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Bills filed for gas tax increase

The former Jerome Brown barbecue sauce plant is becoming A Gift Inside fulfillment center.

The 6-cent per gallon increase would fund nearly $1 billion in infrastructure projects including $372 million to modernize the Skyway.

Record Observer THE NEXT HUB&FOR GIFTS JACKSONVILLE

Record & Observer BY MIKE MENDENHALL STAFF WRITER

JACKSONVILLE

Mayor Lenny Curry filed legislation with City Council to partner with the Jacksonville Transportation Authority to extend and double Duval County’s local option gas tax to pay for nearly $1 billion in infrastructure projects. During a Council workshop April 21, President Tommy Hazouri said he and the Curry administration would file a bill concurrently that would use money freed by added gas tax revenue to spend about $100 million over two years to remove aging septic tanks and connect underserved neighborhoods to city sewers. JTA would spend nearly $372 million in gas tax money to fund its $415.96 million Downtown Skyway conversion and extension using automated vehicles. That plan has met with public and Council criticism. Two-thirds of the money generated would be spent on road, bus stop, drainage, bridge and other countywide infrastructure repairs. A draft version of the legislation shows the city will extend the sunset on Duval County’s existing gas tax from 2036 to 2046 and split the 6 cents equally with JTA for the final 10 years. If approved, motorists would start paying the added 6 cents beginning Jan. 1 for 30 years. Diesel-fueled vehicles will be subject to only a 1-cent increase, according to the bill.

Record & Observer

Photo by Karen Brune Mathis

A Gift Inside Director of Marketing Alex Meier and Jacksonville General Manager Angel Adelizzi inside the company’s plant being set up at 5638 Commonwealth Ave. in Northwest Jacksonville. The California-based firm plans to hire 10 employees. BY KAREN BRUNE MATHIS EDITOR

he former Jerome Brown barbecue sauce plant, a venture that ended up with prison terms for two former City Council members, has a new purpose – fruit and gift

baskets. A Gift Inside intends to open an

e-commerce gift-basket packing and shipping fulfillment center at the Northwest Jacksonville warehouse in time for Mother’s Day. Alex Meier, director of manufacturing for California-based A Gift Inside, said April 14 the company will hire about 10 employees and could ramp up to triple that during peak seasons. “One of the reasons we targeted this area is the range is fantastic,” Meier said

What’s Trending: Plan to transform Union Terminal Warehouse PAGE 2 Guest Commentary: Lawsuits driving up insurance rates PAGE 7 The biggest sales of the week in commercial real estate PAGE 8

of the delivery reach of perishable products throughout Florida and far west and north of Jacksonville. It can reach the next day into Florida, Georgia and Alabama, and two days north to Michigan and New York and west to the Colorado border. A Gift Inside ships baskets and boxes of fruit, candy, nuts, cheeses, meats SEE GIFT, PAGE 6

MMENDENHALL@ JAXDAILYRECORD.COM (904) 356-2466

THE MATHIS REPORT

New Sarnova distribution center near JIA takes a step Plus: Restaurant, retail & development notes. PAGE 4 VOLUME 3, NO. 47 • ONE SECTION

WHAT’S TRENDING

JACKSONVILLE DAILY RECORD / JACKSONVILLE RECORD & OBSERVER 2 JaxDailyRecord.com

22, 2021 DAILY RECORD / JACKSONVILLE RECORD & OBSERVER THURSDAY, APRIL JACKSONVILLE

Big news doesn’t break just on Thursday. Here’s a look at some of the top stories published over the past week online at JaxDailyRecord.com and in the Jacksonville Daily Record that you may have missed.

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Jacksonville Daily Record and Jacksonville Record & Observer are a division of Observer Media Group Inc.

Established in 1912, the Financial News & Daily Record, now the Jacksonville Special to theDaily Daily Record Record, is published Monday-Friday and is the Official Court Newspaper of the Circuit The Union Terminal Warehouse at 700 E. Union St. on the edge of Downtown. Court and publisher of public notices in Duval County.

Established in 1912, the Financial News & Daily Record, now the Jacksonville Daily JACKSONVILLE Court Newspaper of the Circuit Record, is published Monday-Friday and is the Official Court and publisher of public notices in Duval County.

Jacksonville Record & Observer is a free weekly business newspaper available in REDEVELOPMENT Downtown Jacksonville and key business nodes throughout Jacksonville. To find a location near you, visit jaxdailyrecord.com/rack-locations.

