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Economic Trends: Jacksonville homebuyers pay a waterfront premium
July 19-25, 2018
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JACKSONVILLE
Record & Observer Downtown hotel boom looming JACKSONVILLE
Record & Observer At least 700 more rooms might check in on the Northbank and Southbank.
JACKSONVILLE
Record & Observer Courtyard by Marriott Downtown
AC Hotel by Marriott
Hotel Indigo Downtown
Address: Adams and Forsyth streets Rooms: 145 Developer: SouthEast Development Group Project start date: 2019
Address: 801 Broadcast Place Rooms: 200 Developer: Elements Development of Jacksonville LLC Project start date: N/A
Address: 100 W. Bay St. Rooms: 89 Developer: Profit Investment Management LLC Project start date: Summer 2018
Residence Inn by Marriott Brooklyn
Ambassador Hotel
Berkman Plaza II
Address: 404 Julia St. Rooms: 100 Developer: Augustine Development Group Project start date: Fall 2018
Address: 500 E. Bay St. Rooms: N/A Developer: N/A Project start date: N/A
JACKSONVILLE
Record & Observer
Address: Oak, Magnolia, Dora and Forest streets Rooms: 135 Developer: Baywood Hotels Inc. Project start date: Fall 2018/spring 2019
BY DAVID CAWTON STAFF WRITER
S
everal proposed projects could bring at least 700 new hotel rooms to Downtown Jacksonville. “There’s a lot of exuberance there,” said Aundra Wallace, CEO of the Downtown Investment Authority. Those would join the almost
2,400 rooms among eight hotels that already operate Downtown on the Northbank and Southbank of the St. Johns River. Wallace said Downtown needs more hotel rooms and space for large groups, business travelers and tourists. He reacted to recent announcements that signal a change in Downtown’s lodging landscape that includes a plan to transform
Mathis Report: Cousins Maine Lobster to open July 27 PAGE 4 Basch Report: CSX hits target two years early PAGE 8 OBSERVER MEDIA GROUP
the unfinished, vacant Berkman Plaza II into a hotel. An undisclosed developer purchased the blighted, half-built condominium property Monday with plans to make it a hotel with riverfront entertainment space, according to Mayor Lenny Curry. “I’m glad they finally closed,” Wallace said. Wallace declined to identify the buyer but said he was “look-
ing forward to sitting down and working out the details of their plans.” It’s the first sign of movement for the unfinished structure since Choate Construction Co. acquired the property in 2014. The Berkman Plaza II was designed as a 23-story, 222-unit condominium. Construction stopped at 18 floors in 2007 following the collapse of an adjacent
parking garage. As of Wednesday afternoon, the buyer had not recorded the deed with the Duval County Clerk of Courts. Choate representatives did not respond to calls and emails. The Berkman Plaza II is one of several hotel projects Downtown. Augustine Development Group SEE HOTELS, PAGE 10
YOU SHOULD KNOW
Henry Brown leads Miller Electric Co. PAGE 12 VOLUME 1, NO. 7 • ONE SECTION
Page 2 • Thursday, July 19, 2018
Jacksonville Daily Record/Jacksonville Record & Observer
WHAT’S TRENDING
Game-day paradise for pets in progress at ‘The Bank’
KAREN BRUNE MATHIS EDITOR
But register. Walk-ups are barking up a tree. A trend unleashed in Jacksonville is in city review – the proposed Pet Paradise Park at TIAA Bank Field. The city is reviewing a permit application for Giles-McIvor Inc. to build the 1,854-square-foot “day resort and spa” in the NFL stadium at a cost of $167,000. The Jacksonville Jaguars and Pet Paradise announced the dog park will accommodate about 250 dogs during the 2018 season. At seven regular season and two preseason home games, that averages 27
Daily Record JACKSONVILLE
dogs at each. Pet Paradise Park will open Aug. 9 for the first Jaguars preseason game against New Orleans. It will be on the south end zone patio, directly above the Fields Auto Group Terrace Suite. Features will include a large artificial turf play area, a bone-shaped swimming pool and palm trees. Pet Paradise employees, including a veterinarian, will staff it. Owners can watch the game from their seats or on the south end zone patio near the dog park. But it will be a long day for dog owners. They need to bring their canines to the drop-off area 3 1/2 hours before kickoff and can pick up their pets about an hour after the game ends. Game-day walk-ups will not be permitted. Visit jaguars.com/petparadise for information about access. The Oct. 28 home game is scheduled in London at Wembley Stadium, which prohibits animals other than service and guide dogs.
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Established in 1912, the Financial News & Daily Record, now the Jacksonville Daily JACKSONVILLE Record, is published Monday-Friday and is the Official Court Newspaper of the Circuit Court and publisher of public notices in Duval County. Jacksonville Record & Observer is a free weekly business newspaper available in Downtown Jacksonville and key business nodes throughout Jacksonville. To find a location near you, visit jaxdailyrecord.com/rack-locations. Editorial content focuses on news and trends, with a concentration on development, law, companies, economic and industry trends and how local and state government affects business.
STAFF
Special to the Daily Record
Pet Paradise will operate a dog park during Jaguars home games at TIAA Bank Field.
RETAIL Texas de Brazil opens at Town Center Promenade Another restaurant opened in the St. Johns Town center area, where companies new to Jacksonville are choosing to locate their initial or only eateries. Texas de Brazil Churrascaria opened Friday at Town Center Promenade. The Brazilian-American steakhouse at 4634 Town Center Parkway offers traditional churrasco-style grilling, featuring beef, lamb, pork, chicken and Brazilian sausage. Texas de Brazil is the second BraSpecial to the Daily Record zilian steakhouse to open along Town Center Parkway. Fogo de Chao opened The Jacksonville restaurant is the Dallasin November at 4784 Town Center Park- based chain’s 58th and Florida’s 10th. way in The Strand at Town Center.
REAL ESTATE The Market launches at the Hyatt Regency Grab-and-go meals can be found around Downtown and now that includes the Hyatt Regency Jacksonville Riverfront hotel. The 24-hour Market opened Saturday as part of the hotel’s lobby renovations and is one of three venues Hyatt will introduce at the 225 E. Coastline Drive property. Hyatt General Manager Special to the Daily Record Luis Aloma said the The Market is the first of three new venlobby renovations are ues at the Downtown hotel. “raising the caliber of convenience.” Aloma The 1,790-square-foot Market provides what it calls a fast-andcasual menu and Starbucks coffee, offering a grab-and-go food and beverage service to include breakfast, lunch and dinner. There’s also a sit-down option. Lobby renovations continue this summer for the 150-seat SHOR Seafood Grill for daily breakfast, lunch and dinner and the 5,000-square-foot SHOR Tavern.
