The Downtown Investment Authority on Feb. 21 unanimously approved a $136 million bid by New York-based Spandrel Development Partners LLC to build a mixed-use retail and multifamily development at The Ford on Bay.
The developer proposes a two-phase project with 520 apartments and up to 74,000 square feet of retail space at the former Duval County Courthouse and City Hall sites at 220 and 330 E. Bay St. Downtown. A development agreement could go before the DIA in April.
The DIA board agreed with its scoring committee’s recommendation and selected Spandrel over an $80 million project from Miami-based The Related Group. Related envisioned a 350-unit multifamily residential development with 10,000 square feet of retail space.
The DIA will now work on a development agreement with Spandrel. It is being crafted to work around the Hyatt Regency Jacksonville Riverfront’s first right of refusal for the parcel at 220 E. Bay St. north of the hotel. The DIA does not have an agreement with Hyatt for the property.
Phase I of the development at 330 E. Bay St. can proceed without the hotel’s approval.
Spandrel Acquisition and Development Associate Benjamin Scharf said Feb. 11 that Phase I would comprise 279 residential units and 40,000 square feet of retail space anchored by a 10,000-square-foot riverfront restaurant.
DIA CEO Lori Boyer said after the Feb. 21 vote that city attorneys drafted a contingent award for the 220 E. Bay St. parcel. It will be part of the project’s overall term sheet and development agreement.
“(The agreement) will have a termination date, but it will be based on how we resolve the right of first refusal,” Boyer said.
Boyer said the city and Spandrel could agree to add exhibit space sought by Hyatt of Phase II of the project to gain the hotel’s approval.
Scharf said a 5,000 to 25,000 square feet grocery store is part of Phase II of the project, but Spandrel will examine the market feasibility before committing to one. A food hall, gallery exhibition or meeting space could instead be added.
But Boyer said she hopes Spandrel will consider building both by increasing the size and height of the building.
“Spandrel has no problem going higher if it is warranted from a cost perspective,” Boyer said. “So, what you’re doing is still having your grocer at the ground level as (Spandrel) proposed it, and the Hyatt’s exhibit space … on a second or third-floor level where they could walk straight across from their ballroom.”
Boyer said she’s had conversations with Hyatt about the exhibit space.
DIA board and staff said the two-phase concept is attractive because it gives the city Office of General Counsel time to negotiate with Hyatt but still start development.
Phase II would break ground about two years after Phase I construction begins.
Boyer said she hopes a formal agreement for Phase II will be completed within 6 to 8 months.
The development agreement also will include a Recaptured Enhanced Value Grant, providing a 50% tax refund to Spandrel for 20 years on the increased value of the property.
If the DIA board approves the deal, it will have to be approved by City Council before the project can break ground.
Spandrel’s proposal also budgets $5 million to expand the Downtown Riverwalk, but it did not include the 3.1-acre water parcel included in The Ford on Bay marketing campaign that the DIA wants for use as a marina.
Boyer said Feb. 11 that selecting Spandrel will not kill a marina concept. She said the city has been awarded a design grant from the Florida Inland Navigation District for a marina that has not been allocated.
She is prepared to begin talks with an adjacent landowner interested in developing a public marina, and she told the committee she will help it coordinate with Spandrel if the company is awarded the project.
