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The Cawton Report: Aundra Wallace reflects on DIA achievements PAGE 10
August 23-29, 2018 jaxdailyrecord.com
JACKSONVILLE
Record & Observer Web.com Group Inc. will be the latest Jacksonville-based JACKSONVILLE company to be taken over by a private equity firm. Why is it happening and what does it mean?
Cultural district proposed Downtown
Record & Observer
GOING PRIVATE JACKSONVILLE
Plan would transform area near courthouse into a public space for art, lectures, food and micro theaters.
Record & Observer BY DAVID CAWTON STAFF WRITER
PUBLIC, FOR NOW JACKSONVILLE
A vacant Downtown lot near the Duval County Courthouse could soon bloom into an arts and cultural district. Jacksonville-based Metropolis Community Development Corp. wants to temporarily lease a 1.52acre city-owned site at 337 W. Adams St. to create La Rue des Arts, a multicultural arts center, incubator and public space. Me t ro p o l i s CEO and President Rafael Caldera said the company would retrofit about 10,000 Caldera square feet of reusable modular buildings on the site to launch the concept. “We’re trying to redesign the space for art, for micro theaters, for more open public space,” Caldera said. “I believe that’s what Downtown needs the most right now.” Caldera said the space could also include cafes and temporary restaurants. “The idea comes from examples I’ve seen around the world,” Caldera said. “This concept is being done all over Europe and in Dade County.” Caldera pointed to the Wynwood Business Improvement District area in Miami, an eclec-
Record & Observer Siris Capital Group, a private equity firm, has reached an agreement to buy Jacksonville-headquartered Web.com Group Inc. for $28 a share. It would beome a privately owned company.
BY MARK BASCH CONTRIBUTING WRITER
I
n a few months, Web.com Group Inc. will be the latest Jacksonville-based company to be taken over by a private equity firm. Affiliates of Siris Capital Group have agreed to spend more than $2 billion to buy the website services company. Another firm may come in with a higher bid but regardless of who makes the highest offer, Web.com will become privately owned. That’s not unusual because the number of private equity-owned businesses dwarfs the number of publicly traded companies in the Jacksonville area. Only 15 companies headquartered in Northeast Florida are traded on major stock exchanges and a handful of others are traded in over-the-counter markets. But research from private equity data firms PitchBook Data Inc. and S&P Capital IQ shows there are about 125 to 150 companies backed by investment sponsors. SEE PRIVATE, PAGE 6
Photo by Karen Brune Mathis
“In real estate it’s location, location, location. For private equity it’s grow, grow, grow.” DON WIGGINS, PRESIDENT OF HERITAGE CAPITAL GROUP, A CHAIRMAN OF THE OAKLINS INVESTMENT BANKING GROUP AND FOUNDER OF BUSINESS VALUATION INC.
THEY WERE PUBLIC ONCE
A look at Jacksonville companies now in the hands of private equity firms. Pages 6 & 7
SEE CALDERA, PAGE 5
The Mathis Report: Apartments planned along AC Skinner PAGE 4 Basch Report: ParkerVision stock slumps as sales slide PAGE 8 OBSERVER MEDIA GROUP
YOU SHOULD KNOW
Top-producing real estate agent Katrina Watkins PAGE 12 VOLUME 1, NO. 12 • ONE SECTION
Page 2 • Thursday, August 23, 2018
Jacksonville Daily Record/Jacksonville Record & Observer
WHAT’S TRENDING
St. Johns County continues homebuilding dominance
JAY SCHLICHTER ASSOCIATE EDITOR
St. Johns County continues to be the most popular place in Northeast Florida for homebuilding. According to monthly Northeast Florida Builders Association permit data, St. Johns is outpacing Clay, Duval and Nassau counties in home construction. In July, 420 singlefamily home permits were pulled in St. Johns, compared to 401 in Duval, 62 in Clay and 47 in Nassau. St. Johns has been leading the other three counties monthly, with a few exceptions. In May, Duval edged St. Johns 376 to 365. St. Johns has led the region since 2011, the report shows. This year through July, it again leads with 2,759 permits. Duval has 2,242; Clay, 534; and Nassau, 500. Prior to 2011, Duval led the region. NEFBA’s data is supported by a monthly report from the St. Johns County Building Services Division, which shows that the county is seeing tremendous growth year-over-year in single-family homebuilding as well as commercial construction. The report says that St. Johns issued 4,330 permits in July compared
to 3,308 in July 2017. The growth can be seen in many of the large community projects in St. Johns, like Beachwalk, RiverTown and Shearwater, where houses are being started by the dozens every month. In fact, the latter of the three communities is hosting a grand opening Saturday to celebrate the addition of Shearwater’s newest neighborhood, The Falls. Shearwater, which is being developed by Boston-based Freehold Communities, opened to homebuilders and sales about two years ago. The build-out for the community is 2,634 homes on 1,500 acres, with portions of that land being set aside for a county park, elementary school, preserves and walking-biking trails. As of mid-August, 310 homes have been sold. The developer is building the large community in phases, with The Falls being part of the second phase. Freehold has encouraged its seven homebuilders to construct homes that promote healthy living and community engagement by including 8-foot porches where homeowners can sit outside. A grand opening, from 10 a.m. to 1 p.m., will include free hot air balloon rides, a Frisbee dog show by Jacksonville-based Disc-Connected K9s, a farmer’s market, live music, a juggler and stilt walker, giveaways and more. The community is off County Road 210 at 100 Kayak Way in St. Augustine. For more information, visit shearwaterliving.com. JAYS@JAXDAILYRECORD.COM (904) 356-2466
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Photo by Karen Brune Mathis
A conversation area at the new Availity headquarters at 5555 Gate Parkway. For more, see the photo gallery at JaxDailyRecord.com
WORKSPACE Availity moving into new headquarters Jacksonville-based Availity LLC and about 400 employees will operate at its new headquarters offices at Town Center One starting Monday. The office is at 5555 Gate Parkway, across Butler Boulevard from St. Johns Town Center. The health care IT company will lease most of the five-story, 160,000-square-foot building. Molly Miles, vice president of marketing, described the space as designed with open breakout rooms, meeting rooms that feel like living rooms and a café that is designed for work and play, with space for a pingpong table and arcade games. She said the space was set up “to get you to move around. If you sit at your desk all day at Availity, you’re missing the point.”
DOWNTOWN Greyhound station approved for demolition With a demolition permit issued, Combined Industries LLC can take down the former Greyhound station at 10 N. Pearl St. It closed when Greyhound moved to a new terminal at 1111 W. Forsyth St. near the Prime Osborn Convention Center. The city approved a permit Friday for Combined Industries to demolish the twostory, 18,000-square-foot Pearl Street building that was developed in 1956. Greyhound removed its sign from the structure in April. Miami-based investor Ramon Llorens bought the Pearl Street property in December through AK Pearl LLC. He hasn’t disclosed plans for it.
