The Jacksonville City Council agreed Oct. 25 to give a Fort Lauderdale-based developer more time to start an estimated $20 million mixed-use renovation for the historic former National Guard Armory near Downtown.
Council voted 15-1 to approve a restated and amended redevelopment agreement for REVA Development Corp.
Council member Al Ferraro was the lone no vote on the bill. He was not immediately available for comment after the meeting.
The legislation is Ordinance 2022-0727.
The plan would transform the 114-year-old, city-owned building into a cultural, visual and performing arts and entertainment facility.
According to the city Office of Economic Development, the two-phase Made at the Armory project has doubled in cost since it was first approved by Council in October 2020.
REVA told the city that it found $15 million in unanticipated remediation needs after it signed the 40-year lease agreement for the building at 851 N. Market St. on the edge of Springfield.
Along with higher construction costs, the problems stalled what REVA thought two years ago would be a $3 million renovation.
Company President and CEO Don Patterson said Sept. 14 the problems with the building and the pandemic caused “pretty significant delays.”
“It’s an opportunity to bring an architecturally attractive building that’s been sitting vacant for years back into service and could be an economic driver and catalyst for the area,” Patterson said.
According to an Aug. 17 city summary from the economic development office, the three-story building needs asbestos, lead-based paint and mold abatement; HVAC, plumbing, electrical and telecommunications replacement; fire protection and sprinkler system installation; waterproofing; re-roofing and framing; and floor rehabilitation.
The former armory sits near Hogans Creek and has been prone to flooding.
“Really what this amendment does is it extends the performance schedule. It’s focused on allowing REVA, the developer, to get their financing together to be able to do the project,” city Office of Economic Development Executive Director Kirk Wendland said in September.
Since determining what needs to be fixed, the summary says the developer has received letters of interest about potential funding from traditional lenders; financing through the Department of Housing and Urban Development Section 108 Loan Guarantee Program; New Market Tax Credits; and Historic Tax Credits.
The bill and attached amended agreement would keep the 40-year lease term for $1 per year for the 80,826-square-foot armory building with a 20-year renewal option.
The amendment bumps REVA’s capital investment to $20 million and increases the company’s option to purchase the 2.02-acre property to $4.04 million from the $2.75 million appraisal in July 2019.
After the first 20 years, REVA will be required to spend $200,000 annually in maintenance and upkeep averaged over a five-year period.
The company also has to market the facility and sponsor at least three major events each year designed to attract 200 attendees or more per day.
The facility will be a “cultural arts economic development facility,” according to the city summary. It would be used for visual and performing arts, entertainment, hospitality, retail, education and entrepreneurship.
REVA also still intends to buy an adjacent 2.97 acres at 989 N. Liberty St. north of Hogans Creek for $864,800 to develop a mid-rise, 100-unit workforce housing apartment building.
That would bring the entire project to $40 million.
The reworded deal gives REVA until June 30, 2023, to secure financing.
REVA would be required to complete the project within three years of securing the money.
The city agreement would be with REVA subsidiary Armory Redevelopment Associates LLC.
The city chose REVA based on its response to a request for proposals issued in July 2019.
REVA’s interest also stems from what Patterson called its location in “the doughnut hole” between Downtown, historic Springfield and Eastside.
“We want to help Downtown and the surrounding areas grow in economic vitality,” he said.