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JACKSONVILLE
Record & Observer
DECIDING Record & Observer
JinkoSolar launches pilot production
JACKSONVILLE
NOT TO DECIDE A divided state Supreme Court ends a seven-month legal dispute over the governor’s right to appoint JACKSONVILLE a 4th Judicial Circuit judge by not ruling.
China-based company says it is on schedule to operate Jacksonville factory at full capacity early next year.
Record & Observer BY KAREN BRUNE MATHIS EDITOR
JACKSONVILLE
JinkoSolar Holding Co. Ltd. launched pilot production at its Westside solar-panel assembly plant as it prepares to reach full production and hire up to 200 employees. Chief Financial Officer Haiyun Cao said Monday during the China-based company’s third-quarter conference call with market analysts the Jacksonville facility, its first in the U.S., was on schedule and the company has started pilot operations. “A n d we expect to ramp up the factory to full capacity in early next Miao year,” Cao said, according to a transcript of the call by the Seeking Alpha financial analysis firm. JinkoSolar announced in March that when fully operational, it expected the Jacksonville factory will have the capacity to build 400 megawatts of solar modules annually, which would be more than 1 million solar panels a year. It said then that production was expected to begin later this year. “Jinko’s 2019 U.S. product growth is looking very healthy with big orders already secured,” said Gener Miao, vice president of global sales and marketing, dur-
Record & Observer Special to the Daily Record
BY MAX MARBUT ASSOCIATE EDITOR
W
ith an opinion as evenly divided as an opinion could be, the state Supreme Court on Monday discharged its jurisdiction in the case of a Jacksonville attorney who challenged an appellate court’s ruling concerning the authority of Gov. Rick Scott to appoint the replacement for a judge who resigned from the 4th Judicial Circuit. The court’s split decision was the
end of a legal process that began seven months ago in Jacksonville. Concurring in the discharge of David P. Trotti v. Rick Scott were Chief Justice Charles Canady and Justices Jorge Labarga, Alan Lawson and Ricky Polston. Justices R. Fred Lewis, Barbara Pariente and Peggy Quince dissented. In rendering its decision to refrain from ruling on the case, the majority of the justices agreed that “after further consideration, we conclude that jurisdiction was improvidently granted” and
The Supreme Court of Florida, front row, from left, Justice Barbara Pariente, Chief Justice Charles Canady and Justice R. Fred Lewis. Back row: Justice Jorge Labarga, Justice Peggy Quince, Justice Ricky Polston and Justice Alan Lawson.
TROTTI V. SCOTT Concurring in the discharge: Canady, Labarga, Lawson and Polston. Dissenting: Lewis, Pariente and Quince
SEE JUSTICE, PAGE 10
The Basch Report: Stein Mart reports sales increase PAGE 8 Cawton Report: Florida Senate sets committee appointments PAGE 6 OBSERVER MEDIA GROUP
THE FLORIDA SUPREME COURT
SEE MATHIS, PAGE 7
THE MATHIS REPORT
Baymeadows Park plans spring start PAGE 4 VOLUME 1, NO. 26 • ONE SECTION
Page 2 • Thursday, November 29, 2018
Jacksonville Daily Record/Jacksonville Record & Observer
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Photo by Scott Sailer
Fishweir Brewing Co. is in the former Fat Kat nightclub space in Murray Hill. For more photos, visit JaxDailyRecord.com
WHAT’S TRENDING
Fishweir Brewing Co. opening Thursday in Murray Hill Brewery intends to feature sour beers that take six to eight months to mature. BY SCOTT SAILER EDITORIAL RESEARCH DIRECTOR
Fishweir Brewing Co. plans to open Thursday in the renovated former Fat Kat nightclub space at 1183 Edgewood Ave. S. in Murray Hill. The owners are Broc and Stacey Flores. Broc Flores was a home brewer for more than 10 years and Stacey Flores managed a distillery and tasting room in South Carolina. Broc Flores said they wanted to create a “place that people feel comfortable” in visiting. The brewery will feature sour beers that have a tart, acidic taste. Sour beer takes six to eight months to mature and will not be ready for the opening. Other beers will be available. The bar top is made of solid red
oak milled by Florida Crotchwood in Gainesville. The tables were made from pine rafters from the renovated building. The restroom vanity counters are milled from a tree from Fishweir Park. The brewery features a climate-controlled barrel room specifically for sour beer. The space also will be used for events and catered beer dinners. A wedding and Christmas parties are booked, according to Broc Flores. The brewery doesn’t have a kitchen, but will offer catered food, such as cheese plates from Grater Goods cheese shop on Edgewood Avenue and Murray’s Taco Bodega next door. Fishweir Brewing also has a specialty beer club called the Oak Club, with monthly meetings, specialty beer releases and tastings. The maximum 150 membership sold out in 11 days. SSAILER@JAXDAILYRECORD.COM (904) 356-2466
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Jacksonville Daily Record, Jacksonville Record & Observer and Realty-Builder are a division of Observer Media Group Inc. Established in 1912, the Financial News & Daily Record, now the Jacksonville Daily JACKSONVILLE Record, is published Monday-Friday and is the Official Court Newspaper of the Circuit Court and publisher of public notices in Duval County. Jacksonville Record & Observer is a free weekly business newspaper available in Downtown Jacksonville and key business nodes throughout Jacksonville. To find a location near you, visit jaxdailyrecord.com/rack-locations. Editorial content focuses on news and trends, with a concentration on development, law, companies, economic and industry trends and how local and state government affects business. Realty-Builder is a monthly publication connecting Northeast Florida’s real estate professionals and homebuilders. Content focuses on timely news, information and trends affecting residential real estate sales and construction, as well as events and legal issues impacting the industry. Visit Realty-Builder.com to request your free copy.
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JEA board selects Zahn as utility’s next CEO
PRICES Thursday only ..........$66 per year Single copy.......................35 cents
The JEA board of directors on Tuesday unanimously choose Aaron Zahn, 38, as the public utility’s next chief executive officer and managing director. He will enter contract negotiations immediately. Zahn will lead the nation’s eighth-largest municipally owned electric, water and wastewater utility despite having no experience leading a utility of any size.
2 years.................................... $154 1 year.........................................$89 6 months..................................$55
VanLoh named Jacksonville Aviation Authority CEO
Display & Digital Advertising: Call Jay Lesowitz at (904) 356-2466 or email jlesowitz@jaxdailyrecord.com
Mark VanLoh is the next chief executive officer of the Jacksonville Aviation Authority. JAA board members voted unanimously Monday to select VanLoh to take over for Steve Grossman, who retired in October. Grossman announced in June he was leaving the authority after nine years as CEO. VanLoh comes to Jacksonville after nearly two years in the same role for the Tulsa Airport Authority in Oklahoma and airport leadership experience since 1984.
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DEVELOPMENT Work to begin soon on Vista Brooklyn apartments Construction of the Vista Brooklyn high-rise apartment project will begin in the next two months now that developers have secured a mortgage for the property. Bristol Development Group LLC and Hallmark Partners Inc. are developing the 10-story, 308-unit tower at 200 Riverside Ave., between 220 Riverside and the Brooklyn Station on Riverside retail development. The group secured a $52,475,360 mortgage with Citizens Bank. “We’ll begin working on things within the next 30-45 days,” said Bristol Development Group Principal Sam Yeager. Bristol Senior Vice President Scott Black said monthly rents will range from about $1,300 to $3,500. Amenities will include a rooftop pool and beer garden.
Bartram Market will be anchored by Publix Eastland Development and Investments announced Monday that it will start construction of Bartram Market this week and that the shopping center will be anchored by Publix Super Markets Inc. Wawa will build a gas station and convenience store on an outparcel. Bartram Market is in southern Duval and northern St. Johns counties near The Pavilion at Durbin Park. John Dodson, Eastland vice president of development, said the Publix store will be a 48,387-square-foot prototype with a pharmacy drive-thru. Dodson said other tenants for the center include Dep Nail and Spa, L&L Cleaners, The UPS Store, China Wok, Fancy Sushi and Forever Vets Animal Hospital. In addition to Wawa, outparcel tenants include Wendy’s and Dunkin’ Donuts. Completion is expected in December 2019.