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Jacksonville Daily Record/Jacksonville Record & Observer
UNF economist Albert Loh said the monthly labor market report indicates a growing economy. BY MARK BASCH CONTRIBUTING WRITER
Jacksonville continued to gain jobs in July but with the number of people looking for work also increasing, the area’s unemployment rate edged higher. The unemployment rate in the Jacksonville metropolitan area (Duval, Baker, Clay, Nassau and St. Johns counties) rose from 3.7 percent in June to 3.8 percent in July, the Florida Department of Economic Opportunity said Friday. The state agency does not adjust the data for seasonal factors, but the University of North Florida’s Local Economic Indicators Project said when the data is seasonally adjusted, it shows Jacksonville’s unemployment rate jumped from 3.4 percent in June to 3.77 percent last month. However, UNF economist Albert Loh said the monthly labor market report indicates a growing economy. “We have a moderate increase in jobs relative to a growing workforce,” he said. The Department of Economic Opportunity’s survey of employer payrolls showed nonfarm businesses added 22,100 jobs from July 2017 through July 2018 in the metro area, a strong 3.2 percent growth rate. Although the unemployment rate rose in July, the general trend in the rate has been downward since the beginning of this year, Loh said. “We’re still at a very low num-
ber,” he said. Duval County’s unemployment rate rose by two-tenths of a percentage point to Loh 4.1 percent last month, without seasonal adjustment, the state agency said. Loh said when the data is seasonally adjusted, Duval County’s jobless rate rose from 3.5 percent in June to 4.02 percent in July. Florida’s seasonally adjusted unemployment fell by 0.1 point to 3.7 percent in July, the Department of Economic Opportunity said. The agency said Florida businesses grew jobs by 2.5 percent in the 12 months through July, lower than the Jacksonville area growth rate. The fastest-growing job sectors in the Jacksonville area in the past year were administrative and support and waste services, up 7 percent, and accommodation and food services, up 6.6 percent. The construction industry also showed strong growth at 5.2 percent. The Department of Economic Opportunity said the only industries in the state losing jobs in the past year are information and government. In the Jacksonville area, federal and state government agencies have had a net decline in employment but local government jobs rose by 700, or 1.8 percent, in the past 12 months. Just like the rest of the state, the information sector was the only major private sector industry losing jobs in the past year in Jacksonville, down 1.1 percent. MBASCH@ JAXDAILYRECORD.COM
The most jobs The state determined the top categories for annual job openings in 2018-19 for Workforce Development Area 8, comprising Baker, Clay, Duval, Nassau, Putnam and St. Johns counties. Here are the top five ranked by the number of projected job openings. Occupation annual openings
Occupation
2017 average hourly wage
Executive secretaries and executive administrative assistants
4,311
$25.16
Medical secretaries
2,944
$15.60
Claims adjusters, examiners and investigators
1,921
$30.57
Telecommunications equipment installers and repairers
1,636
$25.26
Registered nurses
1,402
$30.88
The highest-paying jobs The state determined the top-paying categories for jobs in 2018-19 for Workforce Development Area 8, comprising Baker, Clay, Duval, Nassau, Putnam and St. Johns counties. Here are the top five ranked by the 2017 mean hourly wage. Occupation
Average hourly wage
Chief executives
$109.50
Airline pilots, co-pilots and flight engineers
$85.52
Financial managers
$74.96
Sales managers
$65.19
Personal financial advisers
$64.21
The fastest-growing jobs The state determined the fastest-growing categories for jobs in 2018-19 for Workforce Development Area 8, comprising Baker, Clay, Duval, Nassau, Putnam and St. Johns counties. Here are the top five ranked by the annual percentage job growth. Annual % growth
Occupation
Average hourly wage
Physical therapy assistants
3.94%
$31.15
Web developers
3.58%
$35.45
Medical assistants
3.54%
$15.17
Diagnostic medical sonographers
3.24%
$30.76
Personal financial advisers
3.21%
$64.21
Source: Florida Department of Economic Opportunity, Bureau of Labor Market Statistics
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PEOPLE ON THE MOVE Promotions, hirings and happenings for business people in Northeast Florida. Send items to ssailer@jaxdailyrecord.com Craig Boortz was promoted to vice president of sales, paper, for Mac Papers. Boortz began his career with Mac Papers in 1992 as an account manager, rising to his previous position as vice president and regional manager. Boortz retains his regional responsibilities.
of Highway Safety and Motor Vehicles. Paola Lorenzo, a public relations account manager interned with Dalton and has marketing experience at Topgolf. Hanne Volkaerts is a social media coordinator. She has communications, copywriting and social media experience.
The Dalton Agency hired three employees at its Jacksonville office. Megan Mollan is a public relations account executive, who most recently led media relations and managed social media for the Florida Department
Kenzo J. Koike joined Florida Eye Specialists and will practice out of its office in St. Augustine starting in September. Koike is an ophthalmologist specializing in complex cataract and glaucoma treatment.
Planning for the future of our region’s real estate and economic landscape requires expert guidance and industry knowledge. NAIOP Northeast Florida is available to help advise and support public officials at the city, local, and statewide level as they plan, legislate, and shape the future of the First Coast.
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NAIOP Northeast Florida provides opportunities for continuing education through engaging programs, dynamic speakers, online articles, and access to the NAIOP Research Foundation.
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Mollan
Lorenzo
Volkaerts
Koike
ECONOMIC TRENDS
Jacksonville unemployment edges up as more look for work
Thursday, August 23, 2018 • Page 3
For more information contact Carmel Buchanan, 904/730-8075 or naiopnefl@comcast.net
Page 4 • Thursday, August 23, 2018
Jacksonville Daily Record/Jacksonville Record & Observer
RESTAURANT NOTES
Photo by Karen Brune Mathis
Colliers International is marketing land for the Jacksonville Transportation Authority along AC Skinner Parkway.
THE MATHIS REPORT
Luxury apartments planned along AC Skinner Parkway
KAREN BRUNE MATHIS EDITOR
Killashee Investments wants to buy 17.4 acres for the project. Developers envision 370 luxury apartments on Jacksonville Transportation Authority-owned property along AC Skinner Parkway south of Butler Boulevard. Killashee Investments LLC and Presidium Group LLC, which are developing the 350unit JTB apartments nearby along AC Skinner Parkway, want to buy 17.4 acres for the project. “The apartment market is very strong. We think it is going to continue to be strong,” said Killashee partner Mark Farrell. Killashee is based in Ponte Vedra Beach. Presidium is in Austin, Texas. Farrell said Jacksonville continues to expand, making Top 10 lists for growth and also attracting out-of-town investors. Farrell said the group has a contract to buy the vacant land and is in due diligence. He hopes to complete the purchase next year, followed by a 20-month construction time frame. In March, the JTA board voted to authorize CEO Nat Ford to execute a purchase and sale agreement with Killashee and Presidium to buy the 17.37 acres for $7.58 million plus all closing costs. Farrell did not have a name, size or rental rates for the project. “It is in design right now,” he said. JTA, which is marketing about 68 acres for sale along AC Skinner Parkway through Colliers International, seeks to rezone the apartment site from commercial office and industrial business park to planned unit development to permit multifamily residential uses. Hearing dates are scheduled for Sept. 6 at the Jacksonville Planning Commission, introduction Sept. 11 at City
Council, review Sept. 18 at the council Land Use and Zoning Committee and a return to council Sept. 25. A written description with the rezoning legislation, Ordinance 2018-515, identifies the project developer as PG Investco LLC. A concept plan shows five four-story apartment buildings with parking and four four-unit carriage structures with parking. There also is a leasing and amenity center, a pool and courtyard, a park and dog park and surface parking. Dwell Design Studio is the architect. Farrell said five apartment communities operate along AC Skinner Parkway with more than 1,500 units. “They’ve created a good submarket,” he said. He credits the strength in apartment construction to the millennial population completing school and taking jobs. “They’re going to want apartments,” he said. Farrell said his group was talking with JTA about more of its land at the site but didn’t have specifics. Colliers International executives Robert Selton, CEO, and Wade Powers, senior associate, represent JTA. A sales brochure shows that JTA owns 98 acres along AC Skinner Parkway. The brochure shows the 38.27-acre Parcel B site is under contract in addition to the Parcel A apartment site. Remaining for sale is the 42.55-acre Parcel C, which fronts Butler Boulevard. JTA spokeswoman Leigh Ann Rassler said the authority is under contract with homebuilder DR Horton for the 38.27-acre parcel.
