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Jacksonville a top 10 city for affordable retirement
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JACKSONVILLE
Record & Observer COMMERCIAL DEVELOPMENT JACKSONVILLE
Field for new FSCJ president down to 12
Record & Observer CONTINUED CONFIDENCE Record & Observer The search committee will next narrow list to 8-10 for interviews.
JACKSONVILLE
BY SCOTT SAILER
E-commerce expansion
JACKSONVILLE
Fulfillment centers, like the two operated by Amazon.com, are helping drive economic growth in Jacksonville.
EDITORIAL RESEARCH DIRECTOR
What experts are saying OFFICE MARKET
Florida State College at Jacksonville’s presidential search committee narrowed the list of candidates to 13 on Wednesday. FSCJ spokeswoman Jill Johnson said one candidate withdrew Wednesday afternoon. The 16-member FSCJ Presidential Search Committee contracted with Washington, D.C.based AGB Search firm to narrow the 74 applications that were submitted by Jan. 31. The search committee will contact references and narrow the list to eight-10 semifinalists by Feb. 20. Those candidates will be scheduled to visit Jacksonville on March 18-19. The finalist interviews and selection will be determined April 1-10, according to the search committee timeline. The campus will host those candidates. Then, the search committee will present a list of candidates, unranked, to the board of trustees, which is scheduled to meet April 9. The position came open May 31 with the retirement of former President Cynthia Bioteau. Lawyer Kevin Hyde, a partner with Foley & Lardner, serves as the interim president but did not apply for the permanent position. He said he will stay on for the transition. The 12 finalists include candidates from seven states, with five from Florida.
Record & Observer “2018 was a transformational year for Jacksonville. The office sector has grown in a careful and calculated fashion and the limited new speculative construction introduced has been met with enthusiasm.” Avison Young MULTIFAMILY MARKET City of Jacksonville photo
Developer, broker reports show strong market. BY KAREN BRUNE MATHIS EDITOR
J
acksonville’s job and population growth and low unemployment rate are keeping commercial and multifamily real estate developers and brokers busy. The area’s major commercial brokerage firms reported fourth-quarter conditions that indicate 2019 likely will be more of the same. CBRE reported that job, population growth and business expansion “will continue to increase demand” for office and warehouse space. Factors include the growth in e-com-
merce centers, such as Amazon.com’s two fulfillment centers and one being built for Wayfair Inc.; manufacturing like JinkoSolar Holding Co. Ltd.’s solar-panel plant; technology startups; health care-related businesses; and the apartments and retail space being built to serve the growing population. In its opening comments, NAI Hallmark reported that while there is some slower movement, the Jacksonville market continued trending upward. “We expect to see some fluidity in the early months of 2019; however consumers and business owners in Northeast Florida are optimistic for the year,” it stated.
“The 2019 pipeline is poised for a recordsetting year. Factors such as strong population growth, employment growth, and rising median income levels continue to drive demand.” Colliers International INDUSTRIAL MARKET “Healthy market activity created positive momentum during the year, dropping the overall vacancy rate to a historic low of 2.3%.” Cushman & Wakefield
MORE FROM THE MARKET REPORTS, PAGE 8
Mathis Report: 5.11 Tactical store at Town Center in review PAGE 4 The Cawton Report: Gov. DeSantis keeps incentives in budget PAGE 7 OBSERVER MEDIA GROUP
SSAILER@JAXDAILYRECORD.COM (904) 356-2466
THE MARBUT REPORT
Florida Coastal seeks nonprofit status School may add college partner. PAGE 16 VOLUME 1, NO. 36 • ONE SECTION
WHAT’S TRENDING
Page 2 • Thursday, February 7, 2019
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Ryan Companies US is proposing a new JEA headquarters near the Duval County Courthouse. For a gallery of images, visit JaxDailyRecord.com
JEA pitched on three sites for new headquarters The three development groups vying to build JEA’s corporate headquarters have until March 11 to negotiate their best offers with the utility’s board of directors before it settles on a decision in early April. For three hours Tuesday, the firms offered insights into their proposals, pitching their capabilities, assets and expertise during a special board meeting. Here are the potential locations: n Jacksonville Jaguars owner Shad Khan and The Cordish Companies seek to move JEA to their proposed mixed-use development near TIAA Bank Field. n Mike Balanky of Chase Properties is offering a 1-acre site at 1201 Kings Ave. near the Downtown Southbank. n Ryan Companies US Inc. proposes to keep JEA Downtown, moving it to a vacant, city-owned parcel at Adams and Pearl streets near the Duval County Courthouse.
EXECUTIVES Baldwin named president and CEO of One Call One Call named former Centene Corp. executive Rone Baldwin as president and CEO. Baldwin succeeds the retiring Dale Wolf at the Jacksonville-based company that provides workers’ compensation care management services. “I look forward to working alongside the management team to support One Call’s customers’ needs and accelerating the growth of the business in the years to come,” Baldwin said in a news release. Baldwin was executive vice president of markets and insurance at Centene Corp., a health care management company.
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Jacksonville Daily Record, Jacksonville Record & Observer and Realty-Builder are a division of Observer Media Group Inc. Established in 1912, the Financial News & Daily Record, now the Jacksonville Daily JACKSONVILLE Record, is published Monday-Friday and is the Official Court Newspaper of the Circuit Court and publisher of public notices in Duval County. Jacksonville Record & Observer is a free weekly business newspaper available in Downtown Jacksonville and key business nodes throughout Jacksonville. To find a location near you, visit jaxdailyrecord.com/rack-locations. Editorial content focuses on news and trends, with a concentration on development, law, companies, economic and industry trends and how local and state government affects business. Realty-Builder is a monthly publication connecting Northeast Florida’s real estate professionals and homebuilders. Content focuses on timely news, information and trends affecting residential real estate sales and construction, as well as events and legal issues impacting the industry. Visit Realty-Builder.com to request your free copy.
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MANUFACTURING Cra-Z-Art leasing space at new Imeson 300 Cra-Z-Art, which was approved for incentives in November under the code name Project Buckeye, will lease Imeson 300, the VanTrust Real Estate LLC warehouse under development in North Jacksonville. Cra-Z-Art sells activity, art and school supplies, toys and stationery products and intends to relocate manufacturing and distribution functions to the 300,000-square-foot industrial facility and create 21 full-time jobs by year-end 2021.
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David and Melody Shacter, the founders of TerraWise Homes, turned over management to President Nathan Lambert and Director of Operations Jac Shacter. The Schacters will serve as advisers on the company board. David Schacter also will focus on acquisition, permitting and community development. Lambert was promoted from vice president of operations and Jac Shacter was promoted from sales representative in Springfield.
Dr. Timothy G. Groover was promoted to senior vice president of Baptist Physician Partners LLC. Groover was the organization’s Groover chief medical officer. Groover is on the Baptist Health, Coastal Community Health and Duval County Medical Society boards of directors.
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Thursday, February 7, 2019 • Page 3
Retiring? This is a good place for it BY MARK BASCH CONTRIBUTING WRITER
With bitterly cold weather plaguing much of the country last week, it’s a good bet that many residents in northern states were daydreaming about retiring to sunny Florida. Their first image may be the beaches of South Florida, but when potential retirees start looking at their wallets, several cities in Northeast and North Central Florida will be more appealing, according to 55places.com, an information website for active adult communities. The website last week offered a list of the most affordable U.S. cities for retirement and four of the top six were in Northeast and North Central Florida, including Jacksonville at No. 4. “In thinking of places to retire in Florida, Jacksonville usually isn’t one of the first cities that gets name-checked,” 55places said. “However, when you add up all of the factors, it’s actually the most affordable big city in the state for a fun and active retirement. The cost of living here is below the national average and a full 10 percent less than Miami.” Northeast Florida is a younger community than the rest of the state. According to the most recent U.S. Census Bureau estimates, the median age in the Jacksonville metropolitan area was 38.1 in 2017, compared with 41.8 for all of Florida. Jacksonville-area residents age 60 and older comprise 20.6 percent of the total population, while that age group comprises 25.6 percent of all Floridians. Most residents in that age group are retired. The census bureau said 72.5 percent of Jacksonville area seniors age 60 and higher are not in the labor force. Active adult communities generally are targeted to people age 55 and older. The 55places study looked at several factors to come up with its list, including cost of living, health care options and availability of communities designed for that age group. Active adult communities
WHERE TO RETIRE, AFFORDABLY Here are the top 10 most affordable places to retire according to 55places.com: 1. Sioux Falls, South Dakota
ECONOMIC TRENDS
Northeast and North Central Florida ranked in the top 10 for affordable places to live for retirees.
“However, when you add up all of the factors, it’s actually the most affordable big city in the state for a fun and active retirement. The cost of living here is below the national average and a full 10 percent less than Miami.” 55PLACE.COM ABOUT JACKSONVILLE
2. Ocala 3. Lakeland 4. Jacksonville 5. Daytona Beach 6. Gainesville 7. New Castle County, Delaware 8. South Bend, Indiana 9. Tampa 10. Waco, Texas
72.5%
Of Jacksonville-area seniors age 60 and older are not in the labor force.
