OFFICE OF THE CITY COUNCIL

 

CHERYL L. BROWN                                                                                                         117 WEST DUVAL STREET, SUITE 425

            DIRECTOR                                                                                                                                                                                 4TH FLOOR, CITY HALL

   OFFICE (904) 630-1452                                                                                                                                                          JACKSONVILLE, FLORIDA  32202

     FAX (904) 630-2906                                                                                                                                                                                                              

  E-MAIL: CLBROWN@coj.net

 

 

JOINT FINANCE/RCD COMMITTEE ON 2013-757

MEETING MINUTES

 

December 9, 2013

3:00 p.m.

 

City Council Chamber

1st floor, City Hall

117 West Duval Street

 

Attendance:  Finance Committee – Council Members Greg Anderson (Chair), Stephen Joost, Richard Clark, John Crescimbeni, Robin Lumb, Matt Schellenberg, Clay Yarborough

RCD Committee -

Council Members John Crescimbeni (Chair – arr. 3:08), Don Redman (arr. 3:35), Warren Jones, Denise Lee (arr. 3:42), Jim Love, Clay Yarborough, Matt Schellenberg (temporary appointment)

 

Excused: Council Member Ray Holt (RCD)

 

Also: Marilyn Allen – Legislative Services Division; Jeff Clements – Council Research Division; Kirk Sherman and Janice Billy – Council Auditor’s Office; Cindy Laquidara and Peggy Sidman – Office of General Counsel

 

Council Member Anderson called the meeting to order at 3:03 p.m.  Council Member Jones gave introductory remarks, stating that the City and the developer of the 220 Riverside mixed use residential and commercial building had reached an apparent impasse on interpretations of the obligations of the parties with regard to certain financial terms and construction responsibilities.

 

Steve Diebenow representing Hallmark Partners explained the history of the company’s relationship with the City on this project and the delays the company believes have been unreasonable.  He stated that three major changes to the original 2007 Hallmark project deal were made in 2012: 1) the addition of a Recapture Enhanced Value (REV) grant with a City clawback provision; 2) a requirement for proof of a $30 million capital investment by the developer and assurance of a park maintenance mechanism for Unity Plaza; and 3) transfer of the responsibility for reconstruction of Magnolia Street from Hallmark Partners to the City. Mr. Diebenow stated that it took 7 months from the date the revised agreement was approved by City Council in 2012 until the City began the design of Unity Plaza, which subsequently took another 10 months, for a total of 17 months to complete the design process from City Council’s original approval. He also stated that the City’s road contractor rebuilding Magnolia Street dug up a significant portion of the apartment building’s foundation because of a lack of coordination with Hallmark that could have been prevented if the company had done all the work itself. That matter will be the subject of a lawsuit with the contractor. Ultimately, 2 issues remain to be resolved – production of proof sufficient to the City of the required $30 million private capital investment and sufficient proof of a maintenance mechanism for Unity Plaza. Hallmark Partners is petitioning the City Council to break the current logjam and to enable construction of the plaza to get underway so that it can be completed at least close to the time the building is complete in the summer of 2014.

 

General Counsel Cindy Laquidara stated that what is at issue is the sufficiency of the documentation of the $30 million private investment.  The development agreement requires a loan commitment letter, but because Hallmark is building the project with its own cash resources, there is no loan commitment letter.  She does not have the authority to approve an alternate form of proof that is not contemplated in the written agreement; that is a policy decision for the City Council to make. She stated that the various documents provided by Hallmark appear to her to provide reasonably sufficient proof of the required investment if that is the Council’s judgment.

 

Bill Joyce of the Public Works Department discussed the timeline for the Unity Plaza design project. Public Works Director Jim Robinson stated that the City took over construction of the Magnolia Street project so that it could coordinate that project with the needs of the developer of the adjacent Pope and Land project on Riverside Avenue.

 

The committees felt that there were more questions to be answered about the proposal and the scheduling of another joint committee meeting at 4:00 p.m. in the Council Chamber did not provide sufficient time to explore all the issues.

 

There being no further business, the agenda meeting was adjourned at 3:55 p.m.

 

 

Jeff Clements, Council Research Division (904) 630-1405

 

 

Posted 12.11.13

4:00 p.m.