Jacksonville Record & Observer 2/28/19

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Feb. 28-March 6, 2019

Basch Report: Troubled Kraft Heinz could sell Maxwell House PAGE 6

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JACKSONVILLE

Record & Observer THE FUTURE OF REGENCY SQUARE MALL

Ulta Beauty plans look like fit for Jacksonville

STILL WAITING Record & Observer JACKSONVILLE

FOR A VISION JACKSONVILLE

The company, which intends to open an e-commerce center in the Southeast, matches the description of Project Flamingo.

Record & Observer

BY KAREN BRUNE MATHIS EDITOR

JACKSONVILLE

Ulta Beauty Inc. intends to open its first “fast fulfillment center” in the Southeast U.S. this year to improve its e-commerce speed of shipment.

In its November 2018 Analyst and Investor Day presentation, the Bolingbrook, Illinois-based company said its goal is two-day shipping by 2021.

The centers will be 175,000 to 200,000 square feet with “simplified operations.”

The description matches Project Flamingo, an unidentified distributor of private-label skin and hair care products considering Jacksonville.

An Ulta Beauty Inc. spokeswoman did not respond by deadline late Wednesday.

In legislative documents, Flamingo is described as “a national distributor of an assortment of private label skin and hair products.”

Ulta describes itself as “the largest U.S. beauty retailer and the premier beauty destination for cosmetics, fragrance, skin care products, hair care products and salon services.”

Flamingo wants to lease 200,000 square feet of e-commerce warehouse and distribution space in Northwest Jacksonville to serve customers in the Southeast creating jobs no later than year-end 2021. Construc-

Record & Observer Trash cans placed in walkways to catch water leaking through the roof and “wet floor” warning signs stand in a nearly empty wing of Regency Square.

Photo by Max Marbut

Five years after being sold to a New York investment group, the shopping mall is emptier, embroiled in lawsuits and its owner is considering selling the property.

BY MAX MARBUT ASSOCIATE EDITOR

When Regency Square Mall was sold five years ago this month, there was optimism that the new owners might bring revitalization to the Arlington landmark that was the largest enclosed shopping mall in the Southeast when it opened in 1967.

That hasn’t happened.

However, ownership said Wednesday that it is exploring options, including selling the property.

“We understand at the moment

Mathis Report: 3Natives bringing healthy fare to Mandarin PAGE 4 Courts & Law: Aging courthouse tech needs an upgrade PAGE 10 OBSERVER MEDIA GROUP

that the mall needs to be rethought as to where this property will go in the next 50 years,” said Elliot Nassim, president of Mason Asset Management.

“We are looking at all options.

We feel that these malls are in welllocated areas within the cities and they evolve, so we want to think with an open mind as to what else it could become,” he said late Wednesday.

Nassim said the ownership group will consider selling the asset and SEE REGENCY, PAGE 8

INSIDE n Council members

say there’s not much the city can do. Page 8

n Commercial real estate experts say mall’s future isn’t in retail. Page 9 n Regency Square Mall timeline.

Page 8

SEE FLAMINGO, PAGE 6

THE CAWTON REPORT

Anna Lopez Brosche on the Landing & more Council member running for mayor. PAGE 5 VOLUME 1, NO. 39 • ONE SECTION

Page 2 • Thursday, February 28, 2019

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An artist’s rendering of the Berkman II condominium site transformed into an entertainment center with a water park and Ferris wheel.

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DEVEOPMENT Berkman II entertainment center plans take step

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A $36 million incentives deal to transform the partially constructed Berkman II condominium along the Downtown Northbank into an entertainment center was introduced Tuesday to the Jacksonville City Council. The Downtown Investment Authority and 500 East Bay LLC are seeking incentives that include giving 2.8 acres of city land adjacent to the east side of the Berkman II to the developers, $20 million for project costs and more. The LLC is led by Florida-based owner Robert Ohde and Wisconsin-based manager Rhinelander Rentals LLC. The developers plan to renovate the partially built 17-story Berkman II into a 340-room hotel and add a water park, indoor and outdoor family entertainment amenities, parking garage and Northbank Riverwalk improvements.

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Skinner family in talks to sell Southside land Jacksonville’s Skinner family is negotiating to sell about 1,000 acres in Southside to two buyers. The property is at southeast Butler Boulevard and Interstate 295. The family declined to identify the prospective buyers. Most of the land is targeted for residential development and much of the rest is for commercial uses, indicating that it will be sold to groups with those focuses. “We really spent a lot of time getting what we think are the best builders and developers involved, so at the end of Skinner the day you will see that we have taken great pains to ensure the quality of the project,” said family representative A. Chester “Chip” Skinner III. The 1,063-acre property is the last large undeveloped Duval County site that remains of the Skinner family’s original 50,000 acres from the early 1900s. The rest has been sold and developed. The family has been working on plans to sell the property for development of housing, offices, retail and other uses.

HEALTH CARE Baptist plans ER at Oakleaf Town Center Baptist Health Properties Inc. is expanding into Southwest Jacksonville with a free-standing 20-bed emergency center scheduled to open in early 2020.

Jacksonville-based Baptist Health said the $23 million facility will offer adult and pediatric emergency care at the Oakleaf Town Center at Argyle Forest Boulevard and Merchants Way next to the First Coast Expressway. Baptist applied for a permit to build the center at a 9868 Family Place at a basic construction cost of $10 million. Baptist Health said the 19,000-square-foot facility will offer the same 24/7 level of care found in a hospital-based emergency department, with diagnostic services for adult and pediatric emergency patients including a full-service laboratory, CT scanner, ultrasound, X-ray and emergency medical transport with an on-site ambulance and LifeFlight helipad.

MANUFACTURING JinkoSolar ceremonially opens new factory JinkoSolar Holding Co. Ltd. ceremonially opened its $50.5 million solar-panel assembly plant in AllianceFlorida at Cecil Commerce Center. Based in Shanghai, China, JinkoSolar began pilot production at the plant in November and intends to reach full capacity in a few months. It is JinkoSolar’s first U.S. factory. Company representatives said JinkoSolar has more than 150 employees and will reach a staff of more than 200. “This is our most advanced facility,” JinkoSolar Co. Ltd. Chief Financial Officer Charlie Cao said.

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Megan Mangiaracino joined the Northeast Florida Land Trust as development director. She is responsible for fundraising, increasing the donor base and promoting the organization’s programs.

Mangiaracino was Mangiaracino associate director of development at the University of North Florida Coggin College of Business.

Lindsay Starner and Kevin Blalock were elected to the board of directors of the Jacksonville Arboretum &

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Thursday, February 28, 2019 • Page 3

Economist is bullish on Jacksonville

BY MARK BASCH CONTRIBUTING WRITER

As the current economic expansion approaches its 10-year anniversary in June, many forecasters worry that the good times can’t continue and we may be headed for a recession later this year.

But Gus Faucher, chief economist at Pittsburgh-based PNC bank, remains optimistic, particularly for the Jacksonville area.

“It’s one of the strongest economies in the country,” Faucher said in an interview during a visit to Jacksonville last week.

He pointed to Jacksonville’s low unemployment rate, which hovered near the 3 percent level for the past four months of 2018, and strong wage growth as positive signs for the area’s economy.

Faucher thinks the Jacksonville area unemployment rate could dip even further than its record lows from last year, although it will be difficult for the rate to fall much below 3 percent.

“There are limits, obviously,” he said.

The job market is so strong in Northeast Florida that businesses may have trouble finding enough qualified workers to fill openings, Faucher said. But that would benefit local job seekers who will be able to demand higher salaries to remain in their job or take a new one.

Even if Jacksonville’s economy is stronger than the rest of the country, a national recession would impact Northeast Florida.

However, Faucher doesn’t expect a downturn in the near future.

“I certainly don’t expect to see a national recession in 2019,” he said.

“In 2020 it’s possible,” he said, but “most likely 2021.”

Recessions result from imbalances in the economy, Faucher said, and he doesn’t see them, particularly when compared with the last U.S. recession a decade ago.

“We don’t have the same

“It’s one of the strongest economies in the country.”

