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The Mathis Report: JinkoSolar seeking $2 million plant build-out PAGE 4
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Record & Observer IT firm bringing 107 jobs Downtown
MAYOR CURRY'S 2018-19 BUDGET JACKSONVILLE
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SharedLabs Inc. has incentives approved by the City Council, will lease fourth floor of the Dyal-Upchurch Building.
JACKSONVILLE
BY KAREN BRUNE MATHIS EDITOR
SharedLabs Inc., which was code-named Project Wolfe as its incentives request headed toward City Council approval Tuesday night, will lease space on the fourth floor of the DyalUpchurch Building on the Downtown Northbank. Company President and CEO Jason Cory said Wednesday the IT services company took the entire floor, where it will create 107 full-time IT and finance jobs by year-end 2021 that pay an average wage of $53,298. The location at 6 E. Bay St. is next to JAX Chamber “with easy access to Cory anywhere in the metro area,” Cory said. SharedLabs will lease 6,750 square feet, according to a Certificate of Use application. Council approved Resolution 2018-408 for the city’s $107,000 portion of a Qualified Target Industry Tax Refund and a price reduction of $24,000 for the use of 40 parking spaces in the cityowned Yates Garage over five years, totaling $131,000. The state is responsible for the remaining 80 percent of the QTI, or $428,000. The QTI incentives work out
JACKSONVILLE
Proposed $164.3 million in capital improvement projects focus on North and West Jacksonville. BY DAVID CAWTON STAFF WRITER
J
acksonville’s most impoverished neighborhoods could receive infrastructure improvements if Mayor Lenny Curry’s latest budget is approved in September. Curry on Monday introduced a $1.2 billion city budget to the Jacksonville City Council with $164.3 million worth of capital improvement projects. The legislative branch plans to go through it line by line in August and September, as each city department, independent authority and members of the executive branch defend their annual allocations and enhancements.
While each of Jacksonville’s 14 council districts receives benefits from the $39.1 million in countywide infrastructure projects, the 2018-19 budget places more emphasis and allocates more money to districts in North and West Jacksonville. Countywide spending is down 50 percent from the current budget. The opposite is true for district spending, which increased 51 percent from 2017-18. Overall, the Capital Improvement Program budget, which accounts for infrastructure and other priority spending, is up 2.38 percent year over year. District 7, which comprises Down-
2018-19 BUDGET KEY NUMBERS General fund spending of $1.2 billion is up 3.3 percent from 2017-18 Property taxes: Duval County millage rate steady at 11.4419 Ad valorem tax revenue up 7.7 percent at $674 million $117 million contribution from JEA Largest single project: $25 million to remove the Hart Bridge ramps
INSIDE A district-by-district look at spending. Page 10
SEE BUDGET, PAGE 10
Photo by Dede Smith
Economic Trends: Unemployment inches up in Duval County PAGE 3 The Cawton Report: Amendment 1 has some talking tax hike PAGE 6 OBSERVER MEDIA GROUP
SEE DOWNTOWN, PAGE 7
THE BASCH REPORT
Analysts liking the performance of CSX PAGE 8 VOLUME 1, NO. 8 • ONE SECTION
Page 2 • Thursday, July 26, 2018
Jacksonville Daily Record/Jacksonville Record & Observer
WHAT’S TRENDING
New report offers glowing take on state of Downtown
JAY SCHLICHTER ASSOCIATE EDITOR
The Vision is getting clearer every year. Downtown Vision Inc., the nonprofit charged with promoting Downtown Jacksonville, revealed in its annual State of Downtown Report that its mission of enticing businesses and people to invest or make the area their new home is working. The 36-page report, released Wednesday, is packed full of statistics, graphs, photographs and content that outlines how far the city and its affiliates have come in improving the Downtown corridor. In addition to DVI's efforts, the report emphasizes the $35 million in investments made by the Downtown Investment Authority over the past four years in commercial, residential and retail projects. For example, DIA's retail enhancement grant program has provided more than $690,000 to Downtownbased restaurants, resulting in 127 new jobs and activating 41,000 square feet of underutilized retail space. The report also highlights that dozens of new businesses are moving into the area, either demolishing and constructing new buildings or renovating historic structures, such as the Barnett and the Laura Street Trio buildings as well as stated plans for The District and The Shipyards. All of those, if developed, will bring in hundreds of hotel rooms, residential units and retail space, the report says, adding that office vacancy rates
have fallen, lease rates have increased and apartments are snapped up as soon as they're available. “This report offers great news for everyone who lives in Duval County,” said Jake Gordon, Downtown Vision's CEO. “We're seeing Downtown transform before our eyes thanks to support from our mayor, City Council and agencies like DIA, and because of numerous Downtown stakeholders, such as small businesses, private developers and concerned nonprofits.” Other facts that were provided in the report include: Of the estimated 55,000 employees who work Downtown, the report says that 78 percent of them like or love it, nearly 71 percent are college educated, 43 percent are under the age of 45 and 57 percent have an annual household income of $80,000 or higher. Supporting the fact that very few Downtown employees live in the same place they work, the report also states that 70 percent of them have a commute time of 30 minutes or less. Of the 4,842 people living Downtown, a 2017 resident survey by DVI reports that 86 percent are satisfied with the area and that the demand is high with residential units being 96 percent occupied. Dining venues and coffee shops take up the most retail space Downtown at 38 percent, with banks coming in second at 10 percent. Data compiled for the report was pooled from various sources, the report says, including Downtown property owners and facility managers, along with directly from organizations such as the JAX Chamber and Visit Jacksonville and government entities like the City of Jacksonville and the Duval County Property Appraiser. JAYS@JAXDAILYRECORD.COM @JAY_SCHLICHTER (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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DEVELOPMENT 1.5 million-square-foot warehouse for Cecil Amazon.com could be joined by a larger neighbor at Cecil Commerce Center — the proposed 1.5 million-square-foot warehouse code-named Project Jaguar. The city and the St. Johns River Water Management District are reviewing plans from Dallas-based Hillwood, the master developer of AllianceFlorida at Cecil Commerce Center, and the city, which owns the business park. While plans do not identify the company, they do outline a project larger than the neighboring 1 million-square-foot Amazon fulfillment center at 13333 103rd St. The proposed 1,500,750-square-foot Project Jaguar distribution warehouse would be built at loading-dock height along 103rd Street, adjacent to the west of the Amazon distribution center. While it’s not clear who it is, there’s at least one company that can be ruled out. The Home Depot Inc., which wants to expand its fulfillment network, says it’s “not looking for a location that size in Jacksonville. That is not on our radar.” If completed, Project Jaguar would be one of the city’s largest warehouses. By comparison, One Imeson in North Jacksonville has 1.7 million square feet of industrial and office space.
HOTELS & AMUSEMENTS Berkman II plans include hotel, water park The new owner of the Berkman Plaza II, 500 East Bay LLC, plans to turn the 2-acre Northbank riverfront site into a 312-room hotel, an amusement and water park, bars, restaurants and parking. “It will have a family entertainment center with a water park and amusement rides,” said registered agent Robert Odhe, whose company has been brought on as the general contractor. Odhe estimates the project investment to be about $150 million and will take 18 months to complete. Ohde said 900 employees will be required to operate the resort year-round. “The amusement park will be like a Dave & Buster’s on steroids,” he said.