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EditorialAtlanta-based content focuses on news and trends, with concentration on development, ing awill allow Columbia to finance about Columbia Ventures real estate, law,the companies, industry how local 70%and of the projecttrends with aand 40-year, LLC is construction, negotiating with city for economic and state affects business. fixed-rate insured mortgage from the $9.2 government million in gap funding for its proposed $61 million adaptive reuse of U.S. Department of Housing and Urban the historic Union Terminal Warehouse STAFFDevelopment, the documents state. “To save this magnificent old buildnear Jacksonville’s Eastside. Publisher / Matt WalshApril 15 by Columbia Director of Advertising ing and give it a new/ Jay life Lesowitz filled with A statement mwalsh@jaxdailyrecord.com jlesowitz@jaxdailyrecord.com inspiration from decades of serving and documents it submitted to the Publisher Emeritus / James F.Authority Bailey Jr. out- Advertising Coordinator Codi Gildbergunsmall businesses is a/challenging Downtown Investment jbailey@jaxdailyrecord.com dertaking that has taken years of planline a 228-unit mixed-use redevelop- adassist@jaxdailyrecord.com Editorment / Karen Brune Mathis ning and workManager on its capitalization,” of the 108-year-old warehouse at Legal Advertising / Janet Mohr kmathis@jaxdailyrecord.com legal@jaxdailyrecord.com Columbia Ventures Managing Partner 700 E. Union St. Managing Editor / Monty Zickuhr Dillon Baynes Associate said. The workforce and affordable hous- Legal Advertising / Rhonda Fisher

Editorial content focuses on news and trends, with a concentration on development, real estate, construction, law, companies, economic and industry trends and how local and state government affects business.

Plan transforms Union Terminal Warehouse

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McClung resigns as Baptist Health CEO

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Director of Circulation / Anne Shumate subscriptions@jaxdailyrecord.com care team in northeast Florida and I

Baptist Health announced April 19 Business Manager / Angie Campbell am proud/ of allReagan we have accomplished that President and CEO Brett McClung Distribution Tim acampbell@jaxdailyrecord.com distribution@jaxdailyrecord.com together. Baptist Health has always will resign effective May 1. He joined been financially and reputationally the system in July 2019. strong, and I know they will continue “This was a difficult decision that I PRESS RELEASE/INQUIRY/REPRINTS to be this community’s health care reached after much reflection,” Mcleader.” Clung said in a news release. Submit a press release or editorial inquiry online Baptist Health Jacksonville Presi“It has been a privilege working with jaxdailyrecord.com/submit-news-release or email editorial@jaxdailyrecord.com. dent Michael Mayo will be interim CEO. what I consider to be the best health Article reprints are available at jaxdailyrecord.com

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The JAX Chamber board of directors PRICES who serves as president and CEO of Miller Electric, said in the news release. announced April 16 it unanimously Thursday only ..........$66 per year 2 years ................................... $154 The schools are J.E.B. Stuart Middle passed a resolution asking the Duval Single copy ......................35 cents 1 year ........................................$89 School, Jefferson Davis Middle School, County School Board to change the 6 months .................................$55 Joseph Finegan Elementary School, names of six public schools that are Kirby-Smith Middle School, Stonewall named after Confederate soldiers. TO ADVERTISE “This is an economic HOW development is- Jackson Elementary School and RobertatE.(904) Lee High School.or email sue,” Chamber Chair Henry Brown, Display &JAX Digital Advertising: Call Jay Lesowitz 356-2466

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JaxDailyRecord Don’t miss a story. Subscribe to the Daily Brief and we’ll send our top news to you Monday-Friday morning via email. To sign up, visit JaxDailyRecord.com and lookINFORMATION for the “Sign up” box, enter your email and POSTAL you’ll be set. Jacksonville Daily Record (USPS 190-620) is published daily except Saturday, Sunday & legal holidays (New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas) by Daily Record & Observer LLC, 121 W. Forsyth St., Suite 150, Jacksonville, FL 32202. Periodicals postage paid at Jacksonville, Florida and at additional mailing offices. Under no circumstances will any news or records of Duval County be suppressed for anyone. Information in this newspaper is for our subscribers only and must not be used by anyone for publication purposes. DEVELOPMENT TODAY

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POSTAL INFORMATION Jacksonville Daily Record (USPS 190-620) is published daily except Saturday, Sunday & legal holidays (New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas) by Daily Record & Observer LLC, 121 W. Forsyth St., Suite 150, Jacksonville, FL 32202. Periodicals postage paid at Jacksonville, Florida and at additional mailing offices. Under no circumstances will any news or records of Duval County be suppressed for anyone. Information in this newspaper is for our subscribers only and must not be used by anyone for publication purposes.

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THURSDAY, APRIL 22, 2021

After years of cuts, CSX adding train staff

MARK BASCH CONTRIBUTING WRITER

Earnings for the Jacksonville-based railroad giant dipped in Q1, but it forecasts big revenue growth for the rest of the year. CSX Corp. reported lower first-quarter earnings and revenue April 20 as harsh winter weather affected the railroad’s rebound from the COVID-19 pandemic. However, the Jacksonvillebased company is projecting big revenue growth for the rest of the year and is expecting to increase its train staff after years of job cuts. “We are adding head count in the second quarter in preparation for the expected volume growth,” CEO James Foote said in CSX’s quarterly conference call with analysts. CSX ended the first quarter with 19,184 employees across its network, which covers most of the Eastern U.S. That was 1,271 fewer employees than it had a year earlier and about 8,000 lower than it was at the beginning of 2017, when new management came in and began restructuring operations. But the head count was about unchanged from the fourth quarter of 2020. Executive Vice President of Operations Jamie Boychuk said the company expects to add 400 to 500 employees this year. “We’re going to hit that, I would say, as we enter into the second half and we’ll continue to hire if we see the business levels come to the point that we think they will,” Boychuk said. CSX reported first-quarter earnings of 93 cents a share, down from $1 in the first quarter of 2020, with revenue falling 1% to $2.813 billion. Foote said the company expects a big rebound in busi-

Railroad sheds jobs After years of cutting jobs, CSX Corp. says it plans to begin hiring more workers.

