WEDNESDAY December 5, 2018
Public legal notices begin on page 3
jaxdailyrecord.com • 35 cents
Daily Record JACKSONVILLE
DEVELOPMENT
THE MATHIS REPORT
Daily Record JACKSONVILLE
Wayfair distribution center coming to West Jacksonville
Daily Record Daily Record JACKSONVILLE
KAREN BRUNE MATHIS EDITOR
Another big distribution center in works
JACKSONVILLE ABOUT WAYFAIR
Wayfair has been posting job openings for months for a Jacksonville “Large Parcel Home Delivery Operation.”
What: Online homefurnishings retailer
Online retailer, city reach economic development deal on 1 million square-foot center at Cecil with 250 jobs. BY KAREN BRUNE MATHIS EDITOR
With the deal done three weeks ago, the city announced Monday that the Wayfair Inc. online home-furnishings retailer will set up a 250-job distribution center in West Jacksonville. City Chief Administrative Officer Sam Mousa signed an economic development agreement Nov. 15 with Wayfair LLC to develop a $72 million, 1 million-square-foot warehouse and distribution center in AllianceFlorida at Cecil Commerce Center by year-end 2020. Wayfair General Counsel Enrique Colbert signed the document for the company, while Mousa signed for Mayor Lenny Curry. The announcement Monday said the center would serve customers throughout the Southeast. There’s little surprise about the identity because Wayfair has been posting job openings for months for a Jacksonville “Large Parcel Home Delivery Operation.”
THE DEAL
Wayfair expects to employ 250 workers by the end of 2021 at an average wage of $33,000 in exchange for a $3.3 million city Recapture Enhanced Value grant, payable over 10 years. The grant is based on the additional property taxes generated by the project. City Council approved the grant for Wayfair, code-named Project Empire, in October. A REV grant requires that a company create at least 10 full-time jobs at or greater than the state’s average wage. Council waived that, saying the grant was necessary for the project’s feasibility. According to the economic development agreement, Wayfair will start construction on or before Jan. 31 and complete it on or before Dec. 31, 2020. The grant payments start the year after construction is completed and the project is on the city tax rolls and end after 10 years.
Products offered: More than 10 million from more than 10,000 suppliers Headquarters: Boston CEO: Niraj Shah Employees: 10,900 Revenue: $6.2 billion for the year that ended Sept. 30. History: Founded in 2002 by Niraj Shah and Steve Conine. The company went public in 2014. NYSE stock symbol: W Website: Wayfair.com Other brands: AllModern, Birch Lane, Joss & Main and Perigold Source: Wayfair.com
With Wayfair Inc. confirmed for a 1 million-square-foot warehouse, the developer of AllianceFlorida at Cecil Commerce Center is working on plans for another big distribution center. Dallas-based Hillwood, the city’s master developer at the Westside business park, is preparing for a 1.5 million-squarefoot project on Parcels H and I, near POW-MIA Memorial Parkway. No tenant is identified. “Hillwood is permitting the parcels to allow site clearing and mass grading, all with the goal of shortening the site’s ultimate delivery timeline for a prospect, should one materialize,” Hillwood Senior Vice President Dan Tatsch said Tuesday. He said he would have no comment on a specific prospect. Plans for the second large center emerged in September. AllianceFlorida at Cecil Commerce Center’s corporate roster includes Amazon.com, which is next to the Wayfair site; FedEx Ground Package System; GE Oil & Gas; Saft America Inc.; Bridgestone Americas Tire Operations; and Industry West and JinkoSolar (U.S.) Industries Inc., which are the newest companies to join the park. In 2009, Hillwood won a bid to become the master developer of the city-owned 4,474-acre Cecil Commerce Center, which is part
SEE WAYFAIR, PAGE 2
SEE MATHIS, PAGE 2
Day of mourning honors Bush Federal government offices will be closed Wednesday to honor former President George H.W. Bush in a national day of mourning. Bush died Friday night at his home in Houston at the age of 94. All federal offices will be closed, including the courts and post office. There will be no mail delivery. U.S. financial markets, including trading on the New York Stock Exchange and Nasdaq, will be closed, as will some banks. The Duval County Courthouse and city of Jacksonville will be open.