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Jacksonville Daily Record/Jacksonville Record & Observer
Thursday, July 26, 2018 • Page 3
Job seekers boost unemployment June-June % increase
Industry
Growth
Accommodation, food services
5,300
7.2%
Administrative, support, waste services
3,700
6.7%
Construction
2,900
6.6%
Transportation, warehousing, utilities
2,500
7.2%
Food, beverage stores
900
6%
Insurance carriers, related activities
800
3.5%
Industry
Loss
June-June % decrease
Wholesale trade
1,500
5.8%
Hospitals
300
1%
Information
200
2.1%
Where they aren’t
Northeast Florida employment Month
Labor force
Employed
Unemployed
Unemployment rate
June 2017
767,224
735,111
32,113
4.2%
May 2018
781,809
757,258
24,551
3.1%
June 2018
787,548
758,212
29,336
3.7%
Source: U.S. Department of Labor, Bureau of Labor Statistics, with the Florida Department of Economic Opportunity
Duval County unemployment rate climbs to 3.9 percent in June, but area is still “better off,” UNF economist says. BY MARK BASCH CONTRIBUTING WRITER
Jacksonville continued to add jobs in June, but the area’s unemployment rate rose as more people entered the labor force looking for work. The jobless rate in the Jacksonville metropolitan area of Duval, Baker, Clay, Nassau and St. Johns counties rose from 3.1 percent in May to 3.7 percent in June, the Florida Department of Economic Opportunity said Friday.
The state agency does not adjust that data for seasonal factors. The University of North Florida’s Local Economic Indicators Project said even when the data is seasonally adjusted, it still shows an increase from 3.12 percent in May to 3.4 percent last month. June typically is a month when the ranks of job seekers swell with new high school and college graduates, and also students looking for temporary summer work. UNF economist Albert Loh said teachers on summer vacation also look for temporary jobs during this time of year. While some industries that add staff in the summer, like accommodation and food services, are hiring, not enough jobs were created to absorb
all the new entrants into the labor pool. D u v a l C o u n ty ’s unemployLoh ment rate rose, before seasonal adjustment, by 0.6 percentage points to 3.9 percent in June, the Department of Economic Opportunity said. Loh said when the county’s unemployment rate is seasonally adjusted, it shows a rise from 2.97 percent in May to 3.5 percent in June. Although unemployment rose in June, Loh said the trend this year has been mainly a declining jobless rate. The unemployment rate both for Duval County and the Jacksonville metro area was about
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3.9 percent a year ago, he said. “Right now we are better off,” he said. Jacksonville’s unemployment rate was below Florida’s statewide seasonally adjusted rate of 3.8 percent in June, unchanged from May. Nationally, the unemployment rate was 4 percent last month. The Department of Economic Opportunity’s survey of business payrolls found the Jacksonville area added a net total of 21,300 jobs from June 2017 through June 2018, a 3.1 percent growth rate. The accommodation and food services sector, along with transportation, warehousing and utilities led the way with a 7.2 percent growth rate in the 12-month period. Construction also was one
of the top-performing sectors in Northeast Florida, adding 2,900 jobs in the past year, a 6.6 percent growth rate. A handful of industry sectors are losing jobs, including a 5.8 percent drop in wholesale trade, with a net loss of 1,500 jobs in the 12-month period. Other declining sectors included information, down 2.1 percent, and hospitals, down 1 percent. Jacksonville’s 3.1 percent growth rate over the past year was better than the state’s growth rate of 2 percent and the national rate of 1.6 percent, the Department of Economic Opportunity said. MBASCH@ JAXDAILYRECORD.COM
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ECONOMIC TRENDS
Where the Jacksonville jobs are
Page 4 • Thursday, July 26, 2018
Jacksonville Daily Record/Jacksonville Record & Observer
THE MATHIS REPORT
JinkoSolar seeking $2 million build-out KAREN BRUNE MATHIS EDITOR
Chinese solar panel manufacturer building factory at Cecil. JinkoSolar (U.S.) Industries Inc. applied to the city for tenant build-out in its Cecil Commerce Center panel plant at a job cost of $2 million. The China-based solarpanel manufacturer will lease 285,652 square feet at 4660 New World Ave. in AllianceFlorida at Cecil Commerce Center. KBM Builders Inc. is the contractor listed for the buildout on the permit, which could be one of several. This one is interior structural work. Work already has begun toward the plant. On July 18, the city approved the $150,000 construction by KBM Builders of a tenant separation wall to divide the 407,435-square-foot building for JinkoSolar and e-commerce furniture seller Industry West, which will lease 121,783 square feet. China-based JinkoSolar agreed to open a 200-job, $50 million plant at AllianceFlorida with the support of city and state incentives. The jobs must be created by the end of 2019. The company targets an opening by September or October. Jobs will pay an average annual $45,562. JinkoSolar Business Development Director Jeff Juger said in May the project is on schedule. Jacksonville-based Industry West, which recently moved its showroom and headquarters offices to San Marco Square, will lease the rest of the space to receive and ship products.
Mini storage OK’d for San Marco area Jax Mini Storage is joining the San Marco area, where
Special to Daily Record
The $50 million JinkoSolar (U.S.) Industries Inc. solar-panel plant is under development at 4660 New World Ave. in AllianceFlorida at Cecil Commerce Center.
hundreds of apartments are planned or under construction. The city approved a permit July 19 for Turner Construction Co. to build the threestory, 99,000-square-foot personal storage building on 2.36 acres at 1816 Kings Ave. It will include 695 units, according to the permit. The city also approved a permit for Turner to renovate an existing building on-site for an office and storage use. The permits total a job cost of more than $5.83 million. Liberty Investment Properties Inc. said in February it expected to open the climatecontrolled units in early 2019.
Mueller Streamline applies for COU for Alta Lakes Mueller Streamline Co., a Mueller Industries Inc. company, will join Alta Lakes Commerce Center in North Jacksonville. The Memphis-based industrial manufacturer will lease 48,075 square feet of warehouse and office space at 2550 Cabot Commerce Drive in Building 2. Dav-Lin Interiors Inc. is the contractor for the $402,225 build-out, according to the building permit issued by the city in June.
Mueller Industries previously applied for a Certificate of Use for the location and on June 28, Mueller Streamline Co. applied for one. It distributes flow control products. Plans show Mueller Industries is one of four tenants in the building. Mueller Industries Inc. provides wholesalers, retail distributors and original equipment manufacturers with flow control and industrial products.
Development notes Rulon International can expand its St. Augustine plant now that St. Johns County approved the permit July 18 at a construction cost of $3 million. The company makes acoustic ceilings and wood wall panels and will hire 20 more employees after the St. Johns County Commission unanimously approved a $129,000 economic incentive package for the expansion to its 85,000-square-foot office and manufacturing building at 2000 Ring Way in the World Commerce Center. The company employs 139 people. Stellar is the contractor. The St. Johns River Water Management District is reviewing a permit application for renovations for a ground-floor restaurant and
four apartments on the second and third floors at 225 N. Laura St. Downtown. Chamblin’s Uptown bookstore and restaurant owner Ron Chamblin wants to complete renovations on the adjacent vacant 6,500-square-foot building by about May. St. Vincent’s Medical Center is preparing to renovate space at St. Pius V Catholic Church in Northwest Jacksonville for a primary care center. Batson-Cook Co. is the contractor for the $140,000 project to renovate 1,150 square feet for the medical office at 2110 Blue Ave. Ascension St. Vincent’s HealthCare announced in April it would build a primary care office on the campus of St. Pius V Catholic Church as the first primary care office of its kind in the area. The project is a partnership between St. Vincent’s and the Diocese of St. Augustine. It will be in space that formerly housed a school and will be funded and staffed by Ascension St. Vincent’s. A child-care center is proposed at Wildlight, the community under development at northeast Interstate 95 and Florida A1A in Nassau County. The St. Johns River Water Management District is reviewing an application for a one-story, 10,782-square-foot center on a 2.22-acre lot.