GUS FAUCHER, CHIEF ECONOMIST AT PITTSBURGH-BASED PNC, ON THE JACKSONVILLEAREA ECONOMY

Looking ahead PNC Bank’s U.S. economic forecast for 2019:

2.7% Real GDP growth

1.8% Consumer Price Index increase

3.5%

Unemployment rate

Special to the Daily Record

overbuilding problem we had and the financial system is better capitalized,” he said.

“When I look at the underlying fundamentals of the U.S. economy, they’re pretty good.”

If the national economy falters, Jacksonville will fare better than other parts of Florida, Faucher said.

“It’s not as tourism-oriented as the rest of the state,” he said.

A national or international recession will likely reduce tourists visiting Florida.

Another reason Faucher has a

positive outlook for Jacksonville is continued strength in defense spending.

Not only is Jacksonville home to two U.S. Navy bases, it has other major businesses that benefit from defense contracts.

Just in the past two weeks, two companies were awarded new contracts by the U.S. Defense Department.

BAE Systems Ship Repair LLC was awarded a $23.2 million contract last week for work on two ships that will be done at BAE’s Mayport facility through

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If there is a downside to the Jacksonville economy, it’s that the area is lagging in high-tech jobs, Faucher said.

“It’s not as much of an education hub and it’s not as much of a high-tech hub,” he said.

However, on balance, Faucher expects Jacksonville’s economic trends to continue the strength they showed last year.

“2019’s likely to be a good year as well,” he said.

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May 2020. The contract includes options that could bring its total value to $55.4 million.

That followed the announcement of a $16.9 million award to Northrop Grumman Corp. for Naval aircraft maintenance services at the company’s St. Augustine Facility.

Faucher said another encouraging trend for the region is the current project to deepen Jacksonville’s port, which will allow bigger cargo ships to dock.

“I do think that’s a big deal,” he said.

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ECONOMIC TRENDS

Gus Faucher, the chief economist for PNC Bank, says a recession is likely in 2021 but that Northeast Florida would fare better than the rest of the state.

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Page 4 • Thursday, February 28, 2019

Jacksonville Daily Record/Jacksonville Record & Observer

THE MATHIS REPORT

$34 million Imeson Park warehouses in review

KAREN BRUNE MATHIS EDITOR

VanTrust Real Estate plans a 552,170-squarefoot speculative building in addition to a 300,000-square-foot center for Cra-Z-Art. VanTrust Real Estate LLC is preparing for the $33.7 million construction of two shell distribution centers – one for lease to Cra-Z-Art and a second as a speculative warehouse – at Imeson Park in North Jacksonville.

No contractor is listed for the warehouses, at 10501 Cold Storage Road.

The 552,170-square-foot speculative building is planned at a cost of $22 million.

The 300,000-square-foot distribution center for Cra-ZArt is listed as a $11.74 million project.

Interior build-out would be separately permitted, meaning the warehouses will be completed at a higher cost than the initial price.

Codes-ABC Inc. is the applicant and private plan reviewer.

The projects include the building construction, parking, utilities, roads and landscaping.

VanTrust Real Estate closed on the purchase of 156 acres in September from Imeson International Industrial Park

Special to Daily Record

An artist’s rendering of a 552,170-square-foot warehouse VanTrust Real estate is preparing to build at Imeson Park in North Jacksonville. Another building has a tenant, Cra-Z-Art, while this one is speculative.

Inc. for development of Imeson Park.

“We have already cleared and graded the site,” said Marc Munago, VanTrust vice president of development.

The city issued a permit in October for clearing and grading almost 149 acres at a cost of $250,000.

Through JI Imeson Industrial LLC, VanTrust paid $18.44 million for the property.

VanTrust intends to develop up to 3 million square feet of space at Imeson Park.

VanTrust said previously it intended to complete the 500,000-square-foot speculative building in fall 2019.

That building can be expanded, said VanTrust Executive Vice President John Carey.

“A number of tenants have shown interest in the building,” Munago said. The listing broker is Luke Pope, senior vice president in JLL’s Jacksonville office.

Munago said the building would be completed this year.

The city approved a permit Feb. 13 for the foundation for the Cra-Z-Art building.

Evans General Contractors of Alpharetta, Georgia, is the contractor.

Cra-Z-Art sells activity, art and school supplies, toys and stationery products and will relocate manufacturing and distribution from the Midwest and New Jersey.

Cra-Z-Art proposes to hire 21 full-time employees by yearend 2021 at an annual average wage of $53,298. City Council approved incentives in Novem-

ber for the project, known then as Project Buckeye.

VanTrust agreed to sell the completed building to The Silverman Group of Basking Ridge, New Jersey, which is leasing it to Cra-Z-Art. No tenant has been announced for the larger building.

Permit issued for 478,000-squarefoot warehouse

The St. Johns River Water Management District issued a permit to Industrial Park Investments Inc. for a surface water management system to serve the 250 Busch Drive E. project on 30.93 acres.

Orlando-based Industrial Park Investments released a

rendering of the warehouse it intends to develop the 478,000-square-foot warehouse at southeast Busch Drive East and North Main Street.

A JEA power availability letter calls it a warehouse with 200 employees and 102 loading bays.

JEA and city Planning Department documents show the property will have 337 parking spaces and 133 spaces for trailer parking.

Industrial Park Investments President Dan Webb said previously he expects to start construction in the second quarter but does not have a tenant for the building.

KMATHIS@ JAXDAILYRECORD.COM @MATHISKB (904) 356-2466

RESTAURANT NOTES

3Natives healthy lifestyle cafe coming to Mandarin The Florida-based 3Natives healthy lifestyle cafe intends to open at 11362 San Jose Blvd., No. 4, in the Gates of Olde Mandarin.

The city is reviewing a permit application for Restoration Management Specialties to renovate 1,174 square feet of space at a cost of $140,880.

Anthony Bambino founded 3Natives in 2013 in Tequesta as a 900-square-foot juice bar and it has 12 storefronts in Florida with five more opening this year, including in Jacksonville and two in Dallas.

The menu includes acai bowls, smoothies, coldpressed juices and shots, wraps and salads, avocado toast and bagels.

The chain is open in Boca Raton, Juno Beach, Jupiter, Orlando, Palm Beach Gardens, Palm City, Stuart, Tallahassee, Tequesta, Tradition and St. Lucie West in Port St. Lucie and West Jupiter.

The five coming soon are in Jacksonville, Boca Raton, Pembroke Pines and Dallas and Plano, Texas.

3Natives sells franchises.

Special to the Daily Record

The 3Natives Acai and Juicery in Port St. Lucie. The concept intends to open in the Gates of Olde Mandarin.

Tossgreen coming to 501 Riverside Riverside will gain a salad restaurant at the 501 Riverside building now that Tossgreen has applied for a permit to build-out on the ground floor.

The Tossgreen at 501 Riverside Ave. will be the second in the Downtown area.

It also operates in the SunTrust Tower, soon to be VyStar Tower, at 76 S. Laura St.

Jacksonville-based Tossgreen intends to lease 1,654 square feet of space in Suite 107 at the Riverside building, which is anchored by TIAA Bank.

The building is at Forest Street and Riverside Avenue.

Tossgreen owner Manali Patel said the opening tentatively is expected in mid-May. The restaurant will have internal and external access at the building. A permit application shows the build-

out cost as $35,000.

Tossgreen received Downtown Investment Authority approval last fall for a $33,080 forgivable loan to open the restaurant.

DIA documents show that the loan, forgivable over five years if the owner maintains employment and square footage requirements, will help pay for $294,834 in tenant improvements.

The restaurant owner is Bhalani & Sons – 4 Inc., of which Patel is president.

Tossgreen must maintain at least seven full-time equivalent employees a year.

For the SunTrust location, the DIA provided a retail enhancement forgivable loan.

Tossgreen also operates at St. Johns Town Center.

A location at Tinseltown is closed for renovations, according to the DIA term sheet.

Patel said that was not open yet and she is negotiating the lease.

More notes n Miraculous Delights LLC was issued a permit to

renovate space at 14035 Beach Blvd., No. 107, in the Palmetto Point center for Cold Stone Creamery and Planet Smoothie. Coastal Atlantic Inc. is the contractor for the $34,000 project in 2,400 square feet of space. n W.S. Partners LLC filed the fictitious name of Mack’s Tenders for a location at 100 Gateway Circle, No. 102. n St. Johns County issued a permit for Panera Bread at 876 Florida A1A N. in Ponte Vedra Beach. The 3,100-square-foot restaurant is being built at a cost of $400,000 in the Ponte Vedra Pointe Shopping Center. n Starbucks intends to build a 2,515-square-foot coffee shop with a drive-thru in St. Johns Square at 11240 Beach Blvd. on 0.78 acres.