19,184

CSX employees at the end of the first quarter of 2021.

1,271

8,000

The reduction in workers from the year before.

The reduction in employees since the beginning of 2017.

ness the rest of this year. “We entered the year projecting volume growth in excess of GDP and still expect to achieve this target,” he said. “We will continue to attract demand throughout the year and based on the combination of the strengthening economic outlook and our focus on converting additional volumes off the highway, we now expect to achieve double-digit full year revenue growth.” While CSX is preparing for growth, an easing of the pandemic is helping its hiring process, Foote said. “With fewer recent COVID cases across the network, we are able to increase the number of in-person interactions and training sessions,” he said. “We’ve been at this since the beginning of the year and have been running people through their classes, which we couldn’t do before because of the social distancing issues,” he said. The company is “now getting them out into the field.” Foote said several measures of efficiency for the railroad show productivity is improving as it hires more workers. “Any way you look at the data, we have dramatically transformed how CSX operates, which has created the capacity to absorb significant growth for years to come,” he said. “We remain focused on driv-

J&J Vision grows its sales 7.3% Much of the world’s attention on Johnson & Johnson these days focuses on its COVID-19 vaccine. However, as the medical products giant reported first-quarter earnings April 20, it focused on a wide range of businesses including sales growth at its Jacksonvillebased contact lens subsidiary. Johnson & Johnson Vision reported total sales in the quarter rose 7.3% to $1.145 billion, with contact lens sales increasing 5.3% to $857 million. Sales of vision surgical products jumped 13.7% in the quarter, helped by pent-up demand after some procedures were delayed last year because of the pandemic. “We think our vision care, our contact lens business, is in very good shape,” CEO Alex Gorsky said in Johnson & Johnson’s conference call. “We think our share position is stable to increasing and we think we’ve seen, definitely, an improving position in our vision surgery business, part of that being comps (sales compared to last year) but also

Tapestry names Coach CEO Tapestry Inc. said last week that Todd Kahn, who had been serving as interim CEO of its Coach division, was named permanent CEO of the handbag and accessories business. Kahn had been running the Coach brand since his predecessor resigned in March 2020 and he was named interim CEO for Coach in July. Since 2016, Kahn has been president of parent company Tapestry, which also owns the Kate Spade and Stuart Weitzman brands. New York-based Tapestry handles all North American distribution for Coach from a warehouse in Jacksonville International Tradeport. MBASCH@ JAXDAILYRECORD.COM

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GEE Group Inc. closed the sale of 83.3 million shares of stock at 60 cents each on April 19, raising cash to pay off debt but significantly increasing its shares outstanding. The Jacksonville-based staffing company estimated in a Securities and Exchange Commission filing that its net proceeds from the sale would be $45.5 million. The filing said the sale increases the amount of shares outstanding to almost 106 million. The latest filing gives no indication of its shareholder base after the sale. Its 2020 annual report showed officers and directors of the company owned 16.7% of the stock but there were no other significant shareholders before the recent stock sale. Sabby Management, a New Jersey-based fund manager, said in an April 19 SEC filing it acquired 10 million GEE Group shares, or 9.9% of the stock. GEE Group’s market price has dropped since it first filed plans March 12 to sell the large number of shares. Its closing price March 11 was $1.81. The stock closed at 85 cents April 14 before the company announced the new shares would be sold at 60 cents each.

Rayonier Advanced Materials Inc.’s deal last week to sell off its Canadian lumber and newsprint assets disappointed some investors, but Berenberg Capital Markets analyst Paretosh Misra took a positive view. Jacksonville-based Rayonier AM is selling those mills to focus on its core cellulose specialties products. “Investors bullish on lumber pricing were likely disappointed,” Misra said in his research note. “Lumber prices have rallied significantly in the last 12 months and we think it is possible some investors wanted the company to maintain exposure to the commodity,” he said. “We, however, have a different view - we believe debt reduction should be viewed favorably by investors who have been avoiding the stock because of high leverage,” he said. “Further, once the dust settles, the company’s increased focus on its cellulose business, which we see as higher quality and less cyclical than the assets being sold, should lead to a higher trading multiple for the stock.” Rayonier announced the agreement April 12 to sell six lumber mills and one newsprint mill in Canada to Vancouver-based GreenFirst Forest Products Inc. for $214 million.

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GEE Group gets $45M in stock sale

ing the network back to record performance levels, as well as realizing the incremental efficiency benefits this will provide.”