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Jacksonville Daily Record/Jacksonville Record & Observer
Thursday, July 19, 2018 • Page 3
ECONOMIC TRENDS
Waterfront a premium in Jacksonville
72.3%
Jacksonville
68.1%
Cleveland
51.9%
Denver
51.7%
Baltimore
50%
Milwaukee Seattle
47.3%
Sacramento, California
47.2%
Here are the estimated average premiums paid for waterfront homes since 1996. In Jacksonville, Cleveland, Baltimore and Milwaukee, waterfront homes are located where home prices in general are almost double the rest of those metro areas
42.5%
Austin, Texas
41.8%
Indianapolis
Waterfront property commands a premium
Source: Zillow Sales Data
41%
Dallas
Zillow finds area homebuyers pay more than in other cities.
than people in any other U.S. market. Looking at more than two decades of data, Zillow determined Jacksonville homebuyers pay a 72 percent premium for waterfront property. The only other city close to Jacksonville is Cleveland, where BY MARK BASCH the premium is 68 percent. The CONTRIBUTING WRITER next highest premium after that is in Denver, at 52 percent. Most Jacksonville residents A waterfront home is defined understand they have to pay as a home along a lake, river or more to live along the water ocean where the homeowner than in other parts of the region. can reach the water without But according to a study leaving his or her property. released last week by real estate “Buyers are willing to pay data firm Zillow, Jacksonville extra for features that add a The mostare FANTASMAGORICAL musical residents paying a higher stage unique benefit to a home, and thewaterfront history of everything! premiuminfor living being right on the water’s edge
is one of them,” Zillow Senior Economist Aaron Terrazas said in a news release. “These homes are relatively rare, making up only a small portion of the housing market, and that scarcity keeps prices high,” he said. Zillow said waterfront homes make up only 0.27 percent of homes in the Jacksonville market, so even though water is abundant in the area, real estate is scarce. Nationally, the percentage of waterfront homes is higher than Jacksonville but remains low at 0.47 percent. The market with the highest percentage of waterfront homes is Miami, at 5.86 percent, and
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buyers there pay a 38 percent premium. Jacksonville generally is a more affordable housing market than other cities, and Zillow said the markets with the highest waterfront premiums tend to have lower overall home prices. The median value of a waterfront home in Jacksonville is $633,700, Zillow said, above the national median value of $426,300. The premium for waterfront homes throughout the country since 1996 is 41 percent, it said. However, the premium in the first quarter this year was 36 percent, the lowest level since the second quarter of 2002. Zillow said a reason for that
is non-waterfront homes have recovered in price from the housing crash a decade ago, but waterfront property has not fully recovered. While the gap may have narrowed, Terrazas expects homebuyers to continue paying a premium for waterfront living. “Having waterfront access is incredibly appealing for many buyers, and even as environmental risk factors like rising sea levels and storm surges gain more attention and make some buyers more cautious in the homes they consider, the premium for waterfront homes is likely to endure,” he said. MBASCH@JAXDAILYRECORD.COM
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Page 4 • Thursday, July 19, 2018
Jacksonville Daily Record/Jacksonville Record & Observer
THE MATHIS REPORT
Publix to renovate 2 stores at $1.9M Lucky’s Market is shown next to the 12-screen Epic Theatres on a site plan by landlord Sleiman Enterprises.
McDonald’s investing in renovations KAREN BRUNE MATHIS EDITOR
Lakeland-based supermarket is remodeling stores as competition continues. Publix Super Markets Inc. continues its store renovations, this round comprising two in north and southwest Jacksonville. Elkins Construction LLC proposes to renovate the store at 731 Duval Station Road at a cost of $975,000 and the store at 9518 Argyle Forest Blvd. at $900,000. The 48,830-square-foot Duval Station Centre store and the 49,600-square-foot OakLeaf Plantation Center supermarket were developed in 2003. Lakeland-based Publix has been renovating its dozens of area stores and making plans to build more. Publix has renovated, rebuilt or filed plans to do so for more than 20 area locations in recent years. A spokesman said previously the company has a remodel program in which every store is assessed on a designated rotation of years based on a location’s needs. The scope of the remodel varies for each store, and some are demolished and rebuilt. Publix also is building in new markets and shopping centers. Publix, which opened its first Jacksonville stores in the 1970s, survived competition such as Food Lion, which left the market. It now contends with relative newcomers Aldi, Earth Fare, Trader Joe’s, Whole Foods Market and Walmart Neighborhood Markets. Winn-Dixie, Harveys, SaveA-Lot and Fresh Market also have been upgrading or adding stores.
Lucky’s Market shell structure in review at Oakleaf Target Contractors Inc. applied to the city to build the shell structure to house Lucky’s Market at 8380 Merchants Way in OakLeaf Station at a project cost of $540,530. The natural foods market plans to open the store early next year. It will be the company’s second area store after its December 2016 opening in Neptune Beach. The city also is reviewing a permit application for Lucky’s Market Operating Co. LLC of Colorado to build-out 30,000 square feet of space in OakLeaf. The interior and exterior work is listed as a $1.5 million project.
McDonald’s Corp. continues to upgrade area restaurants. It will renovate its 11310 Beach Blvd. location at a cost of $300,000. Stansell Properties & Development LLC is the contractor. The city approved the permit July 10 for interior and exterior renovations and roof and bathroom alterations as well as ADA compliance for sidewalks. Also, the St. Johns River Water Management District gave notice that it intends to issue a permit for McDonald’s site improvements that include demolition of the existing restaurant and replacement with a new, smaller 3,906-squarefoot building at 11682 San Jose Blvd. in the Medical & Merchants Center of Mandarin.
Special to the Daily Record
Publix will renovate this North Jacksonville store as well as one in OakLeaf Plantation Center.
FOOD NOTES
Retail notes
Pilot Travel Centers will build a 6,222-square-foot Pilot Express on 5.72 acres at 3515 Zoo Parkway. The city issued permits for Pilot Travel Centers to build the gas stationconvenience store, gas and diesel fueling canopies, and dumpster enclosure at a total job cost of $1.59 million. The Pilot Express is smaller than the typical Pilot Travel Center. Pilot caters to commuters, truckers and the neighborhood with fuel, food outlets, retail goods, a tire center and other amenities. Love’s Travel Stops is working toward a 17.1-acre project at 17110 Brandy Branch Road north of Interstate 10 in the Baldwin area. Love’s Travel Stops & Country Stores of Oklahoma City proposes a 12,000-square-foot convenience store, sandwich shop and fast-food restaurant. The site will hold nine diesel fueling locations and 20 car fueling stations. A 9,700-square-foot tire shop will serve trucks. The total enclosed space is 21,700 square feet. The city calculated a mobility fee of $297,389 to offset the traffic impact. Dollar General plans a 7,500-square-foot store on 1.03 acres at Wilson Boulevard and Firestone Road. The property is owned by First Coast Energy LLP. Family Dollar is planning another store. Developer TRC Sunbeam LLC proposes an 8,320-square-foot Family Dollar on 1.79 acres at southwest Sunbeam and Kevin roads. TRC Sunbeam is based in Charleston, South Carolina. Goodson, Nevin & Associates is the civil engineer. America’s Best Contacts & Eyeglasses intends to open at Normandy Creekside at 6752 Normandy Blvd., anchored by Walmart. America’s Best is planned as a tenant in a multitenant building on an outparcel. No contractor is listed for the $225,000 build-out of 5,107 square feet. KMATHIS@JAXDAILYRECORD.COM @MATHISKB (904) 356-2466
Special to the Daily Record
An image of the Cousins Maine Lobster restaurant scheduled to open in Neptune Beach.
