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Jacksonville Record & Observer 11/7/19

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November 7-13, 2019

Mathis Report: UPS building Southside distribution center PAGE 4

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JACKSONVILLE

Record & Observer FINANCIAL TECHNOLOGY

Qualifications set for bidders on The Ford on Bay site

BUILDING THE FUTURE Record & Observer OF BANKING JACKSONVILLE

BY MIKE MENDENHALL STAFF WRITER

JACKSONVILLE

Record & Observer JACKSONVILLE

D ow n tow n I n ve s t m e n t Authority officials and real estate firm CBRE Jacksonville issued qualifications Monday for developers who want to bid on The Ford on Bay, three parcels comprising the cleared Duval County Courthouse and City Hall sites and submerged riverfront land. n Firms with an active judgment lien of more than $10 million will not be considered. n Bids from companies with unpaid taxes in excess of $1 million will be disqualified. n Developers bidding on one land parcel must have completed a $50 million, 300,000-squarefoot project. n Those bidding on one land parcel and the water parcel must have developed a $60 million, 300,000-square-foot project. n Those bidding on both land parcels must have completed a $100 million, 600,000-squarefoot development. n Developers interested in the entire site must have completed a single $120 million, at least 650,000-square-foot project. The benchmarks come six months after a deal fell through on the unfinished Berkman II. Barrington Development sought $36 million in city incentives for the project. Property owner 500 East Bay LLC failed to pay $58,600 in 2018 property taxes on time, according to county tax records. The Florida Times-Union reported investors faced $11 million in judgments and had ties to a Louisiana condominium that owed more than $200,000 in delinquent property taxes and $79,000 in unpaid debts to contractors.

Record & Observer Special to the Daily Record

Finxact CEO Frank Sanchez co-founded the company with his brother, Michael. Finxact, which has about 65 employees, has offices on the 25th floor of Riverplace Tower on the Downtown Southbank and in Philadelphia.

Founded two years ago with $42 million in startup capital, Finxact is working on products to provide technology solutions and innovation to smaller regional and community banks.

BY MARK BASCH CONTRIBUTING WRITER

I

f you’re visiting the 25th-floor office of financial technology firm Finxact in Riverplace Tower, you might find yourself sitting at a unique conference table. The glass-topped table was built upon the base of a 747 jet turbofan, which CEO Frank Sanchez found on eBay. The table fits into a midcentury-modern design reminiscent of the old TWA lounge at JFK airport, Sanchez said. “I wanted to create an optimistic engineeringbased style here,” he said. “It has to be nice enough that when bankers come in, they don’t get scared and run away, but not opulent in any way.” Sanchez hopes the table symbolizes his company’s capabilities. “It all comes down to the product and solid

DIA CEO wants incentives for Downtown restaurants PAGE 3 The biggest sales of the week in commercial real estate PAGE 6 The Marbut Report: Georgia wins moot court competition PAGE 13

engineering,” he said. Sanchez, 62, co-founded Jacksonville-based Finxact with his brother, Michael, two years ago to provide technology for smaller regional and community banks that are not getting the solutions they need from larger companies. The brothers have four decades of experience in banking technology since starting a company in Philadelphia in 1979 called Sanchez Computer Associates. That company, which became public in 1996, was sold to Jacksonville-based Fidelity National Financial Inc. in 2004 and became part of the title insurance company’s financial technology business. The subsidiary, Fidelity National Information Services, or FIS, was spun off from Fidelity National Financial as a separate company in 2006. SEE FINXACT, PAGE 10

MMENDENHALL@ JAXDAILYRECORD.COM (904) 356-2466

THE BASCH REPORT

Regency Centers warns on earnings growth Company hit by retailer bankruptcies. PAGE 8 VOLUME 2, NO. 23 • ONE SECTION


WHAT’S TRENDING

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JACKSONVILLE DAILY RECORD /J ACKSONVILLE RECORD & OBSERVER

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THURSDAY, NOVEMBER 7, 2019

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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Special to the Daily Record

An artist’s rendering of the FIS headquarters planned at 323 Riverside Ave. at what is now a Florida Blue surface parking lot. See a photo gallery at JaxDailyRecord.com

PROJECT SHARP

FIS announces $145M HQ in Riverside Fidelity National Information Services Inc. announced Friday that FIS will build a $145 million, 12-story, 300,000-square-foot world headquarters at 323 Riverside Ave. and create 500 jobs. “Today is really a neat announcement, because we’re able to announce that FIS has decided to double down on its commitment to Jacksonville and build a new and expanded headquarters just a few hundred yards away on ground right here in Jacksonville,” Gov. Ron DeSantis said in the lobby of the building FIS shares with Black Knight Inc. at 601 Riverside Ave. FIS has been in Jacksonville for

more than 15 years. Because of its $43 billion acquisition July 31 of Worldpay Inc., it needs more space. FIS provides technology for financial institutions and Cincinnati-based Worldpay provides payment services. As part of a $29.9 million incentives deal with the city and state, code-named Project Sharp, Fortune 500 company FIS will retain its 1,216 Jacksonville employees. Fidelity National Information Services Inc. Chairman, President and CEO Gary Norcross said its three Jacksonville facilities will be consolidated into the new headquarters, expected to be completed in June 2022.

DEVELOPMENT Investor proposing Jacksonville’s tallest building A Miami investor is proposing Jacksonville’s first Northbank high-rise in almost 30 years that would tower over Downtown’s tallest buildings. Real estate investor Ramon Llorens presented conceptual designs for a 54-story, mixed-use tower at the site of the former Downtown Greyhound terminal to Downtown Investment Authority CEO Lori Boyer. Boyer said that Llorens and a Miamibased architect presented plans for the 1.46-acre site during a meeting at

her office in October. Boyer divulged the project Monday on the First Coast Connect with Melissa Ross radio show. In an interview after the program, Boyer said the tower would include multifamily residential units, corporate office space, hotel rooms and a parking garage, as well as ground-level restaurant space. The city’s tallest building, Bank of America Tower at 50 N. Laura St., is 42 stories and was built in 1990.

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JaxDailyRecord WEDNESDAY Boyer honored at ULI: Downtown Investment Authority CEO Lori Boyer will be honored as the 2019 Visionary Leader by the Urban Land Institute North Florida District Council at ULI’s Awards for Excellence program Wednesday. Awards are given to projects that demonstrate excellence and best practices in planning, design, construction, management, construction viability and sustainabilty. The program is 5-7:30 p.m. at The Ritz Theatre and Museum at 829 N. Davis St. Registration prices start at $75. For information, visit northflorida.uli.org. NOV. 19 Mayo Clinic Florida CEO at Global Business Luncheon: Dr. Kent Thielen, vice president of Mayo Clinic and CEO of Mayo Clinic in Florida, will speak about “Ideation, Incubation & Acceleration: Life Sciences Incubator

at Mayo Clinic in Florida” to the World Affairs Council Global Business Luncheon. The event is noon to 1:30 p.m. Nov. 19 at The River Club Downtown at 1 Independent Drive, No. 3500. Cost is $60 for World Affairs Council members and $80 for nonmenbers. For information, visit worldaffairscounciljax.org. NOV. 19 Maple Street to Economic Roundtable: Maple Street Biscuit Company CEO and co-founder Scott Moore and company General Counsel Alex Hill are scheduled to present “Selling Maple Street Biscuit Company” to the Economic Roundtable of Jacksonville. The event is 11:30 a.m.-1:15 p.m. Nov. 19 at the Jacksonville University Davis College of Business at 2800 University Blvd. N. Cost is $30 a ticket or $240 for a table of eight; the student price is $20. For information, visit ERTJax.org.

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THURSDAY, NOVEMBER 7, 2019

DIA CEO wants incentives for Downtown restaurants

Lori Boyer wants to create dining density in the urban core to create a destination. In early 2020, the Downtown Investment Authority could begin a program to promote a dense corridor of restaurants in vacant ground-floor spaces in the Northbank core. DIA CEO Lori Boyer says she’s working on a plan that either will modify the authority’s existing Retail Enhancement Grant Program or create an initiative to provide financial assistance targeting restaurants and businesses with higher build-out costs. The plan will include a marketing campaign, connecting building and restaurant owners with Downtown Vision Inc. and jaxrestaurantreviews. com to reach potential customers citywide and bring them Downtown. In an interview Oct. 25, Boyer said a written proposal should be in front of the DIA board for approval by February, and she

ment grants to 14 businesses since the program began. Business owners approved for the grant are reimbursed $20 per square foot or up to 50% of the project construction cost. Boyer will ask the DIA board to create a greater contribution to restaurants relocating to the Northbank core. The Retail Enhancement Grant fund has about $2 million available for the initial push. Boyer said any city-backed contribution would include a payment from the property owners but the amount has not been determined. The DIA board and City Council would have to approve modifications to the grant program or the creation of a separate incentive. With an average 12-month build-out timeline for a restaurant, Boyer said she wants to move quickly to meet her summer 2021 goal. “We just need to recognize the cost of a restaurant buildout is way more expensive than the cost of a normal retail shop,” Boyer said. Boyer wants the DIA to recruit restaurant owners to relocate or open a second location and to seek variety. That would ensure the Downtown market doesn’t become saturated by similar businesses, such as a block of coffee shops or one type of restaurant. “You want to go after the restaurants in town that already have a line,” she said, quoting a restaurateur. If a restaurant has customers waiting outside the door, they are