The Church of Eleven22 proposes a $1.9 million addition and remodeling at its Mandarin campus at 4911 Losco Road. Communications Director Melinda Byrnes said the church is “undergoing anticipated modifications to improve the seating capacity and flow.” The Church of Eleven22’s main campus is at Beach Boulevard and San Pablo Road. Other campuses are in Baymeadows and Arlington. The Citi Teen Center at the closed Laurence F. Lee Boys & Girls Club in Springfield was approved for renovations. The city OK’d the $1.8 million project July 17 for Core Construction of Jacksonville Inc. to convert the structure at Liberty and 10th streets. It “will transform the Lee facility into the coolest (and safest) place for local teenagers, aged 13 to 18, to learn, grow and engage in healthy activities,” says the Boys & Girls Clubs of Northeast Florida. The renovated building will include a gymnasium, movie room, robotics and art labs, hair salon and other features. • The city approved a permit for a $315,407 project to install three conveyors to the existing system at the Amazon.com sortation center at 4948 Bulls Bay Highway in the Westside Industrial Park.
RETAIL NOTES
Circle K, Dunkin' Donuts could share building on Westside Circle K and Dunkin’ Donuts could share a building proposed in West Jacksonville at 3631 Blanding Blvd. Beach Food Post Inc. is the owner of the about 1-acre site. The city is reviewing plans for a building to comprise a Dunkin’ Donuts with a drive-thru adjacent to a Circle K gas station and convenience store at a construction cost of $350,000. Donahue Architecture Inc. is the architect. The 5.11 Tactical store is
closer to opening at Town Center Promenade. The St. Johns River Water Management gave notice that it intends to grant a permit for developer
store at 11901 Atlantic Blvd., at Kernan Boulevard, at a cost of $730,000. The city approved a permit July 17 for AJS Construction and Development Corp. to remodel the interior of the almost 68,000-square-foot store. The work comprises minor interior and exterior renovations that include a new customer service and checkout area and gun vault room, a new fixture layout, interior finish updates and a restroom renovation. Special to Daily Record
A 5.11 Tactical store is planned at Town Center Promenade.
CPC Jacksonville SJTC LLC to develop a 1.11-acre site for a 7,040-squarefoot building at 4600 Tropea Way off Town Center Parkway. Plans show 5.11 Tactical, which sells safety and tactical apparel and gear, will lease 4,000
square feet while a nail salon and a sushi shop will lease the remaining two spaces of 1,520 square feet each. Academy Sports + Outdoors will
remodel its 8-year-old Atlantic North
CVS Pharmacy is remodeling its 9509 San Jose Blvd. store at a cost of $200,000 to include the pharmacy, photo lab, retail and restroom areas, as well as repaving and other exterior work. Wawa Florida LLC applied for a Certificate of Use for its gas station and convenience store at 9715 Beach Blvd.
Jacksonville Daily Record/Jacksonville Record & Observer
Thursday, July 26, 2018 • Page 5
FOOD & RESTAURANT NOTES
Photo by Karen Brune Mathis
Aldi intends to renovate the Southside Square store near The Avenues mall that opened in 2015.
Aldi renovating its first store in Jacksonville Germany-based discount grocer seeks permit for Avenues area market along Southside Boulevard. Aldi Inc. intends to renovate its Avenues area store along Southside Boulevard, the first it opened in Jacksonville and one of its first in Northeast Florida. Aldi applied for a permit to renovate the 21,089-square-foot grocery store at 9041 Southside Blvd. at a cost of $900,000. The store is in the Southside Square shopping center. No contractor is listed. Cuhaci & Peterson of Orlando is the project architect. Aldi invested about $900,000 in converting the former Circle K Furniture store in 2015. Aldi has been opening standalone stores as well as in second-generation space, like the renovated Bed Bath & Beyond in CB Square in Regency. Plans show interior modifications and some exterior changes, including the Aldi logo.
The Germany-based discount chain has 11 confirmed sites in Duval, Clay and Nassau counties and six are open. It opened its first area store in October 2014 in St. Augustine. The Shelby Report of the Southeast reported in its August issue that the Market Force Information survey classified Aldi as the value leader among grocery retailers in its survey for the eighth year. It also scored high in other measurements, such as customer satisfaction and loyalty. Aldi operates almost 1,800 stores in 35 states and intends to increase its U.S. store total to 2,500 by the end of 2022. KMATHIS@JAXDAILYRECORD.COM @MATHISKB (904) 356-2466
Get a 'sneak peek' at DOMU ramen restaurant DOMU Jacksonville scheduled a “sneak peek” soft opening of its ramen restaurant at 4852 Town Center Parkway, No. 101-102, in The Strand at Town Center. Through Aug. 7, DOMU will accept reservations for parties of four, with reservations limited to an hour in the dining room. The bar remains open after. Reservations will be slotted at 10-minute intervals starting at 5:30 p.m., with closing at 10 p.m. SundayThursday and 11 p.m. Friday-Saturday. The bar opens at 5 p.m. Those without reservations can patronize the bar, which offers small plates. No grand opening has been scheduled, but once that happens, DOMU won’t accept reservations because of the size of the dining room. For reservations and information, email domujacksonville@gmail.com. 1000 Degrees Pizza-Salad-Wings, set to open at 9846 Old Baymeadows Road, the former Lemongrass Thai Bistro in Deerwood Village Mall, seeks a zoning exception to serve beer and wine. Lemongrass moved to Flagler Center. Prakash Patel, who owns the 1000 Degrees franchise with his brother, Anil Patel, said previously he expects the restaurant will
open by midsummer. A site plan for Deerwood Village Mall, represented by The Shopping Center Group, shows 1000 Degrees in 3,500 square feet of space. The exception states that 1KDP Southside LLC, led by Prakash Patel, intends to operate 96 seats, including a private meeting room. The application notes that Lemongrass operated a full bar. Chick-fil-A intends to build a 4,992-squarefoot restaurant with an indoor playground and double drive-thru on 1.71 acres at Florida 16 and Inman Road in St. Johns County. Wendy’s plans to build a 2,389-squarefoot, 60-seat restaurant on 1.02 acres along International Golf Parkway in St. Johns County. There are 40 indoor and 20 patio seats. EnVision Design + Engineering LLC is the civil engineer. The sign was approved for Two Dudes Seafood Restaurant at 2665 Park St. in Riverside. Taylor Sign & Design Inc. is the contractor for the $1,700 project. Two Dudes will take the space vacated by Il Desco.
Panera to renovate old Applebee's Panera Bread applied to the city to renovate the former Applebee’s Neighborhood Grill & Bar at 13201 Atlantic Blvd. near Queen’s Harbour Yacht & Country Club. No contractor is listed for the project, which shows a construction cost of $50,000. Plans show the 4,861-square-foot restaurant will contain 111 seats. There will be some patio seating and a drive-thru.
