT, said that state leaders have placed an emphasis on improving infrastructure and mobility across Florida. He said FDOT funding comes from a variety of sources, including the state gas tax and federal grants. “The priorities of local agencies and local governments are sent to the local district of the Florida Department of Transportation. The funds are allocated for these projects using a mix of state and federal dollars. As projects enter the five-year work program, the State Legislature allocates and approves the funds for FDOT to carry out the work,” he said in an email. One controversial option is a mileage-based fee instead of the gas taxes, said Bunnewith. That is being studied in a few states.
The survey data will be used by transportation agencies throughout the region and state, such as the state Department of Transportation, to determine which road projects require funding. The report says the survey provides planners with comprehensive travel behavior information, “allowing them to make informed planning and policy decisions.” Bunnewith said transportation planners use such data to “validate and calibrate” their travel demand models, which give them rough estimates of where growth is happening and where additional roads are needed to handle the impact. “Once we have a base year established, the models project out growth in population, employment and school enrollment,” she said. “That is how we predict the future because we don't have a crystal ball.” The agency is completing longrange plans that provide suggestions on road projects through 2040, and the next plan will go through 2045. In the end, Bunnewith said the North Florida TPO is “fiscally restrained” by a limited budget, so it can only include projects it can afford in its recommendations to the FDOT. “So we have to prioritize and get the most bang for the buck,” she said. “And the list of needs is long.” Ray said that FDOT understands drivers’ complaints about traffic congestion. “Our responsibility is to be good stewards of tax dollars while we try to maximize mobility and eliminate as much congestion as possible,” he said. “We understand people's frustration,” he said. “We drive these roads too.” JAYS@JAXDAILYRECORD.COM (904) 356-2466
Jacksonville Daily Record/Jacksonville Record & Observer
Thursday, August 16, 2018 • Page 9
APARTMENTS Luxor Club Apartments, 13800 Egrets Nest Drive, contractor is Pools By John Clarkson Inc., new pool, $255,500. HOSPITAL, INSTITUTIONAL Ascension Health Resource & Supply Management Group LLC, 1 Shircliff Way, contractor is The Haskell Co., foundation only, $1.84 million. Inspired Living at Jacksonville, 10520 Validus Drive, contractor is Florida LDS & Excavation Inc., new pool, $164,000. U.S. Navy
The littoral combat ship is the Navy's newest class of warship. This is the USS Freedom, the same variant as the USS Minneapolis-St. Paul., which will be home ported at Mayport.
BUSINESS IN BRIEF Warship for Mayport: Mayport Naval Station will be the home port of the USS Minneapolis-St. Paul starting July 31. The Minneapolis-St. Paul is a littoral combat ship, the Navy’s newest class of warship. Crowley Logistics aids California wildfire fight: Crowley is under contract to aid governmental agencies in response to California’s Mendocino Complex wildfires. Crowley is maintaining truck transport operations to move supplies such as ready to eat meals, hoses, personal protective equipment and other items in the wildfire fight. Vestcor begins work on The Quarry: Jacksonville-based developer Vestcor Companies Inc. started construction of The Quarry, the largest workforce housing community in the Florida Keys.
The 208-unit community in Big Coppitt Key, with development costs of about $60 million, is expected to be completed in January 2020. Social Grounds Coffee Co. honored: Gov. Rick Scott recognized Social Grounds Coffee Co. with the Governor’s Business Ambassador Award. Social Grounds, owned by U.S. Marine Corps veteran Jason Kelloway Kelloway, donates proceeds to help employ and empower U.S. veterans. The Governor’s Business Ambassador Award recognizes individuals and businesses for their efforts to create jobs and opportunities for Florida families. Social Grounds Coffee Co. is at 1712 N. Main St.
OFFICE, BANK, PROFESSIONAL Mandarin/Loretto Development Ltd., 11705 San Jose Blvd., Nos. 100 and 105, contractor is Seakay Construction Corp., tenant buildout, $1.51 million. Clawson Custom Cues Inc., 7255 Salisbury Road, No. 1, contractor is Tenant Contractors Inc., 10,639 square feet, tenant build-out, $259,603. Brasfield & Gorrie LLC, 4601 Touchton Road E., No. 3190, Brasfield & Gorrie LLC, 8,188 square feet, renovation, $247,388.
