JEA will pause plans to build a “hardened” secondary headquarters building in LaVilla as the municipal utility reevaluates its post-pandemic workplace.
In a presentation to the JEA board of directors Jan. 28, CEO Jay Stowe and interim Chief Supply Chain Officer Alan McElroy said the analysis also could impact the interior layout of its next Downtown corporate office tower.
Despite the uncertainty, JEA leadership intends to complete the $2.44 million purchase of a 2.27-acre property for the facility.
The proposed 40,000-square-foot facility would house JEA’s emergency operations center and supplement the utility’s eight-story, $64 million to $68 million headquarters under construction at 225 N. Pearl St. Downtown.
But JEA will halt plans for a design-build request for proposals as it refines a “return to work” model for utility employees currently working remotely because of the COVID-19 pandemic, Stowe said.
“Part of what we’re trying to figure out is what the new headquarters looks like with new policies and procedures in place. I would expect to be able to make a better decision on that in the coming month,” Stowe said.
Working at home
Utility officials have engaged national real estate firm CBRE to analyze workplace staffing trends nationwide. McElroy told board members that could result in a hybrid model at JEA where many employees can work both from home and the office.
“Depending on the outcome of this reevaluation of the different work models, our approach to the second hardened facility may be impacted,” McElroy said.
Stowe said JEA likely will continue its COVID-19 remote work policy until at least July, but a permanent hybrid workplace could affect planned interior improvements at JEA’s next corporate campus.
In an interview after the Jan. 28 meeting, Stowe said JEA will consider whether every employee needs desk space in the new headquarters or if workstation sharing could be an option if employees are working at home.
Stowe said the change would not change the overall size of JEA’s 162,741-square-foot headquarters under construction by owner Ryan Companies US Inc.
The JEA board voted in May to scale back the Downtown building size and decided to move forward with the hardened facility to reduce costs.
JEA officials said at the time the smaller headquarters would save the city-owned utility $19 million to $35 million in operational costs compared to its existing 360,000-square-foot, 19-story tower and campus at 21 W. Church St.
JEA signed a 15-year, $153 million lease with Ryan that includes a five-year extension option.
JEA designed its Pearl Street headquarters for 784 JEA employees. Another 200-220 workers were expected to work at the hardened secondary headquarters.
The hybrid work environment could mean the LaVilla building is not needed.
LaVilla purchase still on
The board voted 7-0 in November to allow staff to complete sale negotiations with property owner LaVilla Partners III LLLP.
According to JEA officials, staff will close on the land after it completes site due diligence.
Stowe said completing the property purchase will allow utility executives to keep all options on the table until it finishes the workplace analysis.
Board Chair John Baker said finding a usable site for the hardened facility was difficult.
“Staff is loathed to let it go,” Baker said. “Maybe under normal circumstances, you’d say, ‘we’ll spend the money when we need it.’ I think what they’re telling is it would be hard to replace.”
Utility officials consider the LaVilla property valuable for other reasons. McElroy said the land — bounded by Ashley, Johnson, Church and Duval streets — could be used for future expansion or as a land buffer for the adjacent Church Street electric substation.
However, Baker doesn’t want JEA to hold the asset if it will be unused.
“If it appears we don’t need it, I hope we’ll sell it and move on and not just keep it as an honorable mistake,” he said.
