Regency Square Mall’s buyer and the city of Jacksonville agreed to settle the code compliance fines imposed on the deteriorated 58-year-old property.
The city has assessed the previous ownership, Regency Mall Realty LLC, fines totaling $1.922 million as of April 3 for “ceiling damage due to leak; ceiling in unsanitary condition; ceiling has holes and cracks; roof leaking; and flooring damage.”
Two of the daily fines began in February 2022, two in June 2023 and one in November 2023.
The flooring damage fine is $250 a day and the other four fines are $500 a day.
Property buyer Blackwater Regency LLC, its manager, Blackwater Regency Acquisition LLC, and the city signed five settlement agreements April 3.
Blackwater paid the city $4,000 to settle each of the five agreements, totaling $20,000.
If Blackwater does not comply with the agreement obligations, the city retains the nonrefundable fee and can begin assessing fines.
The agreements settle the fines imposed by the city Municipal Code Enforcement Board/Special Magistrate, provided that Blackwater Development meets terms and conditions within two years.
The agreements state the Blackwater has executed a contract of sale with the property owner. Blackwater announced April 9 it closed the deal.
“Blackwater Development is proud to announce the official closing on the historic Regency Square Mall property, located at 9501 Arlington Expressway. This acquisition marks the beginning of a transformative mixed-use redevelopment effort aimed at breathing new life not only to the Regency property, but also into the entire Arlington community,” it said in a news release.
Blackwater previously indicated that demolition will be part of the redevelopment of the property.
There also are three separate owners of property at the mall – the closed Sears store; the Dillard’s Clearance Center; and Impact Church. It is unclear what roles they will play in the redevelopment.
The code enforcement agreements first explain that:
• Fines continue to accrue until the violator comes into compliance or until a judgment is rendered in a suit filed pursuant to Florida law.
• The owner wants a reduction in the fines and understands that the city cannot release the fines until the property is in compliance with city code.
• To achieve compliance, the owner wants to enter into the agreement so that the owner will have a commitment from the city regarding the amount necessary for reduction or release of the fine once the property is rehabilitated and brought into compliance.
Under the agreements between the city and Blackwater Regency:
• Purpose of agreement: For the reduction of fines, the owner will incur “substantial expense” in the work contemplated in the agreement. The city will reduce the fines if the conditions are “timely met.”
• Permitting of improvements or demolition: The owner will provide a copy of the plans and specifications to the city within 24 months to demolish or rehabilitate the property to bring it into compliance. If the owner does not receive all required permits to start the improvements within 24 months, the agreement shall be terminated.
• Completion of improvements: Within 12 months, the owner shall start improvements conforming with the plans and provide written notice to the city within five days of starting the work. It shall achieve substantial completion of the improvements within 24 months of starting. The chief of Code Compliance will certify that construction was completed to code.
• Settlement or release of fines/liens: After compliance within 24 months, the city will release the settlement amount. The agreement said that at the time of the execution of the agreement, the owner shall pay the city $4,000 per agreement, totaling $20,000, which is nonrefundable.
• Conditions: Blackwater agrees to keep the property safe and secured and “free of rubbish and excessive overgrowth of weeds and shrubbery” while it is under rehabilitation.
• Default: If Blackwater does not meet the obligations of the agreement, the city can terminate it and impose a lien or refer the case to the Special Magistrate/Board to impose fines at $250 a day for each day the violations continue or $500 a day for repeat offenders.
A force majeure clause covers that neither side is liable for failure to perform in the event of beyond their reasonable control, such as work stoppages; acts of God such as a hurricane, tornado, lightning or earthquake; acts of war; fire or floods; or other unforeseeable causes determined by the chief of the Municipal Code Compliance Division.
Acts of God exceptions include “normal weather conditions for the Jacksonville, Florida area.”