The group hoping to transform the dilapidated Bostwick Building into a high-end Downtown restaurant will spend $6.16 million on the project, $750,000 of which could come from the public.
The Downtown Investment Authority will take up a resolution Wednesday in support of the public financial help.
The $750,000 is broken down into two sources, the first being up to a $250,000 loan from the Downtown Economic Development Trust Fund. It’d be paid back over an 11-year period with an annual interest rate of 1.75 percent. The fund has about $2.5 million in it.
The first year would be an interest-only payment of $4,735, with the other 10 years having an annual payment of $27,468.
The remaining $500,000 of public help would come from the Downtown Historic Revitalization Trust Fund. It would be used to restore the building’s exterior and preserve historically significant interior features.
The group, led by Dixie Egg Co. owner Jacques Klempf, wants to convert the building into “The Cowford Chophouse,” featuring steaks, seafood, a raw bar and rooftop lounge. The estimated cost is $6.16 million, according to information provided to the Downtown authority — $2.7 million in construction, $2.6 million in build-out, $600,000 in operating capital and $260,000 from site acquisition.
Klempf bought the building in July for $165,000 through a foreclosure auction, months after the city took action against the building’s original owners for code violations. Klempf and the Bostwicks spent much of 2013 trying to agree on a deal for the building. But an outstanding lawsuit against the Bostwicks stemming from water intrusion wasn’t resolved.
Aundra Wallace, the authority’s CEO, said Monday after looking the project over and seeing the group’s history, the investment was worth it. The members own other high-end local restaurants — Bistro Aix and Ovinte — and Wallace said its track record could help bring a “signature” flair to town.
“If I go to Chicago, if I go to Charlotte … everyone has their own signature chop house,” Wallace said. “This can be Jacksonville’s.”
The project will support 90 construction jobs and take 18 months. After completion, the restaurant would support 55 full-time jobs, according to deal details filed with the DIA.
Parking specifics weren’t included in the package, but Wallace said the group has sought to secure space through both the public and private sectors.
Also Wednesday, the authority board will consider letting Wallace negotiate a Recapture Enhanced Value grant with a company seeking to build a specialty hotel in Brooklyn. Parkview Partners LLC wants to build a $23 million facility with 150 rooms, banquet space and fitness center immediately north of 220 Riverside Apartments and Unity Plaza.
The grant provides real estate tax rebates of a certain amount based on a company’s investment and taxes on real and tangible personal property.
Parkview is seeking a 75 percent rebate for 20 years, not to exceed $3.7 million.
That project would create 75 temporary full-time jobs during construction and 15-30 after completion, according to deal details.
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