Cousins Lobster to open July 27 in Neptune Beach Cousins Maine Lobster will open at 11 a.m. July 27 at 630 Atlantic Blvd. in the Seminole Shoppes in Neptune Beach. It will lease 1,253 square feet of space near the end of the Publix-anchored center. Cousins Jim Tselikis and Sabin Lomac created Los Angeles-based Cousins Maine Lobster as a food-truck business. After appearing on “Shark Tank” in October 2012, they opened brick-and-mortar restaurants in five cities: Los Angeles, Nashville, Atlanta, Taipei and, next, Neptune Beach. They also have 16 food trucks around the country. The Jacksonville franchisee is
Julianne Lily. Menu items include lobster rolls and lobster sandwiches, such as a BLT, grilled cheese, tacos, tots, quesadilla, lobster bisque and lobster tail; along with salad, a chicken sandwich, clam chowder and more. There’s also take-home lobster, including a lobster-roll kit of a pound of Maine lobster meat with six rolls, butter and mayo. Sandwich prices are $9 to $16 and specialties range from $4 for a frank to $17 for Maine fried clams. The take-home kit is $65.
Popeyes Louisiana Kitchen intends to build a 2,265-square-foot restaurant on 1.3 acres at 7762 Argyle Forest Blvd. at a cost of $450,000. The city is reviewing the construction permit application.
ings. She said this week that it should open Aug. 27, if not before.
Chick-fil-A wants to renovate its Regency Park restaurant at 9398 Atlantic Blvd. Atlanta-based Chick-fil-A Inc. wants to enlarge the 3,821-square-foot restaurant to 4,192 square feet. It was built in 2000 on 1.23 acres. The city determined a $15,274 mobility fee to offset the project’s traffic impact. Your Pie is being built-out at 389 Paseo Reyes Drive, Suite 205, in Gateway Village at Palencia in St. Augustine. Gateway Village is along U.S. 1 at Shannon Road. Cline’s Custom Meats will build-out in San Marco at 1625 Hendricks Ave. Third Construction Co. LLC is the contractor for the 860-square-foot project at a cost of almost $35,805. The city issued the permit July 12. Cline’s Custom Meats LLC is led by managers Milouda and Joseph Cline. Milouda Cline said in May they would open a butcher shop that will offer prime cuts of beef, also including lamb, poultry and veal and other special offer-
Woody’s Bar-B-Q franchise owner Jack Dunsmoor, through 295 Baymeadows BBQ LLC, seeks a zoning exception to sell alcoholic beverages at the former Sticky Fingers Ribhouse in Baymeadows. Woody’s is taking over the property, which Sticky Fingers closed in June 2017. Dunsmoor said previously he is leasing with an option to buy the site at 8129 Point Meadows Way off Interstate 95. It is owned by Sticky Jax LLC of Charleston, South Carolina. Keke’s Breakfast Café was OK’d for build-out at 4906 Town Center Parkway, No. 104, in The Strand at Town Center. ShayCore Enterprises Inc. is the contractor for the $326,259 project. Panera Bread continues plans for East Arlington. The developer who wants to convert the former Queen’s Harbour area Applebee’s Neighborhood Grill & Bar into a Panera Bread café seeks a zoning exception to serve food outside. BW Atlantic 90 LLC proposes to add a patio as well as a drive-thru at the property at 13201 Atlantic Blvd.
Jacksonville Daily Record/Jacksonville Record & Observer
Thursday, July 19, 2018 • Page 5
REAL ESTATE
Top 10 sales of the week BY SCOTT SAILER • EDITORIAL RESEARCH DIRECTOR
Here are the top 10 real estate sales in Northeast Florida, comprising Clay, Duval, Nassau and St. Johns counties. The sales were recorded July 2-6.
$71,925,000
3050 Tamaya Blvd., Jacksonville, Duval County Type: The Point at Tamaya Apartments Size: 30.01 acres Buyer: Passco Point DST Trust Seller: WP/R Jacksonville Owner LLC
$6,830,000
317 Water St., Jacksonville, Duval County Type: Parking lot Size: 1.48 acres Buyer: Amkin Terra LLC Seller: OP Terra Owner LLC Previous sale: $6,400,000 in 2015
$26,152,500
463855, 463893, 463899 and 463905 Florida 200, Yulee, Nassau County Type: Shopping center Size: 18.62 acres Buyer: NNN Yulee FL Owner LP Seller: PX Amelia LP Previous sale: $20,905,300 in 2013
$5,800,000
929 Ponte Vedra Blvd., Ponte Vedra Beach, St. Johns County Type: Single-family Size: 1.54 acres Buyer: Team 79 Land Trust Seller: J.G. and Sharon P. Ray Previous sale: $6,000,000 in 2012
Special to the Daily Record
3050 Tamaya Blvd. sold for $71.925 million.
$18,590,000
$14,265,000
$11,750,000
Type: Vacant mixed-use Size: 30 acres Buyer: Elements Development of Jacksonville LLC Seller: Jacksonville Electric Authority
Type: West Jacksonville Care and Rehabilitation Size: 4.86 acres Buyer: 1650 Fouraker Realty LLC Seller: 1650 Fouraker Road SPE LLC Previous sale: $12,272,800 in 2015
Type: Caroline Arms Apartments Size: 12.97 acres Buyer: Caroline Arms Preservation LTD. Seller: Caroline Arms LLC Previous sale: $8,000,000 in 2012
$5,508,000
$5,400,000
$3,720,000
801 Broadcast Place, Jacksonville, Duval County
Collins Road, Jacksonville, Duval County Type: Undeveloped Size: Portion of Oakleaf parcel 4B Buyer: KB Homes Jacksonville LLC Seller: AFI Associates Inc.