Heart pavilion foundation OK’d St. Vincent’s HealthCare won city approval to build the foundation for its four-story riverfront heart and vascular pavilion in Riverside. It also applied for the permit to build the four-story, roughly 84,000-square-foot pavilion patient tower. That application shows a $32.8 million construction cost. The Haskell Co. is the contractor for the project at 1 Shircliff Way off Riverside Avenue. Haskell will put in the foundation at a project cost of $1.85 million. Estimated at a total cost of $55 million, the riverfront pavilion will be developed
Special to the Daily Record
Cantina Louie opened at Nocatee this week. Owners will build a restaurant next in Arlington.
Cantina Louie closer to building in Arlington Cantina Louie is preparing to build in Arlington. The city calculated a mobility fee of $83,719 for development of a 10,810-squarefoot restaurant and retail building on 1.89 acres along Hospitality Lane. The 194-seat Cantina Louie is designed along Monument Road at Interstate 295, next to a Ruby Tuesday restaurant and Gate gas station and convenience store and in front of the Hampton Inn. Jacksonville-based Cantina Louie plans to develop a structure to comprise a 5,100-square-foot restaurant and 5,710 square feet of retail space. The property is owned by ZT Holdings #06 LLC of Jacksonville Beach. Benjamin Porter, a partner in the Cantina Louie restaurants, said a contractor has not been selected. Porter said construction should start late this year and he expects to complete the roughly $3 million project in a year. The retail space could accommodate from one to four tenants, he said. ZT Holdings #06 LLC, led by Porter and Luis Cuevas, bought the property from Gate Petroleum Co. in January for $1.1 million. The partners opened the first Cantina Louie in 2014 in St. Augustine, then Atlantic Beach, Fernandina Beach, Tinseltown and this week, the fifth in The Shoppes of St. Johns along U.S. 1 near County Road 210 and Race Track Road in St. Johns County. Cantina Louie Mexican Street Food describes itself as a “fun, affordable Mexican Cantina serving authentic Mexican street food,” such as tacos, sope, tostadas and tortas. It serves lunch and dinner.
Cruisers Grill renovating Cruisers Grill in Jacksonville Beach announced a $1.4 million renovation will begin in late September and be completed in the first quarter of 2019. Cruisers will close Sept. 17 for the project. It’s the first significant update to the building, at 319 23rd Ave. S., since the restaurant
where Seton Hall was demolished. St. Vincent’s HealthCare, part of Ascension, announced in November it would break ground this summer with a projected opening in fall 2019. The pavilion primarily will be used for heart and vascular needs, including two nursing units to care for patients who undergo open-heart surgeries and other cardiovascular procedures. It will include 30 medical and surgical rooms and 30 intensive care rooms. The permit application shows 58,800 square feet of enclosed space and 25,201
opened in 1996. Cruisers Grill said enhancements will include refacing the building, adding a full bar, expanding the outdoor patio, adding 40 seats, providing new finishes throughout the building and upgrading to a new full-service open kitchen. The restaurant will reopen with an expanded menu. Design Cooperative designed the exterior of the building and Doherty Sommers Architects Engineers will serve as the project architect.
Escape Restaurant & Bar seeks approvals to open Escape Restaurant & Bar LLC wants to open at the closed Cozy Tea spot in Five Points at 1023 Park St. The group seeks a zoning waiver and exception for the outside sale and service of spirits. The property is owned by Three by Five Retail Associates. Escape Restaurant & Bar is led by Houssam Farres. The application says the previous restaurant did not offer sales and service of alcohol but that there are several liquor license locations in the immediate vicinity.
Food notes Burger King wants to build a restaurant at New Kings Road and Edgewood Avenue North. The 2,726-square-foot store, with a drive-thru, will be on 0.95 acres at 6014 New Kings Road. The city calculated a mobility fee of $94,749 for the traffic impact. Barbara and Timothy Tharp announced that their Wicked Batter Café will open at 997 Blanding Blvd. in Orange Park. The couple, founders of restaurant consultants CHI Consulting LLC, said Wicked Batter will operate 8 a.m.-10 p.m. and serve breakfast, lunch, dinner and nostalgic treats along with coffee, drinks, wine and craft and domestic beer. Visit wickedbatter.com for the menu and other information. The restaurant could open by mid-September.
square feet of unenclosed space. Spokesman Edward Bateh said the unenclosed space comprises space on the first and fourth floors. The first floor will be elevated to protect the building in case of flooding, and there also will be parking available in that area. The fourth floor is a mechanical room. Bateh said the building will have parking on the ground level with columns toward the core of the building. The majority of the building is structural precast panels around the perimeter, he said.
He said the panels and columns would allow the free flow of water on the first floor so that, in the event of a flood, the building’s structure won’t be damaged and there is no loss of caregiving space. He said there was minimal damage during Hurricane Irma in September when San Marco and Riverside experienced flooding. The property loss was landscaping. KMATHIS@ JAXDAILYRECORD.COM @MATHISKB (904) 356-2466
Jacksonville Daily Record/Jacksonville Record & Observer
Thursday, August 23, 2018 • Page 5
Caldera: Plan proposes arts district Downtown CONTINUED FROM PAGE 1
Photo by Jay Schlichter
Peter Hendee Brown, author of “How Real Estate Developers Think: Design, Profits, and Community,” spoke Aug. 15 at the University of North Florida.