the targets for a Downtown location. Jacksonville restaurant owner Jonathan Insetta brought the Bellwether to 100 N. Laura St. Downtown in April 2017. He sees sales growth at Bellwether, but at a slower rate than at his group’s restaurants outside of the Northbank core. His group also owns Orsay in Avondale and Black Sheep Restaurant in Five Points. “Lunch is always good. When there’s an event Downtown, it’s great, but we’d like more guests during the night and dinner hours,” Insetta said. “We have a long way to go to become viable (Downtown).” He said Bellwether is an investment in the future and he believes its growth will increase with residential density. “The good thing is, everybody Downtown wants this to happen. Everyone is working toward the same goal. We’re just at the beginning of something,” he said. When Hurricane Dorian emptied city streets in early September, Boyer said she drove through Downtown looking for potential retail space and cataloged 31 buildings with vacant ground-floor space. One space, previously Candy Apple Cafe & Cocktails and MLG in the historic Seminole Building, has been filled by 10/ Six Grille. Boyer analyzed an area bounded by Bay, Main, Ashley and Julia streets. She said it became apparent that Hogan

and Laura streets are great corridors with a lot of vacant spaces. She said locating a restaurant inside a high-rise like the Bank of America Tower or Wells Fargo Center “does nothing for the street life.” The DIA program is designed to create a dense area of bars and restaurants to make the Northbank a destination for diners. “You won’t be going Downtown to Bellwether or to Cowford (Chophouse), you’re going Downtown for dinner,” she said. “You could walk up and down the street and find six or seven different places and decide whose menu you’d like that night.” PARKING AND TWO-WAY STREETS

Boyer believes that a targeted retail and restaurant program needs to happen in conjunction with a plan to convert some one-way streets into two-way in the Downtown core, a project Boyer says will likely begin with Forsyth and Laura streets in the 2019-20 fiscal year. A completion timeline has not been released. The plan also addresses available nighttime parking Downtown, opening the city-owned Yates Garage at 200 E. Adams St. and the Ed Ball Garage at 238 W. Monroe St. for restaurant and retail patrons at no charge.

THE MENDENHALL REPORT

MIKE MENDENHALL STAFF WRITER

wants at least five storefronts filled by summer 2021. “My goal is to bring that restaurant and retail environment up alongside the residential growth to support it, so that we never have that lag in demand on the residential side,” Boyer said. Boyer said increasing retail and restaurant density could help avoid a plateau in residential growth Downtown. Boyer During a JAX Chamber trip to Buffalo, New York, in 2017, city leaders there told the Jacksonville delegation that downtown growth halted at roughly 6,000 residents because it lacked nightlife, entertainment and retail. About 5,220 people were living in Downtown Jacksonville as of April, according to DVI’s 2018-19 State of the Downtown report. Developers have 978 units under construction and 3,038 are proposed. Boyer met recently with a group of restaurateurs, retail brokers and building owners and found the primary obstacle to relocating or opening restaurants in the Northbank core is tenant improvement costs. Many retail spaces Downtown are in older buildings that don’t have existing ventilation, grease traps or facilities to handle a commercial kitchen. The DIA has awarded $690,645 in retail enhance-

MMENDENHALL@ JAXDAILYRECORD.COM @MIMENDENHALL (904) 356-2466

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JACKSONVILLE DAILY RECORD /J ACKSONVILLE RECORD & OBSERVER

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THURSDAY, NOVEMBER 7, 2019

JaxDailyRecord.com

KAREN BRUNE MATHIS EDITOR

Photo by Karen Brune Mathis

UPS is renovating a warehouse into a $50 milllion package distribution center at 9431 Florida Mining Blvd. E. about 2 miles north of The Avenues mall.

The $50 million distribution center plans to hire 87 workers, according to its incentives package.

RETAIL NOTES

Jacksonville’s logistics reputation is further reinforced by a significant United Parcel Service Inc. investment in South Jacksonville, expanding the package delivery company beyond its large West Jacksonville hub system. By the 2020 holidays, UPS expects to have its new $50 million Southside package distribution center up and running. For now, the bulk of the project is in city review. Material Handling Systems Inc. is the contractor for the almost $30.7 million installation of conveyors for the UPS parcel shipping ground hub at 9431 Florida Mining Blvd. E. That project comes after UPS landed permits Aug. 2 to create a distribution facility at the building. The building formerly housed Ranbaxy Pharmaceu-

Publix in Neptune Beach: Publix Super Markets Inc. is renovating its store in the Seminole Shoppes at 650 Atlantic Blvd. in Neptune Beach. Elkins Construction LLC is the contractor for the $800,000 interior demolition and remodeling project to include the pharmacy, customer service, entrance, bakery, deli, meats and produce. There also are new dock guard rails at the loading area.

cost of $400,000. Commercial Construction Management Inc. is the contractor for the 46,306-square-foot project at 9400 Atlantic Blvd.

Gate Petroleum on Dunn Avenue: Gate Petroleum Co. filed plans with the city to rebuild its convenience store and gas station at 4234 Dunn Ave. Prosser Inc. is the civil engineer. The new station will comprise 6,500 square feet with 12 fueling stations.

Wawa to Baymeadows and Arlington: The St. Johns River Water Management District is reviewing an application for a 6,119-squarefoot Wawa gas station and convenience store on 3.01 acres at southeast Baymeadows Road and Baymeadows Way. Bohler Engineering is the civil engineer. The city is reviewing civil site plans for a 5,636-square-foot Wawa store on 1.94 acres at northeast University Boulevard and Arlington Road.

American Signature Furniture in Regency: American Signature Furniture will renovate its 9400 Atlantic Blvd. store in Regency Park at a

ticals and is owned by Dubow/ Shad Road Limited Partnership. Haskew Company & Associates is the contractor for the

Gate Express Carwash to North Jacksonville: Gate Express Carwash asked JEA for service availability at Max Leggett Parkway in North Jacksonville.

$2.7 million project to renovate 244,000 square feet and build a mezzanine foundation. So far, the city has approved $3.6 million of construction,

renovations and upgrades for the project. Called Project Danville in City Council legislation adopted in January, the UPS center

is described as a $50 million investment. It comprises $5 million for real estate improvements and $45 million for machinery, equipment, furniture and fixtures. That includes the conveyor system. UPS Media Relations Manager Kim Krebs at Atlanta headquarters said the facility is scheduled for completion late next year. The legislation shows that UPS proposes to hire 87 employees at an average annual salary of $57,540 by year-end 2022. The city and UPS signed the agreement Feb. 15 in which the city agreed to pay up to $52,200 as its part of a $261,000 Qualified Target Industry Tax Refund — $3,000 per job of which $600 is from the city. The state pays the rest. A St. Johns Water Management District permit application calls for a parking expansion to 340 spaces and truck parking for UPS on the 18-acre site. That indicates the 87-job proposal doesn’t mean UPS won’t hire more employees at lower wages. Krebs said she has no details on jobs. The location would serve the company’s customer base in the Southeast U.S. Danville also was looking at sites in several other states that include Georgia and North Carolina, according to a city project summary. UPS also is expanding its hub operation at Westside Industrial Park in West Jacksonville.

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THE MATHIS REPORT

Southside UPS center to be ready by 2020 holidays


JACKSONVILLE DAILY RECORD / JACKSONVILLE RECORD & OBSERVER

JaxDailyRecord.com

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THURSDAY, NOVEMBER 7, 2019

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RESTAURANT NOTES Mini Bar Donuts & Coffee to Gateway Village: The city issued a permit for Elite Construction of Jax Inc. to build-out a 1,800-square-foot tenant space for Mini Bar Donuts & Coffee in Gateway Village at Town Center at 10618 Deerwood Park Blvd., No. 1. The cost is $275,000. Chipotle to Brooklyn Place: The city is reviewing a permit application for Chipotle to build-out a 2,500-square-foot restaurant at 50 Riverside Ave., No. 705, in Brooklyn Place at a cost of $210,000. Southern Grounds in Avondale: Site development plans are in city review for the proposed Southern Grounds coffee bar and wine bar and an art gallery in the Shoppes at Avondale. Avondale Sogro LLC owns the property at 3562 St. Johns Avenue and is demolishing the 61-year-old building to develop a 7,848-square-foot structure that will include a 163-seat restaurant.

File image

An artist’s rendering of the pool planned for the Crowne Plaza Jacksonville Airport hotel at 14670 Duval Road.

Ulta Beauty adding conveyors, too Ulta Beauty is adding a conveyor system to its e-commerce fast fulfillment center under development at 2619 Ignition Drive in Park 295 Industrial Park. Lumax Miami Corp. is the contractor for the $4.43 million project to install conveyors and crossovers. Jim Cooper Construction Co. Inc. is building-out 202,471 square feet of tenant space in the building for Ulta Beauty at a cost of almost $3.98 million. Ulta will lease part of a 552,634-square-foot building, the first structure at the business park in development at Interstate 295 and Duval Road. NorthPoint Development of Kansas City, Missouri, is developing Park 295.