The St. Johns River Water Management District is reviewing a permit application for the project. Bowman Consulting of Melbourne is the civil engineer.

Jacksonville Daily Record/Jacksonville Record & Observer

Thursday, February 28, 2019 • Page 5

Jacksonville mayoral candidate Anna Lopez Brosche says she’ll offer new approaches to how city government pursues Downtown development if elected this spring.

Brosche represents At-Large Group 1 on City Council and is challenging fellow Republican and Mayor Lenny Curry, who seeks a second term.

Republican Jimmy Hill and no party affiliate candidate Omega Allen also are in the race.

The unitary election is March 19. If no candidate secures 50 percent of votes plus one, the race will be decided in a May 14 runoff election.

Brosche met Monday with Daily Record editorial staff to discuss economic development, changes to the Downtown Investment Authority and her vision for the urban core.

LOW-HANGING FRUIT

When it comes to Downtown, Brosche said the city is missing out on what she called “low-hanging fruit.”

“I think it’s the tiny things that convey that even we don’t care about Downtown,” said Brosche, who contends that some of the smallest issues

AN INDEPENDENT DIA

Brosche was critical of what she perceives to be the Downtown Investment Authority’s

lack of independence from the mayor’s office.

The agency was established in 2012 to oversee Downtown development and comprises nine board members. A CEO oversees the DIA staff.

Brosche contends that “like a lot of boards and independent authorities, it is an extension of the mayor’s office,” saying it is troubling to have the mayor’s chief of staff, Brian Hughes, serving as interim CEO as the agency seeks a permanent hire.

“I will not be stacking independent authority boards with my friends,” Brosche said.

“I want people to utilize their expertise to ask great questions, to challenge what’s happening and to make sure that it’s right for all of Jacksonville,” she said.

Brosche said if elected, she would not usurp independent agencies like DIA or dictate to board members that her own agenda be adopted, as she believes Curry’s administration does now in private.

She said an independent DIA is better because “we need people focused on Downtown development, regardless of who the mayor is.”

She also questioned a strategy that she says focuses too much energy on bringing development inward as Downtown’s surrounding neighborhoods – Brooklyn, LaVilla, Springfield, Riverside and San Marco – continue to grow.

“There are some that are challenged with the think-

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JACKSONVILLE LANDING

When an agreement was announced between the city and Sleiman Enterprises Inc. to place the Jacksonville Landing in the city’s possession, Brosche’s campaign issued a statement questioning the timing of the deal.

The plan includes the city buying Sleiman out of a 56-year lease agreement for $15 million, plus $1.5 million to address tenant subleases and relocation costs.

Brosche said Monday she takes issue with the city planning to spend $1.5 million to demolish the structures without a public development strategy.

“I’m not sure that’s wise,”

she said.

She said potential voters she’s spoken with are against creating a Downtown riverfront park in place of the Jacksonville Landing. Last year, the mayor’s office released renderings showing an urban park with some mixed-use elements at the site.

The administration called it a “launching pad for ideas” and not a set plan.

Brosche said any plan should engage the riverfront and provide pedestrian access.

She said the trend of demolition along East Bay Street is another concern.

“The wisdom of knocking down buildings before we know exactly what’s going to happen there seems to be questionable,” she said.

The city is demolishing the old City Hall Annex and Duval County Courthouse to prepare those sites for development.

The DIA is expected to solicit bids from developers this spring, with the goal of having a deal in place by year-end.

Without naming a suitor, Brosche said she’s heard the Landing property already is being shopped to what she called a “well-known” developer.

“It wouldn’t surprise me to see a chain of events that lead it in that direction.”

DCAWTON@ JAXDAILYRECORD.COM @DAVIDCAWTON (904) 356-2466

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ing that activity is just going to spread because you do it in Brooklyn or maybe at the Shipyards to the historic Northbank,” she said.

Brosche said the DIA needs to pursue more infill development for the urban core in addition to growing surrounding neighborhoods.

She said the current business model is the opposite of how other cities operate – where activity and investment in downtown pays for the growth in outer areas.

“Our formula isn’t in that direction now,” she said.

To do that, Brosche said she would propose more funding for the DIA to offer grants and incentives, to add lighting and to possibly pay to alter oneway streets.

“

Jacksonville mayoral candidate says issues like poor lighting and one-way streets are hurting Downtown.

Photo by Max Marbut

Jacksonville mayoral candidate and City Council member Anna Lopez Brosche questions the demolition of Downtown buildings, like the former City Hall Annex, Duval County Courthouse and potentially the Jacksonville Landing.

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DAVID CAWTON ASSOCIATE EDITOR

contribute the most to a negative perception that doesn’t match reality.

She said improving lighting at night and addressing cleanliness would be easy cures for those perceptions.

“We’ve got businesses that are taking risks to be here,” Brosche said.

“It’s hard to remain committed when there’s so much going on here that’s causing some of our businesses to say, ‘Gosh why am I doing this?’,” she said.

The lack of adequate lighting is what she says sets Jacksonville apart from other cities.

Another issue is Downtown’s grid of one-way streets that she says creates confusion and presents safety problems for pedestrians.

“We’ve got one-way streets Downtown that turn our roads into highways at certain times of the day,” she said.

Those one-ways, she said, also can harm business because they may not be as accessible to drivers compared to a traditional configuration.

She said funding for more lighting and to alter streets is available in the Capital Improvement Program budget, but is not a priority for the current administration.

Brosche said business owners also complain about a growing homeless population and how that deters customers from coming to the core.

“We need to have a caring and compassionate response to our homeless brothers and sisters,” she said. That could include more funding for day shelters or for short-term housing.

Brosche suggested the city create stronger partnerships with mental health providers since that’s a common issue in that community.

THE CAWTON REPORT

Brosche talks Downtown development, DIA changes

Page 6 • Thursday, February 28, 2019

Jacksonville Daily Record/Jacksonville Record & Observer

THE BASCH REPORT

Kraft Heinz could sell Maxwell House business

MARK BASCH CONTRIBUTING WRITER

Maxwell House’s last remaining U.S. coffee plant is in Downtown Jacksonville.

In the wake of a disastrous fourth-quarter financial report, Kraft Heinz Co. may sell its Maxwell House coffee business, which includes an iconic Downtown Jacksonville plant.

The almost century-old facility at 735 E. Bay St., which employs about 200 people, is Maxwell House’s last remaining U.S. coffee plant.

CNBC reported Sunday, citing unnamed sources, that Kraft Heinz retained investment banker Credit Suisse to review options for Maxwell House including a potential sale as the company restructures its business.

The CNBC story followed Kraft Heinz’s report last Thursday that it lost $12.6 billion in the fourth quarter because of a noncash charge related to valuations of certain assets, including its Kraft and Oscar Meyer brands.

Kraft Heinz also disclosed in its quarterly report that the Securities and Exchange Commission is investigating the company’s accounting policies, procedures, and internal controls related to procurement.

That late Thursday report sent Kraft Heinz’s stock down $13.23 to $34.95 on Friday.

Kraft Heinz does not report financial data for individual brands. But during its conference call with analysts last week, CEO Bernardo Hees did say “we ended the year with positive consumption growth from improvements in coffee and cheese” in the U.S. and Canada.

That was the only reference to the coffee business in the call.

Kraft Heinz produces coffee products under several brands besides Maxwell House, including Gevalia and Tassimo.

Flamingo CONTINUED FROM PAGE 1

tion would start by the end of 2019.

Ulta wants to open its first fast fulfillment center in 2019 and is looking at the Southeast U.S. Flamingo has earned City Council approval.

Council approved Resolution 2018-828 on Jan. 8 to support a $1.425 million city grant for the project.

Flamingo plans to invest $37.5 million, comprising $24 million in machinery, equipment, furniture and fixtures, and to lease space in a Northwest Jacksonville building to be constructed for $13.5 million, according to

City of Jacksonville photo

The Maxwell House coffee plant in Downtown Jacksonville opened in 1924. The future of the factory could be uncertain if Kraft Heinz sells the its Maxwell House coffee business.