POSTAL INFORMATION Jacksonville Daily Record (USPS 190-620) is published daily except Saturday, Sunday & legal holidays (New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas) by Daily Record & Observer LLC, 10 N. Newnan St., Jacksonville, FL 32202. Periodicals postage paid at Jacksonville, Florida and at additional mailing offices. Under no circumstances will any news or records of Duval County be suppressed for anyone. Information in this newspaper is for our subscribers only and must not be used by anyone for publication purposes.
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Jacksonville Daily Record/Jacksonville Record & Observer
Thursday, November 29, 2018 • Page 3
Is this a good place for veterans to retire? ECONOMIC TRENDS
Two companies looking at data on veterans’ resources in the 100 largest U.S. cities rank Northeast Florida no lower than 22nd. BY MARK BASCH CONTRIBUTING WRITER
Everyone knows Jacksonville is a military town. In addition to the active duty personnel in the U.S. Navy, a large number of retiring servicemen and servicewomen are deciding that they liked their time here so much that they want to settle down in Northeast Florida. But how does Jacksonville compare with other cities as a home for veterans? It depends who you ask. Two companies this month assessed data on veterans’ resources in the 100 largest U.S. cities and came up with different rankings for the best cities. Veterans United Home Loans, a mortgage lender which focuses on VA loans, ranked Jacksonville as the eighth best community for veterans. However, personal credit data company WalletHub ranked Jacksonville 22nd. Veterans United looked at 20 metrics that it determined reflect a city’s ability to provide opportunities for veterans as they transiKimball tion to civilian life. “Our research shows that being part of a community that understands the unique needs of military families is a huge benefit,” Shelley Kimball, research director of the Military Family Advisory Network, said in Veterans United’s news release. “Access to affordable housing and gainful employment for both the service member and spouse are critical not just for financial health, but also extends to mental health, stable relationships and overall happy families,” she said. Veterans account for 9.2 percent of the Jacksonville area population, sixth highest
File image
Best places for veterans to retire Two companies this month came up with different views on which cities are the best places for military veterans to retire. Veterans United Home Loans:
WalletHub:
1. San Antonio
6. Colorado Springs, Colorado
2. Lincoln, Nebraska
7. Boise, Idaho
3. Arlington, Texas
8. Jacksonville
4. Raleigh, North Carolina
9. Fort Worth, Texas
5. Oklahoma City
10. Columbus, OH
1. Austin, Texas
6. Plano, Texas
2. Scottsdale, Arizona
7. Virginia Beach, Virginia
3. Colorado Springs, Colorado
8. Irvine, California
4. Raleigh, North Carolina
9. Tampa
5. Gilbert, Arizona
10. Orlando 22. Jacksonville, FL
among the 100 cities, Veterans United said. The study found 7.5 percent of those veterans are living below the poverty line, ranking Jacksonville 32nd, and 0.1 of every 1,000 veterans are homeless, ranking Jacksonville 33rd. Most Jacksonville veterans are doing well financially, compared with their peers in other communities. Veterans United said the median percentage of a veteran’s income spent on cost-of-living expenses in Jacksonville is 34.7 percent, ranking the city 13th. One area where Jacksonville ranks poorly is access to VA health facilities. Veterans United said the area has 0.1 VA health facilities per 1,000 vet-
erans, ranking Jacksonville 96th of the 100 cities. WalletHub’s study looked at 18 metrics within four main categories. Its study found Jacksonville ranked 13th among the 100 cities for access and quality of VA health facilities. Jacksonville ranked 29th for its economy, which included metrics on income and housing affordability, but ranked 64th for jobs, looking at opportunities for veterans. The overall quality of life for Jacksonville ranked 33rd, WalletHub said. Two other Florida cities ranked in the top 10 overall in WalletHub’s study. Tampa was
ninth and Orlando was 10th. However, in the Veterans United study, Tampa came in 21st and Orlando came in 50th. WalletHub ranked Austin, Texas, as the best city overall for veterans while Veterans United chose another Texas city, San Antonio. Raleigh, North Carolina, and Colorado Springs, Colorado, ranked in the top 10 in both companies’ rankings, so those communities are obviously appealing for veterans. But where’s the best place for veterans to settle down? It seems the jury is still out. MBASCH@ JAXDAILYRECORD.COM
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Jacksonville Daily Record/Jacksonville Record & Observer
THE MATHIS REPORT
Spring groundbreaking for Baymeadows Park
KAREN BRUNE MATHIS EDITOR
$15 million shopping center is modeled after Tapestry Park near Tinseltown. Joyce Development Group LLC is negotiating with several hotel developers, restaurants and retailers for Baymeadows Park, the 5.8-acre mixed-use development planned along Baymeadows Road. Developer John Joyce said his Jacksonville-based group would announce the committed tenants at groundbreaking in March or April. He expects to complete the project in summer 2020. The city calculated a mobility fee of $350,708 to mitigate the traffic impact of the 95,000-square-foot project along Baymeadows Road, east of Interstate 95. The $15 million center will comprise five buildings north along Baymeadows Road between Baymeadows Circle east and west. Plans show a hotel of up to five floors and 120 rooms along with 37,000 square feet of commercial, restaurant and retail use among four buildings. The buildings are envisioned to include a coffee shop with a drive-thru; a two-story officeretail building of 18,500 square
File image
A hotel, coffee shop, offices and restaurants are expected at Baymeadows Park, a mixed-use development along Baymeadows Road.
feet; and two restaurants of about 7,150 square feet each. Kimley-Horn and Associates Inc. is the agent. Joyce said the contractor bid process should be completed in February. Baymeadows Park is described as a scaled-down version of the development group’s Tapestry Park project along Southside Boulevard. Baymeadows Park is the proposed commercial development on part of the former Baymeadows Golf Club. D.R. Horton Inc.-Jacksonville sold 5.79 acres on Sept. 19 to Baymeadows Park LLC for $2.4 million. D.R. Horton plans to develop single-family and townhomes at the former Baymeadows Golf Club.
Hendricks apartments continue in review Reviews continue for redevelopment of the former
File image
A developer is working to redevelop the former Florida Baptist Convention property at 1230 Hendricks Ave. into apartments, parking and retail space.
Florida Baptist Convention property at 1230 Hendricks Ave. into 345 apartments, parking and 5,500 square feet of retail space. The city found that no mobility fee is due for the 3.41-acre site at Hendricks and Naldo avenues, Nira Street and the Interstate 95 ramp. The fee is calculated to mitigate additional traffic impact but the development was credited for its previous uses. The existing buildings on the site will be demolished for the project. Jacksonville-based Chadbourne II LLC is identified as the developer of the 345 studio, one- and two-bedroom units in a multistory building and a seven-level parking deck whose top floor includes a pool deck. The garage structure is designed adjacent to the residential building and includes a rooftop terrace and bar. There appear to be 68 studio units, 180 one-bedroom units and 97 two-bedroom apartments. Parking totals 526 spaces. There is 5,500 square feet of ground-level retail space that includes restaurant use with outdoor seating along Hendricks Avenue, according to the master site plan. Plans show a pool courtyard and a hardscape courtyard around which the apartment building wraps. England-Thims & Miller Inc. is the civil engineer. Chadbourne’s phone number is that of Block One Ventures.