1650 Fouraker Road, Jacksonville, Duval County
404 and 420 N. Julia St., 320 W. Church St. and North Pearl Street, Jacksonville, Duval County Type: Mixed-use Size: 1.48 acres Buyer: Axis Hotels LLC Seller: 404 N. Julia Street LLC, Easton Duval LLC, Easton Land & Development LLC, Samuel M. Easton Jr, and Julia Solomon LLC
6457 Fort Caroline Road, Jacksonville, Duval County
133 Bristol Place, Ponte Vedra Beach, St. Johns County Type: Single-family Size: 0.59 acres Buyer: Brent D. and Anne P. Moore Seller: William O. and Stacey Scaife Previous sale: $2,000,000 in 2015
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Page 6 • Thursday, July 19, 2018
Jacksonville Daily Record/Jacksonville Record & Observer
THE CAWTON REPORT
Gov. Scott defends his Freeman nomination in the district and few, if any, ties to the overwhelmingly Democratic district, Scott said he “followed all the rules.” After the event, Scott’s office confirmed that Freeman’s appointment began July 10. CITY ENTERS LAWSUIT, GIBSON STRIKES BACK DAVID CAWTON STAFF WRITER
A lawsuit is filed that challenges residency. Gov. Rick Scott stands by his appointment of Terrance Freeman to Jacksonville City Council, despite a lawsuit challenging Freeman’s eligibility. “We took our time and found good people. Terrance is going to do a good job,” Scott said Monday. “It’s completely in compliance with the law.” When Freeman accepted Scott’s nomination to fill a seat, he was not a resident of District 10, the area he now represents. That’s an issue for the Duval County Democratic Party and for District 10 resident Brenda Priestly Jackson, who filed a lawsuit to remove Freeman. “This is not a partisan matter of Democrats and Republicans,” she said Monday on the steps of the Duval County Courthouse. “We know plenty of Republicans in District 10 that could’ve given voice to the community as well.” Jackson, a former Duval County School Board member, also applied for the seat. Scott appointed Freeman, a Republican, to replace suspended council member Reginald Brown on July 10 along with Democrat Ju’Coby Pittman to take over for suspended council member Katrina Brown in District 8. Katrina Brown and Reginald Brown, who are not related, are defendants in a federal fraud case and were suspended from office June 1. Terrell Hogan Yegelwel attorneys Leslie Scott Jean-Bart and Leslie Goller are representing Jackson in a suit filed July 13 against the governor and Freeman. They allege Freeman’s appointment is invalid because he did not meet the residency requirements for the position at the time of the appointment, which was announced by email at 10:19 a.m. July 10. At an event for his U.S. Senate campaign Monday, Scott declined to clarify when the appointment was official, saying his office would get back to media. When asked why he selected a Republican with no residency
Late Tuesday, the city’s Office of General Counsel filed a motion to intervene in the case as a defendant, saying it “has a direct and vital interest in the underlying facts of this lawsuit, the proper application of its Charter and laws, and the outcome of this matter.” General Counsel Jason Gabriel contends Freeman’s appointment began July 12, when he was sworn in at City Hall. “Council member Freeman is fully participating in all City Council business as the District 10 representative,” the motion states. “The validity of his involvement, discussions, meetings, and votes is directly at issue in this case. The City, itself, should be allowed to participate in litigation directly challenging the integrity of such official actions.” The case was assigned to Judge Robert Dees in the 4th Judicial Circuit Court. Dees’ former law firm, Milam Howard Nicandri Gillam and Renner, is representing Freeman and at that firm’s request, Dees will recuse himself from the case. Jackson’s attorneys filed an emergency motion Monday to stop Freeman from participating in council business. Council standing committees began meeting this week after the summer break and Freeman is a member of two committees. “District 10 deserves to be represented by someone who is qualified and capable of performing the duties of a City Council member,” said JeanBart. “They don’t deserve a representative from Mandarin, they deserve one from District 10.” State Sen. Audrey Gibson called Scott’s decision tainted and disrespectful to the community. Her state Senate District 6 overlaps the council district. “What I call ‘shenanigans’ that have taken place to avoid choosing capable applicants from and of the district is what is at issue,” said Gibson. She said the appointment sends the message that only some in government need to play by the rules, “and the rest should keep quiet and go pound sand.” “I don’t think so,” she said. Freeman is represented by his attorney, state Rep. Paul Renner, who has not commented on the pending litigation.
IN BRIEF JEA promotes new water VP JEA named Deryle Calhoun as vice president and general manager of JEA’s water and wastewater department. He’ll lead operations, planning and strategy execution. Most recently, Calhoun served as director of water, wastewater and reuse treatment, where he led the wastewater resilience program, improving reliability during storm events and demonstrated organizationwide leadership in safety, according to JEA.
Photos by David Cawton
Gov. Rick Scott addressed members of the media Monday. He is named in a lawsuit challenging his selection of Terrance Freeman for City Council.
QUESTIONS ABOUT FREEMAN’S APPLICATION
Like many of the applications sent to Scott’s office, Freeman’s home address is redacted on the forms he submitted June 19, as is permitted by state law. According to Duval County property records, Freeman purchased a home in District 6 in 2017. Freeman now is renting two rooms in a home in District 10 and stands by his assertion he meets all requirements. His listed experience includes positions at Ygrene Energy Fund’s Jacksonville offices, the JAX Chamber and as a K-12 private school principal. Before joining Ygrene in 2017, Freeman was an aide to now council President Aaron Bowman. Bowman is listed as a personal reference, along with JAX Chamber President Daniel Davis and former Edward Waters College President Nathaniel Glover. Freeman listed no “possible conflicts of interest.” Part of Jackson’s suit says that at the time she submitted her application June 4, the application portal required prospective appointees to certify they were residents of District 10 or District 8. She alleges that “after a week or two” the requirement disappeared on the application portal and was not there when Freeman submitted his credentials. Jackson said she is not interested in the appointment herself, and is not concerned
Former Duval County School Board member Brenda Priestly Jackson is suing the governor over his choice to replace a suspended council member in District 10.
that Freeman is a Republican. “This is about residency,” she said. “This is about the people of District 10 once again being disenfranchised by the party in power.” Jackson does plan on running for the open seat in 2019. NEXT STEPS
The city charter requires candidates to be residents in the district they want to represent 183 days before the election qualifying period, which was Jan. 7-11. Jackson said she’s concerned the precedent set by his appointment will disenfranchise voters. “We are deeply troubled that our governor, in coordination with our mayor, in coordina-
tion with our city council president, chose to pick an individual that does not live in our district as well as an individual who has close ties to those in office and not in the community,” she said. Jackson said the situation could have been avoided if Reginald Brown and Katrina Brown had resigned. “I understand from a legal defense perspective why they didn’t,” she said. “But it would’ve triggered a special election and taken the appointment power away from the governor.” DCAWTON@ JAXDAILYRECORD.COM @DAVIDCAWTON (904) 356-2466
JTA hiring drivers
Scott names 3 to FSCJ board
The Jacksonville Transportation Authority is recruiting 30 bus drivers for the 18.5-mile First Coast Flyer Bus Rapid Transit Red Line from Downtown to the Beaches. The route begins service in November. Candidates must be at least 21 years old with a high school diploma or equivalent, hold a Florida CDL license class A or B with airbrake and Passenger or Permit endorsement, and have a clean driving record. For more information, visit jtafla.com.
Gov. Rick Scott appointed Theresa Graham and reappointed Karen Bowling and Candy Holloway to the Florida State College at Jacksonville District board of trustees. Their terms expire May 31, 2022. Graham, a Jacksonville Realtor, succeeds Randy DeFoor. Bowling, of Jacksonville, is the president of Thrive Consulting LLC. Holloway, of Bryceville, is the retired executive director of the Ark of Nassau. The appointments are subject to confirmation by the Florida Senate.
Jacksonville Daily Record/Jacksonville Record & Observer
Thursday, July 19, 2018 • Page 7
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Jacksonville Daily Record/Jacksonville Record & Observer
THE BASCH REPORT
CSX hits operating target early MARK BASCH CONTRIBUTING WRITER
CEO’s 2020 goal reached in 2Q 2018 while railroad company’s headcount continues to decline. As CSX Corp.’s new management team continues to overhaul operations, the Jacksonville-based railroad achieved one of its key targets two years early. In its earnings report Tuesday, CSX said its operating ratio dropped to 58.6 percent in the second quarter, down from an adjusted 63.5 percent the previous year. That ratio of operating expenses divided by revenue was “clearly the lowest ever for CSX and I believe the lowest ever by a U.S. railroad,” CEO James Foote said in a conference call with analysts late Tuesday afternoon. Foote and his team had set a goal of reaching a 60 percent operating ratio by 2020. With the increased Foote efficiency, CSX reported earnings of $1.01 a share, up from adjusted earnings of 64 cents in the second quarter of 2017. That was better than analysts’ forecasts, which ranged from 81 cents to 89 cents, according to Yahoo Finance. Revenue rose 6 percent to $3.1 billion, better than the average analyst’s forecast of $2.99 billion. The revenue gains included a 7 percent increase from coal shipments to $569 million.