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Jacksonville Daily Record/Jacksonville Record & Observer
THE CAWTON REPORT
Amendment 1 could set off taxing debate IN BRIEF Scott makes FSCJ board appointment Gov. Rick Scott appointed J. Palmer Clarkson to the Florida State College of Jacksonville District Board of Trustees. Clarkson, 61, succeeds Randy DeFoor for a term that began July 20 and runs through May 31, 2022. He is the chief executive officer and president of Bridgestone HosePower.
DAVID CAWTON STAFF WRITER
If voters approve boost to homestead exemption, some on council concerned about budget impact. Mayor Lenny Curry isn’t raising taxes in 2018 and has no appetite to do so while he occupies the mayor’s office at City Hall. His latest budget reflects as much, with City Council on Tuesday voting to keep the millage rate steady for the fifth year in a row. For most Duval County property owners, $11.449 for every $1,000 of assessed property value goes to the city's operating budget. For the town of Baldwin, it’s 9.6312 mills and for the three Beaches communities, that rate is 8.1512 mills. Millage rates haven’t gone up since the 2013-14 fiscal year. Curry’s $1.2 billion budget presented to council members this week includes a $164.3 million Capital Improvement Program with yearslong commitments to improving UF Health Jacksonville, the Jacksonville Zoo and Gardens and other infrastructure needs. It’s a much different scenario than the budget shortfalls the city faced less than a decade ago. Some of Jacksonville’s longest-serving council members remember the years when the Capital Improvement Program consisted of doing the minimum required annual infrastructure maintenance just to get by. For his part, Curry praises pension reform for saving the city nearly $100 million in annual payments as a reason for the large CIP budget. While tax rates are flat, tax revenue is up 7.7 percent from FY 2017-18 because of rising property values, a difference of about $46 million. That may not be the case in 2019. Among the 13 constitutional amendments voters will consider in November, Amendment 1 is likely to have a considerable effect on local municipalities, including Jacksonville. The change would give property owners another $25,000 homestead exemption on taxes, other than those paid to local school boards, for a maximum exemption of $75,000. Following Curry’s budget presentation to the council on Monday, Lori Boyer – the District 5 representative since 2011 – asked her colleagues to keep that in mind. “I recognize the reality that this is an election year and I know there’s absolutely no appetite to offer a millage increase,” she said. “On the other hand, I really am concerned of the impact of the potential additional homestead exemption on our city’s future,” she said. “This is big,
Dennis' bill targets Tax Collector’s office supplies City Council Member Garrett Dennis filed a bill Tuesday aiming to curb wasted supplies at the Duval County Tax Collector’s office. Dennis said the bill ensures whoever is elected to fill the office on an interim basis does not “discard outdated but usable letterhead, envelopes and forms” and incur the expense of printing new items to “display his or her name for a few months.” Michael Corrigan stepped down from the office to become the president of Visit Jacksonville. His interim replacement will be elected this fall.
City and Saft come to terms Photo by Dede Smith
Jacksonville Mayor Lenny Curry presents his 2018-19 budget proposal to the City Council on Monday.
it’s not just about next year’s budget.” Boyer said she’s afraid that work accomplished through the last few budgets on infrastructure and other city priorities will be stifled if council members are not proactive. “Even if you have substantial growth next year, that reduction of $27 million is going to be painful if that happens,” said Boyer, referring to the estimated loss in tax revenue for 2019. Bill Gulliford, who represents the Beaches area in District 13, also expressed concern. “The council of the future, which Gulliford I’ll just be a critic of at that point, will have a tough decision to make,” he said. “We suffered through the tough times where the revenue wasn’t there and we wanted to do some good things that we couldn’t do,” he said. Gulliford and Boyer are termed out, leaving the legislative body in 2019 before the next budget is debated. After the finance committee meeting Monday, Boyer provided more insight, saying “I
know it’s not very Republican of me to say I want to raise taxes. “I do believe you let taxpayers keep their own funds when we don’t need them,” she said. Besides potentially scaling back capital improvement projects in the next budget, Boyer also hinted Boyer that council members would face “tough decisions” next year when considering cuts to operating expenses for city departments. “The operating budget is where you have staff and oversight,” said Boyer. “Then you’re going to complain about inadequate oversight of projects and missing scheduled deadlines,” she said. Boyer estimated the potential increase would be less than a half a mill for most Duval County property owners. According to the Council Auditor’s Office, for the 201819 budget year, one mill equals about $57.56 million, with a quarter being around $14.39 million. “I’m not talking about trying to gain on the market, just sustaining it,” she said. For now, the city isn’t raising
taxes, at least as it concerns the millage rate. When asked if the city could have considered making a preemptive change this year, Boyer said that wasn’t necessary and likely wouldn’t receive support from most of her peers or the executive branch. “Politically, I think in an election year you’re not going to see a bunch of people running for office vote to increase millage, especially when it’s not absolutely essential.” Council President Aaron Bowman said he’s not worried about the potential loss in revenue next year, although he acknowledged it is something to watch. “I’m expecting the homestead exemption to pass, so we might not be able to add as many things as we did this year but I don’t think it’s going to put us in an extreme position,” Bowman said. Curry expressed similar optimism, saying the city “would do what it needed to do” if the challenge arises. “We’re not raising taxes, period,” he said. DCAWTON@ JAXDAILYRECORD.COM @DAVIDCAWTON (904) 356-2466
City Council voted Tuesday to amend a 2009 economic development agreement with Saft America Inc. after the company failed at year-end 2017 to hire 279 employees. The hires are tied to financial incentives provided by the city. Saft now has until December 2019 to hit the employment goal. If it fails to do so, it will have to pay back incentives, as determined by the Office of Economic Development.
BUSINESS IN BRIEF
Jacksonville Daily Record/Jacksonville Record & Observer
Florida Blue hiring seasonal staff: Florida Blue is seeking 200 seasonal inbound call sales employees to begin work in the fall during the health insurance open enrollment period. The positions are for four to five months. Training classes begin in August. Employees will receive paid training, competitive base pay, monthly performance bonuses and the opportunity to gain a health insurance sales license paid for by Florida Blue. Candidates can apply at floridablue.com/careers and click on “Temporary Jobs.” New ship for Crowley: A container ship powered by liquefied natural gas was delivered to Crowley Maritime Corp. The vessel, along with a sister ship expected to be completed this year, were built for the Jacksonville -San Juan, Puerto Rico route. Memorial Hospital to celebrate renovation: Memorial Hospital plans a ribbon-cutting and open house Friday to mark the $23 million renovation of its Emergency Department. The project includes 23,000 square feet of additional space and a rooftop helipad. PACE buys new HQ: The PACE Center for Girls Inc. is relocating its Downtown headquarters to 6745
Philips Industrial Blvd. The new headquarters, built in 1995, has about 21,000 square feet. PACE bought the building July 6 for $1.73 million. NAI Hallmark brokered the sale representing PACE and the seller, Jumar Investments LLC. New Y for Wildlight: The First Coast YMCA, the University of Florida and UF Health announced they will open a Y in Wildlight at northeast Florida A1A and Interstate 95 in Nassau County, probably in late 2019. At 25,000 square feet, it will include fitness equipment, group exercise studios and an indoor track as well as provide educational programs and activities. Seven Bridges Property sold: Ernie Saltmarsh and Scott Rogers of Colliers International Northeast Florida represented Seven Bridges Investments LLC of Atlanta in its $2.1 million sale of an outparcel at 9735 Gate Parkway to private investor Bruce L. Sanft Rental Properties LLC of Boca Raton. The sale closed June 29. The 1.56-acre parcel is groundleased to Seven Bridges Grille & Brewery, a CraftWorks Restaurants and Breweries brand. The restaurant will continue operating. The seller is part of Coro Realty Advisors LLC.