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DEVELOPMENT NOTES n The city is reviewing plans for a 1.51-acre outparcel at Gateway Village at Town Center to accommodate a 9,000-square-foot building. As reported previously, developers of Gateway Village at Town Center bought an outparcel at the property to build a 9,000-square-foot commercial building. Jacksonville Gateway Village LLC, led by Chris Morgan and Jim Loftin, paid almost $1.14 million for the 1.51-acre Outparcel 2 at the property at Deerwood Park Boulevard and Gate Parkway. Gateway Village includes the Satori apartments, a RaceTrac gas station and convenience store and two multitenant retail buildings. n The St. Johns River Water Management District is reviewing plans for the Holiday Inn Express at Gateway to Amelia in Fernandina Beach. The developer is FGC Inc. of Fernandina Beach and the owner is listed as Kapil Bava, whose address is the Country Inn & Suites at 7035 Commonwealth Ave. in Jacksonville. The 96room, four-story Holiday Inn Express is planned on 2.32 acre at 960108 Gateway Blvd. Plans show a pool. Alliant Engineering Inc. is the agent. Bava said the anticipated opening is early 2020. n St. Johns County issued a permit Nov. 13 for the 50room Holiday Inn Express Vilano on about an acre at 140 Vilano Road in St. Augustine Road. The three-story, 34,188-square-foot building is shown at a construction cost of $5.23 million. n The St. Johns River Water Management District issued a permit to Chance Olevia LLC to develop San Marco Crossing on 8.9 acres.
Chadbourne’s corporate structure is linked in Florida corporate records to the Driver, McAfee, Hawthorne & Diebenow law firm. Firm partner Steve Diebenow said previously that no construction is planned for at
least a year. Block One Ventures says on its blockoneventures.com site that it is a Jacksonville-based multifamily development company backed by a discretionary proprietary equity source and can “make quick investment
Jacksonville Daily Record/Jacksonville Record & Observer decisions, providing improved certainty of close for property sellers.” City Council enacted ordinances in April 2017 to rezone the property and amend the land use. Florida Baptist Convention Inc. sold the property to Chadbourne II LLC in June 2017 for $6.15 million. The convention relocated to Belfort Oaks Place near Southpoint.
Northpoint Village in city review A grocery-anchored shopping center is in review for North Jacksonville. The city issued a mobility fee calculation certificate and a conditional capacity availability statement for Northpoint Village, an almost 65,000-square-foot grocery-anchored shopping center on 16.5 acres at New Berlin and Yellow Bluff roads. The owner is Northpoint Realty LLC, led by Jacksonville-based International Management LLC. A representative said it was still early to discuss plans for the site. Plans show a 48,387-square-foot grocery anchor flanked by three retail buildings totaling 16,600 square feet of retail space. Five outparcels range from 0.89 to 1.53 acres. A grocery store that size matches those of Publix Super Markets Inc. Dwaine Stevens, media and community relations manager, said Publix does not have a signed lease at the location. The mobility fee is calculated at $276,647 to mitigate the traffic impact. England-Thims & Miller Inc. is the agent. KMATHIS@ JAXDAILYRECORD.COM @MATHISKB (904) 356-2466
Thursday, November 29, 2018 • Page 5
RETAIL NOTES
Circle K plans to remove and rebuild store Circle K Stores Inc. received concurrency reservation and mobility fee calculation certificates to build a convenience store, gas station and a car wash totaling 6,812 square feet on 2.51 acres at Atlantic Boulevard and Girvin Road. The city calculated a fee of $96,588 to mitigate the traffic impact. Circle K proposes to remove its existing 2,601-square-foot store at the site and build the new store, car wash and 20 fueling positions at 12743 Atlantic Blvd. Circle K will buy 1.66 acres from Home Depot U.S.A. Inc. for the expansion of its existing site. n First Coast Energy LLP proposes a Daily’s gas station and convenience store on 2.85 acres at Kernan Boulevard South and Betty Holzendorf Drive, north of Butler Boulevard near the University of North Florida. The St. Johns River Water Management District issued a permit for the 5,413-square-foot building and 12 fueling positions. Plans show an outdoor patio. n The St. Johns River Water Management
District gave notice that it intends to approve an application for BW Gate Point Meadows at Gate Parkway and Point Meadows Drive. The 13.31-acre site is under development by Tampa-based Brightwork Real Estate through BW Point Meadows LLC. Plans show a Wawa gas station and convenience store at Point Meadow Drive and Gate Parkway. Baer’s Furniture Co. also intends to develop at the site. The city is reviewing civil plans for the project. n Caliber Collision wants to open a
16,900-square-foot auto-truck collision repair center at 11556 Philips Highway,
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certificate for the project, comprising a 10,622-square-foot store and 5,824-square-foot donor drop-off station. The St. Johns River Water Management District is reviewing a permit application. The former Goodwill store at 6841 Blanding Blvd. was sold Jan. 17 for development of a ChenMed primary care center for seniors. That 11,000-squarefoot Goodwill store was built in 2004 on 1.38 acres.
File image
Pet Supermarket is building out at 9041
Southside Blvd. in Southside Square.
according to a JEA availability letter about utility service connections. n Sunrise-based Pet Supermarket Inc. is building out at 9041 Southside Blvd. in Southside Square. The city issued a permit for a $255,194 job to renovate 8,000 square feet of space at 9041 Southside Blvd., No. 132. The space is near Target and Aldi. It would be the chain’s seventh in Duval County and more are planned. Pet Supermarkets are smaller than the average Petco and PetSmart stores. n Goodwill Industries of North Florida intends to build a store at 6021 Blanding Blvd. in Southwest Jacksonville. The 16,446-square-foot donation center and store is planned on 2.64 acres. The city issued a concurrency reservation
n O’Reilly Automotive Stores Inc. wants to develop a St. Johns County store on 1.16 acres at 4307 U.S. 1 in St. Augustine. The 7,734-square-foot store is planned at U.S. 1 and Mariner Health Way. The St. Johns River Water Management District is reviewing a permit application. n The St. Johns River Water Management District issued a permit to Miami Automotive Retail Inc. for clearing and grading for the proposed Bentley of Jacksonville dealership, which is planned in South Jacksonville along Bonneval Road. n A proposed 6,500-square-foot retail building called “Lunar Drive Retail” is in St. Johns River Water Management District review for River City Marketplace in North Jacksonville. Triple Net Equities Ltd., led by Peter Sleiman, is the owner and project developer for the property, on 1.2 acres at 14021 Skymarks Drive, at Lunar Drive. Baker Design Build is the civil engineer. The plans show two retail units of 3,000 and 3,500 square feet. n St. Johns County approved build-out for Five Below in 8,204 square feet of space at 675 Durbin Pavilion Drive, Suite 103, at a cost of $262,710.
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Jacksonville Daily Record/Jacksonville Record & Observer
THE CAWTON REPORT
Bradley to chair Appropriations Committee Project Turtle to proceed
DAVID CAWTON STAFF WRITER
File image
State Sen. Rob Bradley is Republican who represents Baker, Bradford, Clay, Columbia, Dixie, Gilchrist, Lafayette, Levy, Suwannee and Union counties and part of Marion County.
State Sen. Audrey Gibson, a Democrat, will serve as senate minority leader. Florida Senate President Bill Galvano released his 2018-20 committee assignments this week. State Sen. Rob Bradley, whose district includes Clay and Baker counties, will chair the Senate Appropriations Committee for the next two years. Bradley is a Republican who represents Baker, Bradford, Clay, Columbia, Dixie, Gilchrist, Lafayette, Levy, Suwannee and Union counties and part of Marion County. In his role, Bradley will lead budget discussions along with other members of committees and subcommittees. He will serve on other committees including Innovation, Industry and Technology; Finance and Tax; Rules; and the Joint Legislative Budget Commission. State Sen. Audrey Gibson, a Democrat, will serve as senate minority leader and has seats on the Judiciary Committee, the Innovation, Industry and Technology Committee and Appropriations.
