Jacksonville builders seek extension of mobility fee moratorium

[dougskiles]

I haven't spoken to a single council member who is in favor of a bill going through as an emergency measure.  They all feel that anything proposed would need to go through the committee process.  So we are looking at 2 to 3 weeks of hearings.

The moratorium ends on Friday, October 19, 2012.  That means on Monday, October 22, 2012, any application submitted for a Mobility Fee calculation will be subject to payment of the fee.

There will be NO extension of the current moratorium.  Any bill that is filed would be for a NEW moratorium.

Those who want to advocate for the Mobility Plan and the Fee, should continue to communicate with their council members.  However, remember that there is also a danger of becoming background noise.  It is better to have a few meaningful conversations than to shotgun them with daily blasts.

If anyone feels inclined to speak at the October 23rd City Council meeting, by all means do so (I would never suggest that anyone not exercise their civil liberties).  I believe a strong message was sent at the last meeting and plan to attend this next one just in case there is discussion (although highly unlikely).  However, I don't plan on speaking at the meeting if nothing is filed.

If a bill is filed, there will be plenty of opportunity to speak.

[Ocklawaha]

I planning to check in too Doug, I'll bring the tar if you can bring the feathers!

[dougskiles]

For the record, I have no intention of tarring or feathering anyone...  I may bore them with endless facts and figures until they wish they were being tarred and feathered.

[Tacachale]

Doug, you're giving Ron Chamblin some serious competition for who I want to be when I grow up.

[thelakelander]

Jacksonville's moratorium on mobility fees for new construction ends Friday

Jacksonville’s one-year freeze on collecting “mobility fees” will expire Friday, ending a moratorium that has waived about $3.3 million in transportation fees for all kinds of new construction.
Some developers want the city to extend the moratorium, arguing the ability to waive the fee has been a make-or-break proposition for breaking ground on projects.
“It’s jobs, jobs, jobs, jobs, jobs, jobs,” said shopping center developer Toney Sleiman. “They need to get their heads out of the sand.”
But a host of neighborhood groups turned out at the Oct. 9 City Council meeting and urged the city to let the moratorium “die a peaceful death” in the words of one speaker. They said the city can use the money for needed transportation projects, the fees don’t halt projects that have a market demand, and the fees encourage development in existing neighborhoods.

full article: http://jacksonville.com/news/metro/2012-10-18/story/jacksonvilles-moratorium-mobility-fees-new-construction-ends-friday

[thelakelander]

But Trey Spivey, real estate manager of RaceTrac Petroleum, said moratoriums on development fees make a difference in tipping the scales for construction of new convenience stores in different parts of Florida.

“We’re really focused a lot of our resources on jurisdictions where we could get the most bang for our buck,” he said.

What RaceTrac typically puts up is exactly the type of development that needs to be discouraged from their current configuration.  The point of the mobility fee and plan is to encourage development patterns that decrease automobile trips, and thus, decrease the amount of subsidies the city pays in expanding and maintaining the infrastructure needed to support it.  They should take a page out of 7-Eleven's book with the design of the State & Main station.

[dougskiles]

The great irony of seeing Racetrac quoted is that they pulled one building permit during the moratorium period.  And it was a project that didn't require a fee waiver, because it wouldn't have required a mobility fee.  It was a redevelopment of an existing site on Beach Boulevard.

So while we are expected to believe that fee moratoriums are encouraging new development, we are not seeing the evidence.

[simms3]

But Trey Spivey, real estate manager of RaceTrac Petroleum, said moratoriums on development fees make a difference in tipping the scales for construction of new convenience stores in different parts of Florida.

“We’re really focused a lot of our resources on jurisdictions where we could get the most bang for our buck,” he said.

What RaceTrac typically puts up is exactly the type of development that needs to be discouraged from their current configuration.  The point of the mobility fee and plan is to encourage development patterns that decrease automobile trips, and thus, decrease the amount of subsidies the city pays in expanding and maintaining the infrastructure needed to support it.  They should take a page out of 7-Eleven's book with the design of the State & Main station.