Coal used to be CSX’s biggest business before declining demand in the U.S. sent coal revenue plummeting. Demand for export coal offset the declines in U.S. coal shipments, the company said. Revenue from chemical shipments, which rose 7 percent to $588 million in the quarter, has surpassed coal as the railroad’s biggest business. Foote said CSX is raising its forecast for full-year revenue growth from “up slightly” to up by a mid-single-digit percentage. “This slightly higher outlook is a reflection of a number of factors, including our belief that export coal strength will continue, higher fuel prices will remain and a healthy economic backdrop,” he said. “Obviously, there are factors we cannot control, mainly the economy, that can provide some variability as we get into the back half and fourth quarter specifically. But this is how we see it today.” The increase in revenue is helping its operating ratio, but CSX also is benefiting from expense cuts, including job reductions. The company’s headcount from its operations throughout the eastern U.S. fell by about 200 in the quarter to 22,810 as of June 30, but that’s down from 25,512 a year ago. In the conference call, CSX officials said its employment targets haven’t changed. They previously said they want total employment of 21,000 by the end of 2020. “Our G&A headcount continues to decline, as we look for every opportunity to absorb attrition,” Chief Financial Officer Frank Lonegro said. “Over the past year, we have eliminated unnecessary layers of management, yielding a structure that is cost-effective and enables rapid communication and decision-making across our network,” he said. Although the company hit its operating ratio target early, Foote said the company is not revising its long-term outlook. “We have a lot of work to do and we got a lot of help this
quarter from coal,” he said. “If things continue to align, I continue to say I have confidence that we can hit a number, 60, which everybody I think thinks is extremely, extremely impressive.” At CSX’s annual shareholders meeting in May, Foote said improving safety is a top priority for the railroad. The company hired a new chief safety officer and brought in an outside safety consulting firm soon after that meeting. In the second quarter, CSX said reportable injuries per 200,000 man-hours were 0.91, down from 1.18 the previous year. “We intend to be the safest railroad,” Foote said in Tuesday’s conference call.
Fidelity beats forecasts Fidelity National Financial Inc. on Tuesday reported higher than expected secondquarter earnings. Adjusted earnings of 86 cents a share were 18 cents higher than the second quarter of 2017, and above analysts’ forecasts, which ranged from 81 cents to 83 cents, according to Yahoo. Revenue rose 3 percent to $2.12 billion, higher than the average analyst’s forecast of $2.08 billion. In a news release, Fidelity Chairman Bill Foley said the Jacksonville-based company’s main business, title insurance, generated its best quarterly results in 15 years, with pre-tax earnings up 12 percent to $338 million and its adjusted profit margin at 17.1 percent. “We are encouraged to see the single-digit growth in orders in both the residential purchase and commercial markets offsetting the doubledigit decline in orders in the residential refinance market and feel our title business is well positioned to continue to deliver strong financial results through the remainder of 2018,” Foley said.
Fresh Market closures don’t impact Florida The Fresh Market Inc. said last week it will close 15 of its grocery stores, but no Florida locations are affected. The company said the closures resulted from an organizational analysis under new CEO Larry Appel, a former Winn-Dixie Stores Inc. executive who was hired in September. “Over the last eight months, our company has been executing a turnaround plan Appel and we’ve seen great progress. However, for a variety of reasons unique to each retail location, that progress is not evenly distributed and, as a result, we have decided to close these long-term, underperforming stores,” Appel said in a news release. Fresh Market, which operated 176 stores in 24 states before the announcement, said it does not anticipate any additional closures. The company has five Northeast Florida stores, according to its website. Appel spent 10 years at Jacksonville-based Winn-Dixie in several high-ranking positions, including chief operations officer and chief legal officer. He left in 2012 after WinnDixie merged with Bi-Lo LLC into the company now known as Southeastern Grocers.
Northrop names new CEO Northrop Grumman Corp. last week said Wes Bush will retire as CEO on Jan. 1 and be succeeded by Kathy Warden, currently president and chief operating officer. Warden, 47, has been with Northrop since 2008 and became president Jan. 1. Bush has been CEO since 2010, and his tenure included
the designation of the company’s St. Augustine aerospace facility as a “center of excellence.” When Northrop decided to expand the St. Augustine facility in 2013, it said it would expand its 1,000-job workforce by 400. However, current employment is 1,100, spokeswoman Jacqueline Jeransky said by email. “The Northrop Grumman St. Augustine personnel numbers have increased since our CoE designation in 2013. At this time, we are meeting our planned business growth objectives,” she said.
Rayonier AM rated ‘buy’ by analyst Despite positive developments in recent months including an acquisition that doubled the company’s size and the opening of a joint venture lignin plant, Rayonier Advanced Materials Inc.’s stock has been floundering. However, one analyst expects a rebound in the stock. Berenberg Capital Markets analyst Paretosh Misra last week initiated coverage of Jacksonville-based Rayonier AM with a “buy” rating and a $25 price target, 42 percent above its stock price of $17.59 at the time of the report. “We think consensus is overly bearish on the net earnings benefit from various self-help measures such as cost cutting, new product launches, and synergies from the Tembec acquisition,” Misra said in his research report. Misra said he anticipates a rebound in Rayonier AM’s core market of cellulose specialties products, and he also expects more activity as the company reduces debt. “The market is not focusing on management’s potential to accelerate stock buybacks, investment in high return projects, and M&A from 2019, after leverage has been reduced,” he said. MBASCH@JAXDAILYRECORD.COM
Investor pays $42M for Hawthorne Apartments Olympus Property boosts local holdings to four complexes. BY JAY SCHLICHTER ASSOCIATE EDITOR
A Texas-based real estate investment firm acquired a 239unit apartment complex in the Baymeadows area last week for $42 million. As the new owner of The Hawthorne Apartments, built in 2013, Olympus Property, parent of the WW Hawthorne LP buyer named on the deal, now has four multifamily rental complexes in Jacksonville. The company, headquartered in Fort Worth, Texas, also owns Wimberly at Deerwood, Mirador and Stovall at River City and Cape House Apartments along Hodges Boulevard, and dozens
of other properties throughout the country. Chase Bennett, the director of acquisitions at Olympus, said the company has a “pretty big presence” in Jacksonville and that it plans to be long-term holders of the property. The company intends to “revamp” the Hawthorne Apartments and build small additions. Bennett didn’t provide details of those renovations or additions. The complex, at 8150 Point Meadows Drive off Baymeadows Road west of Interstate 295, offers one-, two- and threebedroom units in a gated community with a pool and 24-hour gym.