City of Jacksonville
have grown in the Jacksonville area in the past decade. Del Webb, a pioneer of the concept, has three 55-and-older communities in Northeast Florida and announced plans for two more last week. Homebuilder D.R. Horton also has four active adult communities under development. 55places found several reasons Jacksonville is becoming appealing for that market, besides affordability. “The city also scores well in terms of health care opportuni-
ties (Mayo Clinic, University of Florida Health, Ackerman Cancer Center), weather, and overall well-being. It’s also an ideal landing spot for active retirees as there’s everything from golf to sea sports to hiking to horseback riding available very easily,” it said. Other nearby cities on the 55places list are Ocala (ranked second), Daytona Beach (fifth) and Gainesville (sixth). The top city on the 55place list is far away from Florida: Sioux Falls, South Dakota.
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Sioux Falls doesn’t have any 55 and older communities, it said. However, it features a low cost of living, quality health care and a low crime rate. 55places said it surveyed readers and found home prices to be a key factor in choosing a retirement community, with 77 percent saying they expected their housing costs to be the same or less than their current home. “But a home within a certain price point is only half of the equation,” 55places Chief Oper-
ating Officer Danny Goodman said in a news release. “The surrounding area— whether or not an active adult community is of interest—plays an integral role in quality of life, and nearby attractions and available establishments can greatly enhance that. These destinations provide budget-friendly options without demanding a sacrifice for comfort.” MBASCH@ JAXDAILYRECORD.COM
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THE MATHIS REPORT
5.11 Tactical store in review at Town Center
KAREN BRUNE MATHIS EDITOR
Store offers apparel and gear including jackets, boots, caps, backpacks and knives. 5.11 Tactical is coming to Town Center Promenade. California-based 5.11 Tactical “makes innovative tactical apparel and gear designed for those who engage in the toughest missions.” Heartland Retail Construction Inc. of Racine, Wisconsin, intends to build-out 4,000 square feet of retail space at a cost of $200,000 at 4600 Tropea Way, No. 103. The city is reviewing a permit application. 5.11 Tactical will lease space in a 7,040-square-foot building that will include two more tenants - Le Nails in 1,480 square feet and a sushi shop. Jacksonville-based ShayCore Enterprises Inc. is the contractor on the building at a construction cost of $826,000. The structure is on 1.2 acres. 5.11 Tactical gear includes jackets, boots, caps, backpacks, fitness items, shirts, watches, accessories, knives, tools and more for men and women. The 511tactical.com site says that with offices globally, the company “works directly with end users to create purposebuilt apparel and gear designed specifically to enhance the safety, accuracy, speed and performance of tactical professionals and enthusiasts worldwide.” It says it is “the premier choice for those that always have to be ready.” The website shows 5.11 Tactical products are sold at eight Jacksonville area locations. 5.11 Tactical says on its website it operates 46 stores among 22 states along with eight stores internationally. Florida’s three locations are in Miami, Tampa and West Palm Beach.
File image
5.11 Tactical operates 46 stores in 22 states and is adding a location at Town Center Promenade.
Corporate locations are listed as development and operations centers in Irvine and Manteca, California, and international locations in Brazil, Mexico, Sweden, Australia and Hong Kong. It reports the FBI training academy adopted the original 5.11 pant as its training pant in 1992, “forging a decades-long relationship that drives 5.11’s commitment to public safety and the first responder community.” The company began developing a more extensive law enforcement line in 2003, it reports, “to create gear that meets the needs of real people in the field.” It redesigned its women’s gear in 2012 to include premium uniforms, covert clothing, fitness apparel and more.
Home2 Suites in development in Westside
Construction is pending for the Home2 Suites by Hilton at 513 Chaffee Point Blvd. in West Jacksonville. No contractor is listed for the $7 million project, designed as a five-story, 85-unit, 47,026-square-foot building on 1.56 acres. The city is reviewing a permit application. Charles H. Parsons Architect of Orlando is the architect. Morpheus Group LLC, led by Minesh Patel, of Lake City is the owner. Plans show 66 queen studio rooms, six queen one-bedroom units and 13 connecting queen studios.
Sysco IFG applies for Certificate of Use Global food-service company Sysco Corp. continues to explore plans to expand its Northwest Jacksonville distribution center. Sysco International Food Group Inc. applied for a Certificate of Use at its 3100 Hilton St. warehouse center. The certificate states that Sysco International Food Group would add 114,643 square feet of space to the 213,788 square feet of existing space. Those numbers differ from those filed with a mobility fee calculation certificate. That application shows that Sysco International Food Group plans to expand the existing 195,724-square-foot warehouse by about 116,500 square feet to almost 312,300 square feet, an increase of almost 60 percent. The city issued a mobility fee calculation certificate Jan. 23 for the project, planned on 16.33 acres. It calculated a fee of $41,165 to mitigate the project’s traffic impact. Jacksonville-based Stellar, a construction management, design-build and general contracting company, is the agent. The city also issued a demolition permit for Realco Recycling Co. Inc. to demolish a 12,000-square-foot metal building at the site at a cost of $12,000. Sysco International Food Group intends to add dry warehouse and office space, a freezer-cooler, dock and concrete truck apron, plans
show. The group is the export specialty division of Houstonbased Sysco. The ifoodgroup.com site says International Food Group provides product selection and services to more than 700 customers in more than 80 countries. It distributes food and nonfood items. It says it operates with more than 250 associates from two dedicated export facilities — a 125,000-square-foot facility in Plant City and its 200,000-square-foot Jacksonville facility. Sysco International Food Group is part of food-service company Sysco Corp., which also operates Sysco Food Services Jacksonville Inc. in West Jacksonville on almost 64 acres at 1501 Lewis Industrial Drive. Sysco.com says that group employs more than 350 associates “from culinary experts, to warehouse and delivery specialists” in 365,000 square feet of cold storage and distribution warehouse space.
Wawa, RaceTrac, Daily’s continue expansion
There’s movement on three Wawa locations. n Wawa is preparing to build a 6,202-square-foot gas station and convenience store at 3560 Spring Park Road at Emerson Street. The city is reviewing a permit application for the store, gas canopy and dumpster enclosure on about 2 acres at a cost of almost $1.1 million. Cuhaci & Peterson Architects of Orlando is the architect and engineer. n Brightwork Real Estate filed site construction plans for a Wawa at 13363 Beach Blvd. at Brougham Avenue. The 6,119-square-foot gas station and convenience store is planned on almost 2.5 acres. Bohler Engineering of Tampa is the civil engineer. n Wawa Florida LLC applied for a Certificate of Use for a 5,636-square-foot store at 2500 Monument Road in East Arlington. The location is under construction. In addition to Wawa, RaceTrac Petroleum Inc. is adding sites. Atlanta-based RaceTrac is near construction of another gas station and convenience store in Arlington. The city is reviewing permit applications for Venture
RETAIL NOTES n The city is reviewing a permit application for improvements at the Brooks Brothers store at 4812 River City Drive, No. 137, in St. Johns Town Center. No contractor is specified for the $98,500 project. n Code Ninjas intends to open a franchise at 2758 Race Track Road, No. 401, in St. Johns County. The county issued a permit for the interior build-out of a 2,608-square-foot location at a cost of $130,000. Code Ninjas, based in Pearland, Texas, teaches computer programming to children ages 7 to 14. Prime Realty reported the center will open early in spring and enroll students this month. It is the first location in the area. Prime Realty said the franchisee intends to open two more centers in the area. n O’Reilly Auto Parts is in St. Johns County review for a 7,734-squarefoot store on 1.33 acres at 4405 U.S. 1 S.
Construction Co. of Norcross, Georgia, to build a 5,500-square-foot store along with a gas canopy and dumpster enclosure on about 3 acres at 9383 Merrill Road at a cost of $1.4 million. RaceTrac paid $1.25 million for the property, which is at the split of Merrill and Fort Caroline roads and Business Drive in Buck Business Park. RaceTrac already operates a mile west at 8240 Merrill Road. That store will remain. Daily’s also is continuing expansion. The St. Johns River Water Management District is reviewing plans for First Coast Energy LLP. to develop a Daily’s gas station and convenience store at Kernan West, at northwest Butler and Kernan boulevards. KMATHIS@ JAXDAILYRECORD.COM @MATHISKB (904) 356-2466
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Jacksonville Daily Record/Jacksonville Record & Observer
Thursday, February 7, 2019 • Page 5
REAL ESTATE
Top 10 sales of the week BY SCOTT SAILER • EDITORIAL RESEARCH DIRECTOR
Here are the top 10 real estate sales in Northeast Florida, comprising Baker, Clay, Duval and St. Johns counties. The sales were recorded Jan. 28-Feb. 1.
The Dupont Station shopping center sold for $3.9 million, 56 percent more than the $2.5 million it sold for in 2011.
$3,900,000
$3,800,000
$3,650,000
$2,100,000
$2,075,000
6271 St. Augustine Road and 3615 and 3627 Dupont Ave., Jacksonville, Duval County
6800 Southpoint Parkway, Jacksonville, Duval County
4129 Duval Drive, Jacksonville Beach, Duval County
18 Solana Road, Ponte Vedra Beach, St. Johns County
24760 Harbour View Drive, Ponte Vedra Beach, St. Johns County
Type: Dupont Station shopping center Size: 10.48 acres Buyer: Megaland 1 LLC Seller: LO JAX LLC Previous sale: $2,500,000 in 2011
Type: Southpoint Parkway Center Size: 10.87 acres Buyer: RCS 6800 Southpoint LLC Seller: GCP Southpoint LLC Previous sale: $4,700,000 in 2005
Type: Single-family Size: 0.27 acres Buyer: Kristine A. and Lawrence R. Moss Seller: Shirley Snyder Popky Trustee
Type: Single-family Size: 0.66 acres Buyer: Sea Grove 202 LLC Seller: Nickolas Stam and Alixe C. Stamatogiannakis Previous sale: $1,525,000 in 2014
Type: Single-family Size: 1.72 acres Buyer: Kent R. and Jacqueline M. Thielen Seller: Michael M. Monaghan and Helen E. Short.
