Daily Record FINANCIAL NEWS &
WEDNESDAY, JANUARY 20, 2016
Vol. 103, No. 048 • Three SecTioNS
35¢ www.jaxdailyrecord.com
BMW matches specs of Project X
Plans call for distribution center
PROJECT X
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One of Brad Thoburn’s projects is to find funding for expanding Jacksonville’s Skyway. A better system would attract more riders and support growth Downtown, said the director of long-range planning and system development for the Jacksonville Transportation Authority.
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History and logistics raise the question whether the anticipated unidentified Project X could be BMW. Project X is described as a 450,000-squarefoot distribution center, expanding to 600,000 square feet. It was courted by Hillwood Investment Properties for the AllianceFlorida at Cecil Commerce Center industrial park in West Jacksonville. However, Hillwood reported to the city in late December the prospect had chosen another Jacksonville site, but as of Sept. 30 had not made an announcement. No announcement has been made since then. BMW of North America LLC, which already leases a smaller facility in Westside Industrial Park, appears to fit the parameters for Project X. When asked whether BMW of North America wants to develop a new distribution center in Jacksonville, spokesman Kenn Sparks said “Jacksonville is a major center for BMW Group and has been for many years, especially as it serves our growing business in the Southeast.” Sparks, manager of business communications for BMW of North America LLC, in Woodcliff Lake, N.J., signed off with “very best wishes for an exciting 2016.” There are a few reasons that Project X could be BMW. At present, BMW leases a 213,000-squarefoot parts distribution center in Westside Industrial Park. It was built in 2002 at 137,000 square feet and expanded to 213,000 square feet in 2008. However, other BMW centers are larger than the Westside center and some were built to replace smaller locations. The Redlands, Calif., parts center opened early last year at almost 327,000 square feet with another 96,000 square feet for expansion. The Lancaster, Texas, parts center opened in January 2014 at 282,000 square feet, expandable to 370,000 square feet.
Photo by Carole Hawkins
By Karen Brune Mathis Managing Editor
Thoburn likes being behind the scenes
By Carole Hawkins, Staff Writer
Brad Thoburn crossed the street and walked under the Skyway. As he did, he talked about the elevated rail system’s engineering and how that affects plans to expand it. Because of its age, finding replacement parts can be a challenge, he said. For example, Jacksonville can’t replace its Skyway cars with those from Disney World’s monorail because the monorail’s are longer and can’t manage the Skyway’s tight curves. Also, on the Skyway, the wheels sit on top of the rail. On the monorail, they guide the cars from either side. This is the part of government Thoburn likes — being a subject matter expert. Doing the behindthe-scenes thinking that implements what politicians promise in campaign speeches. Asked if he ever wants to run for office himself, Thoburn answered immediately: “No.” He enjoys working with elected officials. He hates the idea of campaigning.
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Thoburn is in charge of longrange planning and system development for the Jacksonville Transportation Authority. Lately, it’s a busy job. CEO Nat Ford has been driving the agency to make big changes, redesigning its bus routes, putting in new bus lines that behave like light rail and planning a regional center to connect all modes of transportation. Thoburn’s job demands less glad-handing than that of his boss or of elected officials. WORKSPACE CONTINUED ON PAGE A-7
JEA customers will pay lower fuel charge By Max Marbut Staff Writer After rebating $170 million in excess fuel charges paid by customers over the past three years, JEA will on Feb. 1 lower the monthly fuel charge for residential and commercial accounts. The charge will be reduced from $43.60 per megawatt-hour to $36.75. That will mean about $7 a month savings for the average residential customer and a 5 to 9 percent reduction in the monthly bill for a business, said Chief Financial Officer Melissa Dykes.
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“Residential bills will be lower than in July 2008,” she said, based on consumption of an equal amount of electricity. Dykes Dykes said unlike 40 years ago, when JEA relied on fuel oil to generate all of its electricity, the utility now uses a 50-50 mix of solid fuel, such as coal, and natural gas. The diversified fuel source creates a “built-in hedge” and helps provide lower cost and stable
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prices for consumers, she said. The fuel charge reduction is based on a three-year projection of coal and natural gas costs. Both are on a downward trend that’s predicted to continue. Dykes said fuel charge revenue may be used only for fuel purchase. The $95 million fuel cost reserve fund will be maintained to protect JEA from unanticipated increases. Board member Delores Kessler pointed out customers need to be aware the lower bills after Feb. 1 are due to an adjustment of the fuel charge, not a rate reduction. That’s planned for this year,
said Paul McElroy, JEA CEO. He said the utility’s rate structure hasn’t changed in 20 years. New rate options are being evaluated and a pilot program for a demand-rate price structure is planned to begin by yearend. If implemented, a demand-rate structure could allow customers to use electricity when demand is lower than average and pay less per kilowatt-hour than if they use electricity when JEA is close to its maximum generating capacity. McElroy also reported that in the J.D. Power 2016 Electric Utility Business Customer Satisfaction Study results released Jan.
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12, JEA scored 754 points — the highest score achieved by any U.S utility. When JEA joined the J.D. Power survey in 2012, the utility scored “at the bottom of the bottom” among mid-size utilities in the South. In 2012, JEA ranked 95th out of 99 surveyed; in the latest survey, JEA is No. 1 among 86 utilities. The service improvements that led to the improved survey score were the result of feedback from customers, McElroy said. mmarbut@jaxdailyrecord.com (904) 356-2466
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