Jacksonville-based Availity LLC told employees Monday that it will relocate within Southside Jacksonville by late summer 2018 to the new Town Center One office building.
CFO Nathan Eastman also confirmed that Availity, a health care IT company, is the identity of Project Avalanche, the economic-development project approved April 25 by City Council.
“We’re really pleased to be able to stay in Jacksonville, and the state and local incentives were a real part of making that work for us economically,” Eastman said.
Availity, launched in 2001 as a joint venture between Florida Blue and Humana, will relocate from the WaterView Office Park at 10752 Deerwood Park Blvd. S.
Eastman said it will lease 100,000 square feet in the Town Center One building under development at 5555 Gate Parkway by VanTrust Real Estate.
He declined to say how much space Availity leases at WaterView, where it moved in early 2011, but describes the company as a major occupant.
Groundbreaking for Town Center One is expected this month with completion in July 2018, according to John Carey, executive vice president with building developer VanTrust Real Estate.
Availity signed a 10-year lease and will occupy all but the second floor of the five-story building, Eastman said.
Availity is a health care information network that helps providers, insurance companies and hospitals communicate electronically.
It employs 350 people in Jacksonville and about 800 systemwide. The city incentives call for adding 250 positions by December 2021.
When formed, Availity’s goal was to make it easier for health plans and providers to work together by streamlining processes among payers.
It has since expanded through acquisitions, additions and investments. Eastman said that as a privately held company, it does not disclose revenue.
Eastman said the incentivized jobs will be added organically. Many of the new roles will be oriented around IT, but he also expects to hire non-IT positions as well to support Availity’s growth.
“Our move is really oriented around supporting expected growth in the underlying business as opposed to relocating a bunch of people from our other offices around the country,” he said.
Availity has grown its Jacksonville employment base by about 10 percent a year for the past eight years and expects that pace to accelerate the next five years, he said.
The company told the city that it was looking at other sites within its system, but is committed to Jacksonville.
“Knowing our growth trajectory, and given that Availity has a national business footprint, we thought long and hard about the best place in the U.S. for us to have a corporate headquarters,” Eastman said.
The project description in the legislation said Avalanche was looking at two other cities in which it operates.
Availity’s six locations comprise Jacksonville, Indianapolis, Dallas, Nashville, Helena, Mont., and Mesa, Ariz.
Eastman declined to say which other cities were considered.
He said CEO Russ Thomas was committed to Jacksonville, evident by his community involvement. He serves as treasurer of the Jacksonville Aviation Authority and is a member of the Jacksonville University Board of Trustees. He was 2015 chair of the United Way of Northeast Florida.
“We are so glad we were able to get a deal,” Eastman said.
As Project Avalanche, Availity sought $1.875 million in incentives, comprising $1.5 million, or $6,000 a job, through the Qualified Target Industry Tax Refund program from the city and the state.
The state also will provide a Florida Flex Training Grant of up to $375,000.
City incentives total $300,000, or 20 percent, of the QTI funds.
The state would pay $1.575 million, consisting of $1.2 million, the other 80 percent of the QTI funds, as well as the training grant.
In return, Availity will make a capital investment of at least $12.1 million and will add 130 full-time jobs by the end of 2019, another 55 in 2020 and 65 additional by the end of 2021.
The average annual salary of the new positions will be $70,000, according to the legislation. The jobs are described as primarily professional services.
Eastman said the wages likely will be higher. The company also offers benefits including health insurance, a 401(k), wellness incentives, tuition reimbursement, paid time for community service and more.
Eastman said the employees are Availity’s most important asset.
“We believe a big part of our success has been that we understand the role that work environment plays in encouraging innovation, engagement and collaboration,” he said.
He said the new office building is “just the next chapter of our story.”
Eastman said Availity likes its existing offices, but needs more space.
Town Center One will provide “some progressive floor plans that are really conducive to what you would see from the leading technology companies,” Eastman said.
Availity says it operates the largest real-time information network in health care, connecting more than 1 million providers, health plans and their technology partners.
It integrates and manages the clinical, administrative and financial data to assist real-time coordination between providers, health plans and patients.
The city is reviewing permits for Town Center One. Brasfield & Gorrie LLC is the contractor for the $15.16 million, 160,857-square-foot office building going up on 10.51 acres.
The project’s development costs are estimated at $30 million. It is next to the FBI building.
VanTrust Real Estate, through JO Town Center 160 LLC, bought the property Aug. 31 from members of the Skinner family for $4.58 million.
VanTrust is based in Kansas City, Mo. Carey leads its regional office. He also is founding partner of Whitehall Realty Partners LLC.
While the office building was considered a speculative development when plans began, Carey said his group was working with several prospects for the Class A structure.
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