$1,625,000
$1,400,000
$1,375,000
$1,182,000
$1,147,000
623 Ponte Vedra Blvd., No. 623C, Ponte Vedra Beach, St. Johns County
3814 McGirts Blvd., Jacksonville, Duval County
425 Atlantic Blvd., Atlantic Beach, Duval County
307 S. 15th St., Jacksonville Beach, Duval County
7307 & 7347 N. Main St. and 21 E. 63rd St., Jacksonville, Duval County
Type: Condominium Size: 1910 square feet Buyer: Gardner A. Heaner and Mary E. Heaner as Tenants in Common Seller: Watters investments L.P.
Type: Single-family Size: 0.8 acres Buyer: Alice C. M. and Stephen R. Lucie Seller: Harriet T. Beardsley
Type: Salt Air Motel Size: 0.4 acres Buyer: Beach Hospitality Services Inc. Seller: Nancy McGuire
Type: Single-family Size: 1.31 acres Buyer: Aaron F. and Mary B. Zahn Seller: Lyle P. and Victoria Reigel Marital Property Trust and Victoria Reigel Trustee Previous sale: $702,000 in 2010
Type: Panama Pharmacy Size: 1.01 acres Buyer: Napier Pharmacy Inc. Seller: Hamer Graham LLC
DEVELOPMENT TODAY These are the largest commercial building permits by job cost issued Tuesday by the city of Jacksonville. OFFICE, BANK, PROFESSIONAL Doggy Daycare, 5612 San Jose Blvd., contractor is Hoffman Commercial Construction LLC, 7,384 square feet, tenant build-out, $359,800. CSS Holdings of Jax LLC, 5570 Florida Mining Blvd. S., contractor is Leister Construction LLC, 1,024 square feet, tenant build-out, $70,000. ROOFING Lion’s Head Apartments, 4950 Richard St., contractor is Al Davis Roofing Co., roof replacement, $55,000. Mandarin Dentistry, 11518 San Jose Blvd., contractor is Poe Enterprises Construction LLC, roof replacement, $13,000. SIGNS Jinko Solar, 4660 POW-MIA Memorial Parkway, contractor is Shark Signs of NE FL Inc., two permits for wall signs, $9,200. Cracker Barrel Old Country Store, 4680 Lenoir Ave. S., contractor is General Sign Service Corp., ground sign, $5,000. Summer SC Classics, 1104 W. Adams St., contractor is Boree Canvas
Unlimited Inc., two permits for awning signs, $4,196. Sam’s Club Fuel Center, 300 Busch Drive, contractor is General Sign Service Corp., two permits for canopy pricer signs, $4,000. CoolRoom, 9823 Tapestry Park Circle, No. 106, contractor is Taylor Sign & Design Inc., wall sign, $2,600. Salon, 2292 Mayport Road, No. 32, contractor is Taylor Sign & Design Inc., wall sign, $1,200. Any Lab Test Now!, 9965 San Jose Blvd., No. 30, contractor is Shark Signs of NE FL Inc., wall sign, $1,000. Shell, 860 Golfair Blvd., contractor is Aluminum Plus LLC, ground pricer sign, $1,000. STORES, MERCANTILE Tommy Bahama, 4812 River City Drive, contractor is WFO Construction LLC, renovation, $150,000. UTILITIES AT&T, 4111 Philips Highway, contractor is Ericsson Inc., cell tower equipment upgrade, $65,000. Compiled by Scott Sailer
AWARDS GALA An Evening Honoring Excellence in the Commercial Real Estate Industry and Recognizing the Lifetime Achievement Award Winners, Bob Retherford and Buddy Register
THURSDAY, MARCH 7, 2019 PRIME OSBORN CONVENTION CENTER Grand Lobby $75 per member $95 per non-member/guest Semi-formal Cocktail Reception 6:00-7:00 pm Awards Presentation 7:00 pm Dinner Reception & Celebration Immediately Following Open Bar
BUSINESS IN BRIEF Women of Vision Celebration: The Third Annual Women of Vision Celebration by Girls Inc. on March 7 will honor two area business leaders. Madeline Scales-Taylor, emeritus staff Mayo Foundation and past community affairs
2018
administrator, will receive the 2019 Women of Vision Award for her lifetime achievements to improve the community. Donna Orender, a corporate business leader and author, will receive the Champions for Girls Award.
Registration/pay online www.naiopnefl.com Deadline to reserve your VIP table or individual seat is Thursday, February 28th. Sponsorship Opportunities Available!
Page 6 • Thursday, February 7, 2019
Jacksonville Daily Record/Jacksonville Record & Observer
THE BASCH REPORT
Landstar’s record 2018 will be tough act to follow ter revenue of $1.025 billion to $1.075 billion, which is below the consensus forecast of analysts of $1.11 billion, according to Zacks Investment Research. Landstar’s first-quarter earnings forecast of $1.51 to $1.57 a share, up from $1.37 last year, is higher than the Zacks’ consensus forecast of $1.44. MARK BASCH CONTRIBUTING WRITER
Patriot impacted by hurricane
Jacksonville-based trucking firm says “demand is softer.”
Jacksonville’s other publicly traded trucking company, Patriot Transportation Holding Inc., reported lower quarterly earnings last week. Patriot reported earnings of 27 cents a share in its first quarter ended Dec. 31, which included 19 cents in gains from real estate sales. In the previous year, Patriot recorded earnings of $1.09 a share but that included 92 cents in gains from the new federal tax law passed at the end of 2017. In Patriot’s conference call, CEO Rob Sandlin said its business also was impacted by Hurricane Michael. “On October 10, the eye of Hurricane Michael passed over our Panama City terminal creating significant damage to our terminal buildings,” he said. “We have nearly completed the repairs to get our staff back into the office and we’ll continue the repairs for the rest of our facility while working with our insurance company to determine the insured value applicable to the losses,” he said. The damage to the building is not expected to have a “material-negative financial impact,” Sandlin said. “We certainly lost some profit during the first quarter due to the hurricane, but we are back to our normal operation in this market,” he said.
Landstar System Inc. recorded a record year for revenue and profits in 2018, but the Jacksonville-based trucking company will have a tough act to follow this year. “It will be difficult to expect the overall environment in 2019 to be as robust as we experienced during 2018 at its exceptional highs,” CEO Jim Gattoni said in Landstar’s quarterly conference call with analysts last week. Landstar reported fourthquarter earnings of $1.68 a share, above its forecast of $1.56 to $1.62. Revenue rose 12 percent to $1.18 billion in the quarter. Gattoni said “2018 demonstrated that Landstar’s light asset-based business model generates significant cash flow and outstanding returns in most economic environments.” In the light asset model, Landstar does not own trucks but contracts with drivers who own their own vehicles to haul freight. “The overall environment for Landstar continues to be strong by historical standards,” Gattoni said, but industry conditions are changing. “Clearly, demand is softer than it was,” he said. “We’re very diverse, so it’s hard to point to a specific industry or a specific customer that drives our decelerating growth rate,” he said. “So, I don’t really have anything real specific on what’s driving the slowdown other than overall economic trends.” Landstar forecast first-quar-
Fidelity deal to buy Stewart snagged Fidelity National Financial Inc.’s $1.2 billion deal to buy Stewart Information Services Corp. hit a snag last week. The New York State Department of Financial Services disapproved Fidelity’s appli-
cation to buy Stewart’s New York title insurance subsidiary, Fidelity said in a Securities and Exchange Commission filing Monday. How that impacts the entire acquisition is unclear. Fidelity said in the filing it is “evaluating the appropriate course of action” which may include discussions with the New York regulator “to better understand its concerns.” Fidelity announced the deal in March 2018 and expected a long regulatory process because the deal would increase Jacksonville-based Fidelity’s dominant share of the U.S. title insurance market from 32 percent to 42 percent. Fidelity likely will have to divest some business to get all of the necessary regulatory approvals. Fidelity said in the SEC filing it has received 28 state regulatory approvals for the deal and it is continuing to work with the U.S. Federal Trade Commission, which is reviewing the deal.
Merger rumors at Deutsche Bank Merger rumors surrounding Deutsche Bank heated up again last week even as the Germany-based bank reported its first annual profit in four years. Deutsche Bank on Friday reported net income of 341 million euros (about $390 million) for 2018. However, a Bloomberg News story before the earnings report said the German government may force a merger with another German bank, Commerzbank, if first-quarter earnings are not up to par. Deutsche Bank employs more than 2,000 people in Jacksonville in its secondlargest U.S. operation, behind New York. A Bloomberg story last month – which was not confirmed by the company – said the bank was moving 60 accounting jobs from Jacksonville to Mumbai, India. Deutsche Bank is cutting employment worldwide as it works to improve its finances. The company last week said it had 91,700 full-time
Landstar sees a slowdown Landstar System Inc. said it reported record revenue and profits in 2018, but says economic trends are pointing down.
$1.18B Fourth-quarter revenue
employees at the end of 2018, down from 97,535 a year earlier and meeting its target for the year of getting below 93,000. Deutsche Bank wants to reduce employment below 90,000 by the end of this year. “Our return to profitability shows that Deutsche Bank is on the right track,” CEO Christian Sewing said in a news release. “Now, our priority is to take the next step. In 2019 we aim not only to save costs but also to make focused investments in growth,” he said.