Olympus paid about $175,500 a unit. The previous owners, Raia Capital Management, have a portfolio of about 3,000 apartments in Alabama, Florida, Missouri, South Carolina and Tennessee, according to the company’s website. The company, based in Ramsey, New Jersey, didn’t return calls for comment. Raia purchased the property in May 2015 from the original owners, Glenmont Arlington Twin Lakes LLC, for $35.2 million. In the latest sale, Olympus agreed to assume Raia’s mortgage on the property, which has an unpaid principal of $23.5 million. Olympus was founded in 1992 by brothers Chandler and Anthony Wonderly, according to the company’s website. They initially bought proper-
Special to the Daily Record
Olympus Property paid $42 million for The Hawthorne Apartments in the Baymeadows area.
ties in California and expanded, boosting their portfolio to more than 17,000 units. They also own complexes in Texas, Oklahoma, Tennessee,
Arizona, Arkansas, Georgia, Utah and New Mexico. JAYS@JAXDAILYRECORD.COM (904) 356-2466
Jacksonville Daily Record/Jacksonville Record & Observer
Thursday, July 19, 2018 • Page 9
Sales percentage
Sales total
Office
9%
Northeast Florida 2017 investment market BY SCOTT SAILER EDITORIAL RESEARCH DIRECTOR
Hospitality
9%
Shopping center
9%
Multifamily/ apartments
61%
Warehouse
12%
Apartment sales dominated the Northeast Florida real estate investment market in 2017. In hospitality, the Hyatt Regency Jacksonville Riverfront hotel sold for $119 million. Twelve office buildings were sold. The largest was the sale of Gramercy Woods to Ladder Capital for $115 million. Area investment sales of more than $5 million totaled $2.57 billion, up 29 percent from 2016. Sales peaked at $2.9 billion in 2014.
THE DATA PAGE
$1.56 billion
$315 million Source: Colliers International Northeast Florida Year-End 2017 Investment, Real Capital Analytics 2018
Architectural Shingles
$228 million
$231.5 million
$239 million
Office
Hospitality
Shopping center
Warehouse
Multifamily/ apartments
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Jacksonville Daily Record/Jacksonville Record & Observer
Hotels:
Existing Downtown area hotels
CONTINUED FROM PAGE 1
Hotel
plans to redevelop the historic Ambassador Hotel along North Julia Street. The group wants to develop 100 hotel rooms there and build a 200-unit apartment complex and 15,000 square feet of retail space next to it. Wallace said he spoke with Augustine Development’s Bryan Greiner and George Bochis before they bought the 1.5-acre property for $5.4 million. “When they first sat down, they were focused on the Ambassador,” Wallace said. “I asked them to consider having a residential component and I’m happy that’s what they’re considering.” Augustine Development confirmed Cambria and La Quinta as two hotel companies being considered. In Brooklyn, just outside the urban core, Parkview Plaza Partners LLC proposes a 135-room Residence Inn by Marriott along Forest and Magnolia streets. The Downtown Development Review Board, which oversees building standards for the Downtown area, must approve the project. “That can serve people who are looking for an extended stay, in an area that desperately needs a hotel product,” said Wallace. APPROVED PROJECTS
While those ideas are still in the early stages of development, others are ready to break ground. On July 14, Elements Development of Jacksonville LLC closed on the site slated for a mixed-use project called The District, which will feature a 200-room AC Hotel by Marriott, a new flag for Jacksonville. The Southbank District is set to break ground next year for more than 1,100 residences, 200,000 square feet of retail space and 200,000 square feet of office space. According to the AC Hotels website, the boutique brand draws inspiration from European design with modern amenities and a “social buzz.” On the north side of the St. Johns River, another Marriott flag is proposed for the Laura Street Trio at northeast Laura and Forsyth streets. A 145-room Courtyard by Marriott is planned there as part of a
File photo
Downtown Investment Authority CEO Aundra Wallace notes “exuberance” for Downtown hotel development.
$95 million project by SouthEast Development Group and The Molasky Group of Companies. Across Laura Street, the venture is redeveloping the Barnett Building, which will have apartments, offices, a University of North Florida satellite campus and ground-floor banking. Developer Steve Atkins of SouthEast said previously the hotel will be a custom-build for Marriott. Along with a new eight-story structure, the hotel will occupy space in the Florida Life and Bisbee buildings, which flank the Marble Bank Building. Not far from there, at Laura and Bay streets, developer Eugene Profit wants to transform the former Life of the South Building into the 89-room Hotel Indigo. It will feature a rooftop restaurant and lounge with groundfloor retail. Profit expects to break ground this year. MORE DEMAND
Wallace said the momentum in 2018 is a sign of what’s to come. “I think developers are reacting to the market and the demands of a city that’s growing its events and sports profile and entertainment business,” he said. Wallace said Downtown can benefit from having multiple Marriott flags. “Business travelers come to Jacksonville all the time, and they’re looking for brands they’re comfortable with such as Marriott and others,” he said. “They’re always trying to accumulate
points.” Wallace is not concerned about too many hotel rooms. “The hotels for the most part aren’t asking (the DIA) for incentives, outside of two of the projects,” he said, referring to the Laura Street Trio Marriott and the Residence Inn in Brooklyn. “What that tells me is they’ve looked at the market and they’re comfortable moving forward because they believe they can get the room rates and occupancy they need to survive,” Wallace said. Katie Mitura, vice president of marketing for Visit Jacksonville, said the announcements are no surprise. “We’ve had a huge uptick in the number of developers who’ve reached out to us looking for research and insight on the market,” she said. “Those calls are coming in every day,” Mitura said. Visit Jacksonville is the city’s convention and visitors bureau. It contracted with the city for marketing and recruiting conventions to Jacksonville, among other responsibilities. Mitura said projects like the Ambassador Hotel are happening across the country. “These vacant, historic buildings are very popular in other cities when they’re turned into historic hotels and repurposed,” she said. “People love the atmosphere.” Mitura said June was the 57th consecutive month of hotel occupancy and room rate growth in
Address
# of rooms
Hyatt Regency Jacksonville Riverfront
225 E. Coastline Drive
951
Omni Jacksonville Hotel
245 Water St.
354
DoubleTree by Hilton Hotel Jacksonville Riverfront
1201 Riverplace Blvd.
293
Extended Stay America Jacksonville Riverwalk
1413 Prudential Drive
101
Hampton Inn Jacksonville Downtown I-95
1331 Prudential Drive
118
Hilton Garden Inn Jacksonville Downtown Southbank
1201 Kings Ave.
122
Homewood Suites by Hilton Jacksonville Downtown Southbank
1201 Kings Ave.
98
1515 Prudential Drive
323
Lexington Hotel & Conference Center Jacksonville Riverwalk
Total rooms
Jacksonville. She credits that to increased advertising, visibility and a growing business community. “Jacksonville’s also becoming a more well-known leisure destination,” she said. Mitura said a missing component is a new convention center large enough to satisfy the growing national convention industry. “Right now, the largest space we can house anybody in is the 78,000 square feet of space in our current facility,” she said of the Prime F. Osborn III Convention Center. She said most group meeting prospects need about 200,000 square feet of exhibition space and more hotel rooms than Jacksonville can offer Downtown. EXISTING PROJECTS
The new projects would join the roughly 1,000 hotel rooms on each side of the river Downtown. Two full-service Northbank hotels – the Hyatt Regency Jacksonville Riverfront, at 951 rooms, and the Omni Jacksonville Hotel, at 354 rooms – dominate Downtown lodging. On the Southbank, the Lexington Hotel & Conference Center Jacksonville Riverwalk and the Doubletree by Hilton collectively operate more than 600 rooms. Four limited service Southbank area hotels account for more than
2,360
400 additional rooms. Visit Jacksonville reported for June that occupancy at Downtown hotels was up almost 10 percent year-to-date to 75.2 percent. EVEN MORE ROOMS
Two more hotels are envisioned for Downtown. The city is accepting proposals from companies to demolish the old City Hall and Duval County Courthouse and from investors that would replace the buildings along East Bay Street and the St. Johns River with a convention center and a 200-room hotel. Those plans may change depending on what’s submitted. “I bet there would be two to three times as many groups that we could be courting to come to Jacksonville if we had that,” said Mitura. “It would be transformative,” she said. Near TIAA Bank Field, Jacksonville Jaguars owner Shad Khan proposes reconfiguration of the western parking lots, including Lot J. His vision is a new entertainment district with a hotel, although specific details aren’t known.
