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DIA Approves Funding for Historic Redevelopment, Covid Relief

June 18, 2020

In a busy meeting Wednesday, the Downtown Investment Authority approved funds to support major projects to revamp vacant historic buildings, incentivize retailers to come downtown, incentivize the restoration of street-facing storefronts and provide some Covid relief to downtown tenants.

The board unanimously approved a $3 million Historic Preservation Trust Fund Grant to redevelop downtown's Independent Life Building. The 18-story, 165,000-square-foot building at 233 W. Duval St. was constructed in 1955 for the Independent Life Insurance Company, a business that closed more than 25 years ago and was designated a local landmark by City Council in April.

St. Augustine-based Axis Income bought the building, which is vacant, for $3.7 million last fall. It is across the street from the Ambassador Hotel, which Axis also owns and plans to renovate into La Quinta Inn and Suites. Axis is also planning to develop apartments and a parking garage on an adjacent vacant lot.

Axis expects to spend $30 million to convert the Independent Life building into 140 units of luxury apartments with a first floor grocery store, rooftop pool and rooftop restaurant. The term sheet, which must still be approved by City Council, requires Axis to begin construction within six months of the agreement's approval.

Board members were enthusiastic about the development.

"It could be as important, maybe more important, than even the Barnett building that has been redone," said Ron Moody, referring to the $53 million rehab of the former Barnett Bank headquarters. "I'd like to get behind this."

The location was as important as the project scope to board member Oliver Barakat.

"Hopefully this will be a catalyst of more to come on the northern end of downtown, which probably at this point is the weakest link in the downtown area," said Barakat.

The board also approved a multimillion dollar incentive program to entice and support a variety of food and beverage retailers in the urban core's Elbow District and Laura Street/Hogan Street Corridor. The program offers tiered forgivable loans based on the size and retail type of applicants.

The board also awarded that program's first loan to Ruby Beach Brewing, which is relocating from Jacksonville Beach to a 116-year-old building downtown. DIA's loan will cover $75,000 of the project's $445,000 budget.

In Wednesday's meeting, the DIA amended a $950,000 grant program to support renovations of street-facing facades on historic buildings, changing the amount recipients can get from $10 per square foot to $30 per square foot. The grants are still capped at 75% of eligible costs, with a maximum payment of $75,000.

​Get the full story from the Jacksonville Business Journal.