Thursday, July 26, 2018 • Page 7
DEVELOPMENT TODAY These are the largest commercial building permits by price issued Tuesday by the city of Jacksonville. AMUSEMENT RECREATION Liberty Square JAX LLC, 11312 Libertas Americana Drive, contractor is The Dantzler Group Inc., 1,166 square feet, new building, $400,000. CONDOMINIUMS Pirates Bay Homeowners Association Inc., contractor is Stonebridge Construction Services LLC, replace siding, $25,000. INDUSTRIAL Oakleaf Services Inc., 5916 Philips Highway, contractor is Webb Properties & Improvements Inc., 11,900 square feet, new building, $450,000. OFFICE, BANK, PROFESSIONAL City of Jacksonville, 5656 Moncrief Road W., contractor is ERS Corp., 15,692 square feet, demolish structure, $25,000. South Jacksonville Dialysis Center, 8021 Philips Highway, No. 9, contractor is Sharp General Contractors Inc., dumpster enclosure, $31,500.
PEOPLE ON THE MOVE
ROOFING Promotions, hirings and happenings for business people in Northeast Florida. Send items to ssailer@jaxdailyrecord.com.
Delease Davenport Houston was named the branch manager of the new First Florida Credit Union in Orange Park. Houston has Houston more than 15 years of experience as a credit union branch manager. The planned opening is mid-September at 1461 Kingsley Ave. Paul Quiner joined Availity as senior vice president of corporate development. He will oversee mergers and acquisitions and influence the company’s corporate development strategy. Quiner most recently held a similar position with McKesson Corp.
Downtown CONTINUED FROM PAGE 1
to $5,000 per job, up to $535,000. The refund will be paid over four years after the jobs are created and verified by the state. SharedLabs will invest $1.4 million in renovations, furniture and equipment. City legislation describes Project Wolfe as a worldwide software solutions company that employs six people, primarily the company’s principals, at its headquarters, now at 118 W. Adams St., Suite 200, in the Schultz Building. City legislation says SharedLabs employs about 650 people worldwide that provide IT services to several companies on the Fortune 500 list. The project summary said the incentives were a material factor in the deal. Cory said SharedLabs was prepared to move its headquarters to Texas or Northern Virginia, “and we are happy we didn’t have to.” SharedLabs registered with the Securities and Exchange Commission on May 15 to raise up to $15 million in an initial public offering. The filing said current shareholders plan to sell about $17 million of their stock to the company, which would make the total value of the IPO about $32 million. The filing said the company was formed in 2016 and expanded with
Brenda Benson joined Memorial Hospital as the director of Memorial Hospital’s Trauma Services. Benson is a registered nurse with 33 years of experience in emergency and trauma care. Benson comes from Kendall Regional Medical Center in Miami. Beth Anne Holl joined Daigle Creative as communications specialist to support advertising, public relations and social media Holl initiatives. Holl comes from the American Breast Cancer Foundation in Columbia, Maryland, as director of social media and educational outreach.
ABOUT SHAREDLABS INC. Code name: Project Wolfe Business: IT services Headquarters: Jacksonville Created: 2016 To lease: Fourth floor, DyalUpchurch Building, 6 E. Bay St.
Paragon Industries II Inc., 8313 Baycenter Road, contractor is Register Roofing & Sheet Metal Inc., roof replacement, $412,000. Marsh Oaks Apartments, 2768 Florida A1A, contractor is Dubo Roofing Co., nine permits for roof over existing, $164,324. Days Inn by Wyndham Jacksonville Airport, 1170 Airport Road, contractor is
Advanced Commercial Roofing Systems Inc., two permits for roof over existing, $45,760. Coastal Creek Condominiums, 3434 Blanding Blvd., contractor is Maxxim Construction Inc., roof replacement, $10,775. SIGNS Ascension, Health Center, Optimal Imaging, Urgent Care, Ascension St. Vincents, 6488 103rd St., contractor is General Sign Service Corp., five permits for wall and ground signs, $33,000. Ascension, Urgent Care, 858 Monument Road, contractor is General Sign Service Corp., four permits for wall and ground signs, $8,000. Lifetime Flooring, Floors That Stand Up To Life, 8440 Philips Highway, contractor is Taylor Sign & Design Inc., wall sign, $7,500. The Cleaners, Drive-Thru, 14444 Beach Blvd., No. 1, contractor is Taylor Sign & Design Inc., two permits for wall signs, $4,500. Action 9-A Moving and Storage, 10416 New Berlin Road, contractor is General Sign Service Corp., wall sign, $2,350. Terrawise Homes, 1334 Walnut St., contractor is Taylor Sign & Design Inc., wall sign, $2,300. STORES, MERCANTILE Walmart, 4250 Philips Highway, contractor is Powerhouse Retail Services LLC, exterior renovation, $102,758. Compiled by Scott Sailer
NAVIGATING THE NEW: MAKING CONSTANT CHANGE WORK FOR YOU NAIOP is excited to bring to our membership and guests, Julie Benezet, former Amazon global real estate executive and author as our guest speaker. The 21st Century changed all the rules. Its hyper-connected, instant information culture has radically changed how we do business, even one as old as real estate. Succeeding with today’s teams, customers, and competitors means facing rather than avoiding the discomfort of trying new things and learning how not to shoot yourself in the foot while doing so. Come hear Julie share her experiences of navigating the new in Amazon’s early days and her many years of work advising leaders.