Pool demolition at Crowne Plaza The city is reviewing a permit application for Pecan Tree

Development LLC to demolish the pool at the Crowne Plaza Jacksonville Airport hotel at 14670 Duval Road at a cost of $30,000. The signature pool — split with half inside and half outdoors — will be filled in and a new heated pool will be built outdoors. Hotel owner Eagle Landings of Jax LLC is investing about $10 million into renovating the 317-room, 1980s era hotel. Hotel owner Gregory Morris said he expects to complete the project by mid-February.

Extended Stay America at Collins Town Center

The city issued a mobility fee calculation certificate for a 92-suite Extended Stay America hotel along Parramore Road in Collins Town Center in southwest Jacksonville. The city calculated a fee of $90,216 to mitigate the transportation impact of a 45,000-square-foot hotel on

Pizza Pizza Pizza to San Marco: Ashco Inc. requested a JEA service availability request to add a Pizza Pizza Pizza restaurant at San Marco Union Hall at 1435 Naldo Ave. Jacksonville-based Ashco Inc., a retail developer, launched the pizza concept with its first unit along Bowden Road in the Southpoint area. Three more are planned in River City Marketplace, Beach Plaza and the San Marco location. Blue Bamboo to Mandarin: Blue Bamboo owner and chef Dennis Chan said he hopes for bank approval by midmonth to buy a vacant

1.77 acres. Harmony Farms of Jacksonville LLC is the property owner. Rimrock Hospitality Florida Inc. is the developer.

JU seeks COU on Beach Boulevard Jacksonville University

4,300-square-foot office building at 10110 San Jose Blvd. for conversion into a second full-service restaurant. He said if plans are approved, he will use the existing building as the dining area for a casual Asian eatery and add space for a bar and kitchen. He said the space will allow him to serve guests and add an area for takeout. Chan is working with Craig Meek of Meek Development Group Inc. to manage the project. “We hope to start on construction soon after approval,” Chan said. McDonald’s to Boulevard Crossing: The St. Johns River Water Management District is reviewing an application for McDonald’s Corp. to build a 4,455-square-foot restaurant on a 0.91-acre outparcel at 5689 Beach Blvd. at Boulevard Crossing, the cleared acreage in front of the closed Kmart store at northwest Beach and University boulevards. CPH Inc. is the civil engineer. Culver’s to Collins Town Center: The city issued a concurrency reservation certification for development of Culver’s restaurant along Parramore Road in Collins Town Center. The 4,096-squarefoot restaurant is planned on 2.2 acres at southwest Interstate 295 and Collins Road in southwest Jacksonville. GPZ Solutions LLC is listed as the landowner. Kimley-Horn and Associates Inc. is the civil engineer. Wisconsin-based Culver’s opened its first Northeast Florida restaurant, serving ButterBurgers, frozen custard and cheese curds, in July in Middleburg and has several more sites in review.

applied for a certificate of use for 18,345 square feet of space at 5940 Beach Blvd. JU is converting part of the former Virginia College space at Beach and University boulevards into a health care training center. The center will offer customized curriculum and continuing education courses

for health care professionals, particularly nurses. Rimrock Devlin is the developer for the project. KMATHIS@ JAXDAILYRECORD.COM @MATHISKB (904) 356-2466

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COMMERCIAL REAL ESTATE

JACKSONVILLE DAILY RECORD /J ACKSONVILLE RECORD & OBSERVER

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THURSDAY, NOVEMBER 7, 2019

JaxDailyRecord.com

Top commercial sales of the week BY SCOTT SAILER • STAFF WRITER

Here are the top 10 commercial real estate sales in Northeast Florida, comprising Baker, Clay, Duval, Nassau and St. Johns counties. The sales were recorded Oct. 28-Nov. 1.

File image

The Park Village apartments at 741 Park Ave. in Orange Park sold for $10.95 million.

CLAY

DUVAL

DUVAL

DUVAL

CLAY

$10,950,000

$5,800,000

$4,211,875

$3,299.100

$3,111,587

741 Park Ave., Orange Park

2501 and 2535 Jammes Road, Jacksonville

6006 Beach Blvd., Jacksonville

2383 Mayport Road, Atlantic Beach

Southern Oaks Drive, Green Cove Springs

Type: Park Village apartments Parcel size: 6.5 acres Units: 120 Buyer: 741 Park NM LLC Seller: Orange Park 1 LP

Type: Virginian Arms Apartments Parcel size: 8.34 acres Units: 60 Buyer: JJTA Real Properties LLC Seller: NM Baron Las Villas LLC Previous sale: $1,800,000 in 2017

Type: Walgreens Parcel size: 1.55 acres Building size: 13,976 square feet Buyer: WBAFL001 LLC Seller: Walgreen Co. Previous sale: $3,100,000 in 1997

Type: Pan Am Mini Storage Parcel size: 4.09 acres Building size: Eight buildings totaling 69,066 square feet Buyer: MHC 3 Orlando FL LLC Seller: PAN AM Mini Storage Inc.

Type: 43 single-family lots in Edgewater Landing Parcel size: Not available Buyer: Adams Homes of Northwest Florida Inc. Seller: Edgewater Landing LLP

DUVAL

DUVAL

DUVAL

DUVAL

DUVAL

$2,702,750

$2,526,220

$2,300,000

$2,225,000

$1,626,500

5814 Normandy Blvd., Jacksonville

North Main Street, Jacksonville

1958-1966 San Marco Blvd., Jacksonville

36800 Clear Channel Place, Jacksonville

Type: Krystal Parcel size: 0.92 acres Buyer: Khan Investments Jacksonville LLC Seller: Zeavy Jacksonville LLC Previous sale: $1,710,000 in 2013

Type: Undeveloped commercial Parcel size: Not available Buyer: Golem Holdings LLC Seller: VRE Duval Station LLC

4570 and 5505 Timuquana Road, Jacksonville

Type: Commercial Parcel size: 0.22 acres Building size: 5,613 square feet Buyer: Jonathan Davis, Ryan Davis and Husein Cumber Seller: Deco Partnership LLC

Type: Office warehouse Parcel size: 1.95 acres Building size: 26,846 square feet Buyer: Prudential East Coast Investment LLC Seller: iHeartMedia + Entertainment Inc.

Type: Royal Court Mobile Home Park & RV Park Parcel size: 19.09 acres Buyer: Timuquana Oaks LLC Seller: Royal Court Mobile Home Park Inc. Previous sale: $1,000,000 in 1994

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THURSDAY, NOVEMBER 7, 2019

JaxDailyRecord.com

MARK BASCH CONTRIBUTING WRITER

The Jacksonvillebased shopping center developer says it is facing “short-term headwinds” that are likely to hold back earnings growth. Regency Centers Corp. last week reported better-thanexpected third-quarter earnings. However, the Jacksonville-based shopping center developer warned bankruptcies of some key retailers are likely to hold back earnings growth heading into next year. “The team is intensely focused on addressing shortterm headwinds, driven by what we believe is a rare confluence of atypical bankruptcies together with the timing of larger redevelopments,” CEO Hap Stein said in Regency’s quarterly conference call with analysts. President Lisa Palmer, who will succeed Stein as CEO on Jan. 1, said the company’s

File image

Regency Centers Corp. President Lisa Palmer, who will become CEO on Jan. 1, said the company will be impacted by the bankruptcies of Barneys New York Inc. and movie theater chain iPic Entertainment.

properties will be affected by “an elevated impact from bankruptcies” that include Barneys New York Inc. and movie theater chain iPic Entertainment. Regency also will be hurt by store closing plans for Dressbarn and Pier 1 Imports, she said.

“Due to what we consider to be a unique set of circumstances, same-property NOI (net operating income) and core operating earnings growth in 2020 are currently expected to be flat to slightly positive,” Palmer said. Regency is expecting net operating income at properties

open for more than one year to grow by 2% for all of 2019, but that’s the low end of its previous forecast of NOI growth of 2% to 2.5%. NOI rose by 2.1% in the third quarter that ended Sept. 30. Regency reported funds from operations of 99 cents a share in the quarter, 3 cents higher

than last year and also 3 cents higher than the consensus forecast of analysts, according to Zacks Investment Research. Funds from operations are earnings excluding noncash charges and are a key indicator of a real estate investment trust’s performance. Regency’s portfolio of 422 properties across the country was 94.8% leased at the end of the third quarter. “While we are cognizant of the evolving retail environment and its challenges, the quality of our portfolio, our well-located properties and top-notch team give me confidence that going forward, and consistent with our experience in the past, Regency will have relatively lower exposure to store rationalization,” Palmer said. Although earnings beat forecasts in the third quarter, the prediction of slower growth in 2020 sent Regency’s stock down $2.51 to $67.24 last Thursday. “Commentary from the Q3 call came as a negative surprise,” Scotiabank analyst Nicholas Yulico said in a research note Monday as he lowered his rating on Regency from “sector outperform” to “sector perform.” Yulico said Regency’s portfolio has less risk than some of its peers for store closings over the long term. “However, in the near-term, the vacancy impact to Regency’s portfolio is heightened from known bankruptcies/

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THE BASCH REPORT

Retail bankruptcies hit Regency Centers


JACKSONVILLE DAILY RECORD / JACKSONVILLE RECORD & OBSERVER

JaxDailyRecord.com

moveouts, and we think it’s too early to give full credit for the future occupancy benefit from redevelopments,” he said. Yulico lowered his one-year price target for the stock from $72 to $69.