AMC Regency 24, 9451 Regency Square Blvd., contractor is Simon Roofing & Sheet Metal Corp., roof restoration, $118,543. McDonald’s, 11310 Beach Blvd., contractor is Wilson Roofing Inc., roof replacement, $49,780. Eugene E. Ackley Trust, 10152 Atlantic Blvd., contractor is Ron Russell Roofing Inc., roof over existing, $15,595. Genesis Health Inc., 3599 University Blvd. S., contractor is Advanced Commercial Systems Inc., roof over existing, $13,091. SIGNS Go To Brazils, Waxing Center, 3520 St. Johns Bluff Road S., contractor is Taylor Sign & Design Inc., two permits for wall signs, $12,400. STORES, MERCANTILE GO Pull-It, 7282 Commonwealth Ave., contractor is Armour Construction LLC, 2,000 square feet, new building, $24,000. Louis L. Huntley Enterprises Inc., 7911 Blanding Blvd., contractor is Combined Industries LLC, 8,000 square feet, structure demolition, $20,000. UTILITIES
ROOFING Floor & Decor, 10595 Brightman Blvd., contractor is C&S Roofing Co., new roof, $349,000. Allstate Insurance Co., 4920 San Pablo Road S., contractor is Townsend Roofing and Construction Services Inc., roof addition, $160,000.
New Cingular Wireless PCS, 1084 E. Adams St., contractor is Ericsson Inc., cell tower upgrade, $65,000. Compiled by Scott Sailer
Warehouse CONTINUED FROM PAGE 1
how the first project succeeds and then consider additional sites. He declined to estimate the investment costs. The site is part of a 134.63-acre property owned by Imeson Holdings LLC, which is led by Allen Land Group Inc. owner John J. “Jack” Allen. The warehouse property is in the middle of the site. Allen said there are potential sales of the remaining parcels. Cooper said Warehouse Rentals looked at several locations in Jacksonville and chose that one because of the proximity to the types of tenants it seeks and its access to Interstates 95, 10 and 75. Warehouse Rentals seeks tenants who
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Samantha Sumner has joined Memorial Hospital as director of ethics and compliance. The position provides guidance to corporate compliance programs, policies and Sumner procedures to adhere to regulations, laws and other governmental requirements. The Downtown Ecumenical Services Council, which provides basic needs for the homeless and working poor families, added three members its board of directors: Bruce Musser,
owner of the Riverside salon, Hairpeace; Pam Prier, president of the Bold City Chapter of The Links, trustee at Historic Mt. Zion AME Church and trustee at Edward Waters College; and Tim Hedrick, attorney with Rogers Towers. First Coast Blessing appointed three members to its board of directors: Chairwoman Christine Reitz, treasury management officer, vice president of Regions Financial Corp.; Vice Chairwoman Joy Bardin, vice president of administration at JAX Refrigeration; and Secretary Dorothy Williams, planner at Publix Super Markets
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need space to bring in products and distribute to retailers. Created in 1964, Warehouse Rentals offers real estate services that include warehousing, commercial property distribution and real estate development for clients across the Southeast. It says it has flexible leasing terms and conditions. It says it operates more than 9 million square feet of warehousing property for distribution, warehousing, storage and production from 5,000 to 400,000 square feet. Its locations include Valdosta, Albany, Savannah, Douglas and Tifton in Georgia; Charleston and Summerville in South Carolina; and Mobile, Alabama.
DEVELOPMENT TODAY
These are the largest commercial building permits by price issued Tuesday by the city of Jacksonville.
Page 10 • Thursday, August 16, 2018
Jacksonville Daily Record/Jacksonville Record & Observer
THE CAWTON REPORT
Vestcor planning project in Brooklyn Vestcor in Brooklyn Vestor is planning multifamily housing for a 1.16-acre site along Spruce Street between Jackson and Stonewall streets.
