Jacksonville Report

Disappointing Developments Hit Market, but Industry Remains Upbeat

By Debra Wood

The big news in Jacksonville construction is what's not happening - the previously awarded $200 million county courthouse project that Mayor John Peyton halted in late October and the previously announced $700 million mixed-use Shipyards development that's now in limbo and being reassessed.

The mayor halted work on the Duval County Courthouse, the largest project in the $2.2 billion Better Jacksonville Plan, because of rising costs. He terminated contracts with Cannon Design and a joint venture led by Skanska USA Building after the guaranteed maximum price for construction came in at $225.3 million.

The Shipyards, a downtown redevelopment project, changed hands after the city and TriLegacy Group of Jacksonville squabbled over how TriLegacy spent city incentives. LandMar Group of Jacksonville is considering taking over development of the 44-acre, riverfront project and converting it to residential.

Overall, though, with the city buttoning up some final preparations for the 2005 Super Bowl in February, city and industry representatives remain upbeat.

"Things are moving up after a period of only moderate construction during the past two or three years," said Jerry Mallot, executive director of the Cornerstone economic development program of the Jacksonville Regional Chamber of Commerce. "We have a number of projects going on and a number getting ready to go."

Dan Haskell, president of Associated Builders and Contractors, Florida First Coast Chapter, said most of his organization's members are staying busy, some with hurricane recovery work, and that building permits have maintained a level pace.

"I think it is either going to get better or remain the same," Haskell said about the upcoming construction outlook. "A lot of work related to the Better Jacksonville Plan is tapering off. But probably private development will supplement some of that."

The Better Jacksonville Plan, a comprehensive growth management program, sparked much construction in the area, but projects are winding down. Contractors hope other development will fill the void.

"Jacksonville is an interesting market," said Gordon Steadman, director of development with Elkins Constructors of Jacksonville. "We've always been somewhat recession proof, for the simple fact we are not dependent on sectors such as tourism and hospitality. We are a destination for business."

Corporate Development

Elkins expected to complete construction late in 2004 on Ring Power Corp. of Jacksonville's new industrial and office center at the World Commerce Center in St. Johns County.

Citicorp Credit Services will soon move into a new 530,000-sq.-ft. call center at Flagler Center, an office park in South Jacksonville. Turner Construction Co. of Orlando provided construction management services.

Also at Flagler Center, The Haskell Co. of Jacksonville is wrapping up construction on the $60 million, 92-bed Baptist Medical Center South for Baptist Health of Jacksonville.

The Auchter Co. of Jacksonville was set to begin construction in December on the seven-story, downtown Fidelity National Financial headquarters building.

At Cecil Commerce Center, Brazilian aircraft manufacturer Embraer formally broke ground on a 71,000-sq.-ft. shop and office center where it will assemble regional jets for the U.S. Army. Reynolds, Smith and Hills architects of Jacksonville is designing the facility.

A Residential Boom

Jacksonville's population grew 5 percent between April 2000 and July 2003. Mallot said it continues to grow at 2 percent per year.

"One (trend) we see is residential condo," Steadman said. "We're involved, in some form of early schematics to construction, in roughly $150 million in residential condos. That seems to be the hottest trend. It varies from three-story communities to nine-story buildings."

Most of Elkins' condos are in beach locales, including Augustine Island in Palencia and Legacy Trail in the World Golf Village, both in St. Johns County, and at the mixed-use complex The Metropolitan at Jacksonville Beach.

The Auchter Co. has several residential projects progressing. The contractor has begun foundation work on Costa Verano, a $38 million condominium tower at Jacksonville Beach for WCI Communities of Bonita Springs, Fla. The company also has begun construction on The Strand, an apartment tower on the Southbank, and has secured the contract to build The Peninsula, a 36-story condominium tower, scheduled to break ground early this year. American Land Ventures of Coral Gables is developing both high-rises.

In the Riverside district, Auchter has topped out at VillaRiva, a 12-story, concrete condominium project developed by FlagVenture Riverside Ltd., an affiliate of Flagship Communities LLC of Ponte Vedra Beach. It is scheduled for completion in the fall.

Brasfield & Gorrie of Jacksonville broke ground in October on Marina San Pablo, two 10-story condominium buildings on the Intracoastal Waterway.

Downtown residential also has taken off. The Haskell Co. is building the 21-story, Mediterranean-style San Marco Place for Chase Properties of Jacksonville.

Krook Douglas Development of Boynton Beach plans to build Riverpointe, two 48-story residential towers on the Southbank. Also, Riverwalk Hotels LLC of Miami announced plans for a $500 million, mixed-use development adjacent to its Radisson Riverwalk hotel. Mallot said the project remains in permitting stages.

Schools

Steadman said Elkins has seen an increase in worship and educational facilities. The churches are at new sites and for new faith communities, something he attributes to population growth.

This year, the company is completing a two-story classroom building for the Davis College of Business at Jacksonville University. In March, it will break ground on an $8.8 million, three-story, 60,000-sq.-ft. social sciences center at the University of North Florida.

Turner topped off an $18 million, 115,000-sq.-ft. addition to the University of North Florida's library at the end of October.

Also in the school sector, Duval County Public Schools has two new schools in the design and planning phase. And Skanska USA Building is managing a six-building expansion for Edward Waters College.

At the end of October, Perry-McCall Construction of Jacksonville, in a joint venture with Charles Perry Construction of Gainesville, topped out the Proton Therapy and Research Facility for the University of Florida's College of Medicine at Shands Jacksonville medical center.

Public Projects

Officials with the joint venture of The Auchter Co., Elkins Constructors and other partners indicate the team will complete construction early this year on a new $55 million main library. The project is part of the Better Jacksonville Plan.

Meanwhile, roadwork also has led to some disappointment. It appears doubtful that AMEC Civil of Fort Myers will earn its $5 million no-excuses Super Bowl early completion bonus for finishing the Interstate 295/I-95-interchange for the Florida Department of Transportation before game day. Late in the year, the intersection was 80 percent complete. The U.S. 1 bridges were 96 percent complete.

Brett Pielstick, with construction engineering and inspection consultant Parsons, which has a Jacksonville office, said this past year's hurricanes affected the schedule. Crews are working 24 hours a day, six to seven days per week. Nearby property owners complained about noise, which altered some night work and prompted litigation from AMEC.

"The contractor is working to accomplish the Super Bowl date, but it's looking a little unlikely," Pielstick said. "We will have some traffic shifted to different configurations by the Super Bowl."

Meanwhile, Archer Western Contractors of Atlanta plans to start a $148 million Interstate 10/I-95 interchange for FDOT that will add capacity and provide another access point into downtown. The project includes 17 bridges and 21 ramps and will take about four years to complete.

Overall, contractors and Jacksonville's economic development leaders remain bullish about the city and its future opportunities.

"All in all, it's not dynamic growth, but it's solid growth," Mallot said. "We expect we are maybe a year away from robust development."

Useful Sources:

San Marco Place
http://www.sanmarcoplace.com

Downtown Jacksonville Development Map
http://www.downtownjacksonville.org/content/?page_id=38

The Better Jacksonville Plan
www.betterjax.com