Rayonier reports a small loss Rayonier Inc’s stock also dropped last Thursday after the Jacksonville-based timber and real estate company reported a small loss for the third quarter. “Our overall results were down considerably from the prior year quarter, primarily as a result of a significantly lower contribution from our real estate segment due to the timing of transactions, as well as challenging end-market conditions in our timber segments,” CEO David Nunes said in a news release. Rayonier recorded a net loss of $433,000 Nunes on revenue of $156.4 million. On a per share basis, that translated to a break-even quarter, while the Zacks consensus forecast was a profit of 3 cents a share. Rayonier’s stock fell $2.45 to $26.98 after the report. The selloff prompted D.A. Davidson analyst Steven Chercover to upgrade his rating on the stock from “neutral” to “buy” on Friday. “While the stock has been volatile with recent earnings,

File image

Fidelity National Financial Inc. is increasing dividends after a deal to buy Stewart Information Services Corp. was called off.

we would use yesterday’s move lower as an opportunity to gain exposure to an attractively discounted set of timberland assets,” Chercover said in his research note. “While there are no major changes to our outlook for underlying timberland segment trends, we see an improved lumber pricing environment and less volatility in weather and harvest will lead to improved 2020 results, with a China trade/tariff resolution representing a compelling call option,” he said.

Fidelity raises dividend after merger terminated

After the company dropped plans to acquire a competitor in September, Fidelity National Financial Inc. is using some of the cash no longer needed for the deal to increase its dividend. As the Jacksonville-based

title insurer reported thirdquarter earnings last week, it also raised its quarterly cash dividend by 2 cents a share to 33 cents. “It doesn’t seem like a lot,” Chairman Bill Foley said in Fidelity’s conference call. “We want to make sure we never get in trouble in terms of our revenue and go backward with our dividend increases, and this is the time of year when we normally review and Foley increase our dividend,” he said. Fidelity called off an agreement to buy Stewart Information Services Corp. “given the insurmountable regulatory hurdles that we faced,” Foley said, as the company could not satisfy antitrust concerns surrounding the deal.

The Best Selection At The Best Prices

Fidelity reported adjusted earnings of $1.10 a share in the third quarter, up from 78 cents last year and well above the Zacks consensus forecast of 88 cents. “This quarter produced improving trends in purchase orders opened, a strong continued quarter of refinance orders opened as well as ongoing strength in commercial orders opened,” CEO Randy Quirk said in the conference call. “Due to the strength of our third quarter, we are well positioned to continue producing strong title business results for the remainder of 2019,” he said.

Advanced Disposal earnings rise Advanced Disposal Services Inc. last week reported adjusted third-quarter earnings of 19 cents a share, 2 cents higher than last year. The Ponte Vedra-based waste services company said revenue rose 4.7% to $419.5 million. Advanced Disposal in April agreed to a buyout by Waste Management Inc. While that deal is pending and not expected to close until 2020, Advanced Disposal entered a quiet period and is not holding conference calls to discuss its quarterly results.

Deutsche Bank reports loss as it cuts jobs

Deutsche Bank last week reported a third-quarter loss as it continues to cut jobs, but the Germany-based bank said

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THURSDAY, NOVEMBER 7, 2019

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its restructuring efforts are on track. The bank, which employed 2,100 in Jacksonville two years ago, said in July it plans to cut about 18,000 jobs to reduce its global workforce to 74,000 by 2022, but it has not said how its cuts will affect specific offices. Deutsche Bank cut about 1,000 jobs and ended the third quarter at 89,958, the first time its total employment was below 90,000 since 2010. The company reported a net loss of 832 million euros in the quarter, or about $924 million. “In the first quarter of our transformation and with the uncertainty that comes with such a major restructuring, we feel good about the way our franchise is performing,” CEO Christian Sewing said in Deutsche Bank’s conference call with analysts, according to a transcript posted by the company.

St. Joe earnings rise in 3rd quarter The St. Joe Co. last week reported third-quarter earnings of 10 cents a share, a penny higher than last year. Revenue rose 38% to $32.8 million due to increases in real estate, hospitality and leasing revenue. The real estate development company formerly based in Jacksonville is headquartered in Watersound in the Florida Panhandle, where most of its development projects are located. MBASCH@ JAXDAILYRECORD.COM

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JACKSONVILLE DAILY RECORD /J ACKSONVILLE RECORD & OBSERVER

Finxact CONTINUED FROM PAGE 1

Frank Sanchez joined FIS after selling his company and moved to Jacksonville. After eight years as an FIS executive, he left and co-founded a digital bank called Zenbanx in 2012. The bank was sold to finance firm SoFi in 2017. After leaving Zenbanx, Sanchez said bankers he had known for years were coming to him saying they needed better technology solutions to run their institutions in today’s digital world. “The community and regional banks feel they have an existential risk, like are we going to even survive?” he said. “They convinced me that if there was a better solution in the market that there would be a marketplace for that solution,” he said. “We arrived on the scene at the right time for this,” he said. INNOVATION AND ADJUSTMENT

Finxact has raised $42 million in capital from some significant sources, including the American Bankers Association, the main trade association for the industry. The ABA made its investment, for an undisclosed amount, as part of a program to help its members find digital solutions. “We believe the team at Finxact is bringing to market not just a new core product but a new model for banks to deliver enhanced customer experiences,” ABA President Rob Nichols said when the investment was announced in January. “We see this as an investment in the future of banking that will foster innovation and allow our members to adjust quickly to changing cus-

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tomer demands,” he said. “The ABA wanted to shake things up,” Sanchez said. “Part of it was that they believed in us and that we can make a difference, and part of it was just kind of a shot across the bow of the existing providers.” Banking technology is dominated by three companies, including Jacksonville-based FIS. The other two are Fiserv Inc. and Jack Henry & Associates Inc. Sanchez said he remains on good terms with FIS and recognizes its role in building bank technology, along with the other two big players. “They’ve been good stewards of an industry, but they haven’t innovated the industry” he said. “I was in the middle of it and I understand exactly why that happens and sometimes it just requires somebody that’s outside of the legacy to inspire that type of change.” Last week, tax and consulting firm Deloitte announced a partnership with Finxact to work with banks on new systems. “The weight of legacy business models and core systems have banks stuck in a competitive rut,” said Gys Hyman, lead of U.S. digital banking for Deloitte in a news release. “Addressing these issues is at the heart of Deloitte’s alliance with Finxact,” he said. BUILDING FINTECH IN JACKSONVILLE

Finxact has about 65 employees, including 20 in Jacksonville and 20 in Philadelphia, where Sanchez started his original company and still has connections. The company’s other employees are in Virginia and other states. Sanchez is recruiting technical

THURSDAY, NOVEMBER 7, 2019

JaxDailyRecord.com

Photo by Karen Brune Mathis

Finxact CEO Frank Sanchez sits at the company’s conference table built atop a turbofan from a Boeing 747 jet.

expertise around the country for Finxact but thinks Jacksonville is an ideal location to build the company. “People don’t realize that there are a lot of bank operations and bank technology resources here,” he said. “Sleepy little Jacksonville is not a bad location to build a new fintech company.” Finxact is finding talent among military veterans and college graduates to join the company in Jacksonville, Sanchez said. “It’s amazing how many students are within two hours of Jacksonville,” he said. The company is just beginning to roll out technology to bank customers and has not yet generated revenue. “Our business plan really dedi-

cated the first three years of this company’s existence around engineering and development of a product,” Sanchez said. “I did not want to put a revenue demand in front of that development where we would be forced into going to market or providing a product before we felt comfortable about the efficacy and the quality of the solution.” Sanchez said Finxact was able to raise enough capital to get through its development phase and expects to have four banks using its technology by the end of this year, “and that’s well in advance of what I had anticipated.” With banks going live with the systems, Finxact is planning to add customer support personnel and other employees to the Jacksonville office.

The name is a combination of “financial” and “exact” to reflect the precision necessary in the business. Finxact uses 3,500 feet of space in its Riverplace Tower office, but its lease agreement allows it to expand on that floor. Sanchez thinks the company will not need to move and believes the location at the Downtown Southbank is ideal. “We bring people in, we have a hotel there and a hotel there and there’s like 20 restaurants within a half a mile,” he said, looking out of his boardroom window at 1301 Riverplace Blvd. onto the Jacksonville skyline. “It’s a great location.” MBASCH@ JAXDAILYRECORD.COM

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11

THURSDAY, NOVEMBER 7, 2019

NAIOP QUARTERLY LUNCHEON MEETING

Tenant Relocation: Best Practices, Managing Expectations & Avoiding Pitfalls From site selection, to preparing RFPs, to negotiating terms with landlords, to constructing improvements and then furnishing the space, the tenant improvement process involves many aspects of planning, negotiation, and coordination. Please join us for lunch as several local panelists involved at various stages in the TI process will navigate through understanding the overall process and timing considerations, identifying potential pitfalls, implementing best practices and managing expectations.