Along with Republican Aaron Bean, Gibson represents part of Duval County. Bean, whose Senate district also includes part of Nassau County, will sit on the Governmental Oversight and Accountability Committee, Infrastructure and Security, the Appropriations Subcommittee on Agriculture, Environment and General Government, and on the general Appropriations Committee. Bean will chair the Appropriations Subcommittee on Health and Human Services. State Sen. Travis Hudson has assignments on the Commerce and Tourism committee, the Judiciary Committee, the Innovation, Industry and Technology Committee, Infrastructure and Security Committee and Appropriations. He also will chair the Appropriations Subcommittee on Transportation, Tourism and Economic Development. Hudson represents Senate District 7 comprising Flagler and St. Johns counties and part of Volusia County.
The Mayor’s Budget Review Committee gave the city’s Office of Economic Development permission to submit legislation approving an economic development agreement with a company using the code name Project Turtle. Described in public documents as an existing manufacturing company in Jacksonville, Project Turtle seeks $1.64 million in city-backed financial incentives to expand in North Jacksonville. It plans to hire 108 employees at an average annual wage of $53,298 plus benefits and to invest $21.8 million into leasing a new industrial building and buying equipment. The company is using a code name as it negotiates with the city, which is allowed by state law. According to Kirk Wendland, OED executive director, Jacksonville is competing with at least two other Southeast areas where the company has facilities. “Those places would all like to get this expansion,” Wendland said Monday. “That’s why we’re offering incentives.” The incentives package comprises a Qualified Target Industry Tax Refund of up to $5,000 for each employee hired, for a total of $540,000. The city is responsible for 20 percent of the refund, or $108,000, while the state pays the balance. No incentives are paid unless Project Turtle hits benchmarks outlined in the economic development agreement, which calls for the employees to be hired by year-end 2020.
The company seeks a refund on ad valorem taxes equal to 50 percent over the next 10 years through a Recaptured Enhanced Value grant, capped at $1.1 million. Based on an internal formula, the city estimates the return on investment is 1.87 to 1. Legislation is expected to be introduced Dec. 11 to City Council , which could approve the deal by the end of the year.
Transparency bill targeting texts fails At-Large City Council member Anna Lopez Brosche’s attempt to strengthen transparency rules for city officials failed to gain traction Tuesday night with her peers. Her legislation, 2018-570, earned just three votes from the 19 council members. The bill would have required text messages and emails between council members and lobbyists to be available online. Emails to and from Mayor Lenny Curry, Chief of Staff Brian Hughes, Chief Administrative Officer Sam Mousa and emails to all council members already are available through a public website although those accounts generally are updated infrequently. Text messages are made available only through public records requests. The same can be said for any emails to or from individual council members. Brosche’s legislation also would have required anyone who enters into a contract with the city worth more than $1 million to disclose political donations to local officials over the past five years. Brosche and council mem-
bers Garrett Dennis and Joyce Morgan voted for the measure. The bill is a result of recommendations made by a task force on government accountability that Brosche formed last year as council president.
JEA sale would go through voters City Council approved legislation Tuesday allowing voters to have a say if the city considers selling JEA to a private operator. The legislation follows a nonbinding straw ballot, which 73.4 percent of Duval County voters supported in the Nov. 6 midterm election. Previously, council members had to approve a sale of more than 10 percent of JEA’s assets. Now voters must approve as well. JEA privatization was a recurring theme the past two years, although there is no public effort to sell the utility. While most of JEA’s customers live in Duval County, the authority also provides electricity to Orange Park, Baldwin, Atlantic Beach and parts of St. Johns County, and water and wastewater services to parts of Nassau and St. Johns counties. Those counties have the first right of refusal, according to interlocal agreements. A financial audit of the city’s largest independent authority in February valued the entire operation between $2.9 billion and $6.4 billion. DCAWTON@ JAXDAILYRECORD.COM @DAVIDCAWTON (904) 356-2466
Plymouth to buy 20 Southside buildings for $97 million Greenfield Partners is selling the properties after buying them five years ago. FROM STAFF
Boston-based Plymouth Industrial REIT Inc. announced Thursday it signed a definitive agreement to buy a 20-building, 1.1 million-square-foot light industrial and flex portfolio in
Jacksonville for $97.1 million in cash. The portfolio comprises three business parks – Center Point Business Park, Liberty Business Park and Salisbury Business Park. The three parks total 1,133,516 square feet of light industrial and flex buildings in Southside, near Interstate 95 and Butler Boulevard. Plymouth did not announce the seller but records show Greenfield Partners LLC, a real estate investment firm based in Westport, Connecticut, as the owner.
The properties are 96 percent leased to 40 tenants with an average lease term of more than three years remaining. Tenants include Comcast, Veritiv, Cintas, Alstom, Staples, Cardinal Health, The Home Depot, Johnson Controls, Safelite AutoGlass and Shaw. The acquisition is expected to close in mid-December. The sale comes five years after Greenfield Partners bought the buildings among a portfolio of properties from Liberty Property
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Trust. Liberty Property Trust sold 32 Jacksonville buildings along with 115 undeveloped acres for more than $197 million to Greenfield Partners LLC in December 2013. Plymouth expects to fund the acquisition with about $34 million in proceeds from a strategic investment from an affiliate of Madison International Realty Holdings LLC and about $63 million in short-term borrowings from KeyBank. “We have targeted Jackson-
ville for some time and coveted a meaningful presence that gives us immediate scale, infill locations and a mix of light industrial and flex buildings to accommodate a wealth of tenants,” said Pendleton White Jr., Plymouth president and chief investment officer. He said Jacksonville is the third fastest-growing market in the country, “with one of the tightest industrial vacancies and lowest amount of inventory under construction of any market we have analyzed in the Southeast.”
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Thursday, November 29, 2018 • Page 7
Andrea Inserra joined The Haskell Co. board of directors. Inserra is senior vice president at Booz Allen Hamilton, an international technology and management consulting firm. Inserra also is on the board for the Association of Military Surgeons of the United States.
File image
The JinkoSolar factory is at 4660 POW-MIA Memorial Parkway in AllianceFlorida at Cecil Commerce Center.
JinkoSolar CONTINUED FROM PAGE 1
KMATHIS@JAXDAILYRECORD.COM @MATHISKB (904) 356-2466
BUSINESS IN BRIEF Southpoint Business Park building sold: The 22,344-square-foot, two story, multitenant office building at 4237 Salisbury Road, Building No. 4 in Southpoint Business Park, sold Wednesday to a private investment group for $1.3 million. Daniel Burkhardt and Luke Feldman of NAI Hallmark represented the seller. Restructuring at Crowley: Jacksonville-based Crowley Maritime Corp. announced Wednesday that it will complete the merger its liner services group into Crowley Logistics on Jan. 1. The business unit will be led by Steve Collar, senior vice president and general manager. Crowley said integrating liner services into logistics was planned as part of a corporate restructuring announced this year that will yield four business units: Crowley Fuels, Crowley Solutions, Crowley Shipping and Crowley Logistics.
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Architecture and engineering consulting firm RS&H promoted three transportation leaders in Jacksonville. n Vice President Kim Holland, who has been with RS&H since 2002, will focus on development and expansion of the client base, service lines and geographic growth across the country. n Vice President of Transportation Morgan County, previously the Jacksonville highway and water resources leader, was named office leader. n Keith Bogart, who has 10 years of project management experience with
Inserra
Iosue
Holland
County
Bogart
RS&H, was named Jacksonville highway group leader. Compiled by Scott Sailer
These are the largest commercial building permits by job cost issued Tuesday by the city of Jacksonville. APARTMENTS Silver Creek Apartments, 300 Silver Creek Trace, contractor is ZMG Construction of Texas LLC, 16 permits for renovations, $4.82 million. Desert Winds Apartments, 233 Sahara Court, contractor is ZMG Construction of Texas LLC, 15 permits for renovations, $4.35 million. The Reserve at Longleaf Apartments, 5485 Connie Jean Road, contractor is Myers & Francis Construction Co., 7,740 square feet, three permits for new buildings, $463,365. CHURCH, OTHER RELIGIOUS Evangel Temple Assembly of God Inc., 5755 Ramona Blvd., contractor is E. Vaughan Rivers Inc., 8,651 square feet, addition, $2.8 million. Believers Joy Worship Center Inc., 13066 Yellow Bluff Road, contractor is Webb Properties & Improvements Inc., 6,035 square feet, new building, $750,000. HOSPITAL, INSTITUTIONAL Baptist Health Medical Center, 800 Prudential Drive, contractor is The Haskell Co., repair, $80,000. INDUSTRIAL JinkoSolar, 4660 POW-MIA Memorial Parkway, contractor is Schneider Electric, installation of IT mission critical services, 10 IT racks and two small racks, $422,639.