Jobs: Six local; 650 worldwide Job plans: To add 107 IT and finance jobs in Jacksonville by year-end 2021 Salary: Average $53,298 City incentives: $107,000 Qualified Target Industry Tax Refund over four years; $24,000 parking rate reduction over five years State incentives: $428,000 QTI refund over four years Investment: Company will invest $1.4 million in renovations, furniture and equipment
two acquisitions last year that would have given the company total revenue of $73.4 million. Cory cannot comment on the IPO. KMATHIS@JAXDAILYRECORD.COM @MATHISKB (904) 356-2466
Thursday, August 2nd 11:30 am - Registration & Networking 12:00 pm - Lunch served 12:35 pm - Program begins
Lexington Hotel & Conference Center
1515 Prudential Drive Jacksonville, FL 32207
JULIE BENEZET
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Registration/pay online www.naiopnefl.com Registration Deadline: Monday, July 30th For more information contact Carmel Buchanan, 904/730-8075 or naiopnefl@comcast.net NAIOP Member: $35 | Non-Member or Guest: $50 VIP Table of 8: $350 for NAIOP Members | $500 for Non-Members (includes table signage and preferred seating)
Page 8 • Thursday, July 26, 2018
Jacksonville Daily Record/Jacksonville Record & Observer
THE BASCH REPORT
Analyst says CSX is outperforming rival MARK BASCH CONTRIBUTING WRITER
Target price for company’s stock increased as experts see opportunities for revenue growth. A year ago, the headlines around CSX Corp. concerned unhappy customers, as the Jacksonville-based railroad experienced service disruptions while implementing its new operating plan. Fortunately for CSX (and unfortunately for customers), railroads have a near monopoly in the markets they serve for transporting freight, so customers have few choices. CSX has one competitor in the eastern U.S., Norfolk Southern Corp., and according to one analyst, CSX’s second-quarter earnings report last week demonstrated clear advantages over Norfolk Southern. The big news in CSX’s strong earnings report was its operating ratio (operating expenses divided by revenue) dropping to 58.6 percent in the quarter, lower than the 60 percent target the company had hoped to reach by 2020. “While the OR story is by now well-known, we’re actually more intrigued by the growing gap CSX has opened over regional rival Norfolk Southern with respect to relative Paterson operating efficiency and service,” Loop Capital analyst Rick Paterson said in a research note. “While this gap is manifesting itself now in the form of margins, it’s also a leading indicator of relative growth and, ultimately, market share,” Paterson said. That means CSX has a big opportunity to win back customers who were upset last year. Besides the operating ratio, Paterson looked at trends in train velocity and terminal dwell (the average time a rail car sits at a terminal). He said drops in dwell at CSX have increased its overall efficiency, by his calculations, 11 percent higher than what customers had been experiencing. “NS, in contrast, is operating 18 percent below what its customers have come to expect. Our thesis is basically that good things should happen to the railroad on the right side of this service divide,” he said. “We’re skeptical on the time it will take NS to restore service to normal levels, and by then ‘normal’ may not be good enough as CSX shows no signs of standing still.” Paterson upgraded his rating
CSX OPERATING RATIO
58.6% on CSX’s stock from “hold” to “buy” last week and increased his price target for the stock from $65 to $78 after the earnings report. CSX’s stock rose by $4.56 to $69 on July 18 after the earnings report, and it rose above $70 for the first time Monday. Paterson was the only analyst who changed his rating on the company after the earnings report, but other analysts raised their price targets for the stock. Credit Suisse analyst Allison Landry raised her target by $2 to $78. She sees opportunities for continued revenue growth. “While we cringed a bit upon hearing that export coal was a factor (given the likelihood for tonnage declines in 2019+), the more salient point vis a vis the top line is that CSX will leverage its improved service (transit times, reliability, etc.) to take share from truck,” Landry said in her report. Deutsche Bank analyst Amit Mehrotra raised his target from $79 to $83. “Also impressive, in our view, is management’s ability to offer specific examples of cost/margin improvement, something that has been lacking by other rails with similarly ambitious profit improvement plans,” Mehrotra said in his report. Morgan Stanley analyst Ravi Shanker raised his target price, but only from $49 to $52, and he remains more skeptical with an “underweight” rating on the stock. “The management team is executing and delivering what they said they would (and more),” Shanker said in his report. “We are not questioning the numbers CSX is putting up (which are impressive) — we are trying to identify what the long-term sustainable level of earnings is and what multiple investors should pay for it.”
Fidelity continues with Stewart deal As Fidelity National Financial Inc. announced secondquarter earnings last week, the company said it still is progressing with the slow-moving process of finalizing its acquisition of Stewart Information Services Corp. Jacksonville-based Fidelity announced the deal in March that would increase its dominant market share in the U.S. title insurance market from 32 percent to 42 percent. However, insurance regulators are expected to require Fidelity to divest some of the merged operations, which would Quirk reduce the overall market share. During its conference call with analysts last week, Fidelity officials said it is working with the U.S. Federal Trade Commission and some state regulators on the approval process. It expects to be able to complete the merger late this year or early next year. CEO Randy Quirk said the company has held more than 40 town hall meetings at offices of Houston-based Stewart around the country since agreeing to the merger. “At those employee meetings, we continue to reiterate our message to preserve and grow the Stewart legacy as part of our long-time successful strategy of operating multiple title brands under the FNF umbrella. We continue to receive positive feedback from those meetings,” Quirk said.
J&J vision care sales increase Johnson & Johnson said last
CSX’s operating ratio (operating expenses divided by revenue) dropped to 58.6 percent in the second quarter, lower than the 60 percent target the company had hoped to reach by 2020.
week its Jacksonville-based vision care business grew revenue by 9.6 percent on an operational basis (excluding currency impact on foreign sales) to $1.173 billion in the second quarter. Its contact lens business increased sales operationally by 10.4 percent to $844 million, with U.S. sales up 16.8 percent. New Jersey-based Johnson & Johnson has operated the contact lens business in Jacksonville since 1981. It expended the vision care business beyond contacts last year with several acquisitions of eye health companies. Johnson & Johnson’s total second-quarter sales rose 8.7 percent on an operational basis to $20.8 billion.
Analyst downgrades Rayonier on price With Rayonier Inc. trading at its highest levels since it split up with Rayonier Advanced Materials Inc. four years ago, one analyst downgraded the stock last week. BMO Capital Markets analyst Mark Wilde downgraded the Yulee-based timber and real estate company from “marWilde ket perform” to “underperform” based on valuation, with the stock trading at $37.73 at the time. “Rayonier is trading about 8 percent above our estimate of net asset value (NAV) and 37 percent above its March 2017 equity issue price,” Wilde said in a research note. “Historically, public timber REITs have traded at a discount to NAV, not at a premium,” he said. “We hold Rayonier’s man-
agement and board in very high regard. However, we think risks to the stock are skewed to the downside and are downgrading to underperform.” Wilde maintained his $34 price target on the stock. Rayonier is scheduled to release its second-quarter earnings report next week.
Analyst sees more gains for FIS Fidelity National Information Services Inc., or FIS, is already trading at record highs, but one analyst expects the stock to continue climbing. Before the Jacksonvillebased bank technology company’s earnings report next week, Wolfe Research analyst Darrin Peller initiated coverage of the company with an “outperform” rating. FIS was trading at $108.13 at the time of his report last week, but Peller set a price target of $130. “FIS maintains a strong position in the financial services market as a leading banking and payments technology vendor which we see as well positioned to capitalize on a long-term secular trend toward financial outsourcing,” the report said. Although it was an initiation report, Peller has been following FIS for years at his previous stop as an analyst at Barclays Capital. His new report calls FIS “a relative safe haven for investors looking for exposure to highly recurring revenues, consistent margin expansion and earnings growth, a shareholder-friendly management team, and low volatility. As such, we see FIS as a core holding for investors and see its risk/reward as skewing to the upside at current levels.” MBASCH@ JAXDAILYRECORD.COM
Jacksonville Daily Record/Jacksonville Record & Observer
Top five Jacksonville occupations for job growth, 2017-25 15.12%
20.87%
Food preparation and serving related
10.42%
54,256
Health care practitioners and technical 45,214
Business and financial operations
47,127
12.61%
BY SCOTT SAILER EDITORIAL RESEARCH DIRECTOR
Transportation and material moving 47,484
44,120
43,456
2025
2017
39,954
Construction and extraction
37,407
Health care practitioners and technical occupations are expected to show the largest percentage increase in jobs over the next eight years in the Jacksonville Metropolitan Statistical Area, according to the Bureau of Labor Statistics. While health care leads in growth, the field with the greatest number of jobs is projected to remain office and administrative support. The MSA comprises Baker, Clay, Duval, Nassau and St. Johns Counties.
9.27%
32,108 28,511
2017
2025
2017
2025
2017
2025
2017
2025
Jacksonville MSA top 10 occupational employment distribution projection, 2017-25
All other jobs
2017 estimated employment
Occupation
Office jobs
23.42% The percentage of people in the Jacksonville MSA projected to work in office and adminstrative support in 2025. The number of jobs in the fiThe eld is expected to increase 7.15stage musical most FANTASMAGORICAL percentin over the next eight years. the history of everything!