Thursday, November 14th

MODERATOR:

11:30 am - Registration & Networking 12:00 pm - Lunch served 12:35 pm - Program begins

Karen Brune Mathis Jacksonville Daily Record

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Mary Couch Gresham Smith

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No Cancellations will be accepted or refunds given after Monday, October 11th at Noon.


12

JACKSONVILLE DAILY RECORD /J ACKSONVILLE RECORD & OBSERVER

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THURSDAY, NOVEMBER 7, 2019

JaxDailyRecord.com

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

Delaney

Ennis Davis

Wolfburg

Miller

White

SIGNS

Baymeadows Apartments, 9801 Old Baymeadows Road, contractor is Jo En Construction Inc., six permits for window and siding replacement, $150,000.

SoFi, 5335 Gate Parkway, contractor is Taylor Sign & Design Inc., wall sign, $11,000. American Signature Furniture, 9400 Atlantic Blvd., No. 100, contractor is Interstate Signcrafters LLC, wall sign, $7,430. The Bread and Board, 4413 Town Center Parkway, No. 201, contractor is Heritage Signs Inc., wall sign, $6,066. Tidbits Fresh Local Lunch, 8535 Baymeadows Road, contractor is Taylor Sign & Design Inc., wall sign, $4,000.

HOSPITAL, INSTITUTIONAL

Lisska

Jones

Henry

Promotions, hirings and happenings for business people in Northeast Florida. Send items to ssailer@jaxdailyrecord.com Jacksonville University named speechlanguage pathology scholar and inventor Christine Sapienza as senior vice president of academic affairs and provost, becoming JU’s chief academic officer. She joined JU as associate dean in 2013 and has served as interim provost since May 2018. The search committee recommended Sapienza as the top candidate among three national finalists. Former Mayor John Delaney and urban planner Ennis Davis joined the board of Groundwork Jacksonville. Davis is senior planner with Alfred Benesch & Company. Delaney is a shareholder in the Rogers Towers law firm and specializes in government relations, land use, higher education and general civil litigation. He served as mayor from 1995-2003, then led the University of North Florida as president until retiring in May 2018. Brian Wolfburg, president and CEO of VyStar Credit Union, and David Miller, co-founder and executive chairman of Brightway Insurance, joined as Groundwork Jacksonville’s Emerald Trail Champions, serving as ambassadors for the Emerald Trail in the community. The Emerald Trail is almost 20 miles of trails,

INDUSTRIAL

greenways and parks that encircle the urban core and link at least 14 historic neighborhoods to Downtown, Hogans Creek, McCoys Creek, the S-Line Rail Trail and the Northbank and Southbank Riverwalk.

Seaonus StevedoringJacksonville LLC, 2085 Talleyrand Ave., contractor is W.W. Gay Mechanical Contractor Inc., repair rail dock, $121,917.

Leadership Jacksonville presented Quint White its 2019 Tillie K. Fowler Distinguished Leadership Award. White is professor of biology and marine science and is executive director of the Marine Science Research Institute at Jacksonville University. Leadership Jacksonville also recognized three honorary members: Hank Coxe, director of the Bedell Firm; District 13 Florida Rep. Tracie Davis, D-Jacksonville; and Emily Lisska, retired executive director of the Jacksonville Historical Society.

OFFICE, BANK, PROFESSIONAL Baptist Medical Center South, 14550 Old St. Augustine Road, contractor is Commercial Construction Services Inc., 15,882 square feet, tenant build-out, $404,832. Bank of America Corp., 13170 Atlantic Blvd., contractor is Marand Builders Inc., renovation, $150,000. Johnson & Johnson Vision Care Inc., 7500 Centurion Parkway, No. 1, contractor is Cyma Builders and Construction Managers Inc., 2,212 square feet, recreation building demolition, $100,000.

Corey Jones joined The Heritage Bank as a vice president and commercial lender. Cmdr. Jason Henry assumed the position of director for clinical support services at Naval Hospital Jacksonville. Henry, a radiologist, was associate director for clinical support services.

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ZT Holdings #06 LLC, 1040 Hospitality Lane, contractor is ShayCore Enterprises Inc., 11,847 square feet, shell retail building, $1.63 million. Target, 4567 River City Drive, contractor is Pro Circuit Electrical Contracting LLC, install rooftop solar panels, $898,816. Target, 10490 San Jose Blvd., contractor is Groom Construction Co. Inc., 2,780 square feet, renovation, $60,000. Palm Casual Furniture of Port Orange Inc., 11323 Beach Blvd., contractor is The Revered Group of America LLC, 6,500 square feet, partial demolition, $56,957.

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THURSDAY, NOVEMBER 7, 2019

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Georgia wins annual moot court competition

MAX MARBUT ASSOCIATE EDITOR

The decision in battle that pits the Florida and Georgia law schools is based on the quality of advocacy.

The University of Georgia School of Law took home the trophy in the 2019 Florida-Georgia Hulsey-Kimbrell Moot Court Competition. From left, UGA law student Thomas Paris, Steve Busey and Lanny Russell with Smith Hulsey & Busey, Dana Bradford with Smith, Gambrell & Russell and UGA law student Georgia Turner.

The University of Georgia Bulldogs made it a clean sweep last week, defeating the University of Florida Gators in the courtroom as well as on the football field. Thomas Paris and Georgia Turner, second-year students at UGA School of Law, prevailed in the annual FloridaGeorgia Hulsey-Kimbrell Moot Court Competition on Friday at the Bryan Simpson U.S. Courthouse. The University of Florida Levin College of Law was represented by second-year students Skylar Nocita and Dayne Wade. The competition matches students from each university’s law school who face off in a simulated appeal before the U.S. Supreme Court. The competition is conducted each year the day before the annual

college football classic in Jacksonville. The geographically balanced panel of jurists was 11th Circuit U.S. Court of Appeals Judge Gerald Tjoflat, who served as chief justice for the competition; U.S. District Court for the Southern District of Georgia Judges Lisa Godbey Wood and William Moore Jr.; and U.S. District Court for the Middle District of Florida Judges Brian Davis and Marcia Morales Howard. The hypothetical case for the competition concerned whether evidence of a drug crime found in a trash can is sufficient to establish probable cause to secure a search warrant for the residence associated with the trash can and also whether the state may prohibit someone from smoking medi-

Photo by Max Marbut

cal marijuana in a private place since possession of marijuana violates federal law. The format of the competition, said Smith Hulsey & Busey attorney Lanny Russell, is for the panel to make its decision on the quality of arguments presented by the competing teams rather than the merits of the case. “The judges make sure the next generation of lawyers are effective advocates,” Russell said. After the decision was announced, the judges praised the competitors for their arguments and advocacy skills. “You were so prepared. You listened to our questions and answered our questions instead of pivoting back to your argument,” Howard said. “Your preparation and talent showed. It made for a difficult

The Florida Bar board of governors is seeking applications for six lawyers, one from each state appellate district and one atlarge member, to serve two-year terms commencing Jan. 1 on the Florida Realtor-Attorney Joint Committee. The committee comprises 11 lawyers appointed by The Florida Bar and 11 Realtors appointed by the Florida Association of Realtors. The group promotes cordial relations between Realtors and attorneys and presents educational seminars. One attorney is sought to serve a three-year term beginning Jan. 1 on the 20-member Florida Rural Legal Services board of directors. The organization’s mission is to empower low-income people, groups and communities by providing access to justice through legal advice, representation and advocacy. The deadline to apply for either board seat is Nov. 15. Also, the Florida Supreme Court Judicial Nominating Commission is accepting applications for criminal conflict and civil regional counsel for the 1st, 2nd, 3rd, 4th and 5th districts. The appointments by Gov. Ron DeSantis are to fill vacancies that will be created by the conclusion of

Legal notes n Kailyn Allen joined the real estate practice at Gunster, Yoakley & Stewart in Jacksonville. Allen was valedictorian of the 2019 class at the University of Florida Levin College of Law and also was managing editor of the Florida Law Review. n Corey Portnoy, an associate attorney in Marshall Dennehey Warner Coleman & Goggin’s casualty department, was appointed to the board of directors of the Down Syndrome Association of Jacksonville. He graduated from Florida State University College of Law, where he received the Distinguished Pro Bono Service Award. Portnoy was admitted to The Florida Bar in 2015. n Valerie Davis joined the state Department of Children and Families/Children’s Legal Services in Jacksonville as a senior attorney. A graduate of Florida Coastal School of Law, she was admitted to The Florida Bar in 2015. MMARBUT@ JAXDAILYRECORD.COM (904) 356-2466

319266-1

Applicants needed for board vacancies

the four-year terms of the current regional counsels. A description of the duties and details of the position of Regional Counsel for the Offices of Criminal Conflict and Civil Regional Counsel can be found at section 27.511, Florida Statutes. Visit floridabar.org or call (850) 561-5757 for details about the vacancies and application instructions.

THE MARBUT REPORT

decision,” Wood said. The tournament record stands at 24 wins for Georgia, 11 wins for Florida and two ties.


