Union Terminal Incentives Do Not Meet Developer Demand | Jax Daily Record | Jacksonville Daily Record
Atlanta-based Columbia Ventures LLC could receive $ 893,883 less than the city’s requested incentive amount for a $ 60.8 million plan to convert historic Union Terminal Warehouse into apartments.
The Downtown Investment Authority released a condition sheet on May 10 that shows its board of directors will consider $ 8.28 million in repayable and deferred principal loans for the affordable housing project as part of the revitalization and development program. preservation of the city center.
In its report, DIA staff said that only $ 52.9 million of project costs are eligible expenses under the program, resulting in a reduction in the supply of incentives. The report says $ 7.9 million includes development costs, expected tenant improvements and reserves.
In April, a representative from Columbia said the company was negotiating $ 9.2 million in financing to complete the 228-unit adaptive reuse project at 700 E. Union St., near east of Jacksonville.
A DIA staff report shows the developer has requested $ 9.179 million.
If approved by the DIA Board of Directors and City Council, the Columbia East Union Holdings LLC subsidiary will receive a:
• Discount loan of $ 4,246,963 for historic restoration.
• $ 2,381,671 rebate loan for code compliance.
• Deferred loan of $ 1,657,159.
The loans would mean that public incentives pay 13.6% of the overall cost of the project, according to the DIA.
Documents sent by Columbia to the Daily Record on April 15 show that 70%, or $ 41.21 million, of the workforce and affordable housing project would be funded by a 40-year fixed-rate insured mortgage. from the US Department of Housing and Urban Development.
The DIA summary indicates that $ 10.04 million would come from the developer and the historic federal tax credit, or 16.5% of the total cost of the project.
The documents are included in the DIA Board of Directors’ Strategic Implementation Committee meeting file on May 17.
The committee could take a first vote on the agreement at this meeting.
The developer said in a report to the DIA that the state’s historic conservation office approved it for listing on the National Register of Historic Places.
Columbia officials said the market effects of COVID-19 required a shift from private funding to HUD-backed funding.
The DIA reports that the city would see a return of 86 cents for every dollar invested.
Columbia is required to invest at least $ 5.29 million in total equity to receive the maximum benefits from the incentive program with a $ 60.8 million project.
If the cost of the project drops by more than 10%, the city’s financing plan will decrease.
Columbia must also own Union Terminal for at least five years to qualify for the city’s maximum payout, according to the DIA.
Council voted on April 13 to designate the 330,000 square foot Union Terminal as a local landmark. This makes the Columbia project eligible for the DIA program intended to fill the financial gaps of historic adaptive reuse projects.
Union Terminal Warehouse’s 7.35-acre parcel straddles the DIA border, but remains eligible for funding.
Columbia said it also received approval from the National Park Service under conditions.
At least 220 apartments will have base rents below the HUD maximum of 120% of the area’s median income, according to the DIA.
No less than half of the units will have initial rents at or below the HUD maximum for 80% of the area’s median income.
Columbia is planning studios, one, two and three bedroom apartments in the warehouse ranging from 582 square feet to 1,473 square feet.
Developer told DIA it will commit to creating at least 38,000 square feet of community commercial space and designer / artist studios inside the warehouse to serve 44 tenants, DIA report says. .
Columbia said Union Terminal will also have 4,205 square feet for a restaurant and cafe.
The DIA staff report said Columbia is planning 292 parking spaces, including 56 covered spaces.
The proposed Groundwork Jacksonville’s Emerald Trail crosses the site and will access Hogans Creek.
The developer intends to keep the water tower as a design element on the rooftop terrace which will include a community garden. He also plans to restore one of the industrial freight elevators inside the warehouse.
The main building is now 90% leased and occupied by creative loft spaces for artists, woodworkers, fabricators and makers, according to Columbia.
Turner Construction Co. built Union Terminal Warehouse from 1912 to 1913. The developer says it was once the largest commercial building built in Florida.
It was vacant for a brief period in the 1970s, according to the report.
Property records show that additions to the 640-648 E. Union St. site continued until 1990.
Columbia says that if it meets its Nov. 26 goal of closing the financing and starting construction, the rehabilitation will be completed by the summer of 2023.