Percent of occupational groups
2025 projected employment
Percent of occupational groups
Health care practitioners and technical
37,407
8.63%
45,214
9.48%
20.87%
Food preparation and serving related
47,127
10.90%
54,256
11.37%
15.12%
Construction and extraction
28,511
6.58%
32,108
6.73%
12.61%
Business and financial operations
39,954
9.22%
44,120
9.24%
10.42%
Transportation and material moving
43,456
10.03%
47,484
9.95%
9.26%
Management
23,010
5.31%
25,102
5.27%
9.09%
Sales and related occupations
63,074
14.56%
68,250
14.30%
8.20%
Installation, maintenance and repair
25,454
5.88%
27,409
5.74%
7.68%
Office and administrative support
104,321
24.09%
111,781
23.42%
7.15%
Production
20,773
4.80%
21,478
4.50%
3.39%
Source: Florida Research and Economic Information Database Application
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THE DATA PAGE
Health care to lead area job growth
Thursday, July 26, 2018 • Page 9
Page 10 • Thursday, July 26, 2018
Jacksonville Daily Record/Jacksonville Record & Observer
Budget
Dollars for districts
CONTINUED FROM PAGE 1
Here’s how the capital improvement money in Mayor Lenny Curry’s budget is allocated by council member district. Included are the top two most expensive projects. DISTRICT 1, JOYCE MORGAN
DISTRICT 10, TERRANCE FREEMAN
$8,034,400
$1,670,600
Projects: 7 | 2017 budget: $1,330,162 | Increase: 504%
Projects: 4 | 2017 budget: $3,856,225 | Decrease: 57%
Project
Project
Fire Station No. 65
Cost $2,500,000
Blue Cypress Pool demo and replacement $2,450,000
Cost
Winton Drive recreational facility
$500,000
Romily Drive stormwater projects
$345,000
DISTRICT 11, DANNY BECTON
DISTRICT 2, AL FERRARO
$3,280,050
$2,975,000
Projects: 7 | 2017 budget: $1,050,000 | Increase: 212%
Projects: 3 | 2017 budget: $0 | Increase: 100%
Project
Project
Oceanway Branch Library
Cost $2,500,000
Palm Fish Camp docks phase II
$784,000
Cost
9A / Baymeadows Park ballfields/parking
$2,225,000
Centurion/Deerwood Parkway intersection $500,000
DISTRICT 3, AARON BOWMAN No specific projects
DISTRICT 12, DOYLE CARTER
DISTRICT 4, SCOTT WILSON
Projects: 2 | 2017 budget: $9,442,950 | Decrease: 60%
$3,250,000
Project
$3,804,000
Projects: 3 | 2017 budget: $5,998,097 | Decrease: 46% Project Southside Senior Center
Cost $2,000,000
Knights Lane capital stormwater improvements $800,000
Cost
Trail Ridge Landfill expansion Chaffee Road (Normandy to I-10) widening
$2,904,000 $900,000
DISTRICT 13, BILL GULLIFORD
$3,548,000
DISTRICT 5, LORI BOYER
Projects: 6 | 2017 budget: $2,492,500 | Increase: 42%
$4,605,350
Project
Projects: 9 | 2017 budget: $6,908,378 | Decrease: 33% Project Friendship Fountain repairs
Cost $1,300,000
St. Johns River Park
$950,000
Cost
Mayport Community Center Kathryn Abby Hanna Park projects
$2,000,000 $1,188,000
DISTRICT 14, JIM LOVE
$3,418,600
DISTRICT 6, MATT SCHELLENBERG
Projects: 9 | 2017 budget: $7,219,985 | Decrease: 53%
$75,000
Project
Projects: 1 | 2017 budget: $4,002,085 | Decrease: 98% Project
Cost
Palmetto Leaves Regional Park sports fields
$75,000
Cost
Ortega Hills secondary ingress/egress Collins Road bridge
$1,050,000 $500,000
CITYWIDE PROJECTS
$39,135,660 DISTRICT 7, REGGIE GAFFNEY
Projects: 25 | 2017 budget: $77,512,993 | Decrease: 50%
$65,246,945
Project
Cost
Projects: 31 | 2017 budget: $33,572,220 | Increase: 94%
Road resurfacing
Project
ADA compliance – curb ramps/sidewalks $6,545,000
Cost
$11,994,588
Hart Bridge ramp modifications
$25,000,000
Drainage system rehab
$4,200,000
UF Health Jacksonville improvements
$15,000,000
Sidewalk and curb construction, repairs
$2,000,000
Park upgrades and repairs
$2,000,000
ADA compliance – public buildings
$2,000,000
Roadway sign, strip and signal
$1,250,000
Projects: 14 | 2017 budget: $4,652,600 | Increase: 5.6%
Landfill gas fueled leachgate evaporator
$1,200,000
Project
St. Johns River bulkhead assess/restore
$1,000,000
DISTRICT 8, JU’COBY PITTMAN
$4,912,600 Cemetery restoration projects Ribault Scenic Drive bridge repairs
Cost $2,504,400 $350,000
DISTRICT 9, GARRETT DENNIS
$20,390,000
SPENDING TOTALS 2018-19 total district spending:
2017-18 total district spending:
$125,210,545
$83,001,202
Projects: 18 | 2017 budget: $2,476,000 | Increase: 723%
2018-19 countywide total spending:
2017-18 countywide total spending:
Project
$39,135,660
$77,512,993
2018-19 total CIP spending:
2017-18 total CIP spending:
$164,346,205
$160,514,195
McCoys Creek improvement projects Soutel Drive road diet
Cost $13,050,000 $2,640,000
51% 50% 2.38%
town, Springfield and a large swath of North Jacksonville, including the area surrounding the Jacksonville International Airport, is slated to receive the most capital improvement money this year, with more than $65.2 million worth of projects. The largest investment is the modification and removal of the exit ramps attached to the west side of the Hart Bridge Expressway. The administration received $12.5 million from the state, which the city plans to match to begin “Phase No. 1.” The plan is to remove a section of ramps above Gator Bowl Boulevard and grade the roadways to ground level. Curry says it will provide a more efficient traffic pattern for the trucks entering and leaving the Talleyrand port area and “unleash billions in economic development” for the Northbank. Jacksonville Jaguars owner Shad Kahn wants to embark on an estimated $2.5 billion mixed-use district around TIAA Bank Field. In Southwest Jacksonville’s District 9, the administration is proposing $20.3 million in projects, most of which, about $13 million, is for the ongoing restoration efforts at McCoys Creek. Northwest Jacksonville’s District 8 could receive $4.9 million, with $2.5 million going toward restoring AfricanAmerican cemetery sites the mayor said are in unacceptable condition. On the other side of the St. Johns River in District 1, the Arlington neighborhood also is slated to benefit from investments. Funding for a $2.5 million fire station, a $1 million rowing center and $2.45 million to upgrade the pool facilities at Blue Cypress Park is included. Toward the Beaches in District 13, council member Bill Gulliford is hoping to secure $2 million for the construction of a new Mayport Community Center, $360,000 for new docks near the St. Johns River Ferry and $1.18 million for enhancements at Kathryn Abbey Hanna Park. In District 5’s Southbank and San Marco neighborhoods, and in District 14’s Riverside neighborhood, the capital improvements budget includes $3.75 million for improvements along the St. Johns River. Those include $950,000 for St. Johns River Park, $1.3 million for upgrades at Friendship Fountain, $700,000 to expand the Southbank Riverwalk and $200,000 for new fencing along the banks of Memorial Park. The capital improvement program is spread over five years and currently is worth about $610 million. The latest budget essentially doubles Curry’s first CIP requests of $77 million in 2015. Other projects include $5 million for the Jacksonville Zoo and Gardens, $15 million for UF Health Jacksonville and $2.5 million for the development of a public library in Oceanway in North Jacksonville. Beginning Aug. 7 and continuing for most of the month, the council Finance Committee will debate Curry’s budget proposal. Republican Greg Anderson chairs the seven-member committee along with Democrat Joyce Morgan serving as vice chair. Lori Boyer, Reginald Gaffney, Gulliford, Jim Love and Sam Newby also serve on finance. On Tuesday night, council approved keeping the current millage rates intact for the 2018-19 fiscal year. Those rates are 11.4419 for most of Duval County, 8.1512 for the three Beach cities, and 9.6312 for the town of Baldwin. Council will need to approve the remaining nine budget-related pieces of legislation by the end of September, ahead of the new fiscal year, which begins Oct. 1. DCAWTON@JAXDAILYRECORD.COM @DAVIDCAWTON (904) 356-2466
Jacksonville Daily Record/Jacksonville Record & Observer
Thursday, July 26, 2018 • Page 11
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 July 16-20.