14

THE BAR BULLETIN

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JaxDailyRecord.com

THURSDAY, SEPTEMBER 19, 2019

Bar Bulletin The

PROTECTING RIGHTS • PURSUING JUSTICE • PROMOTING PROFESSIONALISM

VETERANS DAY 2019 FROM THE PRESIDENT

SERVICE IS A PRIVILEGE THAT CAN TAKE DIFFERENT FORMS

INSIDE

COMMENTARY

Drive distracted, get pulled over This year, Florida became the 44th state where texting is a primary traffic offense, allowing police to pull over drivers for texting alone. PAGE 16

JBA BASKETBALL

A hardcourt upset for the ages Down by double digits, Davis battles back to defeat the Defenders in a game where they were a huge underdog as the No. 3 seed. PAGE 19

Special to the Daily Record

U.S. Marine Corps assault helicopter pilot Frank Mackoul completed two combat tours of duty in Iraq and flew more than 100 combat missions.

Scholars can and must be warriors. After graduating law school at the University of Florida and being sworn into The Florida Bar, I took a path less traveled. I heard my country’s call and joined the U.S. Marine Corps. I originally intended to serve as a judge advocate general, but despite having no flying experience, I accepted an appointment to flight school. I earned Wings of Gold and was designated Naval Aviator #26,045.

FRANK MACKOUL JBA MEMBER

After flight school, I was sent to Marine Corps Air Station Miramar, California. I completed two combat tours of duty in Iraq, flew more than 100 combat missions as an assault helicopter pilot and earned two Air Medals. I was then sent to Naval Air Station Pensacola, Florida, as a flight instructor SEE MACKOUL, PAGE 18

PRO BONO

Keeping a roof above their heads Eviction Defense Clinic volunteer Logan McEwen on the fight to protect clients from unscrupulous landlords. PAGE 17

THE FROMJBA THE PRESIDENT

We are settling into our new JBA administrative offices Visit us in Suite 120 at Wells Fargo Center.

CRAIG SHOUP JBA EXECUTIVE DIRECTOR

Over the past couple of years, the Jacksonville Bar Association has been through a lot of change. We have a new executive director, we have refocused and recommitted to our committees and continuing legal education programs and now, our office has moved. The association has moved from a corner tucked away on the 22nd floor of Wells Fargo

Center Downtown to a prime and more accessible and visible suite on the first floor along the Bay Street side of the building. The 22nd floor had its advantages. The gorgeous view of the St. Johns River and the Southbank skyline were outstanding and watching fireworks bursting at eye level was spectacular. It also had its disadvantages, especially for our committees. Some could not meet there because the conference room wasn’t large enough. When they did meet there, people had to eat

lunch in their lap because the space was so small and we had enough room to accommodate only one lunchtime committee meeting per day. The 22nd floor was not best for the association. In Suite 120 of Wells Fargo Center, we have reduced the size of the administrative offices. We want committees and groups to use the office, so we’ve added a large classroom that can be split into two sections to accommodate simultaneous meetings. We have added a visiting

attorney room for members to use as part of their membership. We have refocused the space to be a benefit to our membership. Please visit us. We still are unpacking and have some interior decorating to do, but we’re here to serve you, our members. Please contact me if we can do anything to help you. Craig Shoup is executive director of the Jacksonville Bar Association. Contact him at (904) 399-4486 or cshoup@ jaxbar.org.


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JBA HOLIDAY PROJECT FROM THE PRESIDENT

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JBA CALENDAR COMMITTEE MEETINGS For all meetings, register at jaxbar.org TUESDAY Judicial Relations Noon, Duval County Courthouse TUESDAY Elder Law Noon, Jacksonville Bar Association TUESDAY YLS Chili Cook Off 5:30 p.m., Smith Hulsey & Busey NOV. 14 Adoption Law Noon, Jacksonville Bar Association Register at jaxbar.org NOV. 15 Holiday Project Noon, Jacksonville Bar Association Register at jaxbar.org NOV. 19 Mental Health & Wellness Noon, Super Food and Brew

Special to the Daily Record

Katie Lob, Cyndy Trimmer and Chair Kimberly Woods delivered gifts to seniors last year as part of the Jacksonville Bar Association Holiday Project.

The most wonderful time of the year includes spreading cheer

KIMBERLY WOODS SENIOR HOLIDAY PROJECT CHAIR

Get involved by joining the Holiday Project Committee or by sponsoring a senior. The holiday season is almost here and it’s time for the Jacksonville Bar Association to start preparations for its annual Holiday Project. Each year, the JBA partners with Aging True and Meals on Wheels to spread some holiday cheer to senior citizens in Duval County. To kick things off, Aging True sends out wish lists to people participating in the Meals on Wheels program. The wish list provides the seniors with ideas for gifts they would like to receive during the holiday season, such as robes, slippers, food items and small household appliances. Once the senior completes and returns

the wish list to Aging True, the Holiday Project Committee goes to work pairing the wish list with a sponsor. Sponsors have two delivery options, personal delivery or delivery by the Jacksonville Sheriff’s Office. Many sponsors choose to personally deliver their gifts and spend time with their seniors. Sometimes the seniors share stories about the changing times, their family and loved ones or even just casual chitchat. Each year, we receive photographs of happy seniors and happy sponsors enjoying their time together. Many share photographs and stories about the time they spend with their seniors. The photos are what this project is all about — spreading joy and happiness to those in our community. What we want to share with the community is how fulfilling this project is for those who participate. While the mission of the JBA Holiday Project is to bless others, as is often the case, those who participate are the ones who feel truly blessed. “I have so many great memories from delivering over the years!” said longtime committee member Cyndy Trimmer. “My current favorite is one woman who could not believe we were actually attorneys and was positively overjoyed to learn there were so many ‘lady lawyers’ in the profession. Visiting with these folks really puts so many things in perspective. It’s one of my favorite

THE JACKSONVILLE BAR ASSOCIATION LEADERSHIP President Elizabeth Ferguson Marshall Dennehey Warner Coleman & Goggin President-elect Michelle Bedoya Barnett Alexander DeGance Barnett Treasurer Michael Fox Orr Orr | Cook

Secretary Fraz Ahmed Coker Law Young Lawyers Section President Alessandro Apolito Lippes Mathias Wexler Friedman Executive Director Craig Shoup

JBA Holiday Project How to give: Sponsors may drop off wrapped gifts 9 a.m.-4 p.m. Dec. 9-16 at the JBA office in Suite 120 at Wells Fargo Center, 1 Independent Drive. Gifts will be delivered with the assistance of the Jacksonville Sheriff’s Office. Find out more: Contact Kimberly Woods at kwoods@boydjen.com to sponsor a senior.

things the JBA does each year,” Trimmer said. Last year’s project was able to provide gifts to more than 250 people. We hope to provide gifts to even more seniors this year. The Holiday Project Committee will meet at noon Nov. 15 at the JBA’s new offices in the lobby at Wells Fargo Center. New committee members are welcome. If you would like to get involved, participate or sponsor a senior, contact Kimberly Woods at kwoods@boydjen. com. Kimberly Woods is an associate attorney with Boyd & Jenerette PA focusing on insurance defense and civil litigation.

BOARD OF GOVERNORS MEMBERS Brian T. Coughlin Bedell Firm

Adina Pollan Pollan Legal

Christian P. George Akerman

Asghar A. Syed Gunster

Jamie Karpman U.S. Department of Housing and Urban Development Blane McCarthy Blane McCarthy

Cyndy Trimmer Driver, McAfee, Hawthorne & Diebenow Lindsay L. Tygart Coker Law

UPCOMING EVENTS For all events, register at jaxbar.org NOV. 14 Young Lawyers Section Happy Hour 5:30 p.m., Strings Sports Brewery Register at jaxbar.org NOV. 20 Jacksonville Bar Association Member Luncheon Noon, Omni Jacksonville Hotel

Key reasons to renew your JBA membership n Bench & Bar Holiday Party free to members n General and Law Day luncheons free to members n Annual golf tournament n Free committee participation n Access to Attorney Conference Center, Duval County Courthouse n Bar Bulletin – First Thursday monthly edition of the Jacksonville Daily Record n CLE seminars at reduced rates n Optional Lawyer Referral Service membership n Savings on exclusive member benefits n JBA E-News member email n Free listing in website directory with photo

EDITORIAL COMMITTEE Editor-in-chief Kelly Karstaedt Karstaedt & Stanko Editors Iana Benjamin Cordell & Cordell Ashlea Edwards Akerman

Kirsten Oliver Law Offices of William W. Kurtz, Jr.


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THURSDAY, SEPTEMBER 19, 2019

COMMENTARY FROM THE PRESIDENT

Distracted driver law: Get up to speed

BRIAN COUGHLIN JBA BOARD OF GOVERNORS

The warning instead of ticket period ends Jan. 1. Earlier this year, Florida lawmakers passed a bill (HB 107) that strengthened the state’s ban on texting while driving, but a new proposal would go even further. State Rep. Emily Slosberg, D-Boca Raton, and a co-sponsor on HB 107, filed a bill for the 2020 legislative session (HB 249) that would make it illegal for people to operate vehicles while “manually holding or otherwise touching a wireless communications device.” Twenty states and the District of Columbia already have such bans on handheld cell phones while driving. Until HB 107 went into effect in July, Florida was among only a handful of states where police officers couldn’t pull motorists over for texting. It’s been illegal in Florida for years, but was considered a secondary offense, meaning officers could cite drivers for texting only if they were pulled over for another violation. This year, Florida became the 44th state where texting is a primary traffic offense, allowing police to pull over drivers for texting alone. In October, another provision of the new law went into effect. It requires motorists to go completely “hands-free” on wireless devices while driving in school and work zones. However, outside of those areas, drivers can have their phones in hand for a variety of reasons, including talking, using navigation and checking safetyrelated traffic or weather alerts. Drivers also may use cellphones while a car is stationary, like while stopped at a red light.

