Incentives for Union Terminal fall short of what the developer asked for, Jax Daily Record | Jacksonville Daily Record
Atlanta-based Columbia Ventures LLC could receive $ 893,883 less than called for in city incentives for a $ 60.8 million plan to convert the historic Union Terminal warehouse into apartments.
The Downtown Investment Authority released a term sheet on May 10 stating that its board of directors will be considering $ 8.28 million in mortgage and deferred mortgage loans for the affordable housing project under the Downtown Revitalization and Preservation Program.
In his report, DIA employees said only $ 52.9 million of the project cost is eligible expense under the program, resulting in less incentive offer. According to the report, $ 7.9 million includes developer fees, expected tenant improvements, and reserves.
In April, a Columbia representative announced that the company is negotiating a $ 9.2 million gap financing to complete the 228-unit adaptive reuse project at 700 E. Union St. near Jacksonville’s Eastside.
A DIA employee report shows the developer requested $ 9.179 million.
If approved by the DIA board of directors and city council, Columbia subsidiary East Union Holdings LLC would receive:
• $ 4,246,963 Historic Restoration Loan.
• Forgivable Loan of $ 2,381,671.
• $ 1,657,159 Deferred Home Loan.
The loans would mean that public incentives would make up 13.6% of the total project costs, according to the DIA.
Documents Columbia posted to the Daily Record on April 15 show that 70%, or $ 41.21 million, of the workforce and affordable housing project on a 40-year fixed-rate insured mortgage from the US Department of Housing and Urban development would be financed.
Columbia is planning apartments, common areas, and a restaurant and café in the Union Terminal Warehouse.
The DIA summary states that $ 10.04 million would come from developer and federal equity for historical tax credits, which is 16.5% of the total project cost.
The documents are contained in the meeting package of the Strategic Implementation Committee of the DIA Board of Directors on May 17th.
The committee could take an initial vote on the deal at this meeting.
The developer announced in a report to DIA that the state’s Department of Monument Preservation has approved inclusion in the national register of historic places
Columbia officials said the market effects of COVID-19 required a move from private funding to HUD-based funding.
The DIA reports that for every dollar invested, the city would earn 86 cents in return.
Columbia must invest at least $ 5.29 million in total equity to get the maximum benefit from the Incentive Program on a $ 60.8 million project.
If the project costs decrease by more than 10%, the city funding package would decrease.
According to DIA, Columbia must also have owned the Union Terminal for at least five years to qualify for the maximum payout in the city.
The council voted on April 13 to designate the 330,000 square meter Union Terminal as a local landmark. This makes Colombia’s project suitable for the DIA program to close financial gaps in historical adaptive reuse projects.
The Union Terminal Warehouse t 700 E. Union St. was completed in 1913.
The 7.35 hectare Union Terminal Warehouse package extends over the DIA border, but is still financially viable.
Columbia said it also got National Park Service approval under certain conditions.
According to the DIA, at least 220 residential units will have basic rents below the HUD maximum of 120% of the region’s average income.
No less than half of the units will have an initial rent at or below the HUD maximum for 80% of the region’s median income.
Columbia plans studio, one, two, and three bedroom apartments in the warehouse ranging from 582 square feet to 1,473 square feet.
The developer told DIA that he would commit to providing 44 tenants for at least 38,000 square meters of commercial space and manufacturer / artist studios in the warehouse, the DIA report said.
Columbia said Union Terminal will also have 4,205 square feet for a restaurant and coffee shop.
According to the DIA employee report, Columbia plans 292 parking spaces, including 56 covered parking spaces.
The suggested trail for Groundwork Jacksonville’s Emerald Trail runs through the property and has access to Hogans Creek.
The developer intends to keep the water tower as a design feature on the roof terrace with communal garden. There are also plans to restore one of the warehouse’s industrial freight elevators.
According to Columbia, the main building is now 90% rented and is inhabited by creative loft spaces for artists, woodworkers, manufacturers and manufacturers.
Turner Construction Co. built the Union Terminal Warehouse from 1912-13. The developer says it was once the largest commercial building in Florida.
According to the report, it was empty for a short time in the 1970s.
The property documents show that the location in E. Union St. 640-648 was expanded until 1990.
Columbia says the rehab will be completed in the summer of 2023 when it hits the November 26 goal of completing funding and starting construction.