While Ameris Bancorp moved its executive offices to the Riverplace Tower on Jacksonville’s Southbank three years ago, the banking company still officially lists its headquarters as Moultrie, Georgia.

However, a preliminary proxy statement filed for its proposed acquisition of Fidelity Southern Corp. finally acknowledges Jacksonville as its corporate headquarters.

As Ameris negotiated terms of the merger with officials of Atlanta-based Fidelity Southern in September, “Ameris also reaffirmed its intent for Atlanta, Georgia to be the location of its bank headquarters and operations center following the transaction with its holding company headquarters remaining in Jacksonville, Florida,” the proxy said.

When Ameris announced the deal in December to buy the parent company of Fidelity Bank for stock valued at $751 million, it did say the bank subsidiary would be headquartered in Atlanta and the executive offices would be in Jacksonville. However, it also said Moultrie would remain the official holding company headquarters.

Whether Jacksonville is named the official headquarters or not doesn’t change anything. The company has said all along that Atlanta and Jacksonville will be two key markets for the bank after the merger.

According to the proxy, negotiations started after an “informal discussion” between Ameris CEO Dennis Zember and Fidelity Southern President H. Palmer Proctor in June 2018.

As negotiations began, “Zember discussed his vision to create a community bank of choice for top bankers and customers in the Southeast that could disrupt the market leading position of the large

the legislation.

Council members approved a Recaptured Enhanced Value grant worth up to 50 percent of the net increase in real and tangible property taxes over 10 years.

Flamingo will need to hire its full-time employees by the end of 2021. The positions will average $46,346 annually. The company also could hire 400 seasonal workers, although those jobs are not tied to the incentives.

The legislative fact sheet says that city-backed financial incentives are a material factor in the unidentified company’s decision to consider Jacksonville over locations in Alabama, Florida, Georgia and South Carolina.

Ulta Beauty is a publicly trad-

ed company that calls itself the largest U.S. beauty retailer. It has grown to become the top national retailer offering “the complete beauty experience,” it says.

As of Nov. 3, it operated 1,163 retail stores across the country and also distributes its products through its website. It projects 1,399 stores by year-end 2021.

It operates seven stores in Northeast Florida.

The company operates five distribution centers in Romeoville, the Chicago-area center that opened in 2012; Chambersburg, Pennsylvania; Greenwood, Indiana; Dallas; and Fresno, California, which opened in 2018. The presentation shows a Phoenix center is closing this year.

The centers are 300,000

CNBC said Maxwell House generates about $400 million a year in earnings before interest, taxes, depreciation and amortization, citing “people familiar with the matter.”

CNBC said those people speculated a sale could fetch $3 billion for Kraft Heinz.

A Kraft Heinz spokesman said Monday the company does not comment on “rumors or speculation.”

The Jacksonville plant opened in 1924, replacing another coffee plant across Bay Street that had opened in 1910.

The plant became known for its illuminated coffee cup sign that was installed in 1955, and for the smell of coffee that permeates the Downtown area on windy days.

The plant also became a symbol of the city’s commitment to manufacturing jobs in 1990 when Maxwell House decided to close one of its two East Coast plants.

City business and political leaders started a “Keep Max in Jax” campaign to demonstrate its commitment, and Maxwell House instead closed its plant in Hoboken, New Jersey.

Maxwell House sold off a plant in Houston in 2006 and closed its last other U.S. facility in San Leandro, California, in 2017.

Ameris proxy notes Jacksonville as HQ

regional banks and the progress that Ameris had made through its recent acquisitions,” the proxy said.

“Zember explained that the key to building such a franchise included sufficient size and scale, market presence, reputation, low-cost deposit funding, a strong balance sheet and an exceptional leadership team.”

Pro forma financial data in the proxy shows the merger, if it had been completed at the beginning of 2018, would have diluted Ameris’ earnings.

Ameris reported earnings of $1.85 a share for the first nine months of the year but if the merger had been completed, its earnings would have been $1.67, it said.

The merged bank would have had $16.5 billion in assets and $13.2 billion in deposits as of Sept. 30.

The two banks combined have 191 offices in Florida, Georgia, Alabama and South Carolina. That includes 26 branches in the Jacksonville market and 72 in the Atlanta area.

Fidelity Southern is not related to Jacksonville-based title insurance company Fidelity National Financial Inc.

Advanced Disposal earnings flat Advanced Disposal Services Inc. reported adjusted fourthquarter earnings of 13 cents a share, equal to its earnings in the fourth quarter of 2017.

The Ponte Vedra-based waste management company said revenue rose 2.7 percent in the quarter to $394.8 million.

“As we look forward to 2019, we continue to see a favorable backdrop for our core solid waste business. The pricing environment remains favorable and while volume growth is important, we will not sacrifice price to achieve near-term volume gains,” CEO Richard Burke said in Advanced Disposal’s conference call with analysts Friday.

Burke said Advanced Disposal grew with 12 relatively small acquisitions in 2018 and he expects more this year.

“Our acquisition pipeline remains strong and for 2019, we expect to spend $50 to $75 million over the course of the year versus our typical $30 to $50 million target,” he said.

“These deals will fit our market selection, which prioritizes profitable existing markets where we can inter-

square feet or larger.

The first fast fulfillment center will be a distribution center that services only e-commerce orders, is capable of fulfilling up to 30,000 orders per day during peak periods, holds about 25,000 SKUs and a smaller footprint of 175,000 to 200,000 square feet with “simplified operations.”

The presentation said a fast fulfillment center has substantially lower build and implement costs, reduced overall build timeline, less operating complexity and decreased inventory safety stock requirements.

Ulta reduced its e-commerce order cycle to three days and reduced the cost per shipped item by 25 percent. It reported that e-commerce sales rose

nalize waste and improve density, new vertically integrated markets where we can expand our operating footprint and disposal-neutral markets.”

Elections help Graham TV stations Graham Holdings Co., owner of Jacksonville independent television station WJXT TV-4 and CW network affiliate WCWJ TV-17, said its broadcast group benefited from election-related advertising in the fourth quarter.

Graham said revenue from its group of seven television stations jumped 37 percent to $152.6 million, helped by a $38 million increase in political ad revenue.

With the revenue jump, operating income for the broadcast division rose 86 percent to $73.4 million.

Graham, which has diversified from a media company into a holding company for several types of businesses, reported total adjusted earnings for the quarter of $75.6 million, or $14.18 a share, up from $43.2 million, or $7.77 a share, in the fourth quarter of 2017.

Flowers Foods names new CEO Flowers Foods Inc. last week said Chief Operating Officer Ryals McMullian will become president and CEO, succeeding the retiring Allen Shiver after the company’s annual meeting this spring.

McMullian, 49, joined the bread and bakery company in 2003 and became chief operating officer in July 2018.

Shiver, McMullian 63, has been with Flowers for 41 years and became CEO in 2013.

Thomasville, Georgia-based Flowers produces bread brands including Nature’s Own, Wonder and Dave’s Killer Bread.

The company operates a bread bakery at 2261 W. 30th St. in Jacksonville.

It also owns a shuttered Hostess Brands Inc. plant 201 Busch Drive E. that Flowers acquired, along with 19 other Hostess plants, in a bankruptcy sale in 2013.

MBASCH@ JAXDAILYRECORD.COM

from $200 million in 2015 to about $800 million in 2018.

Several distribution centers in Jacksonville appear to fit the needs, including the Park 295 Industrial Park at Interstate 295 and Duval Road.

A marketing flyer for that project shows the first 552,634-square-foot building under construction has leased 203,463 square feet to an unidentified tenant.

Property representative Ladson Montgomery, Newmark senior vice president and principal, said Wednesday he had no comment.

KMATHIS@ JAXDAILYRECORD.COM @MATHISKB (904) 356-2466

Jacksonville Daily Record/Jacksonville Record & Observer

Thursday, February 28, 2019 • Page 7

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, Nassau and St. Johns counties. The sales were recorded Feb. 19-22.

File image

NorthPoint Logistics Center sold for $49 million, a 48 percent increase over its previous sale in 2015.