DAVID CAWTON STAFF WRITER
Multifamily neighborhood would be mix of affordable and workforce housing. Developers want to extend affordable and workforce housing from LaVilla into neighboring Brooklyn in 2019. A multifamily project headed by The Vestcor Companies Inc. is planned for a 1.16-acre site along Spruce Street between Jackson and Stonewall streets in Brooklyn. Block Fourteen LLC, Block Nine LLC and Jacksonville’s Finest Homes LLC own the properties identified on site plans. The Downtown Investment Authority allocated development rights at its Wednesday board meeting to Jacksonvillebased Vestcor. “What we’re attempting to do is something very similar to Lofts at Jefferson Station where it’s a mixed-income deal,” Vestcor President Steve Moore said, referring to the company’s other LaVilla projects. He said Vestcor has the properties under contract, although he declined to say for how much. Moore said about half the estimated 136 units will be affordable for those earning at or below $29,400 annually, or 60 percent of the average median income. Other units would be reserved for individuals making 80 to 140 percent of the average, capped at $69,600. It would be Vestcor’s fourth housing development near Downtown since 2015. The company completed the Lofts at LaVilla in 2017. The Lofts at Monroe will open in November, and the Lofts at Jefferson Station will be completed in fall 2019. Moore said the Brooklyn project is in an early stage of development. “We’re looking at a late summer, early fall groundbreaking in 2019,” he said. ASSISTANCE SOUGHT
Vestcor is seeking assistance from the Jacksonville Housing Finance Authority and the Florida Housing Finance Corp. to help subsidize the estimated $20 million to $30 million construction cost by using government-backed low-interest loan programs. “Basically, they announce what criteria they’re looking for this year for a deal,” he said. “Then everybody competes.” The Jacksonville Housing Finance Authority uses the Multifamily Revenue Bond Financing Program to stimulate affordable housing production by providing lowinterest loans to developers. The bonds issued by JHFA
Special to the Daily Record
“We knew there was significant demand in the Downtown area for affordable and workforce housing. I’ll have to admit, we didn’t know it was quite as strong as it has been.” STEVE MOORE, PRESIDENT OF THE VESTCOR COMPANIES INC.
under the program usually are combined with other financing tools, like second mortgage programs, local and state grants and the Low-Income Housing Tax Credit program. Moore said the funding helps to offset rising construction costs for multifamily housing. “These financial tools allow us to stay within our budget and still deliver affordable and workforce housing,” Moore said. The Jacksonville Housing Finance Authority announced it would accept applications Wednesday from Vestcor and other developers seeking to secure backing with decisions expected by fall. If the authority chooses Vestcor’s project, it will be up to the state to approve. The project is the latest residential complex introduced in Brooklyn and the first since Bristol Development Group and NAI Hallmark announced their 10-story Vista Brooklyn residential tower in 2017. Vista is expected to break ground by 2019. Block Fourteen LLC and Block Nine LLC are connected to a trio of companies: Contega Business Services LLC, North Platt LLC and Ascona LLC. They have invested more than $4.4 million in Brooklyn since 2014 and accumulated nearly 12 acres of land there. The companies share an address and are represented by the Driver, McAfee, Hawthorne & Diebenow PLLC law firm at 1 Independent Drive, Suite 1200, in the Wells Fargo Center. Attorney Steve Diebenow could not be reached for comment. Jacksonville’s Finest Homes
LLC is under the umbrella of JWB Real Estate Companies LLC, which invested more than $745,000 in Brooklyn through its subsidiaries since 2014. JWB President Alex Sifakis said he couldn’t comment specifically on the project. “A lot of other downtowns are struggling with affordable housing, but Jacksonville seems to be getting ahead of it,” Sifakis said. “It’s a good thing for Jacksonville.” DEMAND STRONG
Moore said there has been tremendous response for Vestcor’s LaVilla housing developments. “We knew there was significant demand in the Downtown area for affordable and workforce housing,” Moore said. “I’ll have to admit, we didn’t know it was quite as strong as it has been.” Moore said the Lofts at LaVilla, a 130-unit affordable housing community at West Bay and Lee streets, was almost 100 percent leased before it opened in December. “Lofts at Monroe is already about 70 percent leased,” Moore said of the company’s second project scheduled to open in November. Lofts at Monroe offers 108 units of affordable housing at North Davis and Monroe streets. The next project for Vestcor is Lofts at Jefferson Station, a five-story development at Lee and North Jefferson streets and West Bay and Forsyth streets. Like Vestcor’s proposed Brooklyn development, Lofts at Jefferson Station signaled a shift in the company’s housing strategy from low income to a
IN BRIEF Inspector general appointed Lisa Green is the new city inspector general. City Council approved her four-year appointment Tuesday. Green takes the position after serving as interim inspector general since June when James Hoffmann resigned. Green is the third person to fill the position since it was created in 2014. Her term runs through June 2022.