ROOFING Rowes IGA LLC, 5435 Blanding Blvd., contractor is Dibble Roofing Co. Inc., roof replacement, $230,000. Morgan Brothers Supply Inc., 6236 Philips Highway, contractor is Metro Property Services Inc., repair, $12,964. SIGNS 245 Riverside Avenue Office Building, 245 Riverside Ave., contractor is Brown Enterprises, monument sign, $9,400. 76 Gas Food Mart and Car Wash, 5971 Ramona Blvd., contractor is Jetscape Signarama Inc., two permits for canopy signs, $3,800. Tyler Professional Offices, 13553 Atlantic Blvd., contractor is CNS Signs Inc., ground sign, $2,450. 76, 2500 Mayport Road, contractor is Jetscape Signarama Inc., two permits for canopy signs, $1,000.
DEVELOPMENT TODAY
ing the call. JinkoSolar and Juno Beach-based NextEra Energy Inc., the parent company of Florida Power & Light Co., announced in March that NextEra would buy about 7 million solar panels from JinkoSolar over four years. JinkoSolar has eight production facilities worldwide. JinkoSolar Business Development Director Jeff Juger confirmed Tuesday that pilot production has begun with a full ramp-up starting early next year. He did not provide the number of employees on staff. “Hiring is going well and in accordance with our production schedule,” he said by email. The city’s economic development agreement states that JinkoSolar would create 100 jobs by year-end 2018. JinkoSolar reported that revenue for the third quarter, which ended Sept. 30, rose 10.5 percent to $974.8 million from the second quarter and was up 4.3 percent from the third quarter of 2017. The company said solar module shipments of 2,953 megawatts were up 5.7 percent from the second quarter and 24.4 percent in the third quarter last year. On Dec. 13, JinkoSolar’s general manager for the United States and Canada, Nigel Cockcroft, is scheduled as the keynote speaker at the JAXUSA
Partnership’s fourth-quarter meeting. The partnership is the economic development division of JAX Chamber. JinkoSolar (U.S.) Industries, a subsidiary of JinkoSolar Holding Co. Ltd., is building-out the solar-panel plant in AllianceFlorida at Cecil Commerce Center. JinkoSolar agreed to open the $50 million plant with the support of city and state incentives. The jobs, which will pay an average annual wage of $45,562, must be created by the end of 2019. The company will lease 285,652 square feet in the 407,435-square-foot building at 4660 POW-MIA Memorial Parkway. City Council adopted a resolution in March to approve the incentives. Financial support comprises city tax incentives of $3.4 million, consisting of a $3.2 million Recapture Enhanced Value grant to be paid over 10 years and a $200,000 Qualified Target Industry tax refund for JinkoSolar to be repaid over five years. The state will pay the remaining $800,000 of the total $1 million QTI refund. JinkoSolar is the first Chinese company to set up a factory in the U.S. after President Donald Trump approved tariffs in January on imported solar panel technology.
Allan Iosue joined The Haskell Co. as director of business development and marketing for the Infrastructure & Transportation group. Iosue has more than 20 years of experience in the architecture engineering and construction industry.
PEOPLE ON THE MOVE
Promotions, hirings and happenings for business people in Northeast Florida. Send items to ssailer@jaxdailyrecord.com
STORES, MERCANTILE Gexpro, 7818 Philips Highway, No. 300, contractor is Windermere Custom Homes Inc., 20,240 square feet, tenant build-out, $220,000. Great Clips, 11957 Atlantic Blvd., No. 102, contractor is BTD Contracting LLC, 1,148 square feet, tenant build-out, $62,825. Compiled by Scott Sailer
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Page 8 • Thursday, November 29, 2018
Jacksonville Daily Record/Jacksonville Record & Observer
THE BASCH REPORT
Stein Mart continues positive sales trend
MARK BASCH CONTRIBUTING WRITER
Comparable-store sales at the fashion retailer rose 1.4 percent in the third quarter. After reporting its first positive comparable-store sales in three years in the second quarter, Stein Mart Inc. continued the trend in the third quarter. On Tuesday, the Jacksonville-based fashion retailer reported comparable-store sales rose 1.4 percent in the third quarter ended Nov. 3. Comparable-store sales are sales at stores open for more than one year and are considered a key indicator of a retailer’s performance. Stein Mart’s total sales in the quarter fell 2.2 percent to $279.1 million because it closed seven underperforming stores this year. Stein Mart operated 288 stores across the country at the end of the third quarter. “A positive comparable sales trend that began in the second quarter has improved in the third quarter with solid sales increases in all our core apparel businesses, driven by higher regular price selling,” CEO Hunt Hawkins said in Stein Mart’s quarterly conference call. With more regular price selling, as opposed to clearance sales, profit margins are improving. Stein Mart reported a net loss of $16.6 million, or 36 cents a share, in the third quarter but Hawkins is encouraged about the fourth quarter. “As our penetration of regular price selling continues to increase and clearance selling comparisons normalize, we expect our gross profit rate to increase,” he said. “This, along with continued growth from our e-commerce business and lower expenses has us well prepared for a profitable fourth quarter that will give us dramatically improved EBITDA (earnings before interest, taxes, depreciation and amortization) for the year.”
Investors unhappy with Black Knight’s D&B deal Black Knight Inc.’s announcement last week of its minority investment in Dun & Bradstreet coincided with the Jacksonville-based company’s Investor Day presentation at the New York Stock Exchange. It did not go over well, according to one analyst. “Investor Day (Nobody Seems to Like the D&B Investment)” was the headline on a research note by Wedbush analyst Henry Coffey after the presentation. “Black Knight management did a thorough job of quantifying their long-term product strategy and future drivers of growth,” Coffey said in his note.
“A positive comparable sales trend that began in the second quarter has improved in the third quarter with solid sales increases in all our core apparel businesses, driven by higher regular price selling.” HUNT HAWKINS, STEIN MART CEO
“Unfortunately, the bulk of any gain tied to this effort was offset by the news that they are spending $375 million for a sub 20 percent stake in Dun & Bradstreet.” Black Knight’s stock dropped $4.30 to $45.49 on Nov. 19 after the announcement. Mortgage technology firm Black Knight is partnering with several other investment firms in the $6.9 billion deal to buy the historic business data firm, including Cannae Holdings Inc., another company spun off from Fidelity National Financial Inc. Coffey said Coffey investors are unhappy with the expected debt Black Knight will take on in the deal. Moody’s Investors Service weighed in Monday, saying the deal is “a negative credit development” because of the possibility Black Knight may borrow the funds to invest in Dun & Bradstreet. “However, Moody’s notes Black Knight has strong financial metrics compared to a number of other business services issuers,” so it left the company’s credit ratings unchanged, Moody’s said in a news release. Coffey said there are potential positives in the deal. “This is the type of business the Black Knight team knows how to fix; and 2) we think it could open some interesting doors for product expansion into areas outside of mortgage such as products for the small business and commercial real estate lending markets,” he said. Black Knight CEO Anthony Jabbour will take on the additional role of CEO of Dun & Bradstreet when the deal closes.
Shepherd’s Finance earnings drop Shepherd’s Finance LLC said last week third-quarter earnings fell about 50 percent to $167,000. Jacksonville-based Shepherd’s Finance is a commercial lender for the residential construction and development industry. The company said the decline in earnings resulted from an increase in foreclosed assets and increased personnel expenses.