Analyst upgrades JinkoSolar As JinkoSolar Holding Co. Ltd. closes in on full production of solar panels at its Jacksonville plant, one analyst thinks the China-based company’s financial outlook is more promising. Roth Capital Partners analyst Philip Shen upgraded his rating on JinkoSolar from “neutral” to “buy” Monday as part of an overall positive outlook for the solar panel industry. “We started to get positive on the sector in November and December and continue to believe we’re in the early stages of an upcycle of improving fundamentals,” Shen said in a research report. JinkoSolar’s stock was depressed in mid-2018 when China announced it was cutting subsidiaries for solar projects. However, Shen said in his report China will “likely” be reintroducing those subsidies. Meanwhile, demand for solar
12% Change from 2017
panels is increasing throughout the world, he said. “The new China subsidy policy will likely serve as another catalyst on top of the strong fundamental demand that is coming from Latin America, Europe, the U.S. and other pockets of the world,” he said. The Jacksonville location at Cecil Commerce Center is JinkoSolar’s first U.S. plant. The plant began pilot production in November and the company said it expects the plant to be at full capacity, with 200 employees, early this year. The timing seems to be right, according to Shen. “Simply put, module supply is tight, and JinkoSolar and other module suppliers will be direct beneficiaries,” he said.
Anheuser-Busch, Teamsters union approves contract
The Teamsters union last week announced approval of a new five-year contract with workers at 12 Anheuser-Busch breweries, including Jacksonville. The union said the new contract increases wages by $2.50 an hour and also provides improvements to retirement security and a $4,000 bonus. The agreement covers more than 4,400 workers at the 12 breweries. It was approved by 88 percent of members voting, the Teamsters said.
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Thursday, February 7, 2019 • Page 7
DeSantis keeping incentives fund, for now
Governor says he left fund untouched at the recommendation of his predecessor. Florida Gov. Ron DeSantis is keeping $85 million attached to the Florida Job Growth Grant Fund in his first budget, but that may not be the case next year. His predecessor, U.S. Sen. Rick Scott, established the fund in 2017 after reaching a deal with state lawmakers who were wary of the large taxpayer-backed financial incentive packages used to attract companies to expand or relocate to the state. Scott’s $100 million request for public-private agency Enterprise Florida Inc. failed to gain support from the Republican-controlled Legislature and then Speaker of the House Richard Corcoran. The Florida Job Growth Grant Fund was created during a special session that year and is controlled by the executive
Tallahassee reporters in January that he has concerns about how the fund money is used. “While we’re interested in infrastructure, investing in infrastructure, we’re going to take a close look at economic development initiatives,” he said, according to the News Service of Florida. DeSantis said Enterprise Florida will operate differently under his administration. “We’re not going back to where we’re handing out money,” DeSantis said. “There was money wasted doing that.” In January, the Enterprise Florida board approved his appointment of Jamal Sowell to become the agency’s CEO and president. Sowell is scheduled to be the keynote speaker at the JAXUSA Partnership first-quarter meeting Feb. 26. On Monday, DeSantis called the former Port Tampa Bay official a rising star. He said that his administration would focus on selling “all the great things we have” in Florida, rather than choosing winners and losers. “It’s open for everybody,” he said. “I think that Enterprise Florida is going to play a role. It’s just going to be different than it had been doing two or three years ago.”
No expansion of early voting sites for March election Duval County Supervisor of Elections Mike Hogan said
Monday that he does not plan to expand early voting sites for the March unitary elections. Early voting is March 4-17. Hogan received pushback from local Democrats and some members of Jacksonville City Council for not establishing early voting sites on college campuses. Voting sites eventually were set up at the University of North Florida and Edward Hogan Waters College. “I can tell you out of the 20 sites, the University of North Florida was 19 and Edward Waters College was 20,” Hogan told the Meninak Club of Jacksonville. He said his office is evaluating the performance of those sites and others and plans to conduct “a big study” after the March 19 election. “We do know that we do have some disparity,” he said. “We may have 20 (sites), but they may be in different positions.” Hogan said some early voting sites weren’t large enough or fully equipped to support the demand. “The Murray Hill library is very small,” he said. “They had very long lines because we only set up four voting booths and when you have 12 amendments, it takes a long time to vote.”
Duval Democrats oppose Curry, offer no alternative The Duval County Democratic Party released a statement Tuesday instructing members to vote for the mayoral candidate that best represents Democrat views in the absence of a party-backed contender. “Last week, our party membership unanimously passed a resolution opposing the reelection of Lenny Curry,” said party Chair Daniel Henry. “Four more years of this incumbent will have devastating impacts on transparency in government, the continuation of the Curry Crime Wave, and the sale of public assets against the public’s expressed interest like JEA,” he said in a statement. “We encourage all Democrats to make an informed decision in the Mayor’s race and reject former statewide Republican party boss, Lenny Curry,” the statement reads. Duval Democrats did not field a qualified mayoral candidate during the 2019 election cycle. There are two more Republicans in the race — Anna Lopez Brosche and Jimmy Hill. Also running is no party affiliate candidate Omega Allen and the two official write-in candidates, Brian Griffin and Johnny Sparks. DCAWTON @JAXDAILYRECORD.COM @DAVIDCAWTON (904) 356-2466
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THE CAWTON REPORT
DAVID CAWTON ASSOCIATE EDITOR
branch. DeSantis released his $91.3 billion budget Feb. 1. “My view is, we’ll see if that can be put to good use,” DeSantis said during his first official trip to Jacksonville since becoming governor in January. He said he left the fund untouched because it was something Scott, a fellow Republican, recommended. “At the same time, if I don’t feel like there’s opportunities to use that in a good way then it may not be something I recommend next year,” he said. The fund provides money to municipalities to build infrastructure or to provide workforce training at local colleges and universities in support of economic development. Money is not awarded directly to companies. The Florida Department of Economic Opportunity and Enterprise Florida recommend projects to the governor’s office, which has the authority to allocate the money. Florida State College at Jacksonville received $710,352 to enhance manufacturing and logistics training through the fund. Another $6 million was awarded to Jacksonville to help build a $1.5 million road at Cecil Commerce Center to provide access to its “megasite” that could boost largescale industrial development. Sen. Rob Bradley of Orange Park chairs the Senate Appropriations Committee. He told
Page 8 • Thursday, February 7, 2019
Jacksonville Daily Record/Jacksonville Record & Observer
COMMERCIAL DEVELOPMENT
REPORTS SHOW STRENGTH BY KAREN BRUNE MATHIS • EDITOR
Jacksonville’s job and population growth and low unemployment rate are keeping commercial and multifamily real estate developers and brokers busy. Here is what CBRE, Colliers International, Cushman & Wakefield, NAI Hallmark and Avison Young are saying: INDUSTRIAL
OFFICE
Tight market drives record construction
Large spaces more difficult to find
Companies looking for a large amount of warehouse, flex and industrial space in the Jacksonville area are driving what the CBRE real estate company says is the “most square footage under construction on record.” Its fourth-quarter report said just two existing buildings could accommodate users needing at least 200,000 square feet, leading developers to start construction on 13 buildings totaling 4.9 million square feet of space, focused in North and West Jacksonville. Speculative buildings often are leased before completion. “All signs indicate that much of this construction will actually deliver close to fully leased, if not fully leased,” reports Colliers International. Vacancy rates remain low – in cases, historically so. Colliers reports that the vacancy rate for Class A modern warehouse space probably is close to 1 percent. Rental rates are rising and vacancy rates are steady or dropping. “Absent a recession, we believe market rents will continue to escalate sharply if new construction does not provide relief
Jacksonville’s office market remains favorable for landlords, reports Avison Young, and it could stay that way well into the year. “With limited blocks of large quality space available, companies in growth mode are finding fewer options,” it reported. Some companies will lease build-tosuits, such as Web.com and McKesson Corp. Others are renovating space in buildings formerly used for other functions, like Miller Electric Co. And some, such as VyStar Credit Union, are buying buildings for their use. VyStar bought a 23-story Downtown tower. “The build-to-suit projects are common in Jacksonville due to a lack of availability for large contiguous blocks of space,” reports CBRE. Rental rates are increasing, while the vacancy rate increases or decreases depending on market factors. Downtown Northbank vacancy generally remains higher than the suburban rate, although the Downtown Southbank vacancy is lower than in the suburbs. Average lease rates are higher both on the Northbank and the Southbank than in the suburbs, reflecting the Class A space in the towers. Colliers International said the Butler Boulevard corridor continues to be the most active submarket for Class A
2.3-4.3%
Overall industrial vacancy rate Average asking lease rate per square foot: $5.05 to $5.19 4Q largest lease deal: Wayfair – 1 million square feet – AllianceFlorida at Cecil Commerce Center
through additional vacancy,” Colliers wrote in its fourth-quarter market report. There’s more to come. “Developers remained confident that tenant demand would easily absorb new space coming online and continued to acquire land to position themselves for future growth,” said Cushman & Wakefield. At year-end, it said, more than 8 million square feet of industrial space was proposed for development over the next three years.