Analyst likes Rayonier AM deal

THE BASCH REPORT

part of it due to new innovation launches,” he said. Company officials said its contact lens business in Jacksonville continues to unveil new products, including a therapeutic contact lens to manage the progression of myopia in children. Johnson & Johnson Vision is working on that lens in a collaboration with a lens manufacturer called Menicon and expects “commercialization of this product by the end of 2021 under the brand name Acuvue Ability, pending health authority approval,” Chief Financial Officer Joseph Wolk said. “We believe that our lineup for new lenses, whether it’s our anti-allergy lens or multifocal and contact lenses, and the improvement that we’re seeing in our surgery business will continue to bear out in stronger performance and share gains through the year,” Gorsky said.

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THURSDAY, APRIL 22, 2021

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THE MATHIS REPORT

Sarnova distribution center permit in review ary for J. Lane Construction LLC to build-out 1,816 square feet of space for Crumbl Cookies at a cost of $188,000. The address is 3267 Hodges Blvd. at southeast Beach and Hodges boulevards. Stephanie McCullough and Kelly Pulignano of The Shopping Center Group represent the landlords of both centers. Logan, Utah-based Crumbl cookies and ice cream, which started in 2017, features a rotating menu of cookies to provide four specialty flavors weekly, with warm milk chocolate chip and chilled sugar cookies always available. Crumbl has 148 locations in 28 states. Its five Florida stores are in Coral Springs, Lake Mary, Lutz, Pembroke Pines and Winter Springs.

KAREN BRUNE MATHIS EDITOR

The medical supplies distributor plans a 130,567-square-foot facility in Park 295 near Jacksonville International Airport. Sarnova is taking a significant step toward a Jacksonville distribution center. The city is reviewing a permit application for Sarnova to build-out 130,567 square feet of space at 2619 Ignition Drive, No. 2, in Park 295 at a cost of $2.45 million. The permit application identifies the project as Sigma, which appears to be a placeholder name. Sarnova is identified on one of the supporting documents as well as on a marketing brochure. Dav-Lin Interior Contractors Inc. is the contractor. The architect is StudioNorth Architecture of Riverside, Missouri. Sarnova will lease space in the Park 295 industrial park in Northwest Jacksonville. Jacksonville City Council approved a $260,000 grant Feb. 9 for an undisclosed national pharmaceutical and medical device distributor to lease space in Northwest Jacksonville for its Southeastern U.S. distribution center. The project is code-named Robalo. Dublin, Ohio-based Sarnova matches the description. Documents filed with the legislation say the company is considering leasing 131,000 square feet of a newly developed warehouse. Construction began on the Park 295 building in 2018. Robalo told city Office of Economic Development officials that it will invest $6.72 million and create 25 full-time jobs by year-end 2023 under the economic development agreement tied to the bill. Sarnova is shown on a Park 295 Industrial Park brochure as

Winn-Dixie adding liquor store

File image

Sarnova intends to lease at the Park 295 industrial park in Northwest Jacksonville.

a new tenant in the industrial center at southwest Interstate 295 and Duval Road. The city will require Robalo to make a minimum $3 million capital investment in the project site by Dec. 31, 2023, to receive the Recapture Enhanced Value Grant. Robalo also will have to show all jobs are in place by the end of 2023 under the agreement. The distributor will need to complete $2.4 million in leaseholder improvements to the warehouse by Dec. 31, 2022. The REV grant will be revoked if the company does not invest at least $3 million by the end of 2023, according to the agreement. NorthPoint Development of Riverside, Missouri, is the developer.

$9.2M conveyor in review for Amazon Amazon.com’s West Jacksonville investment continues. The Seattle-based e-commerce retailer, with 12 identified but not all confirmed area locations, is building-out a sortation center in AllianceFlorida at Cecil Commerce Center. The city is reviewing a permit application for a $9.2 mil-

lion project to install conveyors and sortation equipment in the 278,237-square-foot facility at 13450 Waterworks St. at southwest POW-MIA Memorial Parkway and Waterworks Street. MHS Company Inc. of Kentucky is the contractor. Hillwood Senior Vice President Dan Tatsch said previously the building could be completed in the third or fourth quarter. The city approved construction March 17 for the crossdock center at a cost of $40.4 million. It follows a Jan. 22 foundation permit at a construction cost of $2.7 million The Conlan Co. is the contractor. Amazon.com says sortation centers are “midmile” facilities in which the company sorts customer orders by ZIP codes before handing off to partners for final delivery.

Crumbl Cookies coming to Mandarin A second Crumbl Cookies store is planned in Jacksonville. The first area location identified for the national cookies and ice cream company will open in Pablo Creek Plaza East.