$49,000,000

$3,300,000

$2,541,000

$2,250,000

$1,737,000

11530 New Berlin Road, Jacksonville, Duval County

1707 Huron St. Jacksonville, Duval County

4575 Coastal Highway, St. Augustine, St. Johns County

3500 S. Fletcher Ave., Fernandina Beach, Nassau County

2575 Florida 16, St. Augustine, St. Johns County

Type: NorthPort Logistics Center Size: 76.82 acres Buyer: GCP Northport LLC Seller: RCS Northport CAN LLC and RCS Northport CPY LLC Previous sale: $33,000,000 in 2015

Type: Warehouse Size: 4.66 acres Buyer: Coca-Cola Beverages Florida LLC Seller: Commercial Warehousing Inc.

Type: Vacant residential Size: Not available Buyer: IGS Diamond S Inc. Seller: South Ponte Vedra LLC

Type: Single-family Size: 0.82 acres Buyer: Philip R. Kienle and Debora Jean Greiner-Kienle Seller: Robert L. and Helen F. Walter

Type: Commercial Size: 1.34 acres Buyer: Live Oak Property Holdings LLC Seller: Lumber Salisbury LLC Previous sale: $1,000,000 in 2017

$1,700,000

$1,625,000

$1,478,600

$1,131,000

$974,500

51 Beach Ave., Atlantic Beach, Duval County

539 Le Master Drive, Ponte Vedra Beach, St. Johns County

303 Centre St. and N. Third St., Fernandina Beach, Nassau County

121 Annapolis Lane, Ponte Vedra Beach, St. Johns County

Ancient Island Drive, St. Augustine, St. Johns County

Type: Single-family Size: 0.27 acres Buyer: Robin O. and Tabitha L. Sorensen Seller: Al and Suela Mansur Previous sale: $1,300,000 in 2016

Type: Single-family Size: 0.46 acres Buyer: Danny R. and Eunice C. Carmichael Seller: Walter T. and Janna B. McNicholas Previous sale: $785,000 in 2011

Type: Office and parking lot Size: 0.29 acres Buyer: CAB on Centre LLC Seller: Santa Maria Partnership

Type: Single-family Size: 0.41 acres Buyer: Joshua Putterman and Melissa F. Dionne Seller: Stephen F. Pineault and Kathleen L. Boss Previous sale: $1,870,000 in 2016

Type: 10 residential lots Size: Not available Buyer: Dream Finders Homes LLC Seller: ANT JV Owner LLC

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Page 8 • Thursday, February 28, 2019

Jacksonville Daily Record/Jacksonville Record & Observer

REGENCY SQUARE MALL Regency Square Mall 9501 Arlington Expressway Opened: 1967 at 780,000 square feet

Sold: 1991 to General Growth Properties Inc. for $71.8 million.

Sold: 2014 to partnerships of Mason Asset Management and Namdar Realty Group for $13 million.

Developer: Regency Centers Corp.

Mall timeline 1967: Anchors include J.C. Penney, May-Cohens, Furchgott’s, Woolworth, Piccadilly restaurant and Regency Cinema 1979: Sears Roebuck & Co. buys 10 acres 1981: Mall expands to 1.4 million square feet with anchors Sears, Montgomery Ward and relocating J.B. Ivey & Co. as well as additional shop space in the west wing.

1985: Furchgott’s closes.

1988: Maison Blanche buys May-Cohens 1990: Ivey’s becomes Dillard’s; Piccadilly moves to stand-alone building.

1992: Dillard’s buys 10 acres and builds a twostory,191,432-square-foot store; Gayfers buys Maison Blanche; Montgomery Ward Land Co. pays $5 million for the 7.53-acre former Ivey’s property and twostory, 129,402-square-foot building.

1997: Woolworth closes.

1998: Regency Square Mall undergoes $30 million renovation to include the stand-alone AMC Regency 24 theaters; Regency Cinema closes in the mall; Dillard’s Inc. buys Gayfers and sells it to Belk; Jacksonville Sheriff’s Office installs substation.

2001: Montgomery Ward closes.

2003: Montgomery Ward sells property to RS Properties Inc. 2006: Homeworks Furniture opens and closes in Montgomery Ward space.

2013: General Growth Properties lists mall for sale.

2014: Namdar Realty Group and Mason Asset Management (Regency Mall Realty LLC, Regency CH LLC and Regency Nassim LLC) buy the mall, including the AMC Regency 24 and Montgomery Ward property.

2015: Belk closes and moves; 30 West Pershing LLC pays $26.2 million for the AMC Regency 24.

2016: Sears closes its twostory, 216,711-square-foot store. Impact Church of Jacksonville Inc. pays $7 million for the two-story, 188,827-square-foot Belk space.

2018: Kay Jewelers leaves; permits submitted for Foot Locker and Champs Sports to move across the street.

2019 mall size: About 996,500 gross square feet on about 74 acres, excluding AMC, Dillard’s, Sears and Impact Church.

Remaining retailers Stores listed on the mall’s website as of Wednesday: Anchors

n J.C. Penney Co.

Inc. n Dillard’s Clearance Center Others n 5 Bucks or Less n Auntie Anne’s n Autographics n Bath & Body Works n Boba Blends n Boost Cellular Sales n Champs Sports n Decor Jewelry n Carelumina n Dentmall of Florida n Event Planning Center

n First & Twelfth n Firestone n GameStop n GNC Live Well n I Love Music

Foundation n Jimmy Jazz n Kids Foot Locker n LensCrafters n Metro by T-Mobile n Milan Jewelers n Mischief n Modern Furniture by Matisse n Onyx Allure n Papa KimInstyle n Piercing Pagoda

n Record Town n Regency Health

Food n Rogers Jewelry n Signature Perfume Regency n Sports Mania n Tokyo Sakura n The Uniform Store n Victoria’s Secret n Wigzmore Also listed is International Decor Outlet, which does not operate and is in litigation with the landlord.

Source: Published reports, Regency Square Mall’s website; Duval County Property Appraiser; Duval County Clerk of Courts

By Scott Sailer, Editorial Research Director

Photo by Max Marbut

Three vendors are all that remain in the the food court at Regency Square Mall.

Regency CONTINUED FROM PAGE 1

is discussing the mall property “with several interested parties for different uses.”

Nassim said his group would keep in touch with the city and neighborhood groups about the plans.

“We want to do what’s best for the city and the area,” he said.

A partnership of Mason Asset Management and Namdar Realty Group LLC, both based in Great Neck, New York, paid $13 million Feb. 14, 2014, for the mall. At the time, the property was assessed at more than $30 million.

The companies specialize in acquiring aging shopping centers and regional malls.

According to Mason Asset’s website, the company was founded in 2010 and has grown to own and operate more than 120 shop-

ping centers in the U.S., including 45 regional malls similar to Regency Square.

The website indicates that Mason Asset Management looks for centers of at least 50,000 square feet that can be purchased for $1 million or more and the company is “aggressively looking to acquire” and “willing to accept ANY type of risk.”

PROFIT FOR INVESTORS

When Regency Square opened nearly 52 years ago, it was filled with more than 100 department stores, boutiques, specialty retailers and food vendors from full service to fast food.

By 2012, occupancy had dropped to 60 percent. Two years later, when Mason Asset and Namdar took over, the seller, General Growth Properties, reported it was about 38 percent occupied.

In the past five years, Sears Roebuck & Co. closed its store at the west end of the mall and Belk

closed its department store in the center of the mall and moved into a new building at Atlantic and Kernan boulevards.

The Dillard’s department store at Regency was converted into a clearance center that’s open six days a week.

Smaller national-brand stores left Regency in favor of locations in nearby shopping centers, including Kay Jewelers. It soon will be followed by Foot Locker and Champs, which are buildingout retail space across the street from Regency Square.

Many locally based small businesses also have closed their stores at Regency Square and just two food vendors and a frozencoffee shop are the only options remaining in the mall’s food court.

While the tenants have been dwindling, Mason and Namdar more than doubled their initial investment about a year after they acquired the 900,000-squarefoot mall on the 110-acre site.

Council members say there’s not much city can do but ‘wait and see’ John Crescimbeni recalls witnessing the decline at his Hickory Farms store inside the mall.

BY DAVID CAWTON ASSOCIATE EDITOR

City Council member John Crescimbeni opened his Hickory Farms franchise in Regency Square Mall in the fall of 1981.