This has raised concerns about the enforceability of the law, part of the reason Slosberg is pushing to expand restrictions to any time an individual is behind the wheel. Indeed, legislation to completely ban the use of handheld phones while driving was raised in Massachusetts this year for the same reason. Massachusetts police officers complained the previous ban on texting, similar to Florida’s HB 107, was too difficult to enforce, as officers cannot always distinguish whether a driver is using a phone to text or for some other purpose. Both the Massachusetts House and Senate passed versions of

the distracted driving bill by near-unanimous margins this spring. However, the legislation has been stalled for months over how to address concerns that police would use the new law as a way to racially profile minorities. Florida’s recent texting while driving ban faced similar civil rights concerns, given evidence such as a 2016 study by the American Civil Liberties Union, which found that black drivers in Florida were nearly twice as likely to be stopped for not wearing a seat belt as white drivers. The law was ultimately passed with two important civil rights components.

First, police are required to report the races of those cited, so officials can see whether the new law is being applied unevenly. This is the first such Florida traffic law where race must be reported. However, if a suspect is stopped for texting and not cited, but charged with another crime, his or her race would not be reported. Second, police are required to tell drivers they have the right to decline a search of their phones. The one exception to this rule is if a crash results in death or injury. If that happens, a motorist’s billing records for their cellphone will be considered admissible evidence.

In the meantime, Florida Highway Patrol troopers will be issuing warnings for the state’s current texting while driving law until Dec. 31, and tickets will start to be issued Jan. 1. The penalty is a nonmoving traffic violation with no points on the record and a $30 fine. In a school or work zone, it is a moving violation with three points on the driving record and a $60 fine. Brian Coughlin is a partner at the Bedell Firm. His practice focuses on matters of criminal justice.

LEGAL BRIEFS

Need CLE hours? Check out the JBA website The Jacksonville Bar Association has a CLE video library where you can purchase online CLE presentations and get those CLE credits you need in the convenience of your home or office. You may choose from as few as 0.5 CLER hours to as many as 8.0 CLER hours, including various certification hours. Just select the videos that correspond with the CLE credits you need, purchase them, watch online and submit for credit. Topics include family law, technology law, transactional law and professionalism for new practitioners. Visit jaxbar.org/store

Upcoming CLEs NOV. 14 YLS Afternoon at the Courthouse Featuring the Technology Roadshow Noon, Duval County Courthouse Topics Include: n Understanding Metadata and Your Ethical Responsibilities with your Legal Documents n How Practice Management Programs Can Prevent Malpractice Claims n Securing Mobile Devices n Recognizing and Addressing Common Security Threats to Your Law Firm 4 CLEs, 4 Technology, 2 Ethics Credits Register at jaxbar.org

NOV.20 From Burnout to Wellness: The Secret to Attaining Work-Life Balance 8:30 a.m., Omni Jacksonville Hotel Topics Include: n Commonly Missed Intellectual Property Issues Lawyers Cannot Afford to Overlook n Update on the Latest Legal Technology and Its Influence on the Practice of Law n Big Things Happening Downtown- An Overview of the New City of Jacksonville Downtown Overlay and More to Come n Estate Planning — Is that Still a Thing? n Health Law Overview for the Transactional Lawyers n Issues in Trust Drafting and Administration n Behind the Curtain — How We Resolved the Most Difficult Issues of Our Careers 5 CLEs pending accreditation by The Florida Bar

Keep involved in the JBA The driving force behind this organization is the active participation of its members. Please give the association the benefit of your ideas and talents by volunteering to serve on one or more of the committees shown on the JBA website. With your active involvement, this association will flourish. To join or change your committee preferences, open your web profile at jaxbar.org and click on “Join a Committee.”


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THURSDAY, SEPTEMBER 19, 2019

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PRO FROMBONO THE PRESIDENT

Eviction Defense Self Help Clinic is keeping roofs over heads

MISSY DAVENPORT JBA PRO BONO COMMITTEE CHAIR

Client did everything she was supposed to do and still faced eviction. Stable housing often is the foundation for steady employment, educational achievement, good mental and physical health and economic autonomy. Now it in its second year, Jacksonville Area Legal Aid’s Eviction Defense Self Help Clinic focuses on ensuring stable housing to help families move out of poverty and toward financial health. The project is made possible for a second year through a Pro Bono Innovation Grant from the Florida Bar Foundation. Longtime Eviction Defense Clinic volunteer Logan McEwen describes one of the cases that he has accepted for full representation: What were the basic facts of your case? An eviction was filed against a tenant for non-payment of rent, but she had paid rent consistently during the term of the lease. The tenant relied on public transportation. To ensure rent payment, each month the landlord drove to the property, picked up the tenant, drove her

to an ATM where she withdrew the rent money, paid it to landlord and then the tenant was dropped back off at the property. The landlord was trying to force the tenant out and misrepresented nonpayment of rent in the eviction complaint a few days after having taken her money. The landlord also alleged breach of the lease due to the tenant having other adults on the property who were not listed on the lease. These other adults were the tenant’s babysitters for her children when she had to go to work. These babysitters were also present and witnessed when the landlord came to pick up the tenant to drive her to the ATM for rent payments. What were you able to accomplish for your client? After the eviction complaint was filed, it was evident that the tenant couldn’t reasonably expect to continue in the tenancy without future issues arising. I negotiated a dismissal of the eviction complaint with prejudice, early termination of the lease without penalty to the tenant, abatement of rent, and worked with the tenant to find a replacement property elsewhere. Why was the outcome important to your client? On principle, the tenant had done nothing wrong. She is a single mother, working and raising kids, who has enough difficulty in her life without a landlord fabricating fraudulent debt claims affecting the tenant’s credit and ability to obtain future housing. The economic impact of an eviction would have devastated the tenant and recovery would have been measured in months if

need of our help.

Special to the Daily Record

Eviction Defense Clinic volunteer Logan McEwen also practices litigation and transactions law for Marks Gray P.A.

Why would you recommend other attorneys get involved in the eviction defense project? There are few things more disruptive and impactful than being forcibly kicked out of your home. As lawyers, we have the tools and the knowledge to generate enormous positive impact on these individuals’ lives by informing them of their rights and, if meritorious, helping them defend against wrongful evictions. Bettering the lives of people in our community is something we should all strive to do; as lawyers we have a unique opportunity to accomplish just that by showing up and making ourselves available.

not years. Ensuring that the client and her children’s lives were not thrown into disarray was important to her and we were able to do that.

What is the name of your firm? In what areas do you practice? Marks Gray P.A. I practice litigation and transactions in intellectual property, real estate and business.

What did you gain from the experience? The people the eviction clinic aims to help lack any voice or allies in these situations, and that is why they are targeted by unprincipled landlords and businesses. The number of clients who come through with similar stories is staggering. These aren’t isolated instances, they are pervasive. The bad actors count on the fact that tenants either don’t know their rights or can’t take on the economic burden of getting professional help. This client had done everything she was supposed to and still she faced a serious risk of being evicted to the streets with her children. The experience reminded me that these are the people in most

The Eviction Defense Self Help Project is a resource available 1-4 p.m. Wednesdays at Jacksonville Area Legal Aid, Downtown at 126 W. Adams St. Tenants of private landlords who receive an eviction summons and who may have defenses complete their answers using the Florida Justice Technology Center’s Pro Se Eviction Defense Answer form. Volunteer attorneys will be there to assist with the answer and to provide guidance. Tenants will be directed where and how to file their answers that day. The Eviction Defense Self Help Project needs a few good law firms and willing pro bono attorneys. The goal is to have four law firms commit to staffing the project once a month. The law

firm will provide two or three attorneys one Wednesday afternoon per month to assist tenants create answers to their eviction summons or rental conditions letters. Attorneys are encouraged to consider representing clients in either a full or limited capacity, especially those that may be harder hit by eviction, such as people with disabilities, single parents and senior citizens. Through participation in the project, new associate attorneys get client interviewing, representation and litigation experience. The participating firm attorneys will build a core of expertise and have the opportunity to collaborate on short term cases. Training webinars with CLE credit will be provided. In addition, Suzanne Garrow, JALA attorney and project coordinator, will be on site to assist as needed and guide the process. This project has been piloted for the past two years by Smith Gambrell & Russell, which will continue to participate on the second Wednesday of every month. The logos of all participating law firms will be included on project information. Landlord/tenant cases move quickly, making it difficult to provide meaningful assistance to tenants facing eviction. Because the clinic is offered weekly, qualifying tenants have greater opportunity to file effective answers and defend against wrongful evictions. Law firms and attorneys are encouraged to contact Missy Davenport for more information on the Eviction Defense Self Help Project and other opportunities for pro bono involvement at missy. davenport@jaxlegalaid.org.