Special to the Daily Record
The Hawthone Apartments at 8150 Point Meadows Drive sold for $42 million.
$42,000,000
$5,700,000
$5,300,000
$4,750,000
$4,494,560
8150 Point Meadows Drive, Jacksonville, Duval County
723 Ponte Vedra Blvd., Ponte Vedra Beach, St. Johns County
1320 and 1330 Blanding Blvd., Orange Park, Clay County
500 E. Bay St., Jacksonville, Duval County
Isle of Pines Circle, Clay County
Hackettstown LLC, Raia FL Spe JSR LLC, Raia FL Spe Nina LLC, Raia FL Spe Dom LLC, Raia FL Spe Aniero LLC and Raia FL Spe Group II LLC
Type: Single-family Size: 0.43 acres Buyer: Randall L. and Betty J. Marion Seller: Gavan P. and Orla M. Duffy Previous sale: $1,600,000 in 2011
Type: Commercial retail Size: 4.19 acres Buyer: Knightboxx JAX LLC Seller: KVA Kboxx LLC
Type: Condominium/hotel Size: 2.02 acres Buyer: Choate Construction Co. Seller: 500 East Bay LLC
Type: 92 single-family lots Size: Not available Buyer: Richmond American Homes of Florida LP Seller: Loblolly Partners LLC
$4,356,000
$3,550,000
$3,475,000
$3,413,300
$2,626,262
11812 Beach Blvd., Jacksonville, Duval County
1271 Ponte Vedra Blvd., Ponte Vedra Beach, St. Johns County
185 Admirals Way S., Ponte Vedra Beach, St. Johns County
Type: Single-family Size: 1.47 acres Buyer: Margaret H. Mosely Seller: W. Lipscom Adelaide, and Virginia A. Davis
Type: Single-family Size: 0.78 acres Buyer: Robby B. Bortles Seller: James E. and Shelley M. Hulihan Previous sale: $1,635,000 in 2002
Type: The Hawthorne Apartments Size: 14.24 acres Buyer: WW Hawthorne LP Seller: Raia FL Spe
Previous sale: $35,200,000 in 2015
Type: Wawa convenience store Size: 2.77 acres Buyer: He Shoulda Investments LLC Seller: Beach Boulevard and Central Parkway LLC
8837 Beach Blvd., Jacksonville, Duval County
U.S. 17 S., Green Cove Springs, Clay County
Type: Commercial Size: 2.11 acres Buyer: Lazgor LLC Seller: GH&G Beach LLC Previous sale: $1,000,000 in 2017
Type: Timberland Size: 2,974.7 acres Buyer: Florida Power & Light Co. Seller: EPC Holdings 934 LLC
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Page 12 • Thursday, July 26, 2018
Jacksonville Daily Record/Jacksonville Record & Observer
BRYAN CROFT BY KAREN BRUNE MATHIS • EDITOR
Bryan Croft is president and CEO of Jacksonville-based Holmes Custom, a product personalization company founded in 1954 that he bought from his parents in 2009. He pushed it into e-commerce sales and expanded through acquisitions into Austin and Massachusetts. Formerly known as Holmes Stamp & Sign, the company is based at 2021 St. Augustine Road, just off Philips Highway. North Florida. My wife, Amy, and I have a 15-year-old daughter, a 12-year-old daughter and a 9-year-old son.
I refer to it as the 64-year-old startup company. The core of the company is rubber stamps and name badges. That’s what Mr. Holmes and my father started many, many moons ago. We evolved the company into manufacturing personalized products. The average order is about $35, and we process about 1,500 a day. When I started in 1999, I was employee No. 11 and we had just about $1 million in sales. I’m confident we’re going to end 2018 with a little over 100 employees and right around $13 million in revenue.
I’m involved in the Atlantic Beach Country Club. My grandparents helped start that place in the 1950s as the Selva Marina Country Club. I got married there in 2000. I live in Neptune Beach, but Atlantic Beach is close enough I ride my bike there all the time. When we went through the project rebrand and redevelopment to Atlantic Beach Country Club, I was a big part of that. It’s a source of pride.
I remember when I started here in 1999 and one of the employees said, “Oh, you’re just the kid with the silver spoon in your mouth. Your mom and dad are giving you this company.” I was offended but when I went home that night, I’m like, “Oh man, what if they’re right?” That one statement was meant as a joke, but it has really driven me to take the opportunity that I had and make it something special.
If I didn’t live at the beach I’d probably live in San Marco. We’re positioned geographically so that San Marco is naturally going to grow where we’re sitting. I want to help that. We recently bought 3 acres across the street so that we could potentially build there to grow our business. The property used to be a rundown hotel, which are magnets for crime. It’s one of my proudest days, bulldozing that building.
Today I focus on growing the company revenue and our culture. Life is hard, there is no way around that, so I want to make sure that we have a fun work environment. We want to grow a business, but let’s have fun doing it and grab a beer after work or volunteer in our community. Once a year we’ll take a group #Holmies – our team members – and spend a week in Haiti to help out. I don’t have a checklist on what you do to make a great culture. I think it’s a lot of little things. I
Ten or so businesses in this corridor rebranded it as San Marco East. There’s momentum. I’m not a commercial developer. I’m an e-commerce guy, but I’ll do anything I can to help keep pushing that forward. Ultimately that’s my dream and my vision.
Special to the Daily Record
am proud of what we have today and I work every day to protect and cultivate it. I’m a Jacksonville native and attended Christ the King Catholic School, Bishop Kenny High School and the University of
Architectural Shingles
ABOUT CROFT Title: CEO Organization: HolmesCustom.com Age: 43 Education: Bachelor of Arts in business, University of North Florida Family: Wife, Amy; daughters Avery, 15, and Natalie, 12, and son, Chance, 9 Hometown: Jacksonville Hobbies: Small business development, golf
KMATHIS@JAXDAILYRECORD.COM @MATHISKB (904) 356-2466
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