“Back then I could take a few sticks from the yard, spray paint them gold and t h ey ’d se l l because that’s how busy Regency was back then,” he said.

“It was a fantastic retail Crescimbeni o p e r a t i o n ,” Crescimbeni said. He is the AtLarge Group 2 council member and a longtime resident of Arlington.

He said the store transitioned to seasonal hours in 1992 along with other Hickory Farm franchises until 2007.

“In the early-2000s, I started noticing shoppers and City Council constituents that I knew

from Arlington shopping at The Avenues,” said Crescimbeni, who also operated a franchise at that mall, built in 1990 at Southside Boulevard and Philips Highway.

“That concerned me because they were driving past Regency eight or nine miles to go there,” he said.

He said today that Regency Square and its retailers suffer from a lack of visible marketing by the mall’s ownership and a dying retail format of an enclosed mall.

“It’s a dinosaur,” Crescimbeni said. “That’s not the thing anymore. Now we build malls like the Town Center.”

Town Center is a lifestyle center with outdoor access to the stores rather than operating as an enclosed mall.

District 1 council member Joyce Morgan said there’s a difference between how Regency Square’s owners value their property and how owners of surrounding strip malls do.

“They care and you can see that because they’re reinvesting in their properties,” said Morgan whose district includes Regency.

“Compare that to the absentee owners of Regency Square.”

Both council members said they have not met with the mall’s ownership group.

“It’s a shame because the mall manager does a lot for the area and is extremely helpful and accommodating to me and our constituents,” Morgan said.

Both said the shopping and dining in the Regency area seem to be healthier in 2019.

They also agreed that Morgan t h e re ’s n o t much council members can do about the mall, since the city doesn’t own the property.

“There are so many ways to repurpose that building, but we’ll have to wait and see,” said Morgan.

Crescimbeni said it’s going to take neighborhood residents supporting local businesses and not driving to other parts of town to shop and eat if the mall is ever going to rebound.

“If you’re eating out at the Town Center or wherever and not in the Regency area, then you’re contributing to the problem,” he said.

DCAWTON@ JAXDAILYRECORD.COM @DAVIDCAWTON (904) 356-2466

Jacksonville Daily Record/Jacksonville Record & Observer

Thursday, February 28, 2019 • Page 9

REGENCY SQUARE MALL The resurgence around Regency Six neighborhood strip and power centers near Regency Square Mall are resurging as Regency Square Mall sees shrinking occupancy, now about 45 percent, not counting the vacant Sears that is owned by the company. Investors bought most of the neighboring centers in recent years and have boosted occupancy to a healthy 90 percent and higher.

Photo by Max Marbut

J.C. Penney is the remaining department store in the east wing of the mall.

In 2015, the AMC Regency 24 movie theater outparcel was sold to a theater-ownership group for $26.2 million.

In 2016, Impact Church of Jacksonville Inc. bought the former Belk store for $7 million.

While Mason Asset Management lists the mall at 1.39 million square feet in marketing materials, the size is smaller when the separately owned Sears, Dillard’s and former Belk properties are taken out of consideration.

The ownership group appears to control about 1 million square feet and that appears to be less than 50 percent leased.

MALL OWNER SUED

In the past five years, Regency Square has become the focus of litigation.

Two prospective tenants who signed leases since the sale, but didn’t open their businesses, wound up in court with the owners, contending that the landlord didn’t meet the terms of the leases regarding the mall’s suitability for occupancy.

On Feb. 1, JAAMM Inc., a Jacksonville corporation that proposed opening an automobile and motorcycle museum in the former Montgomery Ward store at the mall, was granted a final judgment of foreclosure for a $135,000 mechanic’s lien and other costs totaling nearly $163,000.

The company filed the lawsuit in June 2017, alleging that the landlord did not repair roof leaks and failed to reimburse JAAMM for improvements it had made in the space.

To satisfy the lien and foreclosure, the mall is scheduled to be auctioned March 21 by the Duval County Clerk of Courts.

The landlord disputes the final judgment and has filed a motion for a rehearing that was pending as of Wednesday.

Nassim said Wednesday the property will not be sold at the “sheriff’s sale,” but declined further comment. “I generally don’t comment on pending litigation,” he said.

Another lawsuit was filed in July 2017 against Regency’s owners by International Decor Outlet LLC. It was a Jacksonville company that in November 2015 negotiated a 10-year lease beginning in April 2016 for nearly 200,000 square feet in the west wing of the mall.

International Decor’s plan was to sublease the storefronts to third parties that sell home furnishings and home improvement products, as well as to a sportsthemed restaurant.

According to the lawsuit, after executing the lease agreement, the landlord denied access to the space, making it impossible for IDO to show and market the storefronts to potential tenants.

In addition, the complaint alleges that the air conditioning did not work and the landlord failed to repair it; that there were

Uncertain future of chain stores The lone remaining department store anchor in the east wing at Regency Square Mall is J.C. Penney but as that company struggles, the future of the store is uncertain.

J.C. Penney Co. Inc. plans to share information on “future store closings” Thursday when it releases its fourth-quarter financial report.

A spokesperson for Bath & Body Works and Victoria’s Secret, which are owned by L Brands, said in an email, “We have not made any announcements regarding our stores at Regency Square Mall and do not have any additional information to provide.”

By Mark Basch, Contributing Writer

“significant and multiple roof leaks” in the space; and that reasonable housekeeping and security services were not provided.

The lawsuit seeks a jury trial to recover damages and cancel the lease agreement. The next pretrial hearing is scheduled in May in circuit court.

The landlord’s attorney, Patrick Coll with Smith Hulsey & Busey, did not respond to an email requesting comment.

TENANTS TALK FUTURE

Jim Robison opened Regency Health Foods in the mall in 1978.

He said the owners maintain the property reasonably well, but they haven’t been able to replace tenants that have left the mall, and the high vacancy rate has led to fewer people shopping at Regency Square.

“We don’t have the traffic. We need more shopping options,” said Robison.

“The overall condition of the building is not bad,” said Tom Phillips, who opened his Sports Mania team apparel store at Regency four years ago.

Both business owners believe if Regency Mall is to improve, it will take more stores and more involvement with the community.

“There has to be a clear plan and vision for Regency. That will take Namdar and the community coming together,” said Phillips.

“I’d like to see more public events in the mall,” Robison said.

“Regency Square has good memories for me. I wish it would turn around.”

MMARBUT@ JAXDAILYRECORD.COM (904) 356-2466

REGENCY COURT 9200-9398 Arlington Expressway

SOUTHSIDE COMMONS 660 Commerce Center Drive

Owner: Mishorim Gold Jacksonville LLC Acquired: November 2017 for $5 million Size: 220,000 square feet Anchors: Surge Adventure Park, SK8 City, 13th Floor Haunted House, Class Axe, K&G Fashion, Honeybaked Ham, Longhorn Steakhouse Occupancy: 95 percent

Owner: Sleiman Enterprises Developed: 2005 Size: 279,304 Anchors: Ross Dress for Less, Bealls, Michaels Stores, Church of Eleven22 Occupancy: More than 90 percent

REGENCY PLAZA 9822-9840 Atlantic Blvd

Owner: CB Squared Investments LLC; Core Atlantic LLC; Core Atlantic Manager LLC Acquired: October 2018 for $9 million Size: 74,000 square feet Anchors: Aldi, Ashley HomeStore Outlet Occupancy: 95 percent

Owner: America’s Realty LLC Acquired: June 2018 for $10.8 million Size: 205,700 square feet Anchors: Burlington Stores Inc., OfficeMax, Chuck E. Cheese’s, dd’s Discounts Occupancy: 99 percent REGENCY POINTE 9402-9450 Arlington Expressway Owner: Sandor Development Acquired: June 2016 for $4.2 million Size: 67,000 Anchors: ChenMed Dedicated Senior Medical Center, Skechers Outlet; soon to be Foot Locker and Champs Sports, relocating from Regency Square Mall Occupancy: 96 percent percent*

CB SQUARE 9333 Atlantic Blvd.

REGENCY PARK SHOPPING CENTER 9400 Atlantic Blvd.

Owner: Brixmor Property Group Acquired: 1997 Size: 334,065 Anchors: American Signature Furniture, Ollie’s Bargain Outlet, Books-A-Million, Bealls Outlet and coming soon, Celebration Church Occupancy: 89.3 percent

*Landlord did not respond but said in December leases were in negotiation to raise occupancy to 96 percent.

