Atkins Group breaks off negotiations on Haydon Burns

[Viper]

I just hope they are learning from all this. Why they keep altering the negotiations so much recently, I can't speculate on, perhaps it's worked well in the past for other deals, but it obviously has caused tension on some recent negotiations and they've lost Atkins on the RFP and by all accounts from the media, almost lost the Jags. Why is JIA/JAA having incredible success at Cecil but COJ is not?

They just need to take a step back for a minute and find out what is going wrong and work to correct it

[jjoshjl]

At this point, If Atkins is out, Im hoping TUC will try again for his

Much preferred that one over peterbrook. Always was a close second for me...

Cheers

[bobliocatt]

Here's the official statement from www.TaylorHardwick.com

On November 28, 2005, the Atkins Group withdrew its bid, claiming city requirements were thwarting the project. The Jacksonville Economic Development Commission indicated Atkins could not come up with the $5 million purchase price in their proposal.

The city will offer the property to the second-ranked bidder, Peterbrooke Chocolatier. Peterbrooke remains interested. However; if Peterbrooke backs out, the property will be awarded to the third-ranked bidder.

For more information, read this item from the Florida Times Union.

The following is a statement from Taylor Hardwick regarding this latest turn of events...

I am both delighted and thankful that the Atkins proposal that would destroy my building has been withdrawn. The Haydon Burns Library is the magnum opus of my 50-year career and has at least 60 more years of useful life to give to our city. I am grateful to the Mayor and the City Council, especially Suzanne Jenkins, for properly holding the high bidder to perform the terms of his proposal. I give my sincere thanks to Wayne Wood, Emily Lisska, and the Jacksonville Chapter of the American Institute of Architects (300+ members), its president, Lewis Everline, Robert Stern, and countless other citizens who voiced their support for preserving the building.

Lets not try to take the Lord out of RFPs, we're already losing Christmas. Here are some personal comments on comments made here and the other boards.

5. Peterbrooke is not going to be the only failed bidder to go after the building/property post-Atkins, if Peterbrooke even goes for it.

That's the best news I've heard today.

[Dale]

You can tell Mr. hardwick I said his 'magnum opus' is an abomination.

[RiversideGator]

I would really hate to have THAT be the highlight of my working life.

[vicupstate]

3. I'm pretty sure the Mayor would have liked the deal to happen. Its illogical to think otherwise. I'm not sure what the sticking point was but just because the deal didn't happen, doesn't mean that one side didn't want it to. I've been in more deals that didn't happen than those that did, and each time both sides wanted it done. You can have your whipping boy but you won't get any closer to finding out why it failed by just disparaging whatever side you didn't take.

All of us, with the partial exception of Jacksonvillian, are just using conjecture to size up what happened. All the more reason why a full disclosure of what killed the deal is needed. This is why people don't trust government.

What specifically was Atkins being asked for (monetarily and otherwise) and when? What is this contamination and what is the expected cost to fix it? How long was the due diligence period? What conditions did JEDC ask for in the negotiations? Which of those did Atkins object to? What will happen now - a new RPF or does Peterbrooke automatically get to negotiate? What about the contamination?

This is a public asset and the public will lose $3.5mm if it goes to Peterbrooke, the public has a right to know why.

[TheUrbanCore]

What specifically was Atkins being asked for (monetarily and otherwise) and when?

This is a public asset and the public will lose $3.5mm if it goes to Peterbrooke, the public has a right to know why.

You are right. I think, though, that this info will come from Atkins himself in due time. I personally doubt it had to do with environmental issues. I also agree wholeheartedly about the purchase price. I feel for Atkins because I am sure this was costly for him both in cash and energy. It was costly just to lose the bid.

[jlight]

Environmental concerns were one thing that became an issue of annoyance for Atkins (a fuel tank and petroleum contamination weren't disclosed during the RFP), but were definitely not the deal breaker. Check out Jacksonvillian's post below for the straw that broke the camel's back (according to Atkins). There is still confusion from city officials as to if that is actually what killed the deal, however. More on that later.

[jacksonvillian]

You are right UC...

Inside word is that Atkins had invested 6 figures in the deal to date. A few more details:

A 5% earnest money binder had already been agreed to and escrowed by Atkins. This money would be paid to the City upon execution of the development agreement (approval by council and mayors signature)... so far so good... then the City wanted more asurrance that Atkins would follow through with the development they proposed, even though Atkins would pay $5 million cash at closing. So Atkins offered another $1 million line of credit that could be drawn against by the City if Atkins didn't meet deadlines during the construction process that the City wanted... So that made a total of $6 million in cash to the City if the worst case scenario happened and the project went south.

Seems like alot right??

Here's the dealbreaker... after Atkins agreed to all of the above, the City decided they wanted Atkins to put up all its equity ($5 miilion) in addition to the earnest money deposit at the time of execution (prior to closing) and have it subject to forfeit if they didn't close.

Totally ridiculous!! No one would agree to that.

Atkins had banked over $3 million to date and had investors for an additional $7 million in place... and all the City could do was continue to increase the demands and the risk for Atkins.

Atkins said this afternoon that they would begin evaluating new sites after the first of the year. They are committed to this project, but will not be committed to the City any longer.

That's what I know from the inside.

- J

[simms3]

damnit this city is sometimes really stupid, and yes, they do suck at keeping straight deals. they always overlook the future and what might affect how the project is actually going to turn out, or if it's going to turn out at all. since atkins is out of the picture, i hope that either kuhn does something to remedy the situation or one of the original competition plans that i liked (the grocery with loft apartments) comes to fruition.