CenterState acquiring parent of FirstAtlantic
Less than a year after acquiring Jacksonville-based FirstAtlantic Bank, National Commerce Corp. agreed to merge into CenterState Bank Corp. Birmingham, Alabamabased National Commerce acquired FirstAtlantic on Jan. 1 and continued to operate its eight Jacksonville area offices under the FirstAtlantic name. Winter Haven-based CenterState has seven offices in the Jacksonville metropolitan area, according to Federal Deposit Insurance Corp. data. CenterState entered the Jacksonville market in 2012 by acquiring the failed First Guaranty Bank & Trust Co. CenterState said Monday it will buy National Commerce by issuing 1.65 shares of its stock for each share of National Commerce. The deal was valued at $850 million based on CenterState’s closing price Friday before the announcement. The two banks combined have 164 branches in Florida, Alabama and Georgia with about three-quarters of the offices in Florida. The companies did not announce any plans for opera-
tion of the branches after the merger is completed. However, in a notice for employees posted in a Securities and Exchange Commission filing, the banks said CenterState operates all of its offices under the CenterState name, and it expects to change the names of National Commerce’s banks late in 2019. The merger is expected to be completed in the second quarter next year.
Glowpoint revenue falls 16 percent Glowpoint Inc. reported a third-quarter net loss of $1.47 million, or 3 cents a share, with revenue falling 16 percent to $2.9 million, according to its quarterly report filed with the SEC. Denver-based Glowpoint, which provides video collaboration and network applications, agreed last month to merge with Jacksonville-based IT services company SharedLabs Inc. SharedLabs will be the surviving company in the merger, which will make it a public company. SharedLabs had been planning an initial public offering before agreeing to the deal with Glowpoint. SharedLabs said the two companies combined produced $86 million in revenue for the 12-month period ended June 30.
Analyst touts former TapImmune Biotech research firm Marker Therapeutics Inc., formerly known as TapImmune Inc., has no products on the market now or for the foreseeable future. But one analyst last week said he likes the company’s potential. Nomura/Instinet analyst Christopher Marai initiated coverage of Marker last week with a “buy” rating, citing its “novel T cell therapy” under development.
Jacksonville-based TapImmune and Minnesota-based Marker merged in October, with the company taking on the Marker name. Both companies had been developing cancer therapies. The company continues to be headquartered in Jacksonville, according to SEC filings. But it plans to move to Houston, where Marker has had a relationship with the Baylor College of Medicine. Marker’s stock has been trading near the $7 level recently but Marai set a $16 price target for the stock in his research note. “Marker is trading at a discount to immunotherapy peers and, in our view, offers strong derisking data flow that is likely to result in upside in the next 12 months,” he said.
Medtronic beats forecasts Medtronic PLC last week reported revenue grew 6.1 percent to $7.48 billion in the second quarter ended Oct. 26 and said revenue in its specialty therapies division rose by 11 percent to $405 million. However, the global medical device company did not say anything about results for its Jacksonville division, which makes surgical instruments for ear, nose and throat physicians. Medtronic does not release specific data for that division, which is included in special therapies, but in past quarters it did give an indication of revenue growth for the ENT business. Medtronic’s second-quarter adjusted earnings of $1.22 per share were 15 cents higher than last year and 8 cents higher than the consensus forecast of analysts surveyed by Zacks Investment Research. MBASCH@ JAXDAILYRECORD.COM
Jacksonville Daily Record/Jacksonville Record & Observer
Thursday, November 29, 2018 • Page 9
REAL ESTATE
Top 10 sales of the week BY SCOTT SAILER • EDITORIAL RESEARCH DIRECTOR
Here are the top 10 real estate sales in Northeast Florida, comprising Baker, Clay, Duval, Nassau and St. Johns counties. The sales were recorded Nov. 19-23.
File image
Belfort Park, six buildings along Belfort Parkway, sold for $10 million, a 37.4 percent decline over its previous sale price of $15,978,200 in 1995.
$10,000,000
$7,650,000
$7,300,000
$3,750,000
$3,585,000
7751, 7800, 7900, 7950, 8000, 8001 Belfort Parkway, Jacksonville, Duval County
Florida 207, County Road 305, Crescent Technical Court, Elkton, St. Johns County
6756 103rd St. and 5435 Norde Drive W., Jacksonville, Duval County
College, Forbes, Post and Acosta streets, Jacksonville, Duval County
5521 Ricker Road, Jacksonville, Duval County
Type: Belfort Park business park Size: 44.95 acres Buyer: Acorn Belfort Park LLC Seller: Suburban Owner LLC Previous sale: $15,978,200 in 1995
Type: Timberland Size: 2,700.91 acres Buyer: First Coast Elkton LLC Seller: BBC Elkton LLC
Type: The Forest Apartments Size: 5.35 acres Buyer: Forest Apartments LLC Seller: 103rd Street Apartments LLC Previous sale: $4,100,000 in 2016
Type: Single-family and multifamily homes Size: 1.69 acres Buyer: AP Holdings Florida LLC Seller: Kimberly P. Cappolla
Type: La Casa Prima apartments Size: 3.64 acres Buyer: BDEP JAX West LLC Seller: La Prima Holdings LLC Previous sale: $2,144,000 in 2015
$2,720,000
$2,620,000
$2,350,000
$1,800,000
$1,680,000
1165 Randolph and 4806 Kingsbury streets, 1111 and 1131 Woodruff Ave., Jacksonville, Duval County
1360 Airport Road, Jacksonville, Duval County
2039 Niblick Drive, Jacksonville, Duval County
Town Plaza Avenue, Ponte Vedra, St. Johns County
58 Charlotte St., St. Augustine, St. Johns County
Type: Ruby Tuesday Size: 1.77 acres Buyer: Winters Chapel Plaza LLC Seller: TMT33 LLC Previous sale: $2,131,400 in 2018
Type: Cedar Springs Village Apartments Size: 2.65 acres Buyer: BDEP JAX West LLC Seller: Cedar Ridge Holdings LLC Previous sale: $1,050,000 in 2014
Type: Vacant commercial Size: Not available Buyer: Flagler Hospital Inc. Seller: TC Development LLC
Type: La Pentola Restaurant Size: 0.21 acres Buyer: 58 Charlotte LLC Seller: Manuel J. and Susan J. Talavera Previous sale: $825,000 in 2003
Type: Apartments Size: 2.40 acres Buyer: BDEP Murray Hill LLC Seller: Kingsbury Holdings LLC Previous sale: $1,850,000 in 2014
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Page 10 • Thursday, November 29, 2018
Jacksonville Daily Record/Jacksonville Record & Observer
Justice: ‘This procedure is not perfect’ CONTINUED FROM PAGE 1
“no motion for rehearing will be allowed.” After the court published its order discharging the case, the governor’s office issued a news release announcing that Duval County Judge Lester Bass, who was provisionally appointed by Scott in June while the case was in litigation, will join the 4th Judicial Circuit Court. A HISTORY OF LITIGATION
The justices heard oral arguments in early October in the case that had since May made its way through the court system from Circuit Court in Jacksonville to Circuit Court in Tallahassee and then to the 1st District Court of Appeals before landing in the Supreme Court of Florida. Trotti also filed similar actions in 2014 related to the resignation of former 4th Judicial Circuit Chief Judge Donald Moran, who notified Scott in March 2014 that he was resigning on Jan. 2, 2015, before his term on the bench was to expire. Trotti filed to run for Moran’s seat before Scott accepted Moran’s resTrotti ignation and before the statutory qualifying period began. He was the only candidate who filed for the office, then sought for the court to compel the secretary of state to accept his qualifying papers. A judge in the 2nd Circuit denied the writ after concluding the vacancy was by law to be filled by gubernatorial appointment rather than by election. Trotti appealed the circuit court decision, but the appellate court held that the vacancy should be filled by appointment because Moran’s resignation was accepted before the election qualifying period began. When Trotti appealed the 1st District’s ruling, the state Supreme Court denied review. The 2018 dispute began when Circuit Judge Robert Foster tendered his resignation to Scott on April 2. Scott accepted the judge’s resignation on April 23, seven days before the qualifying period for election of circuit court judges began. Foster’s resignation is effective Dec. 31, four business days before his term in office was to expire. Scott then directed the 4th Circuit Judicial Nominating Commission to convene and submit candidates for appointment to fill the vacancy created by Foster’s resignation. Trotti submitted his name and qualifying fee to the state Department of Elections on May 3, one
File image
Duval County Judge Lester Bass will join the 4th Judicial Circuit Court to fill the seat of the retiring Judge Robert Foster.