Experts shed light on why mall ‘is done with retail’ From competition and economic trends to fractured ownership, they say the property’s future will be in other uses, like apartments.

BY KAREN BRUNE MATHIS EDITOR

Two veteran commercial real estate retail specialists don’t see Regency Square regaining its status as a regional mall, for many reasons.

“I think Regency Square is done with retail,” said Geneva Henderson, executive vice president of Lat Purser & Associates Inc. “I hate to say that because that was the retail mecca forever.”

“With the changing dynamics of retail, in particular traditional department stores, I cannot see it ever coming back as a regional mall,” said Collis McGeachy, vice president with CBRE. One reason is competition.

Henderson River City Marketplace, which opened in 2006, is keeping customers in North Jacksonville who previously patronized Regency, and St. Johns Town Center, opened in 2005, signed major tenants who repositioned the market to South Jacksonville.

A second is that national tenants within Regency are moving to smaller shopping centers, whether across the expressway or east to the Kernan and Atlantic boulevards retail center.

Some retailers already have stores at the Town Center or The Avenues.

A third is that multiple ownership at the mall, with Sears, Dillard’s and Impact Church owning their properties, makes it challenging to make a cohesive decision.

A fourth is that many of the big-box retail-

ers who might be able to take space at the mall already have Arlington stores – such as Walmart, Target and Best Buy. And a fifth is that the owners might not need it to remain a regional mall. “The current owners buy distressed properties and they already doubled their return on the sale of the AMC theater and the sale of the old Belk to a church,” said McGeachy.

“I think the owners see the writing on the wall and are not willing to put any money into Regency. Their strategy may be to break it up and sell it off for alternative uses,” he said.

Henderson remembers McGeachy when major retailers wanted three locations in Northeast Florida: Regency Square Mall, Orange Park Mall and The Avenues mall.

Now, she says, it’s one: St. Johns Town Center.

Henderson continues to maintain that Regency Square’s location would have been a good one for the Ikea furniture location. Ikea chose Interstate 295 and Gate Parkway.

Henderson and McGeachy both said the Arlington Expressway property would be a good site for apartments, along with another grocery store. Other uses could be governmental, schools or colleges or an athletic facility.

There’s another element that drains customers even farther from Regency: the major retail plans in St. Johns County.

“There is a lot of stuff on the drawing board for St. Johns County,” Henderson said.

“St. Johns County is the new beauty to take to the ball right now.”

KMATHIS@JAXDAILYRECORD.COM @MATHISKB (904) 356-2466

LAW & THE COURTS

Page 10 • Thursday, February 28, 2019

Jacksonville Daily Record/Jacksonville Record & Observer

Aging tech: ‘We’ve gone as far as we can go’ Mike Smith, 4th Judicial Circuit court technology officer, says equipment needs to be replaced.

BY MAX MARBUT ASSOCIATE EDITOR

When the audio-visual system was designed and installed in the Duval County Courthouse at 501 W. Adams St., it was state of the art and a leap in technology compared to what judges, attorneys and jurors were accustomed to using and seeing.

Now, nearly eight years later, it’s time for a “refresh.”

Some of the hardware that processes the audio and video used to present demonstrative evidence in court has reached the end of its useful life, and in some cases, manufacturers no longer offer service or parts, said Mike Smith, 4th Judicial Circuit court technology officer.

“We’ve been repairing devices for the past five years, but the manufacturers won’t repair

them anymore. We’ve gone as far as we can go,” he said.

There’s also an issue with the wireless microphones used to record court proceedings because the Federal Communications Commission reassigned some of the radio frequencies since the system was installed.

Smith said the FCC opened up bandwidth on the radio frequency spectrum for cellphone carriers. Some of the new cell service interferes with older systems, such as those in the courthouse.

“They’ll jump on the same frequencies as our wireless microphones and the only way to stop it is to shut off the microphones,” he said.

Smith invited a group of legal practitioners to the courthouse Friday for a demonstration of an interactive evidence presentation system that could replace some of the flat-screen monitors that were added to the courthouse inventory a few years ago.

Designed by Smart Technolo-

Photos by Max Marbut

Mike Smith, 4th Judicial Circuit Court Technology Officer, says it’s time to replace some of the original audio and video systems that were installed in the Duval County Courthouse.

gies, a Canada-based company, they offer 4K Ultra HD resolution and software that makes the displays as easy to use as a smartphone, said Frazer Couzens, corporate line manager for Smart Technologies.

In addition to courtrooms, the displays are used in classrooms and corporate settings, “anywhere you need to tell a story,” he said.

The device is compatible with Apple, Android and Windows operating systems. Data, including document files, vid-

Smart Technologies Corporate Line Manager Frazer Couzens demonstrated some of the company’s visualpresentation technology last week to a group of government and private attorneys who practice at the Duval County Courthouse.

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eo and even Skype, can be displayed via direct cable connection, Wi-Fi or Bluetooth.

Smith said the devices are being considered because they have a 10- to 15-year service life and the software can be updated to keep up with technology as it continues to evolve.

Couzens said the displays offer advantages to attorneys because they are as easy to use as a smartphone or tablet.

Jurors also are accustomed to using smartphones and tablets, so what they expect to see in court has changed compared to the easels and flip charts that were used in courtrooms years ago.

“They expect more technology in terms of information,” said Couzens.

There hasn’t been a contingency fund in the budget for replacement of obsolete courthouse audio-visual equipment since the building opened, so Smith is working with the city’s Information Technology Department to formulate a proposal for the 2019-20 general fund budget.

He’s considering purchasing 10 of the new smart displays, replacing the wireless microphone system and bringing up to current standards some of the equipment that’s not seen in the courtrooms but processes and stores the court’s audio and video.

“We’re probably looking at

COURTHOUSE TECHNOLOGY Duval County Courthouse technology by the numbers: n Nearly 1,000 flat-screen video displays, including about 700 in courtrooms and hearing rooms n More than 5,000 1-gigabyte ethernet ports n 1,200 miles of twisted fiber strands n 750 miles of copper cabling n 610 miles of optical fiber cable n Cellular dedicated antenna system with 42 nodes and 40 miles of low-loss coaxial cable n 162 digital clocks

Source: 4th Judicial Circuit Court Technology Office

about $1 million – which is less than one-fourth of the original AV budget,” Smith said.

MMARBUT@ JAXDAILYRECORD.COM (904) 356-2466

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Jacksonville Daily Record/Jacksonville Record & Observer

Thursday, February 28, 2019 • Page 11

Florida Coastal dismisses lawsuit against ABA

MAX MARBUT ASSOCIATE EDITOR

After site visit

by American Bar Association, law school says the legal action is no longer necessary.

Florida Coastal School of Law on Wednesday dismissed its lawsuit against the American Bar Association alleging that the ABA failed to provide due process as it reviews the school’s compliance with admission and academic standards.

The lawsuit was filed in May in federal court in Jacksonville after Florida Coastal was notified by the ABA that the school was out of compliance with admission standards required for accreditation and the ability to prepare students to enter the legal profession as attorneys.

Florida Coastal Dean Scott DeVito said the ABA sent two representatives to the school last week for a site visit.

They reviewed the school’s records related to incoming credentials, first-time pass

Lawyers on move

Attorneys place their bets for charity

Special to the Daily Record

Nearly 80 players and spectators attended the Jacksonville Bar Association Young Lawyers Section’s “Cashing in for a Cause” charity poker tournament last Thursday at bestbet Jacksonville.

Sponsorships, registration fees and donations will benefit the Tom Coughlin Jay Fund to provide financial and emotional support to families facing childhood cancer. Read more in next Thursday’s the Bar Bulletin.

rate on The Florida Bar licensing examination and career placement data.

The representatives also met faculty members and students, DeVito said.

“Based on our interactions with the fact finders and the Section on Legal Education,

we believe the ABA regulatory process is moving forward in a productive way,” he said.

“In this context, Florida Coastal and InfiLaw (the holding company that owns the school) have decided that our lawsuit against the ABA is no longer necessary to protect

the interests of our students, alumni, faculty and staff, and we are dismissing the lawsuit,” he said.