RETAIL
Rental rates down, more space on way NAI Hallmark reported that Jacksonville’s retail vacancy rate ended the year pretty much as it started, while asking rental rates were down from the third quarter. A lot of new construction is on the way – almost 2 million square feet, more than the size of a large shopping mall. At the same time, closed stores became available for tenants, or remained available, like the former Sears store at Regency Square Mall. The former Best Buy in The Markets at Town Center began a conversion into a Sprouts Farmers Market, while the Thomasville furniture store closed and is available for lease. “As many of the underperforming big boxes have gone dark, we are seeing more and more development opportunities with strong performing retailers,” said NAI Hallmark retail specialists Austin Kay and Eric Yi in the market
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4.3%
MULTIFAMILY
Average asking lease rate per square foot: $14.55
If it seems that there’s an abundance of apartment construction and renovations of older units all over town, it’s because there is. “Jacksonville continues to be one of the highest performing and most sought-after multifamily markets in the U.S.,” reports Colliers International. Despite a record number of apartments being built, strong demand has kept vacancy rates below 4 percent, it reports. In return, that encourages new development and continued rent growth. Colliers reports there are almost 78,000 apartment units in the area, about 5,300 units are under construction, another almost 2,700 are proposed
Overall vacancy rate
Square footage under construction: 1.99 million
report. Some centers, such as Regency Court Shopping Center, found new uses with entertainment facilities that include a roller rink and indoor adventure park. The former RH Outlet in Southside also is slated to become an adventure park. The Pavilion at Durbin Park in St. Johns County is one of the largest retail centers to come online.
7.8-15% Overall vacancy rate
Average asking lease rate per square foot: $19.50 to $20.47 Average Northbank Downtown vacancy rate: 6.6 to 17.6 percent Average Southbank Downtown vacancy rate: 6.3 to 7.9 percent Average suburban vacancy rate: 10.23 to 15 percent
space and the Downtown office market continues to benefit from the VyStar purchase. It said the only large blocks of space in the Northbank market are in the Bank of America Tower and One Enterprise Center. “We hope that these recent activities mark the beginning of the end of a lengthy period of high vacancy and low rent levels in the urban core,” Colliers wrote. CBRE expects business development and job growth to continue supporting the overall market. As a result, vacancy rates will continue to fall “as Jacksonville continues to be an attractive office market option.”
Strong demand fuels apartment boom
3.8%
Vacancy rate, down from 9.1 percent in 2013 Existing units: 77,956 Annual rent growth: 4.3 percent Units under construction: 5,300
and another 1,700 are under renovation. Average rental rates per square foot range from a low of 93 cents in West Jacksonville to $1.38 in and around Downtown
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Jacksonville Daily Record/Jacksonville Record & Observer
Thursday, February 7, 2019 • Page 9
Firm helps resolve eminent domain disputes BY MAX MARBUT ASSOCIATE EDITOR
If the federal, state or local government decides it needs all or part of a private property for a public purpose or project, it will legally take the property. While the eventual outcome of such an action is rarely in question, how the property owner will be compensated for the involuntary loss often comes into question. Resolving disputes between property owners and what’s called “condemning authorities” is the practice focus for Menelaos “Manny” Papalos and Chuck Griffith at Papalos | Griffith. “We like to get out in front of it, as soon as we know it’s coming,” Papalos said. The firm monitors government agencies that condemn private property through eminent domain for infrastructure improvement projects such as roads. “We bring that information to people who are going to have takings. It benefits them to be thinking about it as far in advance as they can. It’s even better if they have us thinking about it,” Papalos said. The amount of compensation for the property taken is usually the issue. Condemning authorities tend to be conservative in their initial assessment of the fair value of property that
will be taken through eminent domain. “Sometimes, the government doesn’t know what’s unique about a property or doesn’t understand its value,” Griffith said. For example, the firm represented a group of clients that owned land and businesses on a side street extending from a main commercial road that was being improved. The change to the side street was limited to installation of a sidewalk, so the government made small offers to the landowners. The offers were for only the value of the land under the proposed new sidewalk, but the road project would have “very significant impacts on the businesses and the land values” during construction, Papalos said. He said one of the clients was a food-testing laboratory with customers that had to have easy access to the business, otherwise, samples could spoil and endanger the laboratory’s bottom line. “The county offered the food lab $3,100 and the ultimate recovery was $640,000,” Papalos said. Another business adjacent to the project owned a vacant office building. Papalos said local knowledge of the road project and its expected traffic impact prevented the owner from leasing the building during the construction. The county offered the owner less than $15,000; the recovery
THE COURTS & LAW
Attorneys work to ensure property owners are fairly compensated.
Photo by Max Marbut
Chuck Griffith, left, and Menelaos “Manny” Papalos practice eminent domain law.
was $355,000. Papalos said the third client was a dry cleaner – one of the most convenience-oriented business types. The government offered the business owner no compensation because he was a tenant, not the property owner. Legally, he could seek only lost profits as business damages. The firm reached a settlement of $144,000 for the client. “Sometimes, we represent sophisticated real estate clients who understand the issues, but for more than half of our clients, it’s a one-time deal for them,” Griffith said. The government’s authority to condemn and take private property for public projects is
limited by the U.S. Constitution and also by the state constitution. Papalos said the first eminent domain actions in Florida were related to the expansion of railroads as the state became a destination for tourists and developers. The state moved to protect landowners from unfair property forfeiture by law and pays the legal fees for property owners with eminent domain disputes. “Florida really puts people on a level playing field,” Papalos said. MMARBUT@ JAXDAILYRECORD.COM (904) 356-2466
Eminent domain The inherent power of a governmental entity to take privately owned property, especially land, and convert it to public use, subject to reasonable compensation for the taking.
Eminent domain clause The Fifth Amendment provision provides that private property cannot be taken for public use without just compensation. Source: Black’s Law Dictionary
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THE BAR BULLETIN
Jacksonville Daily Record
Bar Bulletin The
PROTECTING RIGHTS • PURSUING JUSTICE • PROMOTING PROFESSIONALISM
INSIDE FROM THE PRESIDENT
HEALTH & WELLNESS
WE CAN DO MORE
COMMENTARY
Why women are leaving law A survey by The Florida Bar Young Lawyers Division finds that nearly half of women lawyers report experiencing gender bias. PAGE 12
COMMENTARY
A shortage of respect Judge Gary Flower: Why does there seem to be a lack of civility experienced by some of us on a daily basis?
PAGE 15
Seeking help doesn’t make you less of a lawyer.
KATIE DEARING JBA PRESIDENT
To be a good lawyer, one has to be a healthy lawyer. Sadly, our profession is falling short when it comes to individual well-being. Too many lawyers experience chronic stress and high rates of depression and substance use. According to a study conducted by the Hazelden Betty Ford Foundation and the American Bar Association Commission on Lawyer
Assistance Programs, 21 percent of licensed, employed attorneys qualify as problem drinkers, 28 percent struggle with some level of depression and 19 percent demonstrate symptoms of anxiety. These findings are incompatible with a sustainable legal profession, and they raise troubling implications for many lawyers. SEE DEARING, PAGE 13
ON THE BENCH
Judge Salvador can tidy it up Fourth Judicial Circuit judge reveals her special talent — and how she chose the law as a profession.
PAGE 13
PRO BONO
Reflecting on 10 years of hearing ‘yes’ to help those in need Local lawyers comprise an invincible team.
KATHY PARA JBA PRO BONO COMMITTEE CHAIR
I am dedicating this, my final, article to you because you have stepped up over and over again to assist with your legal expertise thousands of people in need. For the past 10 years, it has been my honor and joy to see you making a positive difference in our community. You have said “yes” to veterans, seniors, single parents, immigrants, people
with disabilities, caregivers, children, people starting over and other people who need someone on their side. You have been advocates, champions, listeners, warriors and field-levelers. Hundreds of attorneys have volunteered for Ask-A-Lawyer, estate planning intake night, the Veterans Legal Collaborative, advance directives night, Guardian Advocacy Pro Bono Project, Name Change Pro Bono Project, Citizenship Day, Family
Law Group information clinics, Lawyers in Libraries, pro se bankruptcy assistance clinic, seal/expunge and civil rights restoration, Eviction Defense Self Help Project, intake night at the City Rescue Mission and Missing Link. You have taken cases referred from federal, state and county judges; cases from Guardian Ad Litem, Jacksonville Area Legal Aid, the Northeast Florida Medical Legal Partnership and Three Rivers Legal Services; and cases
that you identify in your offices, serving clients who seek help but can’t afford to pay you. You have mentored other pro bono attorneys, reviewed cases, created documents, presented webinars, provided consultations and shared ideas. You live your oath with intention and commitment: “I will never reject, from any consideration personal to myself, the cause of the defenseless or SEE PRO BONO, PAGE 14
THE BAR BULLETIN
Jacksonville Daily Record
Thursday, February 7, 2019 • Page 11
TUESDAY JUDICIAL RELATIONS Noon, Duval County Courthouse, Room 6174 Register at jaxbar.org WEDNESDAY VINTAGE LAWYERS Noon, Golden Corral Southside Register at jaxbar.org FEB. 15 SOLO & SMALL FIRM Noon, Jacksonville Bar Association Register at jaxbar.org FEB. 19 ELDER LAW Noon, Jacksonville Bar Association Register at jaxbar.org FEB. 19 PRO BONO Noon, Bellwether Register at jaxbar.org
Special to the Daily Record
The “Holidays in January” event brings Santa Claus back to Jacksonville for children who missed him over the “official” holiday season.