Nicholas Lai, franchise owner and member of Brother Bakers Jacksonville LLC., said he expects to open in June. The city is reviewing a permit application for a second one in Mandarin Oaks. Franchise owner Sharmain Powell wants to open the 1,455-square-foot store at 11406 San Jose Blvd., No. 3, in June as well. The permit application shows tenant improvements of $192,440 to the space. Powell said by email April 8 she owns the franchise for that location Powell and would like to open at least two more. “It has always been my dream to have my own business. I have decorated cakes and baked goods for over 30 years,” Powell said. As for her first location: “I love the atmosphere of Mandarin and would like to be more involved in the community. I look forward to meeting the local people and being able to provide jobs in this area.” In Pablo Creek Plaza, the city issued a permit in Febru-

Southeastern Grocers intends to build-out a Wine & Spirits store within its WinnDixie supermarket at 11380 Beach Blvd. The Wine & Spirits store will be accessible only from the exterior. Florida law requires liquor stores to be set up as separate facilities from grocery stores, which means separate exterior entrances and no interior connection. The city is reviewing a permit application for an estimated $450,000 store renovation and a separate $180,000 build-out of 2,665 square feet for a future tenant space. A company spokesperson confirmed that it is a Wine & Spirits liquor store that will open this summer.

Daybreak Markets advancing Two Daybreak Markets, a new brand in the area, are moving ahead in permitting. In Mandarin, the city is reviewing permits for the Daybreak Market convenience store and 76 gas station, with a separate automated car wash and an attached drive-thru restaurant that will be leased to a tenant. The store and restaurant will replace a closed Golden Corral restaurant on 3.13 acres at 11470 San Jose Blvd. Plans show indoor and outdoor seating in the convenience store. No construction cost is shown.

RESTAURANT NOTES Culver’s in Regency: The city and the St. Johns River Water Management District are reviewing plans for the proposed Culver’s restaurant on 1.91 acres at 101 Monument Road. The Barolo Group LLC of Jacksonville is the applicant and Kimley-Horn and Associates Inc. is the civil engineer. Barolo Group intends to demolish the closed restaurant on the site and build a 4,365-square-foot Culver’s with a patio and a double drive-thru. The property owner seeks a zoning exception for the outside sale and service of food at the site. Whataburger to Atlantic North: The city issued permits April 12 for Whataburger to build in Atlantic North in East Arlington. Cloud CM

LLC of Atlantic is the contractor for the 3,760-square-foot restaurant and drive-thru on 1.25 acres at 11559 Atlantic Blvd. at a cost of $1 million. Atlantic North is at northwest Atlantic and Kernan boulevards. The restaurant is designed next to the RaceTrac gas station and convenience store and in front of the Cinemark theater under construction. Halff Associates Inc. is the civil engineer. Bono’s near Town Center: The city issued a permit April 12 for Jacksonville-based Bono’s Pit BarB-Q to build a 3,000-square-foot restaurant on 1.03 acres at 10065 Skinner Lake Drive near St. Johns Town Center at a construction cost of $1 million. Bono’s President Josh

Martino said he hopes to open it in late August or early September. Kaneco Construction of Jacksonville is the contractor. Design Cooperative LLC is the architect. The previous store, with 3,900 square feet of interior space, was damaged by fire in March 2020 and demolished. Cold Stone Creamery to Ortega Park: The city is reviewing a permit application for a 1,200-square-foot build-out for Cold Stone Creamery in Ortega Park at a cost of $157,705. It will lease space in an 11,200-squarefoot building at 4495 Roosevelt Blvd., a shopping center also known as Roosevelt Square. Atlanta-based Dewberry Group owns Roosevelt Square and is redeveloping the

60-year-old property. Hala’s to Shad Landing: A permit is in review for Hala’s Mideast Eatery and Market at 5285 Shad Road in Shad Landing, an Ash Properties shopping center. Suncrest Builders is the contractor for the $106,819 build-out of 2,894 square feet. Green Papaya and Grumpy’s to Fountains at St. Johns: St. Johns County issued a permit to build-out the 4,000-square-foot Green Papaya restaurant at 175 Fountains Way, Suite 7, in Saint Johns at a cost of $135,000. It also issued a permit for the $250,000 build-out of 3,800 square feet for Grumpy’s Restaurant at 155 Fountains Way, Suite 1.

JACKSONVILLE DAILY RECORD / JACKSONVILLE RECORD & OBSERVER

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In Southwest Jacksonville, the city is reviewing civil engineering plans for a Daybreak Market convenience store and fueling station at 7589 Plantation Bay Drive. Plans show a 4,800-squarefoot convenience store and an adjacent 2,300-square-foot restaurant and drive-thru as well as a separate car wash on about 2.6 acres. The site is at Collins Road and Plantation Bay Drive. Plaza Street Partners of Prairie Village, Kansas, is the developer. Daybreak Market & Fuel LLC is the operator. Daybreak’s principal address is in Boca Raton and its mailing address is in Banning, California. Lickel Architecture of Kansas City, Missouri, is the architect. Michael E. Neikirk of Mount Carmel, Illinois, is the civil engineer.

