Landing deal reached, proceeds to fund city projects

» August 3,2006 - Jacksonville, FL

A three-way agreement has been reached to settle several outstanding issues related to The Jacksonville Landing, a downtown shopping center and entertainment venue.

The deal between the city of Jacksonville, The Jacksonville Landing Inc. and Kuhn Development Cos. will allow development to continue on the mixed-use River Watch at City Centre project across Water Street and settle an unfulfilled development agreement by Humana Inc. The agreements are subject to approval by the Jacksonville Economic Development Commission and the Jacksonville City Council.

"I am delighted that we were able to resolve these issues and move forward with this important step in the transformation of our urban core," Mayor John Peyton said. "These projects will continue to invigorate Downtown."

The agreed-upon projects include: River Watch, a new mixed-use development; the creation of additional parking for The Jacksonville Landing; the sale of a surface parking lot located immediately east of the Landing to JLI for future mixed-use development; and the resolution of outstanding issues related to Humana's unmet commitment to provide parking across Water Street.

Officials say Landing patrons will benefit from the resolution of the long-standing parking issue and that the East Lot sale to JLI will allow the site to be utilized for a mixed-use development more compatible with Downtown plans than projects contemplated earlier.

Kuhn Cos. will address the parking needs by assuming Humana's obligations. The new parking facilities will connect Kuhn Development's River Watch project and the Landing.

Beginning construction in the fall 2006, River Watch will offer 1 million square feet of mixed-use development overlooking the St. Johns River and will include more than 260 residential and hotel units, retail and structured parking. The city's $3.5 million obligation to Kuhn Development for the parking solution is reserved in the city's budget as a result of the previous deal with Humana.

In addition to the development projects, the proceeds associated with the agreements will provide funding for aspects of Peyton's downtown improvement plan. Specifically, Peyton proposes to use $4.7 million generated from the East Lot sale to JLI for Main Street Bridge improvements, pedestrian links and ramp modifications.; $2.6 million from the Humana Settlement Agreement to reroute utilities for Kuhn's River Watch project ($500,000), hardscape improvements to support the mayor's greening initiative ($600,000), a study regarding and improvements made to the Friendship Fountain ($600,000) and to replenish the Countywide Economic Development Trust Fund that was recently used to close a major economic project for the city ($858,000). As part of the settlement with Humana, a parcel of land contributed to Humana by the city in the original Development Agreement will also be returned to the City.

The JEDC will meet Aug. 10 to discuss the agreements.

About Kuhn Companies

Customer service is truly important to us and we strive daily to make sure each building and every space is perfect for our tenants and their guests. Kuhn Management has been adding to the development of Orlando for the last twelve years by purchasing old, rundown properties and turning them into unique buildings with distinct personalities.

Our goal is to create spaces that allow our tenants to be successful by creating an atmosphere that allows them to focus on their businesses without worrying about the buildings.