Architect offers insight into development world When the public and developers clash over a project, the end result may not be an improvement, Peter Hendee Brown says. BY JAY SCHLICHTER ASSOCIATE EDITOR
Peter Hendee Brown had a crowd of homebuilders transfixed when he told them some people think developers will eventually go away if they keep opposing their plans. As an architect, planner, consultant and university professor who wrote a book titled “How Real Estate Developers Think: Design, Profits, and Community,” the Minneapolis resident said the problem with that thinking is what can happen if those community members are successful in discouraging a developer who sought to improve an area with their project. “Don’t oppose for the sake of opposition and don’t kill a good deal because the next one may be worse and the next developer may not even come talk to you,” he said. Brown spoke Aug. 15 to a full auditorium at the University of North Florida. The event was hosted by the Urban Land Institute and the Northeast Florida Builders Association. In addition to builders and developers, the audience also included local elected officials, candidates looking to unseat those folks, and a few students. Brown said he’s seen that type of development opposition often, which can lead to ugly projects being built in place of the original developer’s more pleasing plans. And the public usually is not even aware of the new project, because the new developer will build something that doesn’t require zoning changes or government approval, he said. Brown asked the developers in attendance if they have dealt with that type of opposition, which was met with a resounding “yes” from a large part of the crowd. Brown was invited to speak at the function and introduced by leaders of ULI and NEFBA, Maurice “Mo” Rudolph and Bill Garrison. “As universal and far reaching as the development industry is, it still remains largely misunderstood by too many people,” said Garrison, the executive officer of NEFBA. “Northeast Florida is growing into one of the most desirable regions in the country to live in, and that’s due in large part to the way it’s been developed.” Additionally, JAX Chamber President Daniel Davis welcomed Brown and
thanked the developers for building Jacksonville into what it is today, and encouraged them to continue, particularly in the city’s Downtown area. “You’re the ones responsible for the success we’re having in the community,” he said. “You cannot have a great city without a great downtown. We have to create an urban environment that is attractive to young talent that is coming out of our higher ed institutions today. So we can’t take our foot off the gas.” During the presentation, Brown said he decided to write the book after he came to the conclusion that “no one understands developers.” Brown used a quote from famed Miami architect and planner Andrés Duany, who said that people “used to call them our town founders and we honored them by erecting their statues in our town squares. Today we just call them ‘developers.’” Brown used examples from cities that have successfully redeveloped urban spaces, like Miami and Portland, Oregon. He said developers like John Carroll took big risks by building unique spaces in downtown areas. The interesting thing is buyers imediately scooped up the Portland units that Carroll built and he ended up kicking off what became one of the city’s most popular areas, the Pearl District. He didn’t do it by himself, Brown said, but by working with the government. Brown said he wasn’t telling the Jacksonville-based developers that they had to do exactly what was done in Portland, but that they could learn valuable lessons from those who restored a once blighted area. He said it’s often hard to deal with members of the public, many of whom get incorrect information and often from sources like social media. He said developers often are trying to build something that improves an area, but that some people think they’re just out to make money. While he said they obviously are still business professionals looking to make a living, they usually are seeking to make a neighborhood better. He told the elected officials that their job is to support and promote good projects and don’t change building codes and other rules so often that it hinders the progress. Finally, he encouraged community members upset with a potential project to make positive suggestions. “Be realistic. If a developer has a 40-story building, don’t ask them to build three stories,” he said. “Think about where you can use your energy to recommend good change.” JAYS@JAXDAILYRECORD.COM (904) 356-2466
tic arts and business area sprawled across a 50-block area. It runs between Interstate 95 and East Coast Avenue, between Northwest 20th Street to I-195. The area includes the outdoor Wynwood Walls museum, which features large-scale murals from prominent street artists. Other parts of the district include breweries, art galleries, boutique shopping and other nightlife. “It wouldn’t be to that scale, but that’s the feeling we want to bring to Downtown,” he said. “Right now we lack this kind of public space.” Caldera is a member of the Downtown Development Review Board, which oversees construction and exterior design standards for projects in the urban core and surrounding neighborhoods. He said during his five years on the board, he hasn’t seen a project like this introduced. “We can get as creative as we want,” he said. “The idea is to get traffic in that area, from the courthouse and the Ed Ball Building. It’s something to do after work or during lunch.” Caldera estimates construction would cost about $120,000. He’s meeting with the city to lease the property for 24 months while the Downtown Investment Authority ponders a permanent strategy for the area. The lease would include a six-month grace period to account for construction. “The most important part about this is that it gives the city a short-term solution for the property,” he said. JEA identified the property, among other Downtown parcels, as a potential site to build a headquarters. The utility is expected to select a site by early 2019, but development could take years. “That’s why we’re looking to make this property useful right now,” Caldera said.
He said he’s working with several art institutions and local schools to help with design, programming and funding for the two-phase project. Caldera said the first phase involve s remodeling the modular buildings and completing site work for open public space. Construction would take about 120 days for the first phase. The second phase includes adding shipping containers that would be converted to create micro theaters, pop-up retail, cafes and other uses. “We see the shipping containers used for small presentations, 15 to 20 minutes,” he said. “Imagine being able to hear a visiting professor from outside of Jacksonville giving a lecture or a talk about a topic you’re interested in, and you can do so during your lunch hour,” he said. Caldera said if it is successful, he plans to bring a more permanent plan for the city to consider in another part of Downtown. “This is really the beta test,” he said. “We want to know if Jacksonville is ready for something like this or maybe this is a concept that needs time.” Caldera said he’s received backing from several arts programs at Florida universities, the Cultural Council and Downtown Vision Inc. The DIA would need to approve a lease of city-owned property and the DDRB may need to sign off on the design. DIA CEO Aundra Wallace said he was aware of the project but didn’t know enough to comment. Caldera said he’ll have more information in the coming weeks. DCAWTON@JAXDAILYRECORD.COM @DAVIDCAWTON (904) 356-2466
Special to the Daily Record
An artist’s rendering of La Rue des Arts, a multicultural arts center, incubator and public space proposed for 337 W. Adams St. near the Duval County Courthouse.
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Page 6 • Thursday, August 23, 2018
Jacksonville Daily Record/Jacksonville Record & Observer
Private: Firms seeking growth backed with billions to invest CONTINUED FROM PAGE 1
“Private equity is multiple times the public companies,” said Don Wiggins, president of Heritage Capital Group in Jacksonville. A midyear report by PricewaterhouseCoopers said there are nearly 8,000 private equity-backed U.S. companies, doubling the fewer than 4,000 firms traded on the major stock exchanges. Private equity-backed companies include some of Jacksonville’s largest corporations, like Southeastern Grocers LLC, (operator of the Winn-Dixie supermarket chain), and sales and marketing firm Acosta. These businesses are backed by major investment firms with billions of dollars to spend. However, most of the businesses are smaller and funded with different levels of investors. New businesses may be backed by so-called angel investors. “For angel investors, it’s primarily local,” said Wiggins. “It’s kind of a friends and family situation.” Other startup businesses are funded by venture capital firms, “companies that have been formed to invest in early stage companies,” Wiggins said. Jim Stallings, CEO of PS27 Ventures in Jacksonville, has helped fund a number of small businesses in the area with venture capital. Stallings said there aren’t a lot of companies in Jacksonville like his that would describe themselves as venture capital firms, but he is seeing more investor interest in funding new companies. “The angel network is getting more organized in Jacksonville,” he said, with potential investors joining clubs to identify potential targets. Many of the investors are retired executives with money available and years of expertise to offer a startup, Stallings said. “There’s millions of dollars of capital that comes in through that network,” he said. But it’s not easy. Stallings said investors shouldn’t provide funds they can’t afford to lose. “This is risk capital. They all know it,” he said. Big money private equity firms search for companies that already have a strong revenue stream but have room for more profitability, Wiggins said. “In real estate it’s location, location, location. For private equity it’s grow, grow, grow,” he said. Employees may fear job cuts as big investors come in, but Wiggins said his experience with corporate buyouts shows it doesn’t usually happen that way. “They never come in and slash and burn,” he said. “They want to accelerate the growth. They want to make it more profitable.”