Main Street Place sells for $9.7M Main Street Place at Oceanway LLC paid almost $9.7 million April 6 for the Main Street Place shopping center at 12961 N. Main St. in North Jacksonville. The 45,505-square-foot center was developed in 200506 on 7.76 acres. Main Street Place bought the property from First Coast Land Development Inc. Valley National Bank of West Palm Beach financed the deal with an almost $6.65 million mortgage. Jonathan Heldenbrand, managing director and president of Proper Commercial Real Estate, represented the buyers’ group.

“That site was developed before the large River City Marketplace and has thrived since day one,” he said by email April 13. Heldenbrand said the property is fully leased. Anchors are Casa Maria Authentic Mexican Restaurant, Wing-It, Jacksonville Orthopaedic Institute and Fresenius Kidney Care. “Our plans are to keep reinvesting into the property to keep it as one of the Northside’s best community centers. We believe in the growth of the area,” Heldenbrand said. “We purchased the property from a seller who took great care and pride in the asset,” he said. Heldenbrand said he leads the ownership group as the asset and investment manager along with Reekee Patel. State corporate records show the LLC managers as Reekee Patel, Rupesh Patel and Parth Patel. First Coast Land Development is led by President Patty Griffin and Vice President James Griffin. Heldenbrand said Lynn Johnson of Johnson Enterprises Inc. represented the seller. NAI Hallmark will manage the daily property operations.

Mayo Clinic is remodeling corridor Mayo Clinic is remodeling the main north-south corridor at its Southside campus at a cost of $1.9 million. The city issued a permit April 15 for Batson-Cook Co. to upgrade the first-floor corridor at the 4500 San Pablo Road S. campus. “We will be modifying the finishes on Mayo’s 1st floor

RETAIL NOTES Bailey’s to Oakleaf: The city issued a permit April 17 for Y2K Construction Services Inc. of Palatka to build-out almost 37,000 square feet of space for Bailey’s Health & Fitness in a former Bealls store space in Oakleaf Station at 8396 Merchants Way. It is a $700,000 project. Tractor Supply to Normandy: The St. Johns River Water Management District and the city are reviewing an application for Tractor Supply Co. on 3.6 acres at 8984 Normandy Blvd. Hix Snedeker companies, through HSC Jacksonville West LLC of Daphne, Alabama, is the applicant. Dynamic Engineering Consultants of Delray Beach is the civil engineer. Plans show a 22,433-square-foot store with an outdoor display area.

THURSDAY, APRIL 22, 2021

Wawa to St. Johns County: St. Johns County issued two permits, totaling $1.068 million, for a Wawa gas station, convenience store and gas canopy at 222 Florida 16 in St. Augustine. The site is vacant land east of Interstate 95. Old Navy to Durbin: St. Johns County issued a permit for the 13,588-square-foot interior buildout for Old Navy at 675 Durbin Pavilion Drive, Suite 106, in The Pavilion at Durbin Park at a cost of $435,244.

DEVELOPMENT NOTES

Family Dollar to Grand Park: The city is reviewing civil site plans for the developer of Family Dollar stores at 3134 Canal St. N. in the Grand Park area of Northwest Jacksonville. TRC Canal LLC of Charleston, South Carolina, is the applicant and developer. The 9,180-square-foot store is planned on 1.44 acres. Nevin Engineering Services Inc. of St. Augustine is the civil engineer. TRC Canal is associated with Twin Rivers Capital, which has developed Jacksonville Family Dollar stores. 7-Eleven at Bannon Lakes: St. Johns County is reviewing an application for a 7-Eleven gas station and convenience store at northwest International Golf Parkway and Bannon Lakes Boulevard in the Bannon Lakes Planned Unit Development. The site design includes a 4,650-square-foot building, 16 fueling positions and a car wash on 1.97 acres.

main North/South corridor for patients and visitors to match the new Mayo Atrium that just opened,” Mayo spokesman Kevin Punsky said by email March 10. That includes walls, floors, the ceiling and lighting. The north corridor con-

TownPlace Suites near airport: The city issued a permit April 7 for Dix Construction Inc. of Flagler Beach to build the 102-room TownPlace Suites at 1287 Airport Road at a cost of $8.39 million. The five-floor, 63,221-square-foot project is planned on 4 acres. The city also is reviewing plans for a 105-room Tru by Hilton at 1265 Airport Road on the site. Both have pools. Inn of Jax LLC, the developer, bought the property in July 2019 for $2.85 million. The site contained a closed Wendy’s restaurant, which was approved for demolition in February. Becknell in Westlake: The city issued a permit April 12 for Becknell Services LLC to build a 161,402-square-foot speculative warehouse at 3750 Cisco Drive W. in Westlake Industrial Park at a cost of $7 million. Colliers International Executive Director Guy Preston and Associate Director Seda Preston are representing Becknell in marketing the building. A marketing brochure shows the structure on 12.47 acres, near Unilever and Cardinal Health. The location is at Cisco Drive and Pritchard Road.

struction will be completed in the summer, said Punksy, interim director of media relations. When that is completed, work moves to the south corridor for completion in October. The architect is Perkins + Will of Atlanta.