DCAWTON@JAXDAILYRECORD.COM @DAVIDCAWTON (904) 356-2466
jAX CHAMBER PRESIDENT
It’s time to renovate and sell Downtown BY JAY SCHLICHTER ASSOCIATE EDITOR
JAX Chamber President Daniel Davis has a stern warning for the city’s builders, developers and real estate professionals. “If we don’t grow, we die,” he said. Davis added the Downtown area is in desperate need of redevelopment to attract new, young talent that enjoys working, living and playing in an urban environment, rather than the current trend of most employees living in the suburbs or on the outskirts of town. The 45-year-old married father of four has history in Jacksonville. Davis served on the Jacksonville City Council, including as president in 2007-08; he represented
the area in the Florida House of Representatives; and he was the executive director of the Northeast Florida Builders Association. He shared insights at the NEFBA Sales and Marketing Council’s monthly breakfast meeting July 13 at the University of North Florida. Davis said that he and other chamber members have been visiting metropolitan cities, such as Cincinnati and Denver, with success in restoring their downtown zones. “We have got to create that here,” he said. “But we should all be pumped about the cranes in Downtown Jacksonville.” As soon as the first redevelopment projects kick off, Davis said the momentum will bring in even bigger proposals and projects. He
estimates that Jacksonville will be “absolutely transformed” within the next five years. His message wasn’t doom and gloom. It was mainly uplifting, catering to an audience comprising about 50 sales representatives, marketing experts, developers and bankers. “Every day, I am working with my team (at the chamber) so people can buy your product,” he said. “We have site selectors and CEOs in town every week. You all should be very encouraged about the direction the city is going.” Davis added that the greater Jacksonville area has been seeing tremendous growth, which is reflected in the employment numbers. He said the chamber doubled
its goal of 3,000 new jobs last year and the group is on track to meet or exceed this year’s goal of 2,500 new jobs. Davis also answered questions after his presentation, including one about the ongoing discussions on tearing down a portion of the Hart Bridge overpass near TIAA Bank Field and rebuilding it at the street level. “When that bridge was designed, it was for getting people into Downtown as fast as possible and out as fast as possible,” Davis said, adding that developers there have been “very clear” that they don’t want to build under an overpass. JAYS@JAXDAILYRECORD.COM (904) 356-2466
Photo by Jay Schlichter
Daniel Davis
Jacksonville Daily Record/Jacksonville Record & Observer
Florida could receive millions in additional revenue. BY BUSINESS OBSERVER STAFF
The recent U.S. Supreme Court decision in an internet sales tax case, South Dakota v. Wayfair, could add hundreds of millions of dollars a year, or more, to Florida’s coffers. It’s also vindication for former state Rep. Michelle Rehwinkel Vasilinda, a Leon County Democrat-turned-Republican running for mayor of Tallahassee. It was Rehwinkel Vasilinda who six times from 2008 to 2016 introduced an internet sales tax bill during the Legislative session, only to be thwarted each time. “This was an issue of fairness, an issue of the rule of law and issue of clarity,” she said. “There was a lot of money left on the cutting room floor in internet sales taxes we could have collected.” Rehwinkel Vasilinda said a study she commissioned put the value of lost Department of Revenue collections at more than $2 billion. Despite that potential windfall, Rehwinkel Vasilinda said House Republicans balked at enacting what some considered an additional tax and that’s why the bill failed to get past committees in most cases. But the Supreme Court’s 5-4 ruling in Wayfair that confirms a state’s authority to collect sales tax on internet purchases rights a wrong, said Fort Myers attorney Mark Nieds — and it’s not an additional tax. “For small businesses, this can really level the playing field,” he said, echoing
the position of several Florida business groups, including Florida TaxWatch and the Florida Retail Federation. Before Wayfair, said Nieds, a state could not require an out-of-state or online retailer to collect sales tax from its customers if that retailer did not have a physical presence within the state. That dates back to mail-order sales, before Amazon sold its first book. More recently, in 2016 when Amazon opened warehouses and distribution centers in Florida, the online retailer for the first time agreed to collect sales tax from customers in Florida because of its presence, or nexus, in the state. “Since online retailers without a physical presence in a state were not required to collect sales taxes, this led to trillions of dollars in online sales transactions going Rehwinkel Vasilinda basically tax free,” Nieds wrote in a blog post. South Dakota, to secure some of those revenues, enacted a law in 2017 that taxes internet sales by online retailers with at least $100,000 in annual sales or 200 individual transactions. But Wayfair, which reported $4.7 billion in revenue in 2017, didn’t comply with the law. That led to the lawsuit that ultimately made it to the U.S. Supreme Court. Florida currently has no law that provides a clear procedure to tax online retailers. Nieds says it’s possible the Florida Department of Revenue could begin collecting the tax without a law.
BUSINESS IN BRIEF Ameris Bank to host job fair: Ameris Bank scheduled a career fair for 10 a.m.2 p.m. Saturday at 7825 Baymeadows Way for customer service representatives to join its call center. The position provides assistance to individual or corporate customers in opening new accounts or selling and cross-selling bank products and services. For information, visit amerisbank/com/careerfair/. The Players Championship Charity reaches milestone: The Players Championship Charity has raised $100 million for local nonprofits since the event moved to Ponte Vedra in 1977, including $9 million generated this year for youth education, health and wellness and character development.
University of North Florida recognized for inclusion: AffordableCollegesOnline.org recognized UNF as one of the nation’s most inclusive campuses for LGBTQ students. The website provides data and information regarding affordable education with tools such as financial aid, learning resources and opportunities for veterans and people with disabilities. Southeastern Grocers Inc. donates meals: Jacksonville-based Southeastern Grocers, the parent company of Winn-Dixie and Harveys, donated more than 3.6 million meals. It raised nearly $218,000 through an in-store Hunger Relief Program and made food donations this summer to local food banks throughout the Southeast.