Ha I know a little bit about RaceTrac real estate myself.  Here is how their whole site selection works:

1) Is it one of our markets? (Jacksonville recently is, but Tampa is their big FL market...I don't think they like doing new markets and last I heard they were only focused on their current markets)

2) Finger in the wind - does the site feel right?

- Is there a high capacity road
- Is there ongoing development or at least massive entitlements in place for new development
- What are traffic patterns and projected traffic volume once the new developments kick off
- Is there a preferred corner available that fits these patterns, and can it fit a 20 pump station with multiple ingress/egress points and a large convenience store
- Is it a mostly greenfield area (as opposed to infill)
- What's the current competition and what are future gas station barriers to entry


No fancy proformas, just the ability to target future growth and thus future demand and capture market share early before their big competitors (QuickTrips, Kangaroo, etc) arrive on the scene.  It's a big who cares if in-place fees discourage future RaceTracs from being built since the whole business model is to serve fast-growth sprawl.  The two go hand in hand, so if there is not going to be any more fast-growth sprawl, then there likely won't be any more RaceTracs.

Let's hope Jacksonville city leaders are keen on attracting developers (and companies with real estate arms) who are trying to meet in-place demand and serve markets that already warrant them or where they see potential to "improve" an existing submarket with a development.  Let's not worry about the major homebuilders, the RaceTracs, the Semblers of the shopping center world, etc who are all targeting easy, cheap markets where they can come in and stand ready for when the sprawl brawl starts.  Great if they come even with fees, not great if they are the only ones coming to town because the in-place core market sucks and the only potential is in the future with new periphery communities.

[simms3]

Here is an example of a developer Jax should try to attract with in-place dynamics and fundamentals if the firm ever raises another opportunity fund (as opposed to cowtowing to keep the sprawl-dependent firms around like Sleiman, RaceTrac, Pulte, Richmond American Homes, etc).

Came across my email just then:

Jamestown's New Colony: 799 Market

We'll see you at Bisnow's Multifamily Summit. Our all-star panel will break down current trends, capital markets and investment activity, and the effect of new requirements in sustainability and innovation on development. Tues, October 30 at the St. Regis.

Jamestown continues to settle the West Coast, with the Atlanta-based investment and management firm’s latest acquisition: 799 Market St. The Class-A creative office and retail building contains 143k SF at the intersection of Union Square and SoMA.
 


COO Michael Phillips tells us the company is looking to expand its Bay Area portfolio. (It also owns the neighboring 22 Fourth St and 801 Market buildings, as well as a 594k SF shopping center in Alameda.) He says Jamestown focuses on 24-hour gateway cities with barriers to entry, and “always places location first.” Case in point, 799 Market is located at one of the city’s most heavily trafficked pedestrian intersections. Michael says the building’s retail component will benefit long term from the continued strengthening of the Union Square district “and its movement southwards toward Market Street.” (Though seismically bolting the foundation may help stop some of that movement.)



The building’s office and retail space together is 89% leased. The 55k SF of retail, comprising three floors plus the basement, is fully leased to Ross Dress For Less. The flagship store, one of the highest performers in the chain, has seven years left on its lease with extension options available. The building has five office floors, of which the top level is vacant. Michael says planned lobby upgrades will both reflect and attract the types of creative tenants that are prevalent in San Francisco. “We also plan to add bicycle access.” The building boasts creative office features such as high ceilings and open floor plans with large windows on three sides. The Powell Street BART/Muni Station is adjacent.



Michael’s so fast with texting, his hands have become permanently blurred. Jamestown bought the building from a partnership between Urban Realty and Commonfund. The seller was repped by Eastdil, which also helped Jamestown secure financing. According to Michael, creative office buildings are nothing new for Jamestown, as evidenced by its investments in New York’s Chelsea Market and 111 Eighth Ave (the Google building). “Open and dynamic work environments” will remain an office sector trend for years to come.