The fact finders will draft a report on the site visit that will be submitted to the ABA. Florida Coastal will receive a copy of the report in March and will

n Jimerson Birr hired Austin Hamilton to add to the firm’s business litigation and construction practice groups.

Hamilton received his J.D. in 2012 from Florida Coastal School of Law, where he was on the Florida Coastal Law Review. n Logan McEwen joined Marks Gray in Jacksonville focusing on commercial litigation, intellectual property and real estate. n Amanda Barbour, Mac Griffin and Karin Oko joined Holland & Knight in Jacksonville. Barbour focuses on corporate and real estate transactions. Griffin practices real estate, construction and insurance-related litigation.

Oko focuses on corporate law and commercial and general civil litigation.

MMARBUT@ JAXDAILYRECORD.COM (904) 356-2466

DEVELOPMENT TODAY These are the largest commercial building permits by job cost issued Tuesday by the city of Jacksonville.

APARTMENTS Pines of Mindanao, 1700 Mindanao Drive, contractor is Assist 2 Build Inc., 16 permits for siding replacements, $310,000.

The Villas at Timberlin Parc, 7701 Timberlin Park Blvd., contractor is Henderson Pool Services Inc., resurface and retile pool, $45,180.

The Coves at River Garden, 11401 Old St. Augustine Road, contractor is Henderson Pool Services Inc., resurface and retile pool, $25,300.

INDUSTRIAL Waste Management Inc. of Florida, 6501 Greenland Road, contractor is Onsite Electrical Service Inc., install fueling system, $240,000.

City of Jacksonville, 13509 Scout Road S., contractor is Foresight Construction Group Inc., 875 square feet, install temporary trailer at Cecil Field, $70,000.

Manheim Jacksonville, 10817 New Kings Road, contractor is Meja Construction Inc., 1,800 square feet, install car wash canopy, $40,000.

OFFICE, BANK, PROFESSIONAL San Jose Professional Center LLC, 8789 San Jose Blvd., No. 111, contractor

is International Management Co. LLC, tenant build-out, $43,134.

ROOFING Adeeb Properties LLC, 1850 N. Main St., contractor is BRC Roofing & Construction Inc., apply roof coating, $40,000.

SIGNS McDonald’s, 6546 Normandy Blvd., contractor is Peak Professional Contractors LLC, install four menu boards, $60,000.

McDonald’s, 5320 Norwood Ave., contractor is Peak Professional Contractors LLC, install four menu boards, $60,000.

Reserve Bartram Park Springs, 14951 Walden Springs Way, contractor is Denyse Signs Inc., monument sign, $20,000.

Tinseltown Plaza, 4549 Southside Blvd., contractor is Heritage Signs Inc., monument sign, $19,580.

The Phoenix, 2600 Blanding Blvd., contractor is SWM Contractors LLC, wall sign, $3,000.

UTILITIES Jacksonville Electric Authority, 2221 Buckman St., contractor is F&G Construction General Contractors Inc., 14,400 square feet, new building, $3.5 million.

Compiled by Scott Sailer

Building A Be er Jax Building a Better Jax, the nonpartisan political organization affiliated with NAIOP Northeast Florida, has endorsed candidates for the upcoming election for Jacksonville Mayor and City Council.

Mayor:

Mayor Lenny Curry

At-Large Group 1

Council Member Terrance Freeman

At-Large Group 2

Ron Salem

At-Large Group 3

Council Member Tommy Hazouri

At-Large Group 4

Matt Carlucci

At-Large Group 5

Council Member Sam Newby

District 2

CM Al Ferraro

District 8

District 3

Council Pres. Aaron Bowman

District 10 Celestine Mills

District 4

Council VP Scott Wilson

District 11

CM Danny Becton

District 5

LeAnna Cumber

District 12

CM Randy White

District 6

Rose Conry

District 13

Rory Diamond

District 7

CM Reggie Gaffney

District 14 Randy DeFoor

Tameka Gaines Holly

BUILDING A BETTER JAX • Supports the advancement of responsible commercial real estate development, investment, ownership and operation • Supports a regulatory and tax environment that is favorable to commercial real estate development, investment, ownership and operation • Supports effective public policy to enhance and protect property values; supports a regulatory, tax, and policy environment favorable to commercial real estate development, investment, ownership and operation.

BUSINESS IN BRIEF Business honored: U.S. Sen. Marco Rubio, chairman of the Senate Committee on Small Business and Entrepreneurship, named Jacksonville-based Magellan Transport Logistics the Senate Small Business of the Week. Magellan provides transportation services throughout North America.

GuideWell acquires Onlife: GuideWell Connect, a sister company of Florida

Blue, acquired Brentwood, Tennesseebased Onlife Health Inc. from Blue Cross Blue Shield of Tennessee and Cambia Health Solutions. Onlife is a health and wellness firm serving people through contracts with health plans and employer clients. Onlife Health will operate as a subsidiary of GuideWell Connect.

Compiled by Scott Sailer

Building A Be er Jax Paid electioneering communication paid for by Building a Better Jax.

THE MARBUT REPORT

have 30 days to respond.

DeVito will appear before the Council of the ABA Section of Legal Education and Admissions to the Bar when it meets May 16-18 in Chicago.

“The individual council members can ask any questions they feel are needed to make their decision,” he said.

“We now have more confidence in the process after both the fact-finder visit and recent interactions with the Section on Legal Education.”

IN THE LAW

Page 12 • Thursday, February 28, 2019

Jacksonville Daily Record/Jacksonville Record & Observer

ALESSANDRO APOLITO

BY MAX MARBUT • ASSOCIATE EDITOR

Alessandro Apolito is the new partner in Lippes Mathias Wexler Friedman’s trust and estate practice group. He focuses on estate planning, probate, trust and guardianship litigation, representing fiduciaries and beneficiaries.

Who or what inspired you to become a lawyer? My parents encouraged me to pursue more education after college. I took two years off after college to mature and determine if law school was really what I wanted. I worked in legal research and publishing in New York City. My interaction with lawyers, law librarians and the law solidified my desire to go to law school.

What has been the biggest change in your practice area since you passed the Bar? Since I started in this practice area in 2014, the estate tax exclusion has increased every year, which has really given me the opportunity to help more clients.

What do you think will be the next biggest change in your area of law? Blended

Partner, Lippes Mathias Wexler Friedman Age: 35 Education: Drew University, political science and history, 2005; Florida Coastal School of Law, 2010 Hometown: Montclair, New Jersey Family: Wife, Lauren, and fraternal 6-monthold twin boys, Valentino and Massimo

How do you relate your undergraduate degree to your practice of law? Like many students interested in the law, I majored in political science and history. My undergraduate classes gave me an appreciation for the rule of law. I saw how important following and changing the law were to our history and society.

How did you decide your practice area?

And why have you chosen that? I primarily practice in the area of trusts and estates.

When I started, like many associates, the practice area chose me when a former partner asked me to help him with his practice. I grew to love the planning portion of the work because I was able to add value to people without being in an adversarial situation. I later expanded my practice to probate, trust and guardianship litigation because there seemed to be a growing need.

ALESSANDRO A. APOLITO

Favorite book: “The Godfather”

by Mario Puzo Book I’m reading now: “Golf is not a Game of Perfect”

by Dr. Bob Rotella Special to the Daily Record

families without proper estate planning will continue to drive probate, trust and guardianship.

If I could change anything in the legal system, I would: Reduce the cost of litigation for clients. Litigation can be so expensive that it can actually prevent people from pursuing their rights.

What community service have you pursued and why that? Through my involvement with the Young Lawyers Section of the Jacksonville Bar Association, I have helped our organization benefit several charities in

Northeast Florida. As chair of the Chili CookOff, we donated to Friends of Jacksonville Animals, Community Connections of Jacksonville, Anthony J. Stinson Association for Change and Rethreaded.

What’s your advice for new lawyers? While developing the skills to become a competent lawyer, make sure you are developing your own relationships with clients, lawyers and potential referral sources. These types of relationships will mean opportunities and independence later on in your career. Without these relationships, your mobility in this career could be limited.

Apps I can’t live without: WhatsApp and Skype, because they allow my parents who live in New Jersey to see our sons Favorite nonwork activities: Spending time with my family, golf, tennis, traveling and cooking

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