Photo by Karen Brune Mathis
Jim Stallings, CEO of PS27 Ventures, said he sees more interest from investors to fund new companies,
AREA PRIVATE EQUITY-BACKED COMPANIES The Jacksonville area is home to about 150 companies backed by private equity interests. Many of them are small companies not followed closely, but the list includes several prominent Jacksonville companies.
Interline Brands Interline Brands, which markets and distributes maintenance, repair and operations products, is owned by publicly traded Home Depot Inc. But over the years, it has gone back and forth between public and private ownership. The company opened in the 1950s under the name Barnett Brass & Copper and went public in 1996 under the name Barnett Inc. In 2000, it was acquired by Wilmar Industries, soon after a group of private equity firms had taken over Wilmar. The merged company was headquartered in Jacksonville and renamed Interline in 2001. In 2004, the private equity firms decided to take Interline public, a common way for buyout firms to cash out in their investment after growing a business they acquired. Interline was publicly traded for eight years before a buyout in 2012 by Goldman Sachs Capital Partners and P2 Capital Partners. The two private equity firms paid $1.1 billion for Interline but sold it to Home Depot in 2015 for $1.625 billion, making a half-billion-dollar profit in three years. Interline’s last financial report as an independent company showed revenue of $859 million in the first half of 2015.
MBASCH@ JAXDAILYRECORD.COM
Jacksonville is the heaqquarters of Interline Brands.
APR Energy Founder and Chief Executive John Campion.
APR Energy APR Energy was attracting international notice for its business of building fast-tracked power plants in emerging markets. However, two years of losses because of projects in risky countries that had to be abandoned forced the publicly traded company to seek private equity help. A consortium of private equity investors bought the Jacksonville-based company for about $250 million in January 2016 and agreed to provide $200 million in new capital after the buyout. The investor group included a firm run by former U.S. Secretary of State Madeleine Albright. APR Chief Executive John Campion said Albright’s involvement has helped the company’s credibility, assuring business partners that the company conducts business properly. APR reported revenue of nearly $500 million in 2014, its last full year before agreeing to the buyout in late 2015.
Jacksonville Daily Record/Jacksonville Record & Observer
Thursday, August 23, 2018 • Page 7
AREA PRIVATE EQUITY-BACKED COMPANIES
Acosta President and CEO Alejandro Rodriguez Bas.
Acosta Acosta Sales & Marketing is a 90-year-old Jacksonville company that has become a powerhouse in its field, providing services mainly for the supermarket industry. Several private equity firms have profited from Acosta’s growth through the years. Most recently, The Carlyle Group acquired control of Acosta in a 2014 deal valued at $4.8 billion, including the assumption of debt. Carlyle bought the majority stake from another buyout firm, Thomas H. Lee Partners L.P., which bought its stake in 2011. Although the price was not disclosed, Bloomberg News reported THL paid $500 million and sold its interest to Carlyle three years later for $1.7 billion. Acosta does not disclose sales figures but data from Florida Trend magazine shows Acosta was Jacksonville’s second-largest private equity-backed company with $2.1 billion in revenue last year. Acosta last month brought in Alejandro Rodriguez Bas, former executive vice president of C&S Wholesale Grocers, as its new CEO.
File images
Southeastern Grocers CEO Anthony Hucker.
Southeastern Grocers Winn-Dixie Stores Inc. was a publicly traded company before it was acquired by Bi-Lo LLC for $560 million in 2012. Bi-Lo was owned by private equity firm Lone Star Funds, which paid $660 million for that supermarket chain in 2005 and contributed $275 million in additional capital to help Bi-Lo buy Winn-Dixie. After the acquisition, Lone Star merged the two companies into a Jacksonville-based company called Southeastern Grocers LLC. However, that deal didn’t work out well for Lone Star. Southeastern went through a Chapter 11 bankruptcy reorganization this year that wiped out Lone Star’s equity in the company. Southeastern still is privately owned, after it
issued equity to holders of $522 million in debt in the reorganization. Court documents show that Fidelity Management & Research Co. and Osterweis Capital Management were in line to be major equity holders after Southeastern emerged from bankruptcy in May, but there has been no specification of how the stock was distributed. Southeastern is Jacksonville’s largest private equity-backed company with $9.875 billion in sales last year, according to court filings. After store closings in the reorganization, it projects $8.45 billion in sales in 2019. CEO Anthony Hucker is hoping that upgrades in progress of the company’s stores will bring in more sales.
Fanatics CEO Doug Mack.
Fanatics Fanatics started in 1995 as a sports merchandise store in the Orange Park Mall and has grown into a major online retailer of sports-related apparel and merchandise with annual sales of about $2 billion. Its growth has attracted interest from private equity. The company was acquired for $277 million in cash and stock in 2011 by GSI Commerce Inc. and the next year, GSI Chairman Michael Rubin combined the Jacksonville-based company with other businesses he owned into a company called Kynetic. Last year, an investment company formed by Japanese conglomerate SoftBank Group Corp. called the Vision Fund made a $1 billion investment in Fanatics. Financial news services reported that investment valued the entire company at $4.5 billion. Fanatics CEO Doug Mack has said the Softbank relationship will help the company expand internationally.
Beelne CEO Doug Leeby.
Beeline Beeline is a software company started by Jacksonville-based staffing company Modis Professional Services Inc. in 1999. When the parent company, then called MPS Group Inc., was acquired in 2010 by Adecco Group NA, Beeline went with it. Beeline became an independent company in late 2016 when a Chicago-based private equity firm called GTCR bought the business from Adecco. GTCR merged Beeline with a company that it owned called IQN. The merged company, which provides software solutions that help companies manage
their nonemployee workforces, changed hands again last month when New York-based New Mountain Capital bought Beeline. Terms were not announced but according to New Mountain’s website, the firm makes just three or four private equity investments every year, at prices between $100 million and $500 million. “With a robust history of supporting and growing software companies as well as companies in the human capital ecosystem, New Mountain is an ideal partner for us,” said Beeline CEO Doug Leeby
Page 8 • Thursday, August 23, 2018
Jacksonville Daily Record/Jacksonville Record & Observer
THE BASCH REPORT
ParkerVision slumps as Milo sales tumble ParkerVision stock falls ParkerVision stock has dropped 70 percent since hitting its 2018 high of $1.23 on Jan. 24. The stock closed Aug. 15 at 39 cents a share and was delisted from the NASDAQ. CEO Jeff Parker said investors should expect increased sales of its Milo Wi-Fi device because of ads that are running on several cable television networks. MARK BASCH CONTRIBUTING WRITER
Company delisted from the Nasdaq because its stock value failed to reach $35 million. ParkerVision Inc. officials continue to express optimism about its in-home Wi-Fi product called Milo. However, ParkerVision’s third quarterly financial report since it introduced Milo last fall showed another drop in sales. The Jacksonville-based developer of wireless technology last week reported second-quarter revenue of just $38,000, down from $77,000 in the first quarter and from $100,000 in the fourth quarter of 2017. “We believe this decrease (from the first to second quarter) is a result of our decision to divert advertising dollars towards our national television campaign, which launched last week,” Chief Financial Officer Cindy Poehlman said in ParkerVision’s conference call with investors. “We will be closely evaluating results of this campaign over the coming weeks as we work to maximize the potential revenue growth that it can generate,” she said. CEO Jeff Parker said investors should expect increased sales because of the ads that are running on several cable television networks. “We’re in the very early stages of this campaign and are determining on a nearly realtime basis which markets are most effective and continuously adjusting and improving our media plan to reinforce the effectiveness of the campaign,” he said. “Candidly, I wish our call was a few weeks later because I think we’d have more to talk about,” Parker said. ParkerVision says Milo provides consumers with enhanced Wi-Fi coverage and performance in their homes. ParkerVision has been in business for more than a quarter-century and it has brought several consumer products to the market over the years that failed to catch on. The company has lost money every year. For the second quarter, it reported an adjusted net loss of $3.6 million, or 14 cents a share. Besides its various consumer products, ParkerVision also had pursued legal action against several major manufacturers of wireless products alleging they have infringed on its patented technology. None of its current cases appear close to resolution. “It’s frustrating beyond what I can express, the inability to timely enforce patent infringement in the United States,” Parker said in last week’s conference call. The lack of results has
$1.23, Jan. 24 $1.20
90 cents
60 cents
“We’re in the very early stages of this campaign and are determining on a nearly real-time basis which markets are most effective and continuously adjusting and improving our media plan to reinforce the effectiveness of the campaign.”