‘Holidays In January’ replaces fear with cheer
MEGHAN MOON JBA YOUNG LAWYERS SECTION BOARD OF GOVERNORS
Children who were placed in foster care between Dec. 20 and Jan. 6 get a chance to experience the joy of the holiday season. Most of us are sick of the holidays by January. We’ve shoved the Christmas tree back in the attic, eaten all the latkes and sent the in-laws packing. Armed with fond memories of the season, we are ready to move on to a new year. Not the Young Lawyers Section. In January, we are gearing up to spread cheer to some children who were passed over by the holidays: children who were placed into foster care between Dec. 20 and Jan. 6. The “Holidays in January” event, hosted by the YLS and the Northeast Florida Paralegal Association, brings Santa Claus back to Jacksonville for children who missed him over the “official” holiday season. In collaboration with Family Support Services of North Florida, the event provides the children the opportunity to experience the magic and joy of the season and to be spoiled with gifts, activities and cheer. The children often are missed by the annual toy drives and charity functions that sprinkle December. To make up for it, the YLS and NEFPA throw them a
THE JACKSONVILLE BAR ASSOCIATION LEADERSHIP President T. A. “Tad” Katie Dearing Delegal III DelegalCircuit Fourth Law Offices Judge
Secretary MichelleFox Michael Bedoya Orr Barnett Alexander Dawson | Orr DeGance Barnett
President-elect Katie L. Dearing Elizabeth Ferguson The Dearing Marshall Dennehey Law Firm Warner Coleman & Goggin Treasurer Elizabeth B. Ferguson Treasurer Marshall Bedoya Michelle Dennehey Barnett Warner Coleman &DeGance Alexander Goggin Barnett
Young Lawyers Section President Alexandria Jessica Byrne V. Hill Maple Street Dawson | Orr Biscuit Co. Executive Director Jim Bailey, (904) 399-4486 Interim Executive Director Carla Ortiz-Ramos
party at the Jacksonville Zoo and Gardens with face painting, outdoor games, cookie decorating and holiday crafts. The children also have pizza before they are greeted with the highlight of the event: the arrival of Santa Claus. Each child of appropriate age receives a scooter and helmet from Santa before he ventures back to the North Pole. Older children receive a gift card for the holiday gift of their choosing. The event is capped off with complimentary tickets to the zoo for the children and their foster families. So, next time you’re feeling sheepish because you left the tree up until Martin Luther King Jr. Day, remember, you’re in good company. At the YLS, we understand the best way to spread holiday cheer is by keeping the spirit alive and well into January. Feeling motivated to give back? The YLS has two more events on the schedule and both will benefit local nonprofits: n The Charity Chili Cook-Off, where Jacksonville’s legal community dukes it out for a special kind of victory, best chili, is 10 a.m. to 3 p.m. Feb. 16 at the Riverside Arts Market. It’s family-friendly and we encourage you to come hungry and taste up to 50 different kinds of chili. Proceeds will benefit Best Buddies, an organization that offers one-to-one friendships with people with developmental disabilities. n The annual Charity Poker Tournament is from 6:30 p.m. to 9:40 p.m. Feb. 21 at bestbet Jacksonville. This year, the YLS will be donating tournament proceeds to The Tom Coughlin Jay Fund Foundation. The Jay Fund’s mission is to help families tackle childhood cancer by providing comprehensive financial, emotional and practical support. We look forward to bettering the community with you. Cheers to 2019. MEGAN MOON IS AN ATTORNEY WITH THE GUNSTER LAW FIRM, FOCUSING ON COMPLEX COMMERCIAL LITIGATION.
BOARD BOARD OF OF GOVERNORS GOVERNORS MEMBERS MEMBERS Fraz Fraz Ahmed Ahmed The Coker LawLaw Offices of Eric S. Block
Blane Blane McCarthy McCarthy Blane Blane McCarthy McCarthy
Michael Michael I. I. Bateh Bateh Office Office ofof the the Public Public Defender Defender
Michael AsgharF.A.Orr Syed Dawson Gunster | Orr
Brian Brian T. T. Coughlin Coughlin Bedell Bedell Firm Firm
Asghar CyndyA.Trimmer Syed Smith Driver, Hulsey McAfee, & Busey Hawthorne & Diebenow Lindsay L. Tygart Coker, Lindsay Schickel, L. Tygart Sorenson, Coker Law Posgay, Camerlengo & Iracki
Christian Christian P. P. George George Akerman Akerman
FEB. 21 LAW WEEK Noon, Jacksonville Bar Association Register at jaxbar.org FEB. 22 HEALTH & WELLNESS Noon, Jacksonville Bar Association Register at jaxbar.org MARCH 5 PROFESSIONALISM & MENTORING Noon, Duval County Courthouse, Room 6174 Register at jaxbar.org
UPCOMING EVENTS FEB. 12 YOUNG LAWYERS SECTION CO-ED BASKETBALL LEAGUE The season is eight weeks with games on Tuesdays at 8 p.m. and 9 p.m. The fee for a team is $500. Individual players may register for $50 and will be assigned to a team as a free agent. The league is open to all JBA members and their spouses, children (23 and older) and firm employees, and enrolled law students (or those who just took the Bar exam). Licensed attorneys must be JBA members to participate in the league. Register at jaxbar.org FEB. 16 YOUNG LAWYERS SECTION CHILI COOK-OFF 10 a.m., Riverside Arts Market The Young Lawyers Section is bringing chili, charity and community together Feb. 16 at Riverside Arts Market under the Fuller Warren Bridge. Proceeds will benefit Best Buddies, so come out to vote for your favorite chili and support a great cause. Register at jaxbar.org FEB. 21 YOUNG LAWYERS SECTION POKER TOURNAMENT: “CASHING IN FOR A CAUSE” 5:30 p.m., bestbet Jacksonville The JBA Young Lawyers Section presents the “Cashing in for a Cause” poker tournament at bestbet Jacksonville. Lessons will be available at 5:30 and spectator tickets are available. Proceeds benefit The Tom Coughlin Jay Fund, which helps families tackle childhood cancer by providing comprehensive financial, emotional, and practical support. Register at jaxbar.org
EDITORIAL EDITORIAL COMMITTEE COMMITTEE Editor-in-chief Editor-in-chief Cynthia Kelly Trimmer Karstaedt Driver, McAfee, Karstaedt Peek&&Stanko Hawthorne Editors Iana Iana Benjamin Benjamin Darlington Darlington Jordan Jordan Law Law Dave Dave Chauncey Chauncey Alexander Alexander DeGance DeGance Barnett Barnett Ashlea Ashlea Edwards Edwards GrayRobinson Akerman
Kelly Jessica Karstaedt Byrne Karstaedt Dawson&| Orr Stanko Adina Kirsten Pollan Oliver Pollan Steve Legal Watrel, P.A. Adina Pollan Pollan Legal
JBA CALENDAR
COMMITTEE MEETINGS
YOUNG LAWYERS
Page 12 • Thursday, February 7, 2019
THE BAR BULLETIN
Jacksonville Daily Record
COMMENTARY
More women than men leaving law Survey by The Florida Bar Young Lawyers Division finds that nearly half report experiencing gender bias.
Luikart
Poitier
BY CHRISTEN LUIKART & JONI POITIER JBA DIVERSITY COMMITTEE CO-CHAIRS
Women, particularly women of color, are leaving the profession of law at a much higher rate than their male counterparts. According to the American Bar Association, although an equal number of women are graduating from law school, they make up only 35 percent of lawyers. Of the Fortune 500 general counsels, women make up 26.4 percent. In private practice, 22.7 percent of partners are women and 19 percent are equity partners. The numbers are even lower for women of color. While 22.7 percent of partners in private practice are women, minority women represent only 2.9 percent of partners. Those who study the issue say some of the reasons women leave law practice are bias, discrimination, lack of work-life balance, child care, success fatigue and lack of senior role models or because women are discouraged by sexual harassment. The ABA has been undertaking an initiative focused on increasing the number of women lawyers who pursue successful long-term careers in the law. The initiative is supported nationally by major law firms and corporations that have pledged their commitment to the goal of promoting the advancement and retention of women lawyers. In October 2015, The Florida Bar Young Lawyers Division released findings from its Survey on Women in the Legal Profession. More than 3,000 members of the YLD were sampled in the survey. The survey found that 43
According to the American Bar Association, although an equal number of women are graduating from law school, they make up only 35 percent of lawyers. percent of respondents reported experiencing gender bias during their legal career. As a result of the survey, thenFlorida Bar President William Schifino Jr. appointed a special committee to study gender and diversity issues with the goal of making recommendations to the board of governors.
One of the recommendations was for The Florida Bar’s Diversity and Inclusion Committee to create a subcommittee on women in the profession, to address issues regarding gender bias and to assist in implementing the report recommendations. The Jacksonville Bar Association has followed suit and cre-
ated a Women in the Profession Subcommittee to the Diversity and Inclusion Committee. The subcommittee is working on implementing several of The Florida Bar special committee’s recommendations, including continuing legal education courses that address gender bias, implicit bias and the business
case for gender inclusion. Some of these topics will be addressed at the JBA’s CLE on March 13 at TPC Sawgrass. CHRISTEN LUIKART IS A PARTNER AT MURPHY & ANDERSON. JONI POITIER IS A PARTNER AT MOSELEY, PRICHARD, PARRISH, KNIGHT & JONES
LEGAL BRIEFS
Need CLE hours? Check out the JBA website
The Jacksonville Bar Association has a CLE video library where you can purchase online CLE presentations and get those CLE credits you need in the convenience of your home or office. You may choose from as few as 0.5 CLER hours to as many as 8.0 CLER hours, including various certification hours. Just select the videos that correspond with the CLE credits you need, purchase them, watch online and submit for credit. Topics include family law, technology law, transactional law and professionalism for new practitioners. Visit jaxbar.org/store
Upcoming CLEs FEB. 27 Jury Selection & Voir Dire Lunch & Learn Noon, Duval County Courthouse, chief judge’s conference room. 2.0 CLE ethics credits pending approval by The Florida Bar. Register at jaxbar.org FEB. 28 Labor & Employment Committee Lunch & Learn Noon, Wine Cellar restaurant. 1.0 CLE credit pending approval by The Florida Bar. Register at jaxbar.org
MARCH 7 Mapping the Video Divide Noon, Orange Legal. 1.0 CLE/technology credit approved by The Florida Bar. Register at jaxbar.org MARCH 13 The Professionalism Conference at The Players 8 a.m., TPC Sawgrass. 4.0 CLE/ethics pending accreditation by The Florida Bar. Join us for a top-notch professionalism seminar and an exciting day at The Players Championship. Attendees will receive quality presentations, light breakfast, lunch, parking at TPC and access to the Championship Club, which features air conditioning, private restroom facilities, snacks and beverages, including an open bar.