YOUNG LAWYERS FROM THE PRESIDENT

Bar participation yields many benefits

TIM MILLER JBA YOUNG LAWYERS SECTION BOARD OF GOVERNORS

It can help your career and the community. As the holiday season and the end of another year approaches, I often take a moment to think about those things for which I am most grateful. In regard to my legal career, I think about how fortunate I

have been to be involved with the Jacksonville Bar Association and the Young Lawyers Section. Going back to when I was a brand new assistant state attorney in 2012, no single decision has made me feel more a part of the legal community than deciding to attend my first YLS event. As I have remained in the criminal law field, it has been an asset to become friends with lawyers that I would not have met on my path in the halls of the Duval County Courthouse. My Bar experience has been one that has given me respected colleagues to bounce ideas off of and trusted friends with whom to celebrate. For all of the benefits I have received by being active in the JBA, the greatest of all is knowing that my colleagues and I have made a difference in the lives of others. From the YLS golf tourna-

ment in October that benefited Learn to Read to the Chili Cook Off that will in February benefit the Clarke School for Hearing and Speech, there are events that allow attorneys to see the difference their participation can make in the community in which we live. It also has been my experience that the Bar is always willing to listen and lend a helping hand for any initiative an attorney might have or a cause that they hold dear to their heart. Let the organization be your platform if you have something you would like to see done in the community or a cause that you deem needs attention. With the number of lawyers that participate in the Bar, you can find like minds just waiting to help you in whatever way they can. I encourage anyone who thinks themselves to be too busy

or wonder if becoming more involved would be worth it to them either personally or professionally to get involved. Take that first step, set aside time to attend your first happy hour, charity event or board meeting. You will be welcomed with open arms by a group of folks who care about their community and care about the experience its members have. If you have been sitting on the fence about joining the JBA, or perhaps just getting more involved, please reach out to me or any other board member. We are happy to help you meet any goals you might have, and most important, I can promise you it will be worth it. Tim Miller is an associate at Robert Shafer and Associates and practices criminal defense.

For all of the benefits I have received by being active in the JBA, the greatest of all is knowing that my colleagues and I have made a difference in the lives of others.


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THURSDAY, SEPTEMBER 19, 2019

COMMENTARY FROM THE PRESIDENT

Adoption: With many options, which is the best for your family?

JENNIFER WILLIAMS JBA ADOPTION LAW COMMITTEE CHAIR

State law allows for several types. “We can’t afford it” is often heard by adoption professionals. While there is no denying that adoption can be an expensive proposition, it amazes me how little most people seem to know about adoption, specifically the options available to those seeking to adopt. Florida law provides for several types of adoption: newborn adoption (the most sought-after and often associated with the highest expense), older child adoption, relative adoption, stepparent adoption, foster care adoption and adult adoption are the most common. Surrogacy and preplanned adoption agreements are becoming more well-known with the advancement of assisted reproductive technology. Some types are available on both domestic and international scales. Some types may be facilitated by an attorney or by a licensed child-placing agency. Still others, typically stepparent adoptions, can be completed by the parties themselves with the help of forms promulgated by the Florida Supreme Court. The potential landmines associated with proceeding without counsel are significant, but that is for another article. The key to deciding which option is right for your family is knowing what to expect, including time frames, costs and risks. Let’s compare domestic newborn adoptions through an adoption attorney versus an agency (disclaimer: not every adoption attorney or adoption agency operates in the same manner; these examples are from my experience). An adoption attorney might maintain a free listing of prospective adoptive families all

Mackoul CONTINUED FROM PAGE 14

where I taught advanced aerodynamics to naval flight students and was named Flight Instructor of the Year. Afterward, I came back home to Jacksonville to settle down, raise a family and return to the practice of law. When I was commissioned as an officer, I took the following oath: I do solemnly swear that I will support and defend the Con-

over the country who receive an email when a birth parent comes to the attorney looking to place a child for adoption. Thousands of families may receive the inquiry and submit applications to adopt. With a large pool of applicants, families who choose this route could wait years to be selected or “matched.” Some agencies maintain a small group of prospective adoptive families who have gone through an application process, been vetted by the agency and who pay for the privilege of being among a smaller group of families presented to a birth parent for selection. The costs incurred postmatch also can vary. An adop-

tion attorney will assess legal fees and costs and Florida law permits payment of reasonable and necessary living and medical expenses for the birth mother during pregnancy and up to six weeks post-birth. Agencies also may charge for legal fees and costs incurred by their counsel and living/medical expenses for the birth mother, but frequently they offer additional services that attorneys may not, such as birth mother support, clinical counseling, crisis intervention and similar services. While such services come at a cost, one must consider the benefits of added support that an attorney may not be able to provide. A less expensive option that

can involve hidden risks is foster care adoption. Agencies that recruit and support foster parents for children who have been removed from their families are required to advise foster parents that a child placed with them prior to termination of parental rights may end up reunified with a parent or placed with another family member. This reality may be overlooked, perhaps by an agency representative who does not want to point out a risk that might cause the family to choose not to serve as foster parents, or by a new foster family so excited about the prospect of adoption that they don’t hear or process the reality check provided.

On the other side of the risk coin are potential benefits. Often there are minimal or no legal fees as well as Medicaid benefits for the child, adoption subsidies and college tuition waivers for children adopted via the foster care system. This only skims the surface of the adoptions available, but I hope it provides a glimpse into the practical considerations and ways you or someone you know might grow their family and change their community via adoption.

stitution of the United States against all enemies, foreign and domestic; that I will bear true faith and allegiance to the same; that I take this obligation freely, without any mental reservation or purpose of evasion; and that I will well and faithfully discharge the duties of the office on which I am about to enter. So help me God. When I took that oath, my focus was on foreign enemies to the Constitution. But in the time since I laid down the sword and picked up the pen, my focus has shifted to domestic enemies to

the Constitution. Flying combat missions and practicing law might appear to not have anything in common, but soldiers serve by defending those who cannot defend themselves; in that same spirit, attorneys serve by advocating for those who cannot advocate for themselves. As attorneys, we took an oath to support the Constitution of the United States and the State of Florida. When we advocate for our clients and practice law the right way, we defend the Constitution by keeping the third

branch of government strong and in so doing, we maintain the delicate balance of power envisioned by the Founding Fathers. By defending the Constitution, we preserve the greatest gift our nation has made to humankind, the idea of a government of the people, by the people and for the people. I ask this Veterans Day that we, as attorneys, honor the sacrifices made by our military by rededicating ourselves to our own defense of the Constitution through the ethical, professional and tireless practice of the law.

The society that separates its scholars from its warriors will have its thinking done by cowards and its fighting by fools. — Thucydides, History of the Peloponnesian War

Jennifer Williams is a boardcertified adoption lawyer and associate with Elizabeth R. Ondriezek PA, focusing on adoption and family law.

Frank Mackoul II is a Marine Corps veteran and attorney with the Office of the Public Defender in Jacksonville.


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JBA BASKETBALL FROM THE PRESIDENT

Special to the Daily Record

The JBA Basketball League champion Davis team, from left, Josef Hess, Matt Hunt, John Weedon, Jamie Fromm, Ryan King and Todd Davis.

Davis defeats the Defenders in greatest upset in JBA history

ART STRESING JBA BASKETBALL CHAIR

It’s the team’s first championship in the modern era. In the final game of the Jacksonville Bar Association Basketball League’s seventh season, Davis found themselves down by

double digits, but battled back to upset the Defenders, 63-50, in a game where Davis was a huge underdog as the No. 3 seed. Davis shook up the league and the game by switching from man-to-man to a 2-3 defense against a sharpshooting opponent when they found themselves down by as much as 12 points in the first half. Todd Davis pulled off his best Kawhi Leonard impersonation and led his team to victory in a game that mirrored the 2018 NBA Finals of Raptors vs. Warriors. The Defenders, sponsored by Dogwood Park, got off to a hot start led by Teddy Foster and Logan Chipperfield, but the team as a whole just couldn’t buy a bucket while Davis couldn’t miss in the second half.

In the third-place game, The A-Team got their first win of the season against former league champion Pajcic, 29-15. Led by Josh Goldsborough and Tony Jordan, The A-Team pulled off their own upset by defeating a shorthanded Pajcic. This basketball season was sponsored by StretchJax located at 416 Third St. S., Suite 202, in Jacksonville Beach. The next season begins in January, so if you’re looking to get into the action and get some good cardio, sign up now for the fun and competitive league. Contact Art Stresing at astresing@pd4.coj.net or Kayla Haines at khaines@ SmithHulsey.com to register or if you have questions.

THE JBA BASKETBALL LEAGUE What: Eight-week season begins in January, games at 8 p.m. and 9 p.m. Tuesdays, including playoffs the last two weeks. Where: JAX Indoor Sports, off Emerson and Interstate 95 Who’s eligible: JBA members in good standing (any age), spouses and children of JBA members, firm employees of JBA members, enrolled law students or students within one year of graduation or who just took the Bar exam. Cost: Team fee is $500, individual player fee is $50. No ringers are permitted. Anyone who signs up as a free agent will be assigned to a team. The league is co-ed.

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