Suspended council members’ federal fraud trial set for February The federal fraud trial for suspended City Council members Katrina Brown and Reginald Brown is delayed until February. U.S. District Judge Marcia Morales Howard said Tuesday during a status hearing that the five-month delay will give the defense enough time to review more than 28,000 pages of evidence provided by federal prosecutors. Katrina Brown and Reginald Brown, who are not related, face a total of 38 federal fraud charges connected to a failed barbecue sauce plant owned by Katrina Brown’s family. They were indicted in May by a grand jury and were suspended by Gov. Rick Scott. They face charges of aiding and abetting mail and wire fraud, money laundering and conspiracy. They were not present at the hearing Tuesday.
mix of affordable and workforce housing. Moore said he believes market-rate apartments will be next. “We think affordable and workforce is a really strong market right now, not to say that market-rate apartments wouldn’t work, it’s just this is our focus today,” he said. Vestcor used similar financing structures for its first LaVilla projects. For Lofts at Jefferson Station, the Jacksonville Housing Finance Authority approved a $225,000 low-interest loan to be paid over 15 years to offset costs of the affordable housing units. It also received a $400,000
Downtown Economic Development Fund loan from the DIA. Vestcor received a similar financial incentive, including a $325,000 low-interest loan from the Jacksonville Housing Finance Authority, and a $350,000 loan from the DIA for Lofts at Monroe. In 2015, a $270,000 loan from the Jacksonville Housing Finance Authority and a $270,000 loan from the Downtown Economic Development Fund helped Vestcor build the Lofts at LaVilla. DCAWTON@ JAXDAILYRECORD.COM @DAVIDCAWTON (904) 356-2466
Jacksonville Daily Record/Jacksonville Record & Observer
Thursday, August 16, 2018 • Page 11
REAL ESTATE
Top 10 sales of the week BY SCOTT SAILER • EDITORIAL RESEARCH DIRECTOR
Here are the top 10 real estate sales in Northeast Florida, comprising Baker, Clay, Duval, Nassau and St. Johns counties. The sales were recorded August 6-10.
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The Concourse Office Park at 5200, 5210 and 5220 Belfort Road sold for $36,086,342. The price is 13.7 percent higher than its last sale in 2013.
$36,086,342
$21,074,052
$8,500,000
$8,000,000
$6,390,000
5200, 5210 and 5220 Belfort Road, Jacksonville, Duval County
6138 Kennerly Road, Jacksonville, Duval County
730 College St., Jacksonville, Duval County
868 Blanding Blvd., Orange Park, Clay County
57 Tuscan Way, St. Augustine, St. Johns County
Type: The Concourse Office Park Size: 19.81 acres Buyer: JAX Concourse Property LLC Seller: Rosemont Concourse Operating LLC Previous sale: $31,750,000 in 2013
Type: Medical office Size: 2.99 acres Buyer: 6138 Jacksonville Properties LLC Seller: DOC 6138 Kennerly Road MOB LLC Previous sale: $19,000,000 in 2015
Type: Park Ridge Nursing Center Size: 1.27 acres Buyer: Sail Healthcare Investment I LLC Seller: Five Points Health Care Ltd. Previous sale: $1,590,000 in 2000
Type: Shopping center Size: 11.09 acres Buyer: BVA Ridgecrest LLC Seller: OPS Inc. Previous sale: $2,680,000 in 1992 for strip center and $591,000 in 1984 for out parcel
$3,492,500
$2,270,750
$2,103,268
$2,046,250
$1,962,700
Philips Highway, Jacksonville, Duval County
Beacon Lakes Phase I, St. Johns County
1664 Wells Road, Orange Park, Clay County
13 Solana Road, Ponte Vedra Beach, St. Johns County
1057 Broward Road, Jacksonville, Duval County
Type: Chili’s Grill & Bar Size: 1.66 acres Buyer: BR Orange Park FL Owner LLC Seller: Brinker Propco Florida Inc.
Type: Single-family Size: 1.26 acres Buyer: Evelyn L. McClung Seller: Roger L. McClung Living Trust Previous sale: $345,000 in 1991
Type: Best USA Inn Size: 8.78 acres Buyer: 11 Properties LLC Seller: Punjab Investments LLC Previous sale: $1,314,000 in 1993
Type: Vacant residential Size: 142.79 acres Buyer: KB Home Jacksonville LLC Seller: Wells Creek LLC
Type: 29 residential lots Size: 6.69 acres Buyer: Mattamy Jacksonville LLC Seller: Heartwood 23 LLC
Type: CVS Pharmacy Size: 1.56 acres Buyer: St. Augustine Pharmacy LLC Seller: VEREIT Real Estate LP Previous sale: $4,972,600 in 2011
BE THE FIRST TO KNOW: BASCH REPORT Columnist Mark Basch tracks the growth and changes at the region’s public companies.
CAWTON REPORT Staff Writer David Cawton uncovers how government impacts business.
MATHIS REPORT Editor Karen Brune Mathis is always first to report new projects changing Jacksonville’s economy and landscape.
