The Jacksonville City Council approved a $1.1 million incentives package May 11 for improvements to Regions Bank’s historic Downtown headquarters building and to mitigate its financial impact from a city-supported parking garage for VyStar Credit Union.
Regions negotiated the deal with the Downtown Investment Authority in late 2020. It provides the bank $900,000 in forgivable historic preservation and code compliance loans in multiple payments over five years for restoration work at its headquarters at 51 W. Bay St.
The agreement also will reimburse Regions up to $200,000 through a grant for costs associated with the sale of its surface parking lot adjacent to its headquarters to accommodate the plans of neighboring VyStar Credit Union.
VyStar intends to build a parking garage along Forsyth Street between Main and Laura streets.
Council approved the deal 17-0 as part of its May 11 meeting consent agenda. Members Randy White and Reggie Gaffney were absent for the vote.
The DIA board signed off on the agreement in January.
Regions plans to sell its parking lot to VyStar so the credit union can build a parking garage for its Downtown campus. VyStar has a redevelopment agreement for the garage with DIA and the city approved it in July.
The city’s parking agreement with VyStar will make 250 spaces available for public parking to benefit Downtown retail businesses. However, construction of the parking garage will block Regions’ signage.
According to DIA, Regions incurred legal fees during the negotiations in addition to other costs related to the planning, design and implementation of new signs to mitigate the impact of the garage.
Regions also anticipates costs related to the temporary parking requirements for employees and customers that will be eligible for reimbursement under the agreement.
The $200,000 in funding will require verification of expenses incurred and inspection of work.
On Jan. 12, Council designated the Regions headquarters, the Old Bisbee Building built soon after the 1901 Great Fire, a local landmark.
The $900,000 Downtown Preservation and Revitalization Program loans will help Regions replace windows and make other exterior renovations, remove plant growth and seal the structure against the elements, according to a DIA staff report released in January.
Future phases will focus on code compliance to make the property more accessible and functional as part of Regions’ growth strategy in the Jacksonville market, the report says.
The bank’s leadership wants the city and DIA to guarantee the money but not fully disburse it because the capital plan will not be ready to execute immediately, Regions attorney Steve Diebenow of Driver, McAfee, Hawthorne & Diebenow said in January.
According to documents filed with Ordinance 2021-0210, the Council’s vote waived the Downtown Preservation and Revitalization Program’s policy that requires the loans to be issued in single payments.