These are the largest commercial building permits by price issued Monday and Tuesday by the city of Jacksonville. ROOFING Madelyn Oaks Apartments, 5710 Lenox Ave., contractor is CG Roofing Group LLC, 15 permits for roof replacement, $451,500. South Side Square Apartments, 3541 Victoria Park Road, contractor is Advanced Commercial Roofing Systems Inc., roof replacement, $188,329. Bay95 Shopping Center, 8738 Baymeadows Road E., No. 101, contractor is Pinnacle Roofing Contractors Inc., new roof, $76,720. Bible Believers Baptist Church of Jacksonville Inc., 3857 Hartley Road, contractor is Advanced Commercial Roofing Systems Inc., roof over existing, $35,274. San Pablo Apartments, 3551 San Pablo Road S., contractor is Dubo Roofing Co., six permits for roof over existing, $32,224. Peek-A-Boo Motel, 2369 W. 45th St., contractor is Align Roofing LLC, roof replacement, $16,800. Freddy’s Frozen Custard & Steakburgers, 4458 Town Center Parkway, contractor is A Plus Construction Service Inc., new roof, $14,500.
AMUSEMENT RECREATION Boys & Girls Clubs of Northeast Florida Inc., 313 E. 10th St., contractor is Core Construction Co., renovation, $1.8 million. YMCA, 5700 Cleveland Road, contractor is Auld & White Constructors LLC, new pool & splash pad, $400,000. City of Jacksonville, 10980 Heckscher Drive, contractor is Michael Thomas Contracting Inc., 386 square feet, new building for Huguenot Park, $40,000. APARTMENTS Duval Station Landing Apartments, 225 Duval Station Road, contractor is Pools By John Clarkson Inc., new pool, $85,400. The Club at Town Center Apartments, 3737 St. Johns Bluff Road S., contractor is Sweetwater Restoration Inc., repair, $73,994. BUSINESS CONDOMINIUM Greenland Commerce LLC, 6100 Greenland Road, contractor is River City General Contractors Inc., 19,504 square feet, four permits for new buildings, $800,000.
DEVELOPMENT TODAY
U.S. Supreme Court OKs internet sales tax collection
Thursday, July 19, 2018 • Page 11
SIGNS Extra Space Storage, 340 S. Myrtle Ave., contractor is Sign Design of Florida Inc., three permits for wall signs, $30,663. The Jaxon, 4450 Tropea Way, contractor is TriBridge Residential Construction LLC, two permits for monument signs, $5,600. Carter’s Babies and Kids/Oshkosh B’gosh, 10261 River Marsh Drive, No. 183, contractor is Anchor Sign Inc., two permits for wall and projection signs, $3,884. Ice Cream, 11018 Old St. Augustine Road, No. 113, contractor is Novalux Signs Inc., wall sign, $2,300.
CONDOMINIUM Whispering Pines Homeowners Association Inc., 5520 Greatpine Lane S., contractor is England Classic Homes Inc., 10 permits for siding replacement, $25,000. Fountain Gate Condominium, 9360 Craven Road, contractor is ASP-America’s Swimming Pool Co., pool repair, $23,000. INDUSTRIAL Johnson & Johnson Vision Products Inc., contractor is Turner Construction Co., two permits for interior demolition, $288,406. OFFICE, BANK, PROFESSIONAL CSX Transportation, 500 Water St., contractor is Duckworth Construction Co., 1,000 square feet, two permits for interior renovation, $337,804. Margaret and Oak Street LLC, 1534 Oak St., No. 200, contractor is Emerald C’s Development Inc., tenant buildout, $317,540. Truly Nolen Pest Control, 5825 Lone Pine Road, contractor is The John Stokes Co., 3,715 square feet, tenant build-out, $205,789. Coastline Federal Credit Union, 10991 San Jose Blvd., No. 1, contractor is Viacon Inc., 804 square feet, tenant build-out, $35,450.
STORES, MERCANTILE Academy Sports+Outdoor, 11901 Atlantic Blvd., contractor is AJS Construction and Development Corp., interior renovation, $730,000. CVS Pharmacy, 9509 San Jose Blvd., contractor is GLR Inc., renovation, $200,000. UTILITIES New Cingular Wireless PCS, 7030 103rd St., contractor is Mastec Network Solutions LLC, cell tower upgrade, $120,000. Compiled by Scott Sailer
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Page 12 • Thursday, July 19, 2018
Jacksonville Daily Record/Jacksonville Record & Observer
HENRY BROWN BY KAREN BRUNE MATHIS • EDITOR
Henry Brown is the CEO of family-owned Miller Electric Company, founded by Henry Miller in 1928 and part of Brown’s family since 1966. As the third-generation leader of the 1,500-employee Jacksonville-based company, which operates nationwide and primarily in the Southeast, Brown is moving the headquarters from Riverside to a larger location in Southpoint. I moved from there into the accounting and finance department of Atlantic Marine, now BAE Systems. A few years later, the opportunity was right for me to transition to the company.
My responsibility is the overall executive leadership of the company. I focus on strategy and positioning our financial resources and our people, being our biggest resource, to make sure we are all aligned culturally and that we are all executing on strategy.
My grandfather was able to buy up a lot of property around our original building here on Rosselle Street, and we were able to expand into multiple buildings. We’ve maxed out and we need more space. Moving to Southpoint Parkway and being able to combine our Jacksonville employees from seven buildings to one, and significantly increasing our square footage, will provide room to grow.
My grandfather, Buck Autrey, worked his way up through the company and became president in 1966. He led the company as president, CEO and later chairman up to 2012. He remains on our board of directors and is our chairman emeritus. My mother, Susan Walden, was CFO until recently and is active on the board. My uncle, Ron Autrey, was president from 2004-12 and remains on the board as chairman. We had our most recent generational transition six years ago. When my uncle retired, we consolidated ownership among our branch of the family. My brother, Daniel Brown, is COO. I’m CEO, and my mother is our executive vice president. It’s actually a fifth-generation company. It went from Mr. Miller to his daughter, Jane Wynn, then to my grandfather and then my mother and my uncle and then to my brother and me. We had such a great opportunity to learn from each other. Family business has its challenges. There’s never really a separation between work and family. When you’re at work, you’re dealing with family. When you’re at home, you’re still dealing with business. It’s not a matter of having work-life balance. It’s a matter of how you
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integrate the two. An important part of family business is everyone, whether you’re active or not, needs to stay aligned and emotionally invested in each other. We focus heavily in the health care industry, the data center industry and heavy industrial companies, such as the paper industry, power plants and steel mills. We know those companies rely on our services to be able to execute their mission. I started my career outside of the company and outside of the industry. I started in public accounting and realized I didn’t want to do that, but it was a great background. Accounting is the language of business.
We have three daughters that are 12, 10 and 10. They keep my wife, Jennifer, and me busy. We like to spend time on the water. We have a boat and take them tubing and swimming. We also like to travel, and I enjoy playing golf. We take a long-term approach in everything we do at the company. We have a generational horizon. We’re not so worried about the next quarter or the next year. I want to make sure the company is in a good position 20 years from now. I hope that at least one of our daughters, maybe all of them, will have an opportunity to come here and be able to contribute. Eventually I’d love to see one of them take over the company, if that’s what they want to do. KMATHIS@JAXDAILYRECORD.COM @MATHISKB (904) 356-2466
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ABOUT BROWN Title: CEO Organization: Miller Electric Co. Age: 41 Education: Master in Accountancy, Stetson University; CPA State of Florida (inactive) Family: Wife, Jennifer; three daughters: Grace and twins Emma and Abby Hometown: Jacksonville Hobbies: Golf, boating, travel and time with family