VOLUME 106, NO. 14 • ONE SECTION
DEVELOPMENT TODAY
Page 2 • Wednesday, December 5, 2018
Jacksonville Daily Record
These are the largest commercial building permits by job cost issued Monday by the city of Jacksonville. APARTMENTS Liberty Center for the Homeless Inc., 600 N. Washington St., contractor is River City Remodeling Inc., renovation, $188,500. OFFICE, BANK, PROFESSIONAL Prosser Inc., 13901 Sutton Park Drive S., No. 200, contractor is Emerald C’s Development Inc., 10,975 square feet, tenant build-out, $348,654. Black Knight Inc., 601 Riverside Ave., contractor is JGW Constructors LLC, 384 square feet, renovation, $50,465. ROOFING BMW of North America LLC, 5560 Imeson Road, contractor is Barber & Associates Inc., new building roof, $1.1 million. CJ Subsidiary #5 LLC, 1594 Transport Court, contractor is Mid-South Roof Systems Inc., new building roof, $210,342. St. Vincent’s Health System Inc., 6699 Gate Parkway, contractor is Barber & Associates Inc., new building roof, $180,000. Goodwill Industries of North Florida Inc., 4527 Lenox Ave., contractor is Centimark Corp., roof repair, $114,115. Jacksonville Gateway Village LLC, 5010 Gate Parkway, contractor is Metro Property Services Inc., new building roof, $72,000. Jacksonville Gateway Village LLC, 5016 Gate Parkway , contractor is
Wayfair CONTINUED FROM PAGE 1
Wayfair has deadlines to meet to receive the full incentive. Wayfair must invest at least $57.6 million in the project by year-end 2020 or the grant will be reduced. The grant will be terminated if the investment falls below $40 million in private funding by that time. WHAT THE LEADERS SAY
Wayfair Chief Operating Officer James Savarese said in the news release that the Jacksonville center is part of the company’s plan to scale its logistics operations in Florida to support growth. “With the opening of our new distribution center in Jacksonville, we know we will benefit from a strong talent pool and we look forward to contributing to the growth of job opportunities in the region as we welcome hundreds of employees to our world-class team,” he said. Curry said in a statement that Wayfair “adds hundreds of jobs to our community, and contributes economic value that bolsters our statewide growth in job creation and demand.” Aundra Wallace, president of the JAXUSA Partnership economic development division of JAX Chamber, said the project helps to further establish Jacksonville as a significant player for retailers that need to reach customers in the Southeast. “Companies can get to 60 million people within an 8-hour drive,” he said in the city’s release.
Mathis CONTINUED FROM PAGE 1
of the former Naval Air Station Cecil Field. The Master Disposition and Development Agreement between the city and Hillwood was effective Sept. 15, 2010, with an initial term of 10 years. Tatsch said previously that by the end of the initial term in mid-September 2020, Hillwood is required to deliver at least 2 million square feet of space. As of March 31, Hillwood delivered more than 2.2 million square feet, he said, exceeding the benchmark two years ahead of the deadline.
Metro Property Services Inc., new building roof, $72,000. CSX Transportation, 1347 U.S. 301, contractor is Centimark Corp., roof replacement, $30,072. Thomas E. Margaritis, 1053 Park St., contractor is Quality Discount Roofing LLC, roof replacement, $21,450. Evergreen Baptist Church, 1100 Logan St., contractor is Taylormade Roofing Inc., roof replacement, $14,000. SERVICE STATION REPAIR GARAGE Northside Collision & Paint Center Inc., 10869 N. Main St., contractor is Atlantic Total Solutions, stucco building front facade, $28,000. SIGNS Pet Supermarket, 7067 Collins Road, No. 301, contractor is Interstate Sign & Light Corp., two permits for wall signs, $8,500. Iglesia Bautisa Terry Parker, 7024 Merrill Road, contractor is Novalux Signs Inc., monument sign, $4,800. Green Mango Airport Parking JAX, 1771 Airport Road, contractor is Novalux Signs Inc., wall sign, $2,920. STORES, MERCANTILE Surplus Warehouse, 9400 Atlantic Blvd., contractor is Facilities Maintenance Group Inc. of Georgia, tenant build-out, $20,000. Compiled by Scott Sailer
Dallas-based Hillwood is the city’s master developer of AllianceFlorida at Cecil Commerce Center. Hillwood Senior Vice President Dan Tatsch on Tuesday called the Wayfair facility “a great win, both for the Cecil area and for the Jacksonville community as a whole, and Hillwood is grateful that Wayfair has entrusted us with developing this critical project.” THE SITE
AllianceFlorida at Cecil Commerce Center has been moving ahead with plans for a 1,012,567-square-foot distribution warehouse with associated infrastructure at 13483 103rd St. for an unidentified tenant. The 80-acre site is Parcel A2/B next to the 1 million-square-foot Amazon.com fulfillment center at 13333 103rd St. Hillwood plans to pay the city $9,517 an acre for the property for an estimated total of $757,569, according to legislation. The city owns the Cecil Commerce Commerce property, a former navy base. Wayfair, through a lease with Hillwood, would pay for the cost of construction and development of the space.
GEORGIA ALSO LANDS WAYFAIR
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Georgia Gov. Nathan Deal announced Thursday that Wayfair is building a 1.2 million-square-foot e-commerce facility in Savannah. Deal said the Savannah project is part of a $45 million investment. The 1,000 jobs would pay an average, $17 an hour.
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A previous city spokeswoman said in June the initial term of the agreement is 10 years. If Hillwood meets the predetermined performance benchmarks, it can extend the agreement for three additional five-year periods. She said Hillwood reached the performance benchmarks to extend the first five-year period. Asked about extending or negotiating a new agreement with Hillwood, city spokeswoman Marsha Oliver said Tuesday that process has not begun. KMATHIS@JAXDAILYRECORD.COM @MATHISKB (904) 356-2466
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