30 cents
26 cents Aug. 16
JEFF PARKER, PARKERVISION CEO, ON SALES OF MILO
January
February
depressed ParkerVision’s stock, and the company has faced threats of delisting by Nasdaq several times. With the stock trading below $1 since February, the company finally was delisted by Nasdaq last week. The company said in a Securities and Exchange Commission filing that it was delisted because it failed to comply with a Nasdaq rule that the stock’s market value should be at least $35 million. The stock began trading on the over-the-counter market Friday under the same ticker symbol, “PRKR.” After ParkerVision’s financial report, which included the likelihood of a delisting, ParkerVision’s stock fell from 58 cents to 39 cents on Aug. 15. The SEC filing about the delisting came after the market closed Aug. 15, and the stock fell to 26 cents Aug. 16.
GEE Group revenue down 12.6 percent GEE Group Inc. reported revenue for its third quarter ended June 30 of $40.3 million, down 12.6 percent from the previous year. The Jacksonville-based staffing company had a net loss of $1.9 million, or 18 cents a share, for the quarter. GEE Group said the decline in revenue was largely due to a reduction in temporary workforce requirements of a few key customers in its industrial services division. Results also were Dewan impacted by a reduction of personnel in its professional services division and certain office closures to improve profitability. “The company has made great strides in streamlining field operations, improving the efficiency and productivity of its sales and recruitment teams and in enhancing its menu of services and delivery network,”
March
April
CEO Derek Dewan said in a news release. Dewan expects strong demand for GEE Group’s services in the current economy. “The low white-collar unemployment rate and tight labor market coupled with strong GDP growth bodes well for the staffing industry in general and GEE Group in particular,” he said.
Duos Technologies raises forecast
Duos Technologies Group Inc. last week reported a big increase in second-quarter revenue and increased its forecast for full-year revenue. The Jacksonville-based company, which provides intelligent security and analytical technology solutions, reported revenue of $3.2 million for the quarter, up from $1.2 million last year. Duos increased its revenue forecast for the full year from $9.3 million to $10.1 million, based on contracts in place, and said it expects to receive additional contracts during the year. The company’s 2017 revenue was $3.9 million. Duos had a net loss of $634,000, or 3 cents a share, in the quarter but CEO Gianni Arcaini said in a news release the company is getting closer to profitability as it grows. “With our core technology now fully developed and ready to deploy, we anticipate this growth to continue as we win new business and begin deployments throughout the remainder of the year and beyond,” he said.
Coach parent beats forecasts Tapestry Inc.’s stock jumped higher last week after the parent company of the Coach handbag and accessories brand reported higher than expected sales and earnings. Tapestry said sales in the fourth quarter ended June 30 rose 31 percent to $1.48
May
June
billion, mainly because of its acquisition of the Kate Spade brand last year. But sales beat the average analyst’s forecast of $1.46 billion, according to Zacks Investment Research. Adjusted earnings of 60 cents a share were 10 cents higher than last year and 3 cents higher than the average analyst’s forecast. The company projected fiscal 2019 earnings of $2.70 to $2.80 per share, compared with adjusted earnings of $2.63 in the fiscal year ended June 30. Besides Coach and Kate Spade, Tapestry also owns the Stuart Weitzman shoe brand, which it acquired in 2015. The company changed its name from Coach Inc. last year because of the expansion into other brands. New York-based Tapestry handles all of its North American distribution for Coach products from an 850,000-square-foot warehouse at the Jacksonville International Tradeport. Fourth-quarter sales for Coach rose 5 percent to $1.1 billion and comparable-store sales, including e-commerce and physical stores open for more than one year, rose 2 percent. Coach is best known for its handbags, but CEO Victor Luis said in a news release the brand expects to grow sales in other areas. “Beyond bags, we’re excited about the opportunities for women’s footwear and readyto-wear as well as men’s across all categories,” he said. Tapestry’s stock rose $5.70 to $53.16 on Aug. 14 after the earnings report.
31% TAPESTRY SALES SURGE
Tapestry said sales in the fourth quarter ended June 30 increased 31 percent to $1.48 billion.
July
August
Creative Learning appoints new CEO St. Augustine-based Creative Learning Corp. said in an SEC filing last week that Blake Furlow was appointed as CEO. Furlow has been serving as chairman of the board of the company, which has been operating without a CEO. Creative Learning, which offers educational and enrichment programs for children through franchisees, also reported a profit of $114,172, or 1 cent per share, for the third quarter ended June 30, giving it consecutive quarterly profits for the first time since 2015. Revenue in the quarter rose 12 percent to $618,047 because of an increase in initial franchise sales, the company said.
Shepherd’s Finance earnings rise Shepherd’s Finance LLC reported second-quarter earnings of $204,000, compared with $163,000 the previous year. The Jacksonville-based company is a commercial lender for the residential construction and development industry. It said loans receivable rose 39 percent to $41.8 million, as the company sees growth in demand for construction and development loans. MBASCH@ JAXDAILYRECORD.COM
Jacksonville Daily Record/Jacksonville Record & Observer
Thursday, August 23, 2018 • Page 9
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 July 23-27.
Special to the Daily Record
Portiva Apartments, which opened in 2017, sold for $50,700,000.