[bobliocatt]

What a damn shame. Point blank.

Anyway, I'm impressed that the Atkins group believes in the potential of downtown and will continue to search for alternative land for a project. I did this for Peterbrooke and I'll suggest some alternative sites for Atkins, as well. I don't know if all of these lots are available, but here goes.

(In no particular order)

1. Flagler Avenue surface parking lot

Located in the Southbank, with direct access to skyway's Riverplace Station. Its has visual access to I-95 and views of the river, to the south, as well as direct access to the Northbank via the skyway.

2. River City Brewing Co. & parking lot

About a year ago, there was an article that mentioned the owners were interested in buying their lease from the city and selling the lot. Its benefits are location, location, location. Excellent riverfront/skyline views, a block away from the skyway station and its next door to MOSH and Friendship Park.

3. City Hall Annex

Probably a bad idea, since you'll have to deal with the city. Nevertheless, the city does have plans to move their offices to the Ed Ball Building and the City Hall Annex is located on the Bay Street Town Center. The building could probably be modified into condos, while commercial uses could be built in the greenspace fronting Bay.

4. Wachovia Tower surface lot

It has direct access to the skyway, is located on Bay Street and is in the heart of what will become a pedestrian friendly powerhouse (ex. Landing, hotels, River Watch).

5. Omni Parking lots

Both are on Water Street, near the skyway central station, the landing, the Times-Union preforming arts center and offer direct views to the riverfront.

6. Old convention center hotel site

This is a long undeveloped plot of land, stretching from the Prime Osborn to the Acosta Bridge. Its on the market, on Bay Street, has a skyway station, views to the riverfront and can be seen clearly from I-95, from the south and from the west. A mixed-use project here would basically single handedly connect the Prime Osborn to the downtown core.

7. Main Street lots

There are three blocks of surface lots along main, between Church and Adams Streets. I think the owners are either the city or Eddie Farah. Farah is probably willing to sale, since his firm will be moving to 323 Duval. A project here, would be located on one of downtown's main streets, as well as a short distance to the new library and the projects along the Adams corridor.

8. Bay & Newnan surface lot

This site is not as big as the library lot, but its empty, across the street from the Florida Theater, and in the Bay Street Town Center corridor.

9. Doro Fixtures Building

While I think this is the best spot for Peterbrooke. If the building had to be torn down, it sits on a square block of land, right in the middle of the sports district. Whatever goes in there, could feed off events playing at Alltel Stadium, the arena and the ball park.

10. Main/Ocean/Union/State block

This is probably the prime site in the core, located off the river. All four road surrounding the property are heavily traveled. Something here would also easily draw in the Springfield market.

[vicupstate]

Thanks for the info. Jacksonvillian and jlight. [ and welcome to the forum jlight!]

Why is it that the city will open it's bank accounts to Landmar to the tune of $230mm, yet kill a deal that would result in receiving more than double the appraised value? It's lunacy or politics one, take your pick!

The only other option is there is a new and presumably higher bidder. In which case, the city is not negotiating in good faith.

[vicupstate]

As for the value of the Burns library, check this out. The old firehouse across the street is for sale for $2.2 mm. It is a small fraction of the space of the Burns Library. This property was on the Hard hat Tour about four years ago, and it is jaw dropping awesome!

Old Firehouse for sale at Adams and Ocean

[Urban_Legend]

Taylor Hardass:

I am both delighted and thankful that the Atkins proposal that would destroy my building has been withdrawn.

His building? Technically, it's a public building right? And the people say it sucks!

~Tyler, wondering what the Ocean Square building would look like decorated for Christmas...

[jacksonvillian]

Well, the Boss scolded me for discussing the details... sounds like an official statement on this deal will be released very soon.

[bobliocatt]

Sorry about that. We don't want you to lose your job.

[Urban_Legend]

^He'll be just fine.

GIVE US MORE DETAILS!!!

jk lol....

[jp2005]

So ?

Re: Jenkins statement: Don't y'all know the Lord likes chocolate?! Peterbrooke's confections are heavenly.

However, even petroleum can taint the taste of the loveliest candies. How did petroleum contaminate a library?!

[jlight]

The petroleum tank was leftover underneath the library from a previous use of the building. Haydon Burns was apparently built on top of it.

In other news, CSPEC just approved a recommendation to allow the JEDC to negotiate with Peterbrooke. There were some other very small tidbits I got from Barton, but I'll hold off on those until tomorrow.

[RiversideGator]

Until your article appears in the paper tomorrow, right Joe Light?

[jlight]

Until your article appears in the paper tomorrow, right Joe Light?

Yep, I introduced myself in a previous post but realize now that I subsequently edited that out.

If you guys ever have any questions regarding this or any other project, just throw them out on the board somewhere and I'll either answer them on the board or in an article. I've been lurking here since I moved to Jax about a month and a half ago (you guys were a great resource for getting me caught up on developments around the city), and now I'm ready to repay the favor as best I can.

That is, without pre-empting my work, of course. If any of you ever want to contact me, Edited, email the forum if you have questions

[Dale]

Appreciate your contributions and your accessability, jlight.

[Urban_Legend]

Jenkins resumes efforts to landmark library

http://www.jaxdailyrecord.com/showstory.php?Story_id=44124