THE DATA PAGE Research Director Scott Sailer shows in snapshot graphs the economic data business leaders need to know.
YOU SHOULD KNOW Profiles of business leaders making a difference at work and in the community.
Introducing
TOP 10 REAL ESTATE SALES The biggest real estate transactions over the past week in Duval County.
A FREE WEEKLY BUSINESS NEWSPAPER
BUSINESS CALENDAR Key upcoming events you won’t want to miss.
Every Thursday, you’ll find an all-new edition — new name, new look and expanded news, trends and analysis for your business to thrive in NE Florida.
PEOPLE ON THE MOVE Top-level promotions and new hires at the region’s companies.
The Jacksonville Record & Observer will be distributed in Downtown
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Jacksonville and in key businesses throughout Jacksonville.
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Page 12 • Thursday, August 16, 2018
Jacksonville Daily Record/Jacksonville Record & Observer
EXECUTIVES ON THE MOVE
Farrugia elected president and CEO for all of Mayo Clinic After leading the expanding Jacksonville campus since 2015, he will take over the $12 billion medical system.
Steve Halverson remains chairman of the Jacksonville-based company. FROM STAFF
FROM STAFF
Gianrico Farrugia, CEO of Mayo Clinic in Florida, was elected to succeed Mayo Clinic President and CEO John Noseworthy upon his year-end retirement. The Mayo Clinic board of trustees in Rochester, Minnesota, said Noseworthy and Farrugia will work together during the transition. Farrugia, 54, has been a vice president of Mayo Clinic and CEO of Mayo Clinic in Florida, based in Jacksonville, since January 2015, leading a staff of more than 6,400 people. Mayo Clinic’s campus in Jacksonville has been expanding, recently opening the 190,000-square-foot Harry T. Mangurian Jr. Building for patients seeking cancer, neurology and neurosurgical care. According to a Mayo Clinic news release, Farrugia previously was director of Mayo Clinic’s Center for Individualized Medicine, which is responsible for bringing genomics into routine clinical care. He also was cofounder of the Center for Inno-
Haskell names its president, Jim O’Leary, CEO
Special to the Daily Record
Gianrico Farrugia, CEO of Mayo Clinic in Florida, will lead the Mayo Clinic’s 68,000 employees.
vation at Mayo Clinic. Farrugia, a native of Malta, has been a Mayo physician for 30 years. He is jointly appointed in the Division of Gastroenterology and Hepatology, Department of Internal Medicine, and the Department of Physiology and Biomedical Engineering. He completed his undergraduate training at St. Aloysius College in Birkirkara, Malta, and earned his medical degree from the University of Malta Medical School. Mayo Clinic says its “rotational leadership model is a deliberate and planned process that incorporates leadership development and succession planning to identify and prepare leaders for every critical role, including president and CEO, Mayo Clinic.�
It says the search committee included members of the Mayo Clinic board of governors and Mayo Clinic board of trustees. According to Mayo Clinic, a search for the next leader of the Florida campus has begun. That search team includes Farrugia. Farrugia will continue to serve as leader of the Florida campus until the end of the year when he takes on his new role. Mayo Clinic employs more than 68,000 people and generates revenue of nearly $12 billion, annually treating more than 1.3 million patients from the U.S. and nearly 140 countries. Mayo Clinic operates Arizona, Florida and Minnesota campuses, as well as Mayo Clinic Health System with dozens of locations across the Upper Midwest.
Jacksonville-based Haskell appointed Jim O’Leary as CEO, taking over full executive leadership of the $1 billion global architecture, engineering, construction and consulting firm. O’Leary, 52, was appointed president in September. He now holds both titles, succeeding Steve Halverson. Halverson, who remains chairman, was president and CEO for 19 years. Halverson said O’Leary “is the right person, at the right time. I trust Jim completely.� O’Leary joined Haskell in 1989. During his 29 years with the com- O’Leary pany, his positions included field engineer, project manager, senior project manager, director, vice president, senior vice president, executive vice president, COO and president. Preston Haskell founded the company in 1965. Halverson was the company’s second CEO. Haskell served as president until appointing Halverson in August 1999. The company, after acquisitions and initiatives, has more than 1,350 employees in 20 offices in the United States, Mexico and Asia. It expects to record sales of more than $1 billion in its markets that include consumer packaged goods, federal, health care, energy, infrastructure and transportation. O’Leary is a University of Florida graduate with a bachelor’s degree in business administration and a master’s degree in building construction. He is a certified general contractor.
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