$50,700,000
$36,000,000
$16,306,600
$10,700,000
$4,765,000
6898 AC Skinner Parkway, Jacksonville, Duval County
9541 103rd St., Jacksonville, Duval County
11406 San Jose Blvd., Jacksonville, Duval County
3494 Philips Highway, Jacksonville, Duval County
Armsdale Road, Jacksonville, Duval County
Type: Portiva Apartments Size: 7.35 acres Buyer: MAG Portiva LLC Seller: Portiva Residences LLC
Type: Westridge Apartments Size: 18.52 acres Buyer: Westridge Community LLC Seller: Westridge Operating LLC
Type: Mandarin Oaks Shopping Center Size: 6.8 acres Buyer: NNN Jacksonville FL Owner LP Seller: PX Mandarin Oaks LP Previous sale: $13,800,000 in 2012
Type: Riverside Chevrolet Size: 9.73 acres Buyer: Autounlimited Services LLC Seller: Riverside Chevrolet LLC Previous sale: $10,000,000 in 2016
Type: Vacant industrial Size: 174.27 acres Buyer: NP Jacksonville Industrial LLC Seller: HG Industrial Commons LLC and HG Industrial Partners LLC
$2,900,000
$2,857,000
$2,728,693
$2,728,693
$2,360,000
227 Beach Ave., Atlantic Beach, Duval County
917 Spinnakers Reach Drive, Ponte Vedra Beach, St. Johns County
11101 San Jose Blvd., Jacksonville, Duval County
9350 Atlantic Blvd., Jacksonville, Duval County
917 S. First St., No. 301, Jacksonville Beach, Duval County
Type: Single-family Size: 0.29 acres Buyer: Ralph E. Chambers Trustee and Clarence W. Gooden Second Irrevocable Trust Seller: Corkie T. Gooden Revocable Trust Previous sale: $1,600,000 in 2012
Type: Windermere I condominium Size: 3,082 square feet Buyer: Richard and Lynn M. Dickinson Seller: Stephen Pineault and Kathleen Boss Previous sale: $1,850,000 in 2017
Type: Chili’s Grill & Bar Size: 0.99 acres Buyer: MDC Coast 13 LLC Seller: Brinker PropCo Florida Inc.
Type: Chili’s Grill & Bar Size: 1.3 acres Buyer: MDC Coast 13 LLC Seller: Brinker PropCo Florida Inc.
Type: Marbella condominium Size: 5,315 square feet Buyer: David and Mary Pentel Seller: Margaret Ann Bell Previous sale: $1,650,000 in 2006
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.
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PEOPLE ON THE MOVE Top-level promotions and new hires at the region’s companies.
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Page 10 • Thursday, August 23, 2018
Jacksonville Daily Record/Jacksonville Record & Observer
THE CAWTON REPORT
Wallace looking forward to new challenges
DAVID CAWTON STAFF WRITER
Downtown Investment Authority CEO will be the next president of the JAXUSA Partnership. Downtown Investment Authority CEO Aundra Wallace has plenty of work before leaving the city agency to lead the JAXUSA Partnership starting Oct. 1. From evaluating multiple convention center proposals to moving Downtown development projects ahead, Wallace said the next month and a half should be busy. Wallace, 50, is taking over as president of JAXUSA Partnership, the economic development division of the JAX Chamber, for Jerry Mallot, who retires Sept. 1 after 24 years. “It was something that I could not professionally pass up,” said Wallace. Since arriving in 2013 from Detroit, his focus has been making Downtown Jacksonville a vibrant, working neighborhood again after decades of relative inactivity. Under Wallace, the DIA grew into one of the more influential city agencies. Wallace led negotiations on major deals like the Barnett and Laura Street Trio redevelopment projects in the urban core and The District mixed-use development on the Southbank. “Getting a track record is hard,” said Wallace. “I’m very happy with what we’ve been able to accomplish at the DIA.” Wallace said he’ll provide the DIA’s nine-member board with enough information to hopefully select a site for a new convention center and give insight into other projects, like the Berkman Plaza II, before leaving. He said the DIA staff – Finance Manager Tom Daly, Redevelopment Coordinator Jim Klement, Operations Manager Guy Parola and Executive Assistant Karen Underwood – have what they need to succeed. “Part of what I’m doing is making sure the team knows my intellectual capacity when it comes to projects,” said Wallace. “And making sure that that’s passed on to the board chairman and the administration.” A new convention center is at the top of the list. On Aug. 1, the city received three bids from developers seeking to build a convention center, hotel and parking garage along East Bay Street where the old Duval County Courthouse and City Hall buildings remain. Wallace, along with DIA board member Oliver Barakat, and Director of Public Works John Pappas, make up an evaluation committee. They
Cowford Chophouse: Downtown Investment Authority CEO Aundra Wallace stands in front of Cowford Chophouse at 101 E Bay St. before it was renovated.
File images
Wallace’s achievements
The District
will individually score submissions against criteria outlined in a request for proposals. “I will present the ranking of those proposals at the Sept. 19 (DIA) meeting for that particular site,” Wallace said. Those are just the official responses. Shad Khan’s Iguana Investments Florida LLC group wants to build the convention center complex at Metropolitan Park in collaboration with Rimrock Devlin DeBartolo Jacksonville LLC. Rimrock Devlin DeBartolo also offered an alternative plan for the Bay Street sites that includes apartments, a new hotel and food hall. “I’m not going to get into that,” Wallace said about which plan he thinks works best. “Because the DIA can’t do that alone, this is a conversation (the developers) must have with the administration,” he said. He also expects movement on the Berkman Plaza II structure. “Hopefully between now and then we’ll be able to take our verbal conversations and move them to paper,” he said. BUILDING CONSENSUS
Wallace’s working relationship with the administration and City Council is one of his strengths, even though he was appointed before Mayor Lenny Curry took office in 2015. The agency was formed when former Mayor Alvin Brown’s restructured the Jacksonville Economic Development Commission. While the DIA is the master
Among the projects that Downtown Investment Authority CEO Aundra Wallace worked on during his five years of leading the agency include The District on the Downtown Southbank, new apartments in LaVilla, the Barnett, the Laura Street Trio and the Cowford Chophouse.
developer for the urban core, Brooklyn, LaVilla and part of the Southbank, the Office of Economic Development oversees projects in all of Duval County. Wallace said until 2017, the conversation around Downtown “was more about what could be versus what was actually happening.” “I think after we got the financial structure in place for the Barnett and the Trio, people really began to say, wow, we really can do this,” he said. Wallace led negotiations with SouthEast Development Group and the Molasky Group of Cos. to redevelop four historic buildings along North Laura Street. The economic development deal approved in 2017 by the DIA and council resulted in a $9.8 million financial incentives package for the group to build 100 apartments, office space, a University of North Florida satellite campus and a retail bank with JPMorgan Chase. “There were other small wins, too,” said Wallace. “The (Cowford) Chophouse has been a huge success, Bellwether has been a huge success, Super Food and Brew has been a huge success,” he said. Wallace also helped bring affordable and workforce housing to LaVilla. The Vestcor Companies are bringing roughly 600 new apartments to the area through four projects. “The mere fact that you can invest approximately just over $1.1 million in loan money and get the type of development
that’s been going on in LaVilla when nothing was taking place for 20-plus years shows you what’s possible,” he said. Vestcor, like other developers, received low-interest loans backed by the city and state, as well as property tax breaks to build residential developments. Wallace also negotiated an economic development deal for The District on the Downtown Southbank. The 30-acre mixed-use project from Elements Development of Jacksonville LLC includes apartments and condos, hotel rooms, office, retail and public park space for a site vacated by JEA for the past decade. It is the city’s largest economic development deal for a Downtown project with $26.4 million committed to build public infrastructure, and a Recapture Enhanced Value Grant worth up to $56 million over the next 22 years. “I can tell you that was probably some of the most creativity that you could pull out of 20-plus years of doing this,” said Wallace about the effort after previous attempts failed. The first economic development package included complicated financing mechanisms that didn’t impress council members. Wallace and his team had to re-enter negotiations with Elements before a deal was approved. “Hard work paid off,” Wallace said. THE NEXT CHALLENGE
In his new job, Wallace will have a bigger territory to cover.