day before the qualifying period for election to Foster’s seat on the bench ended. Trotti was the only candidate who filed, but his name was removed from the candidate list when the department was notified by the governor’s office that Foster would be replaced by appointment. The governor’s office contended that Scott’s acceptance of Foster’s resignation before the election qualifying period began created a vacancy that should be filled by appointment. Trotti filed a motion in Jacksonville on May 10 to prevent the commission from interviewing applicants for the vacancy, which was denied May 17. He filed a motion in Circuit Court in Tallahassee on May 7 to prevent appointment of a replacement and to put his name back on the ballot for the August primary election. An order granting the motion was signed by Circuit Judge Charles Dodson June 6, retroactive to May 16. Scott and Secretary of State Ken Detzner filed a challenge of that decision five days later in the 1st District Court of Appeal. The appeal contended that under the Florida Constitution and binding precedent from the state Supreme Court, a circuit judge’s resignation that is accepted by the governor prior to the candidate qualifying period
File image
Gov. Rick Scott accepted the resignation of Foster on April 2. It is effective Dec. 31, four days before Foster’s term in office was to expire.
creates a vacancy in office to be filled by gubernatorial appointment, not by election. When the appellate court ruled in favor of Scott appointing Foster’s successor, Trotti petitioned the Supreme Court to hear the case, which it did on Oct. 2. THE DISSENTING OPINIONS
The three justices who dissented in the Nov. 26 discharge order, all of whom are leaving the court in January having reached mandatory retirement age, said the court should have issued a ruling instead of discharging its jurisdiction and review. Lewis wrote the longest dissenting opinion, beginning with defining “travesty” as a debased, distorted or grossly inferior imitation of justice. “This accurately describes the circumstances in this case, which allow judges to make a mockery of our Florida Constitution with impunity. The issue is whether a judge can prospectively resign during an election year to manufacture a vacancy that will be filled by gubernatorial appointment instead of a regularly scheduled election,” he wrote. “We should not condone this practice of judges announcing their resignation before the beginning of an election qualifying period but not resigning until days before the end of their term,” wrote Pariente in her dissent. Quince wrote in her dissent that the issues before the court are a matter of great public importance. “Thus, I would address the issues and quash the decision of the First District Court of Appeal, and hold that David P. Trotti, who properly qualified for election as circuit judge for the Fourth Judicial Circuit, Group 6, and was elected by virtue of the fact that no other candidate qualified for the seat, is entitled to take the seat that should be filled by election.” She referenced what the Court previously adopted and reaffirmed: Vacancies that occur once an election process begins should be filled by election and that vacancies that occur before
“Alas, here we are in a bizarro world: where a vacancy both exists and yet does not exist, where we ignore the fact that an election could and should occur due to a legal fiction not found in our Constitution.” JUSTICE R. FRED LEWIS
the process begins or after it ends should be filled by appointment. “In doing so, this Court has left an extremely narrow window by which the ‘clear will of the voters’ may be affected and has permitted gamesmanship within the judicial election process that the people surely do not condone,” Quince wrote. “Alas, here we are in a bizarro world: where a vacancy both exists and yet does not exist, where we ignore the fact that an election could and should occur due to a legal fiction not found in our Constitution. In my view, the people cannot be confident that these judges will properly enforce the text of a document that they so willingly scorned. Although we cannot prevent judges from sullying their robes as they walk out the door, we can at least ensure that they leave office immediately,” Lewis wrote. He points out the ambiguous nature of vacancy created by the current policy of allowing a vacancy to occur based on a judge informing the governor in writing of intent to resign but then remaining on the bench for months, even until a few days before his or her term would have expired. “Tellingly, the Constitution does not draw the distinction that we lawyers have created between actual and constitutional vacancies. The Constitution says that a vacancy occurs ‘upon the resignation of the incumbent.’ Through the years, we have interpreted that language to mean that prospective resignations create constitutional vacancies. “Yet outside of these insulated and occasionally academic court-
house walls, a vacancy in office cannot occur at two separate points in time,” Lewis wrote. “To hold otherwise, the Court must subscribe to the fantasy that a vacancy both occurs upon the resignation, but is also delayed until the officer decides to leave office.” Lewis in his dissent suggested a solution: refine the foundational law of the state. “This procedure is not perfect, and it would be preferable for the people to respond with a constitutional amendment to clarify their preferences in these circumstances.” WHAT’S NEXT
The next step in possibly changing how judicial vacancies are filled suggested by Lewis will have to be taken up by the Legislature or by a citizens petition to place a constitutional amendment on a future ballot. The 4th Circuit Judicial Nominating Commission was directed Wednesday to convene to interview candidiates for the vacancy on the Duval County Court. Commission Chair Patrick Kilbane said applications must be submitted to him by 5 p.m Dec. 10. Interviews will be conducted Dec. 17 at the Duval County Courthouse. “The commission has been ready for months to fill Judge Bass’s seat on the county court. We are looking forward to interviewing highly qualified candidates,” Kilbane said.
MMARBUT@ JAXDAILYRECORD.COM (904) 356-2466
Jacksonville Daily Record/Jacksonville Record & Observer
Thursday, November 29, 2018 • Page 11
Freed to Run 2.0 begins Sunday in Tallahassee
MAX MARBUT ASSOCIATE EDITOR
Six-day marathon has goal to raise $400,000 for legal aid. Gunster attorney Michael Freed is lacing up his running shoes for Freed to Run 2.0, the second edition of his series of six daily 26-mile marathons with stops at courthouses from Tallahassee to Jacksonville. Freed last year completed the inaugural 157-mile run alone and raised more than $70,000 in donations to benefit Jacksonville Area Legal Aid and the Northeast Florida Medical Legal Partnership. The Baptist Health Foundation has pledged to match donations at 125 percent, up to $1.25 million over the next five years. This time, Freed will be joined by 19 point-to-point relay teams of attorneys from other law firms, businesses and community organizations that will start Sunday at the Florida Supreme Court in Tallahassee. The first leg will be followed by daily runs beginning at courthouses in Jefferson, Madison, Columbia and Baker counties. The goal is to raise $180,000 in donations that would, including the matching funds, mean a $400,000 contribution to support civil legal aid to
Photo by J.T. Hedman, U.S. District Court
From left, U.S. District Judge Marcia Morales Howard; 2018 High School Essay Contest winners Alayna Weslynn Ledford, Joshua Fahlgren and Taina Garcia; and U.S. District Judge Brian Davis.
pediatric patients in Northeast Florida and their families. The event will end Dec. 7 with a 5K finale. It will begin when runners assemble at 2:45 p.m. at the Jacksonville Farmers Market and end at 4 p.m. Freed on the steps of the Duval County Courthouse. Registration for the final leg of the run, $100 per person, is available at jaxlegalaid.org/ freedtorun.
