Six months after sending an incentives package for the redevelopment of the historic Laura Street Trio to City Council without making a recommendation, the Downtown Investment Authority now wants to weigh in after a new, more expensive deal will be considered by lawmakers.
SouthEast Development Group Managing Director Steve Atkins bought the Trio in 2013 and is seeking a city incentives package as part of a $175.1 million project to transform the historic buildings into a hotel, apartments and restaurant.
In June, the DIA board approved a resolution that sent a term sheet for $36.5 million in city-backed historic forgivable loans and property tax breaks to Council without a recommendation for or against the deal.
Council will hold a special meeting Jan. 4 to discuss Ordinance 2023-876 that adds a $2 million forgivable loan, bringing the total incentives package for the Trio to $38.5 million.
The bill also includes a $22 million city loan that would serve to guarantee a 25-year construction loan obtained by Atkins from Capital One Public Funding. The city would only pay the guarantee if Atkins defaults.
The DIA approved a resolution Dec. 20 that informs Council that the Trio funding request is not the same as the one it advanced in June without a recommendation for or against the deal.
Resolution 2023-12-07 was introduced at DIA on Dec. 20 as new business.
The DIA wants to review and offer an opinion on the terms before a Council vote. The resolution states that:
“The DIA expresses its position that the action taken in Resolution 2023-06-02 should not be construed as applicable to the pending legislation before Council which differs materially from the Proposal reviewed by DIA in June.”
The resolution also suggests that “City Council consider referral of this new proposal to the DIA board for review and recommendation.”
After the meeting, DIA board member Braxton Gillam said the loan guarantee would be like writing Atkins a blank check.
“Every time they come to us and we approved this project, like three or four times, they’re going to come back with requests for more money,” Gillam said.
Board member Craig Gibbs voiced concerns that it might be time for a new developer. He said Atkins doesn’t have the financial means to complete the Laura Street Trio project.
Gibbs first heard of the Laura Street Trio project in 2007 as a member of the Jacksonville Economic Development Commission.
“I said then this is a great project. Let’s revitalize the city. But now maybe it’s time to start fresh because the project has remained dormant since then,” he said after the meeting.