Conference topics:
n Professionalism: Past, Present &
Future. n The Grievance Process: Asking Permission; Not Forgiveness. n Understanding the Issues: An Explanation of How to Create & Maintain Long Term Careers for Women in the Law. n How to be a Rainmaker. Seating is limited. Walk-ins are not permitted at this event. Admission is $225 for JBA members and $299 for nonmembers. Register at jaxbar.org
THE BAR BULLETIN
Jacksonville Daily Record
Thursday, February 7, 2019 • Page 13
TATIANA SALVADOR ON THE BENCH
BAR BULLETIN STAFF
Fourth Judicial Circuit Judge Tatiana Salvador was appointed to the bench in 2012 and took office in 2013. Salvador was re-elected without opposition in 2014. Who or what inspired you to become a lawyer? I went to college for pre-med, but my college roommate, Michele, who is now a law professor up north, inspired me to change to pre-law. She helped me see that lawyers are natural leaders and teachers and, as such, can affect widespread change for the greater good. How do you relate your undergraduate degree to your practice on the bench? Political science was the go-to major for most folks with an interest in law, so that’s what I studied. But really, any degree that teaches you to think critically, listen attentively and determine decisively would have related equally well to my practice on the bench. What community service have you pursued and why? Over the years, I’ve been involved with different nonprofits and groups like Jacksonville Area Legal Aid, OneJax, City Year and Leadership Jacksonville. I’m drawn to organizations whose missions aim to lift up our local community. Do you serve on any Jacksonville Bar Association committees? The Judicial Relations and Hispanic & Latino Interest committees. Do you have a leadership role within the community? I serve on the board of directors of
City Year Jacksonville and the board of trustees for The Bolles School. What is your favorite movie? “The Princess Bride” Do you have any special talents? I’m a pretty good organizer. I’m no Marie Kondo, but with my bins, containers and label maker, I can straighten out and tidy up your closets and drawers. If you weren’t a judge or lawyer, what do you think you’d be? A doctor, following in my dad’s footsteps. Have you traveled anywhere exotic? Where? I’ve been to Colombia, which some may consider exotic. For me, it’s the home of my extended family and a place I’ve visited a lot during my lifetime. My most exotic trip to date, though, was to Turkey. Spectacular! If you could meet someone from history, who would it be and why? I would love to meet any of America’s founding fathers. I’d like to hear all their stories and details about how they formulated our system of government. What’s your favorite holiday? Thanksgiving. It’s about family, friends, food and gratitude. What more could you want? Melanie Miller Photography
Dearing: Too many lawyers are dealing with stress CONTINUED FROM PAGE 10
The financial, emotional and time demands of this profession can easily compound other life stressors. Unfortunately, workaholism as a lifestyle is encouraged in the practice of law. A revenue model built on working as many hours in a day as possible is not healthy. Too often, as long as the workaholic remains functional, wellness takes the backseat to profitability. But a workaholic can’t remain functional for long. It is difficult to maintain emotional bonds, adequate self care, recreational pursuits or spiritual practices. This deterioration in the basic quality of life can further harm a lawyer who is burning out on solving the problems of others. The recognition that when we are stressed and unwell, we are not only worse off as people, but worse off as lawyers has inspired a renewed focus on individual well-being. But achieving “wellness” can seem abstract and unattainable. Wellness is a state of physical, mental and social well-
being that is achieved through an active process of becoming aware of and making choices toward a healthy and fulfilling life. This deliberate focus on physical, mental, and social well-being is critical to being a healthy lawyer. To be in good physical health requires attention to nutrition and fitness. These commitments can serve as building blocks to individual well-being. Though I am reminded at the beginning of each year that good nutrition and regular fitness sometimes are easier said than done, they at least seem to be tangible, attainable goals. Addressing issues related to mental and social well-being is far more challenging. Too many lawyers are dealing with stressors such as depression, addiction, trauma and burnout, and do not have the tools to cope with these challenges. They try to attain an ever more elusive work-life balance while managing stress, time and money. Yet, we lawyers are a proud group. Too many of us project success or hide stress because to admit we are struggling – either
We have revamped our Health & Wellness committee to expand its portfolio from focusing not on only physical health, to include issues relating to mental health and social well-being. emotionally or financially – could seem like an admission that we aren’t as good a lawyer as we should be, an acknowledgement that we don’t have it all together. The result is that many lawyers don’t seek the help they need, whether it’s counseling, stress/time/debt management advice, or resources designed to make the practice easier. If we, as a profession, don’t talk more about these stressors, we aren’t doing each other any favors. By not projecting that you’ve got it made or that you have everything figured out, you may give a struggling lawyer a window to open a much-needed dialogue. When I began this year as your president, I told you the Jacksonville Bar Association would
renew its focus on health and wellness. We have revamped our Health & Wellness committee to expand its portfolio from focusing not on only physical health, to include issues relating to mental health and social well-being. The committee brought in Brian Cuban as our luncheon speaker last week, shining a light on substance abuse and other obstacles to wellness. The committee also hosted a free CLE designed to discuss these challenges and give lawyers tools to be more successful in facing them. Please join our Health & Wellness committee to support these and other initiatives, and look for the Bar to provide resources to members on related topics. Last week we launched our weekly #WellnessWednesday
campaign. Our inaugural post linked to Cuban’s wellness blog, on which you will find posts and articles addressing suicide, depression, substance abuse and other challenges facing lawyers in the pursuit of a healthy life. Follow the Jacksonville Bar Association on Facebook and Twitter for weekly #WellnessWednesday updates and resources. Seeking help does not make you less of a lawyer. Quite the contrary: It makes you a better, stronger lawyer. Ending the stigma that lawyers experience when addressing mental health and wellness issues is critical to changing the statistics that haunt our profession. If you or someone you know is struggling with addiction, depression, mental health or some other issue, Florida Lawyers Assistance is available to help. Visit fla-lap.org to learn more. KATIE DEARING IS A 4TH JUDICIAL CIRCUIT JUDGE AND PRESIDENT OF THE JACKSONVILLE BAR ASSOCIATION.
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Page 14 • Thursday, February 7, 2019
THE BAR BULLETIN
Jacksonville Daily Record
COMMENTARY
Photo by Max Marbut
U.S. District Judge Timothy Corrigan and Kathy Para, who received a 2018 “Spirit of Giving” award in December from the Jacksonville Chapter of the Federal Bar Association.
The parting of a true giving spirit FRAZ AHMED JBA BOARD OF GOVERNORS
Kathy Para is leaving a legal aid legacy. I always will remember the first time I spoke with Kathy Para, which was around the time I got involved with the Jackson-
ville Bar Association. I was interested in pro bono work but had concerns about volunteering to practice in an area outside of my comfort zone. I called Jacksonville Area Legal Aid and was connected with Kathy, who encouraged me to accept a pro bono case. I explained to her my concerns and, without skipping a beat, she explained what I am sure she has explained hundreds of times before – and likely to many of you. She walked me through the process and the resources available for pro bono attorneys. She provided me with the most valuable resource, her cellphone number, and ended the call by saying, “call me any time.” That is the type of person Kathy is and
always has been. Asked about Kathy’s commitment to pro bono services, Bryan Gowdy, former president of the board of directors for JALA, said, “No one in Jacksonville in the last 20 years has done more for pro bono legal services than Kathy Para. Kathy didn’t just match an attorney with a client needing pro bono help. She raised the profile and importance of pro bono legal services with both the Bar and the bench, and perhaps most critically, outside of the legal community.” Kathy became involved with JALA in 2009 as the pro bono development coordinator. She has regularly served as the JBA Pro Bono Committee chair. Over the years, Kathy persistently tackled the many challenges
faced by JALA. The JBA has been and always will be dedicated to supporting JALA and its mission to serve those in need. In addition to accepting a pro bono case, there are other opportunities to assist thousands of people in our community through JALA. There are six Ask-A-Lawyer events where members of the public are able to speak with attorneys in 15-minute one-toone counsel and advice interviews. The Guardian Advocacy Pro Bono Project is a monthly clinic for family members who would like to establish guardianship of an adult child with special needs. There are many other projects and clinics that need volunteers.
We hope each of you was able to attend Kathy’s retirement celebration, but knowing Kathy, the best retirement gift for her would be for everyone to accept at least one pro bono case. Although no one could replace the lasting effect Kathy Para has had on Jacksonville’s residents in need of legal counsel and advocacy, we wish her the best moving forward. Good luck, Kathy. We will miss you and we thank you for all you have done. FRAZ AHMED IS A TRIAL ATTORNEY AT COKER LAW FOCUSING ON PERSONAL INJURY AND A MEMBER OF THE JACKSONVILLE BAR ASSOCIATION BOARD OF GOVERNORS.