The Mayo Atrium opened March 1 at the intersection of the Mayo and Cannaday buildings. KMATHIS@ JAXDAILYRECORD.COM @MATHISKB (904) 356-2466

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Gift CONTINUED FROM PAGE 1

and snacks. It ships as orders are received for delivery within two days. The company is based in Lodi, California, and ships throughout the 50 U.S. states. The Jacksonville building, at 5638 Commonwealth Ave., will be the company’s fifth plant and focus on delivery throughout the Southeast. The first four plants are in California, Texas, Pennsylvania and New York. It also sells through Amazon. com under the Golden State Fruit brand name. A Gift Inside uses United Parcel Service, FedEx and other shippers. It also packs for other fulfillment companies, whose identities Meier said he wasn’t able to disclose. Meier has production oversight for A Gift Inside along the U.S. East Coast. Angel Adelizzi moved from Pennsylvania to Jacksonville as general manager. A Gift Inside is designing the interior to make space for expansion. “We have a lot of opportunities and are seeking to grow the Jacksonville location,” Meier said. THE BARBECUE HISTORY

Property owner Tagg Ventures LLC of Stroudsburg, Pennsylvania, bought the 34,237-squarefoot Commonwealth building in December to lease to A Gift Inside. Tagg Ventures LLC paid $1.55 million for the property. First National Bank of Pennsylvania financed the deal with a $1.16 million mortgage. Manager George Loudon Jr. filed the Tagg Ventures LLC name with the state Dec. 15. Tagg bought the property from 5638 Commonwealth Avenue LLC, whose manager, David M. Hicks Jr., intended to open a hummus manufacturing plant there. Hicks, who changed those plans, could not be reached for comment about the sale. Hicks, a Jacksonville investor, acquired the property in June 2017. The almost 3.8-acre site is at Commonwealth Avenue and Ellis Road North. The structure was built in 1985 and had several uses before being set up for the barbecue sauce venture. Through 5638 Commonwealth LLC, Hicks bought the building at auction. He paid $1.3 million for the property and the barbecue sauce equipment. Hicks took title to it as SBAapproved lender BizCapital Bid-

Photos by Karen Brune Mathis

Some boxes from A Gift Inside, which also produces gift baskets. On AGiftInside.com, dried fruit and nut gifts range from $24.94 to $89.95. The company also offers fresh fruit, chocolate candies and more.

Co I LLC foreclosed on CoWealth LLC and Basic Products LLC, the entities that operated Jerome Brown Products. CoWealth LLC bought the building in 2012 for the plant for the Jerome Brown brand of barbecue sauce. Former District 8 City Council member Katrina Brown, the daughter of Jerome Brown, coowned the business. A federal grand jury indicted Brown and former District 10 Council member Reginald Brown, no relation, in May 2018 on charges that included conspiracy to commit mail and wire fraud. The indictment was related to the use of a $2.65 million U.S. Small Business Administration loan that helped a company coowned by Katrina Brown finance the barbecue sauce manufacturing operation. Attorneys for Katrina Brown and Reggie Brown said nothing fraudulent occurred and all the money was put into the sauce manufacturing business. The sauce plant was supposed to create 56 jobs, but the city said it did not. On Oct. 2, 2019, a jury found the Browns guilty in federal court of multiple counts of fraud, money laundering and conspiracy. The U.S. Attorney’s Office for the Middle District of Florida announced Nov. 3 that U.S. District Judge Marcia Morales Howard sentenced Katrina Brown to 33 months in federal prison and Reginald Brown to 18 months. The court ordered Katrina Brown to pay a forfeiture money judgment of $425,335 and Reginald Brown to pay $411,752, funds

traceable to the offenses. WHY JACKSONVILLE

Plans for A Gift Inside show production, shipping and receiving, storage and future production space. Crabtree Construction Co. is shown as the contractor, and RAM Architecture is the architect. Loudon said April 13 the giftbasket company had looked for sites on Florida’s East Coast and settled on Jacksonville, primarily because of its distribution proximity to the lower Eastern U.S. Loudon said broker Shaun Mayberry helped to identify the site. Mayberry is vice president and asset acquisitions manager

with Prime Realty. “When we came down, we looked at a number of properties in the Jacksonville area. This checked all of the boxes,” Loudon said. Loudon said the Commonwealth location was near Jacksonville International Airport, which Meier said aids distribution as well as travel among sites. Meier said the location also provides flexibility for e-commerce orders when other plants might be facing weather challenges. A Gift Inside is hiring for production workers at $12-$13 an hour. “We are looking for motivated staff to join our team to help fulfill gift basket orders at our new pro-