Bench and Bar honors essayists Joshua Fahlgren, a student at West Nassau High School, earned first place in the U.S. District Court Middle District of Florida Jacksonville Division’s 2018 High School Essay
Contest. This year’s contest commemorated the 150th anniversary of ratification of the 14th Amendment to the U.S. Constitution with the prompt, “How does the phrase ‘equal protection of the laws’ impact you as a student?” Entries were submitted by students attending 23 high schools and one home-school in the Jacksonville Division: Baker, Clay, Duval, Hamilton, Nassau, Putnam and St. Johns counties. The contest is sponsored by the Middle District bench Bar Fund. Essays were reviewed and judged by members of the federal bench. Fahlgren, son of 4th Judicial Circuit Judge Steven Fahlgren, was presented a check for $2,000 by U.S. District Judges Marcia Morales Howard and Brian Davis. His essay focused on history and how equal protection
FREED’S FINAL 5K LEG
Attorney Michael Freed’s six-day run from Tallahassee to Jacksonville will conclude Dec. 7 with a 5K sprint to the finish line at the Duval County Courthouse.
was not realized until the U.S. Supreme Court’s landmark Brown v. Board of Education decision and the Civil Rights Act was ratified by Congress in 1964. The second-place essay, which earned the $1,000 prize, was submitted by Taina Garcia, a student at Paxon School for Advanced Studies. She pointed out that the guarantee of equal protection helped her family when her father received English language instruction. Alayna Weslynn Ledford, a student at Baker County High School, earned third place and the $500 prize. Her essay centered on how the Equal Protection Clause has furthered gender equality in education, including in the classroom, scholarship opportunities and extracurricular activities. The students received their prizes Nov. 15 at a ceremony at the Bryan Simpson U.S. Courthouse. They also will be recognized Dec. 6 during the Jacksonville Chapter of the Federal Bar Association’s annual Spirit of Giving Luncheon.
Jacksonville attorney suspended The Florida Supreme Court in recent court orders disciplined 10 attorneys — disbarring two, revoking the license of one, suspending six and publicly reprimanding one. One of the attorneys suspended practices in Jacksonville: Robert Patrick Selzer, 1401 Riverplace Blvd., Apt. 2308, in Jacksonville was suspended for three years, effective Nov. 17. Selzer was ordered to pay restitution of $40,000 to a client he represented in criminal matters, including driving
Chief justice and appellate judges retained in office
State Supreme Court Chief Justice Alan Lawson cruised to an easy win in his first merit retention election as a justice, getting a 71.4 percent “yes” vote in the Nov. 6 general election. Lawson received just over 5 million “yes” votes. By comparison, winners in the hotly contested gubernatorial, U.S. Senate and state cabinet races received just over 4 million votes. In addition, all 17 district court of appeal judges were retained. Appellate jurists retained in the 1st District Court of Appeal, which includes Northeast Florida: n Judge Harvey Jay, 66.4 percent n Judge Stephanie Ray, 69 percent n Judge Brad Thomas, 65.9 percent n Judge Kemmerly Thomas, 66.1 percent n Judge Allen Winsor, 64.9 percent.
Prokop to Gunster Samantha Prokop joined Gunster in Jacksonville as a shareholder in the firm’s health care practice focusing on regulatory compliance. A 2010 Prokop graduate of the University of Akron School of Law, Prokop is a member of the American Health Lawyers Association and the North Florida Medical Group Management Association. MMARBUT@ JAXDAILYRECORD.COM (904) 356-2466
LETTER TO THE EDITOR
Northeast Florida Bar association presidents respond to Trump comments In response to President Donald Trump’s recent comments questioning the neutrality of certain federal courts, the presidents of the Jacksonville Bar Association and the local chapter of the American Board of Trial Advocates sent this letter to the Jacksonville Daily Record and Jacksonville Record & Observer: The rule of law and the independence of the judiciary are fundamental, guiding principles of our historic, constitutional system of the separation
of powers, created by our founding fathers. Our founders designed the judicial branch to be apolitical. Judges are governed by the rule of law, not partisanship or shifting political winds. Partisan assaults based on supposed political affiliation perpetuates a troubling misperception of the role of our courts and their constitutional judicial independence. Attacks on specific judges or specific appellate courts and threats to break up the courts undermine the institutional
credibility of our judicial system. As stated by Justice Gorsuch during his confirmation hearing, these kinds of attacks are “demoralizing and disheartening.” We applaud United States Supreme Court Chief Justice Roberts for stating that: “We do not have Obama judges or Trump judges, Bush judges or Clinton judges. What we have is an extraordinary group of dedicated judges doing their level best to do equal right to those appearing before them. That
independent judiciary is something we should all be thankful for.” The American Board of Trial Advocates, Jacksonville Chapter, fully supports Chief Justice John Roberts’ statement and we give thanks for an independent judiciary. Katie Dearing JBA President Curry Pajcic President, American Board of Trial Advocates, Jacksonville Chapter
THE MARBUT REPORT
under the influence and public intoxication. Because of the client’s severe alcoholism and significant memory impairments, Selzer convinced her to pay him $109,000 in a 15-month period for work such as driving, grocery shopping and helping her with tax matters. Selzer was fee- and CLEdelinquent with The Florida Bar during some of that time and therefore was ineligible to render legal services. Additional information on the discipline system and how to file a complaint are available at floridabar.org/ attorneydiscipline.
IN THE LAW
Page 12 • Thursday, November 29, 2018
Jacksonville Daily Record/Jacksonville Record & Observer
KELLY KARSTAEDT
KELLY KARSTAEDT Shareholder at Karstaedt & Stanko
BY MAX MARBUT • ASSOCIATE EDITOR
Attorney Kelly Karstaedt is a shareholder at Karstaedt & Stanko and chair of the Jacksonville Bar Association Bar Bulletin Committee. She’s also executive director of the Jacksonville Justice Association and effective Saturday, also will be executive director of the Jacksonville Chapter of the American Board of Trial Advocates. Who or what inspired you to become a lawyer? My job at an intellectual property firm in Philadelphia that handled pharmaceutical patents. The process of getting IP protection was fascinating and I liked the idea of being able to use my science degree without having to do research.
I left it to pursue a nontraditional legal career. I mainly work now in association management, which is a far cry from commercial litigation.
How do you relate your undergraduate degree to your practice of law? My educational background is in the natural sciences, which requires extreme attention to detail and patience when using the scientific method. The practice of law is similar in that every minute detail matters and the process can often be long and arduous to get a result.
Family: I have both human and non, all of equal importance. Favorite book: The Harry Potter series, any and all. Book I’m reading now: Read? No, I only have time for audio books. Right now it’s Chrissy Metz’s autobiography “This is Me.� It is so inspirational.
What community service have you pursued and why that? I like to keep my options open when it comes to serving this community. My focus has been with animal organizations, but I am willing to give my time to any worthy cause that needs attention. I also have been a supporter of Girls Inc. of Jacksonville for years because I know how important it is for a young girl to have someone in her corner.
How did you decide your practice area? And why have you chosen that? Although my practice is fairly limited these days, my firm works with small businesses and nonprofits. I love the feeling of watching our clients grow and thrive and seeing the impact they have on our community.
Websites or apps I can’t live without: Waze is genius. Hoopla and OverDrive for my audiobook obsession.
What’s your advice for new lawyers? Don’t let fear and conformity drive your career. You do not have to be like every other lawyer and you do not have to be afraid to make a change. There are a million different ways to be a lawyer and even more paths to get there. Find a job that lets you combine work and life, instead of one that forces you to balance them.
What has been the biggest change in your practice area since you passed the Bar? I think the biggest change in my practice area is that
Education: Bachelor’s in biology from Gannon University, J.D. from Florida Coastal School of Law Hometown: New Alexandria, Pennsylvania
If I could change anything in the legal system ‌ I would give animals a voice and a place in it. Right now, nonhuman animals have no rights and far too few legal protections. While change is happening, I would love to see a shift in our legal system from treating them as property to treating them as living creatures.
One person other than my spouse who inspires me: I only keep people in my life who inspire me, so if you know me you’re on the list.
Age: 38
Special to the Daily Record
Attorney Kelly Karstaedt and her dog, Orion.
Favorite nonwork activities: Any time I get with my dog, Orion; cooking and baking from scratch without a recipe.
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