Pro Bono: Thank you for sharing your expertise CONTINUED FROM PAGE 10
oppressed . . .” Now, realize the ripple effect in our community as a result of your efforts. Imagine the senior who is no longer facing the debt collector, the parent whose child will get the services she or he needs, the family whose eviction was avoided, the veteran whose benefits are restored, the granddaughter who has clear title to the family homestead, the truck driver whose license is reinstated. Left unresolved, these issues
can crush a family or individual. With these issues resolved, seniors enjoy life, children can thrive in school and at home, incomes are secured and families are stabilized. As I retire, I’m grateful for the relationships with you that have meant so much to me. I’m also pleased that Missy Davenport is taking over as the chair of the JBA Pro Bono Committee and as director of pro bono for Jacksonville Area Legal Aid. All of you comprise an invincible team and the future is bright for pro bono efforts in the 4th
Circuit. Thank you for sharing your expertise with generosity, compassion, determination, energy and creativity. Thank you for saying, “yes.” ATTORNEYS INTERESTED IN OPPORTUNITIES FOR PRO BONO INVOLVEMENT IN CLAY, DUVAL AND NASSAU COUNTIES ARE ENCOURAGED TO CONTACT MISSY DAVENPORT AT MISSY.DAVENPORT@ JAXLEGALAID.ORG. VISIT FLORIDAPROBONOMATTERS. ORG TO VIEW CASES AWAITING PLACEMENT.
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Missy Davenport, the new chair of the JBA Pro Bono Committe and director of pro bono for Jacksonville Area Legal Aid, and the retiring Kathy Para.
THE BAR BULLETIN
Jacksonville Daily Record
Thursday, February 7, 2019 • Page 15
COMMENTARY
Learn civility, the key to professionalism
DUVAL COUNTY JUDGE GARY FLOWER JBA PROFESSIONALISM & MENTORING COMMITTEE CHAIR
Follow these tenets to recalibrate this profession of ours and make it more than just a bottom-line business.
As I sat in my chambers thinking about what to write for this article, I found myself staring at the plaques presented by the American Board of Trial Advocates at each judge’s investiture that says, “Professionalism and Civility; Anything less will not be tolerated.” What does that mean? The best definition I have heard of professionalism was coined by U.S. District Judge Tim Corrigan: “Ethics is the floor and professionalism is everything above it.” Webster’s Dictionary defines “civility” as “polite, reasonable, and respectful behavior.” Among our peers, most leaders share common ideals of professionalism that include civility as a core value of professionalism. Why then does there seem to be
a lack of civility experienced by some of us on a daily basis? It boils down to a lack of education for which all of us who are seasoned share responsibility. It seems that our “learned profession” has devolved into more of a contest of words and expressions, far removed from intellectual argument well-founded in the actual facts of a matter. There is rank guesswork and bias, coupled with real law, and the often wrong, but never in doubt expression beginning something like: “Well your honor, I think….” Historically, the practice of law was viewed as an esteemed profession, practiced by intelligent and well-educated people seeking to do rightly by getting to the truth of a matter for the court or jury to judge.
Today, however, with the overarching pressure being money, and equating having that with success, much of the practice of our profession has been lost to a win-at-all-cost view that, frankly, degrades us all. Rather than experiencing the rare event of a lawyer’s passion getting the best of him or her during an argument, the norm is a verbal slug fest where shouting, name-calling and rude behavior are, sadly, accepted. What causes this? With society equating “more” with “best,” it seems that a lack of civility stems from competition for status, prestige and recognition. The practice of law should be a profession, not a business. It is a lawyer’s time and knowledge that are their stock in trade, not
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their red-faced shouting, and least of all not a fancy car, wristwatch or marble foyer. This profession is guided by ideals for which commercial business values and the mechanics of cost-benefit calculations are a poor substitute for the practice of a profession, including the mandate of civility. If we begin with the truth that civility and decorum are essential principles found in the rules of professional conduct, we must wonder why we are fighting this battle of civility. I have taken the liberty to lay out some tenets which I believe can help recalibrate this profession of ours and bring us back toward making the practice an esteemed profession rather than a bottom-line business: n Maintain competence in your area of practice and be willing to share your knowledge freely with younger lawyers. Develop a passion for excellence. n Maintain professional priorities. By doing so, you will be committed to the quality of your work and the interest of your clients, which will earn you the respect of your fellow Bar members, rather than disdain. n Be willing to accept, and act upon, feedback from your friends and colleagues. n If you don’t know the answer, ask. Many firms, organizations, and even the courthouse, have specific cultures that are not well-known to the masses. Because these cultures are unique to each entity, you can benefit greatly by observing, asking and adapting to those specific cultures. n The late Ed Austin always said, “Do the right thing for the right reasons.” That will always keep you on point and allow you to follow a path of ethics and excellence. n Become involved in the Bar. By immersing yourself in The Florida Bar, the Jacksonville Bar Association and other voluntary Bars, you will have resources you can use. None of us is alone in this journey. n Get a hobby. Healthy outside interests will defuse the stress of your practice. n Get a mentor whom you have seen consistently practice at a high level, including professional and civil behavior. Judges have mentors. Every good lawyer I know has someone that he or she can reach out to; a guide in practicing with professionalism and civility and in many of life’s decisions that affect us while we’re going through our travails in the practice of law. The JBA Professionalism and Mentoring Committee is here to help you and match you with someone who can assist you. n Write better and think better than your peers. OK, maybe I am not the best role model on this point, but I still recognize it as essential and strive for it. By striving for a high standard of competence, you will be able to maintain the role of a zealous advocate without being uncivil and unprofessional. I often hear it said: “I tried a case against him or her.” I hope by following the principles I noted, we can change the expression to: “I tried a case with him or her.”
Page 16 • Thursday, February 7, 2019
Jacksonville Daily Record/Jacksonville Record & Observer
THE MARBUT REPORT
Florida Coastal seeking nonprofit status
MAX MARBUT ASSOCIATE EDITOR
Law school also is working with a college merger partner. Since its first classes in 1996, Florida Coastal School of Law has operated as a for-profit institution and one of three members of the InfiLaw Corp. law school consortium. That may change. Florida Coastal has applied to the American Bar Association to transition the school’s corporate structure to not-forprofit under ABA Rule 29 and Standard 105: “Acquiescence for major change in program or structure.” Florida Coastal Dean Scott DeVito said Tuesday that if the change is approved, the school also no longer would be affiliated with InfiLaw, the Naples-based consortium that, in addition to Florida Coastal, involves two other law schools in Arizona and North Carolina. It will be an independent law school with an independent board of trustees. He said the application is part of a strategy that started
Special to the Daily Record
Legal big shots take home first-place trophy With a score of 370 out of a possible 400, from left, Circuit Judge Lance Day, Phillip Teague, Dan Powell and Victor Jubran were the winning team at the inaugural Jacksonville Bar Association Sporting Clays Shoot on Feb. 1 at Jacksonville Clay Target Sports. A portion of the proceeds from the event, sponsored by the Milam, Howard, Nicandri, Gillam & Renner law firm, will benefit Three Rivers Legal Services.
four years ago when Florida Coastal began increasing its academic requirements for admission. In 2018, the ABA notified the three schools that they were out of compliance with accreditation standards. The long-term strategy could include Florida Coastal partnering with an undergraduate institution. “The first step is to become a nonprofit law school. Then, if the board thinks it appropriate, we could merge with a nonprofit university,” said DeVito.
Florida Coastal is “working closely” with a potential merger partner, he said, but declined to name the potential partner, pending the ABA’s decision on the change in business status. “It’s not in Jacksonville, or in Florida, but it is in the Southeast,” DeVito said. InfiLaw has been cooperating with the change and would contribute the school’s assets to the new 501(c)(3), DeVito said. The application for status change could be considered
when the ABA Council of the Section of Legal Education and Admissions to the Bar meets in May, said Florida Coastal Dean of Academics Jennifer Reiber. “We’d like to be completely done by year’s end. It’s ambitious, but doable,” she said. As it proposes its independence, Florida Coastal is the last of InfiLaw’s schools that is admitting students. The consortium also included Charlotte School of Law in North Carolina. It closed in August 2017 after being put on probation by the
ABA for noncompliance with accreditation standards and then losing its federal student loan funding. Arizona Summit Law School in Phoenix was placed on probation for noncompliance in March 2017. It currently is involved in a one-year “teach-out plan” that will allow its students, until the end of the spring 2020 semester to earn credit toward their law degree as “visiting students” at ABA-approved law schools. “Apart from the administration and oversight of the Teach-Out Plan, the School will cease operations as an ongoing law school. The School will not admit any students and will not offer any credit-bearing courses,” according to the school’s website, azsummitlaw.edu.
Van Nortwick memorial Feb. 15 A memorial service for retired 1st District Court of Appeal Judge and Akerman partner William Van Nortwick Jr. is scheduled at 4 p.m. Feb. 15 at the Garden Club of Jacksonville, 1005 Riverside Ave. Van Nortwick died Jan. 12 at the age of 73. In lieu of flowers, the family requests contributions to Mayo Clinic, The Florida Bar Foundation or the V Foundation. MMARBUT@ JAXDAILYRECORD.COM (904) 356-2466
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