Following up on plans it announced Nov. 12, the city of Jacksonville has refiled a foreclosure lawsuit related to the Laura Street Trio of historic buildings in the Downtown core.
The suit, filed Nov. 14 in the 4th Circuit Court, names Laura Trio LLC and Red Oak Capital Fund II LLC as defendants. The city claims Laura Trio LLC, the owner of the buildings, owes the city $827,500 in fines for municipal code violations.
Steve Atkins, principal of SouthEast Development Group, has owned the Trio since 2013.
On Oct. 22, 2015, the city brought Laura Trio LLC before the Special Magistrate for Municipal Code Enforcement because of the properties’ continued violations of the Property Safety and Maintenance Code, Chapter 518, Jacksonville Ordinance Code.
On Oct. 29, 2015, the special magistrate entered an order assessing an administrative fine of $250 per day against Laura Trio LLC, beginning Oct. 27, 2015.
In August 2024, the city filed the original foreclosure suit after the latest of numerous rounds of negotiations on an incentive package broke down. In the original suit, the amount owed was listed as $805,250.
The city dropped the suit in September, saying that municipal officials and Atkins came to a general agreement on terms of a new agreement. Jacksonville-based Live Oak Contracting announced it had joined SouthEast as a partner in the redevelopment, prompting hopes of a breakthrough. Live Oak’s involvement eased concerns among city leaders that Atkins brought too little equity in the project.
On Nov. 12, 2024, the city said it was refiling the suit after talks once again dead-ended. Phillip Perry, chief communications officer in Mayor Donna Deegan’s administration, said the city was “permanently ending” talks with the current owner and development team.
The city claimed that after coming to the general agreement on a new deal, developers submitted a proposal that was infeasible to the city.
In a statement, SouthEast said it worked diligently to craft a workable proposal but was cut off abruptly.
Regarding the alleged code violations, SouthEast criticized the city for “citing incidents of graffiti and vandalism on the Laura Street Trio property as grounds for foreclosure.”
SouthEast said it planned to work directly with City Council on an agreement.
Council member Kevin Carrico, chair of the Council Special Committee on the Future of Downtown, called a Nov. 25 meeting of the committee to discuss potential terms of a new agreement. Carrico accused Deegan’s administration of a “lack of responsiveness” to the developers.
The Trio comprises the First National Bank Building, Bisbee Building and Florida Life Building. The structures were built from 1902 to 1912 and are among the last remaining unrestored buildings constructed during the years immediately following the 1901 fire that destroyed much of Downtown. The buildings are at Laura, Forsyth and Adams streets.
Red Oak Capital Fund II LLC, in its filing with the Securities and Exchange Commission, says it acquires and manage commercial real estate loans and securities and other real estate-related debt instruments. The city’s suit says Red Oak holds a $6.3 million mortgage on the property that is subordinate to the city’s lien.