Lofts at LaVilla
Wallace was recruited over the summer by JAXUSA Partnership. The organization recruits corporate investment for Baker, Clay, Duval, Flagler, Nassau, Putnam and St. Johns counties. “I don’t take that lightly whatsoever,” said Wallace. He will be the first AfricanAmerican to lead the organization. “I think it’s the unique qualifications that I have for the position that hopefully led them to the decision, but I’m not going to shy away from the fact that I’m an African-American male,” he said. While most of his career has focused on urban development, Wallace said he does not forget growing up in rural Georgia where he said an economic development deal can be the difference between a town surviving and not. “I understand what it means to provide a loan to a peanut farm in North Carolina that employs 500 people,” he said. “If they don’t get that line of credit to meet payroll, then 500 families in that small, 10,000-(population) community town go hungry.” And although his territory will expand beyond the DIA’s boundaries, Wallace said he’ll remain focused on Downtown. “I have a vested interest in whether the Downtown Investment Authority succeeds. That’s a big pitch of what we’ll be doing at JAXUSA.” DCAWTON@ JAXDAILYRECORD.COM @DAVIDCAWTON (904) 356-2466
Jacksonville Daily Record/Jacksonville Record & Observer
Thursday, August 23, 2018 • Page 11
BY SCOTT SAILER • EDITORIAL RESEARCH DIRECTOR
St. Johns County has the highest median earnings per worker in the Jacksonville Metropolitan Statistical Area, according to the U.S. Census Bureau. Each of the five counties exceeded Florida’s median earnings per worker and median household income. Baker County
Median earnings per worker
$39,151 $53,327
Median household income
Clay County
$43,742 $59,179
Duval County
$40,410 $49,196
Nassau County
$43,249 $59,196
St. Johns County
St. Johns County median earnings per worker are 32.4 percent higher than the Florida median and 14.7 percent greater than the U.S. median.
$51,499 $69,523
Florida
$38,899 $48,900
U.S.
$44,910 $55,322 Source: TownCharts, U.S. Census Bureau
DEVELOPMENT TODAY These are the largest commercial building permits by price issued Tuesday by the city of Jacksonville. CHURCH, OTHER RELIGIOUS All Souls Anglican Church, 4042 Hartley Road, contractor is Joseph Bennett, alteration, $40,000. INDUSTRIAL Old Dominion Freight Line, 720 Scotia Road, contractor is Guardian Fueling Technologies LLC, alteration, $162,600.
OFFICE, BANK, PROFESSIONAL Synergy Chiropractic, 14815 Mandarin Road, contractor is Interior Buildouts Inc., 7,842 square feet, tenant build-out, $97,006. ROOFING Jacksonville Aviation Authority, 855 St. Johns Bluff Road N., No. 45, contractor is Register Roofing & Sheet Metal Inc., roof repair, $277,581. Southeast Atlantic Land Trust, 1795 Kernan Blvd. S., contractor is Childers
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Roofing & Sheet Metal Inc., new roof, $50,300. SIGNS Family Dollar, 4210 Old Middleburg Road N., contractor is Clear View Signs Inc., four permits for ground, awning and wall signs, $100,000. Crowley, Crowley Fresh Perishable Handling Division, 2113 W. 30th St., contractor is Taylor Sign & Design Inc., ground sign, $5,000.
The Stout Snug on the Hill, 1198 Edgewood Ave. S., contractor is Taylor Sign & Design Inc., wall sign, $1,545. STORES, MERCANTILE CPC Jacksonville SJTC Hospitality LLC, 4600 Tropea Way, contractor is ShayCore Enterprises Inc., 7,040 square feet, new shell building, $826,000. Compiled by Scott Sailer
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THE DATA PAGE
2017 Northeast Florida earnings, household income compared
YOU SHOULD KNOW
Page 12 • Thursday, August 23, 2018
Jacksonville Daily Record/Jacksonville Record & Observer
KATRINA WATKINS BY KAREN BRUNE MATHIS • EDITOR
Katrina Watkins is the lead sales consultant and broker with Glenn Layton Homes and chairs the Sales & Marketing Council at the Northeast Florida Builders Association. The Mandarin resident has been a top producing agent for 15 years, specializing in residential new home sales in the Jacksonville and St. Augustine markets. Glenn Layton Homes is a boutique custom homebuilder, where I oversee all sales, marketing, events and Realtor presentations. Our most important component is our customers and helping them design the perfect home in the perfect community that meets their needs and budget. With the Sales & Marketing Council, I am so fortunate to have a dynamic executive board and board of directors. We are the largest council within NEFBA. It is an organization about members doing business with other members and growing your business through great networking events and education. I’ve always been active and it’s been an honor to serve as SMC chair.
ABOUT WATKINS Title: Sales and marketing broker, Glenn Layton Homes Also: Chair, Sales & Marketing Council of the Northeast Florida Builders Association Education: Bachelor’s in marketing and merchandising, Florida State University
I began my real estate career in 2003. I initially interviewed for a design consultant position for a national builder and they inquired about my previous sales experience and asked if I would be interested in getting my real estate license. It has just been an awesome 15 years and I’m privileged to help families find and build their new homes. As a rare Jacksonville native, I graduated from Raines High School and Florida State University. I majored in merchandising and marketing. After college, I decided to “find myself,� as most young people do. I became a flight attendant for American Airlines for about seven years and traveled the world. When I married, my husband was a contracting computer programmer. We were young and didn’t mind moving often. As a flight attendant, I was able to commute. We lived in Greensboro, North Carolina; Washington, D.C.; we moved back to Jacksonville for a short period and then we
Family: Married to Bryant Watkins for 27 years; two sons: Bailey, 25, and Carter, 21
Special to the Daily Record
settled in Atlanta for nine years until Bank of America made us an offer we couldn’t resist. As much as I never wanted to return, it’s been such a blessing. The relationships that I have built in my career and SMC are irreplaceable. I have been happily married for 27 years and we have two amazing sons. Both attended Florida Atlantic University in Boca Raton. My oldest graduated in 2015 and my youngest is a senior. My husband and I are enjoying being empty nesters. We often like to try new restaurants and we travel as much as possible. My husband has been commuting
with his job, so we’ve been flying between three cities. It’s kind of like dating all over again, exploring new cities and trying new restaurants in each location.
Hometown: Jacksonville
Another hobby of mine is gardening. Most of my friends are typically surprised that I actually get in the dirt, but I do. I like to win awards during the summer for having the yard of the month. I do the flower beds and my husband does everything else, but together we make a great team.
Hobbies: Gardening, cooking and baking
KMATHIS@JAXDAILYRECORD.COM @MATHISKB (904) 356-2466
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