A Fort Lauderdale-based developer and the city of Jacksonville are trying to reinvigorate a stalled 2019 plan to renovate the historic former National Guard Armory on the edge of Springfield into a mixed-use cultural, visual and performing arts and entertainment facility.
A summary memo from the city Office of Economic Development dated Aug. 17 says the REVA Development Corps two-phase Made at the Armory project doubled in cost.
The cause: $15 million in unanticipated remediation needs discovered by the developer after City Council approved a 40-year lease agreement in October 2020 with REVA for the armory at 851 N. Market St., according to the city Economic Development Executive Director Kirk Wendland.
The 114-year-old, city-owned armory building has been vacant and in disrepair for 13 years. Coupled with other cost hikes, the problems turned REVA’s $3 million renovation into what the company estimates will be a $20 million investment.
According to the city summary, 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 historically prone to flooding.
City economic development officials will ask Council to amend the 2020 agreement to give REVA more time.
“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,” Wendland said.
Since determining what needs to be fixed, the summary says the developer has received letters of interest from potential funding mechanisms including 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 Mayor’s Budget Review Committee voted 6-0 on Sept. 12 to file legislation to move a new deal forward.
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 from the $2.75 million appraisal in July 2019 to $4.04 million.
After the first 20 years, REVA will be required to spend $200,000 per year 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 per year designed to attract 200 attendees or more per day.
The facility will be n “cultural arts economic development facility,” according to the city summary. It would be visual and performing arts, entertainment, hospitality, retail, education and entrepreneurship uses under one roof.
REVA also still intends to purchase an adjacent 2.97-acre parcel at 989 N. Liberty St. north of Hogans Creek for $864,800 to develop a midrise, 100-unit workforce housing apartment building.
That would bring the entire project to $40 million.
Wendland told the budget review committee the reworked deal gives REVA until June 30, 2023, to secure the financing.
The company 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’s effort to put the armory back in use dates back more than three years.
Mayor Lenny Curry administration officials selected REVA’s proposal for the building based on its response to a request for proposals issued in July 2019.
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.
REVA’s interest in the property also stems from what Patterson called its unique 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.