duction facility in Jacksonville,” says a posting on the company’s career link. It says full- and part-time roles are available to pick, produce, package and label gourmet food products into gift packs and baskets. Meier said the gifts are handassembled, sorted and palletized for the carriers. One room, known as the red room for the color of its floor, will be used for chocolate-dipped strawberries and caramel chocolate-dipped apples. Shifts are 8 a.m.-4 p.m. Monday-Friday, with additional hours and days at the peak times of Christmas, Valentine’s Day, Easter, Mother’s Day and Father’s Day. A Gift Inside says on agiftinside.com that it has been growing and packing fruit for more than 50 years and created Golden State Fruit in 2009 “to bring the best of our handpicked fruit of our orchards direct to doorsteps,” including pears. In 2013, it opened Farmstead Gourmet in Pennsylvania to expand its line of cheeses, candies, and sweet and savory accompaniments. It bought an artisan chocolate company and developed CY Chocolates. It also sells its LoveBerries chocolate-dipped strawberries. In 2015, it combined the brands to create “A Gift Inside.” The company also sells Branch to Box, a subscription for fruit boxes delivered to offices. “We are here for the long haul,” Meier said. KMATHIS@JAXDAILYRECORD.COM @MATHISKB (904) 356-2466

Photo by Karen Brune Mathis

The A Gift Inside plant at 5638 Commonwealth Ave. about a mile east of Interstate 295. It was the former Jerome Brown barbecue sauce factory.

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THURSDAY, APRIL 22, 2021

Abusive lawsuits driving up insurance rates

BARRY GILWAY CITIZENS PROPERTY INSURANCE CORP.

Florida accounted for 8% of property insurance claims nationwide in 2019, but for 76% of the property lawsuits. How did we move — in just five years — from a vibrant insurance market where financially solid companies competed for business to an unhealthy environment where policyholders who have never filed a claim are being dropped or see their premiums jump 30%, 40%, 70% in a year? Last week, we got an answer. The Florida Office of Insurance Regulation reviewed 750 insurance companies from around the country. It found that Florida accounted for only 8% of all claims filed nationwide in 2019, but nearly 76% of all lawsuits. That number, taken from data gathered by the National

From October to December 2020, there were almost 21,000 property insurance lawsuits reported to the Department of Financial Services’ Service of Process Unit, according to a Florida Office of Insurance Regulation report. In that timespan, 92 days including weekends, Thanksgiving and Christmas, at least 34 attorneys or law firms filed more than 100 lawsuits; 17 filed more than 200

lawsuits; 10 filed more than 300 lawsuits; and seven filed more than 400. From January to March 2021, there were almost 24,000 property insurance lawsuits, the report found. In that timespan, 22 attorneys and three administrative staffers filed more than 200 lawsuits each; 15 filed more than 300 lawsuits; eight filed more than 400 lawsuits; and two filed more than 1,000 lawsuits.

Attorney/firm Location

Lawsuits filed, October to March

Kevin Weisser/Weisser Elazar & Kantor

Fort Lauderdale

2,081

Anthony Lopez/Marin Eljaiek & Lopez

Coconut Grove

1,959

Isabel Arias/The Cohen Law Group

Miami

1,588

Thomas J. Morgan/The Morgan Law Group

Coral Gables

1,102

Duboff Law Firm/Kenneth Duboff

North Miami

1,004

Mineo Salcedo/Peter Mineo Jr.

Davie

792 Source: Florida Office of Insurance Regulation

Association of Insurance Commissioners, not only is mindblowing but clearly unsustainable unless Floridians accept the level of rate increases we are seeing today. While the NAIC data is incredible, it is not unexpected. Florida domestic insurance companies posted a $1.6 billion operating loss in 2020, the latest of four progressively unprofitable years. While storm activity played

a part in last year’s losses, remember that no major storms hit Florida in 2020. Instead, the major reason for these unsustainable losses is excessive and abusive litigation on a scale that exists nowhere else in the country. Citizens alone last year received 7,599 new litigated claims. During the first quarter of 2021, we received 2,506 new claims. Data show more than 85,000 new litigated property claims were filed against insur-

ance companies last year. Besides raising rates, some companies have stopped writing new business, while others restrict what they write or reduce coverage on the policies they renew. In response, Citizens is writing close to 5,000 new policies per week. After reaching a low point of around 420,000 customers just a year and a half ago, we expect to end 2021 with close to 750,000 customers. Citizens is financially

GUEST COMMENTARY

Property insurance lawsuits

sound, but its surplus could be depleted quickly as our policy count grows. Once its surplus is exhausted, Citizens could be forced to assess its policyholders up to 45% of their policy premium. Additionally, millions of non-Citizens policyholders could be forced to pay assessments, if needed. Critics say the rapid rise in litigation is the fault of insurance companies for underpaying claims. But it defies common sense to think that Florida insurance companies are so out of whack with insurers in every other state. Florida’s unique legal landscape, which includes oneway attorney fees, is largely to blame. Every day, more Floridians see the impact of this litigation explosion and are calling for action. I urge the Legislature to pass meaningful litigation reforms that will help to stop runaway legal costs that impact policyholders across the state who are being canceled, forced to find new coverage or pay higher premiums to protect their most valuable investment — their homes.

BARRY GILWAY IS THE PRESIDENT/CEO AND EXECUTIVE DIRECTOR OF CITIZENS PROPERTY INSURANCE CORP., FLORIDA’S NONPROFIT INSURER OF LAST RESORT.