Fees and taxes come with the territory of investing in the safest and most secure markets in the country.  Jamestown and other top tier developers that operate nationally and run with stellar reputations are not concerned whether fees will mean less subdivisions to feed their newest Safeway center or suburban "lifestyle center".  The fees and taxes are totally worth it if they can profit and make a return for investors based on their own ability and current demand, not dependent on future growth alone.  It's for this reason JT's top markets are NYC, SF, DC and Boston, all of which are the most expensive markets to do business in and invest in.

[Charles Hunter]

I sincerely hope that enough council members favor letting a potential reinstatement of the Moratorium go through the normal process (about 6 weeks).  I believe it takes one-third to stop and emergency bill - is that 6 of the 19?  But there's nothing to stop a member from introducing such a bill as an emergency next Tuesday night.  And, given the herd mentality and developer-love among the council, it could easily happen next Tuesday.  After the first public comment period, possibly without comment against the moratorium; and by the time the 2nd comment period  comes around, it will be too late.
Yes, I am cynical about this Council.

[Debbie Thompson]

That does make sense in a way, Charles.  Doug says it won't happen, but I'm not quite so trusting. But then, I'm older than he is and maybe more cynical.  In keeping with Doug's idea, maybe as many of us as possible show up on Tuesday.  We fill out speaker cards saying we are for the mobility fee and against any waiver of it, but say we don't need to speak.  That way, we make our point, and the cards will be read aloud, without dragging out the meeting.  My vote would be that Doug speak for us, since he has done so much research on it, make all our points, and then have him ask for a show of hands for how many in the room agree with him and are here to support the mobility fee, and against any extension of the moratorium.

What do you guys think?  Doug, want to be the mouthpiece? 

[spuwho]

But Trey Spivey, real estate manager of RaceTrac Petroleum, said moratoriums on development fees make a difference in tipping the scales for construction of new convenience stores in different parts of Florida.

“We’re really focused a lot of our resources on jurisdictions where we could get the most bang for our buck,” he said.

What RaceTrac typically puts up is exactly the type of development that needs to be discouraged from their current configuration.  The point of the mobility fee and plan is to encourage development patterns that decrease automobile trips, and thus, decrease the amount of subsidies the city pays in expanding and maintaining the infrastructure needed to support it.  They should take a page out of 7-Eleven's book with the design of the State & Main station.

The reconstruction of the RaceTrac at Atlantic and the Hart Bridge Expwy (across from Episcopal) was actually well done with dark red brick and more modern looking pump stations. They have a Hess on the other side that still looks like Hess circa 1983. That area around St Nicholas is definitely a urban infill space.  So it appears they can use some thought in station design.

On the Mobility Fee, I have seen more political end runs in my time, so there is no telling what might "appear" on the docket at CC. Our Congress even voted once to extend a day so that their legislation passed on the correct date and didn't expire. It was the first time in several million years an official day lasted 27.5 hours.

[dougskiles]

That does make sense in a way, Charles.  Doug says it won't happen, but I'm not quite so trusting. But then, I'm older than he is and maybe more cynical.  In keeping with Doug's idea, maybe as many of us as possible show up on Tuesday.  We fill out speaker cards saying we are for the mobility fee and against any waiver of it, but say we don't need to speak.  That way, we make our point, and the cards will be read aloud, without dragging out the meeting.  My vote would be that Doug speak for us, since he has done so much research on it, make all our points, and then have him ask for a show of hands for how many in the room agree with him and are here to support the mobility fee, and against any extension of the moratorium.

What do you guys think?  Doug, want to be the mouthpiece?

I will certainly be there.  And will have a speaker's card filled out and ready to turn in if a bill is filed from the floor.  However, I really don't think that someone is going to try for an emergency, much less do I believe the City Council would vote to consider it as an emergency.  I trust that the City Council President will make sure we have an opportunity to express our view.

When the lobbyist for the homebuilders is still on the fence about a moratorium, it tells me that there is really only one person behind the attempt for another one.

[thelakelander]

But Trey Spivey, real estate manager of RaceTrac Petroleum, said moratoriums on development fees make a difference in tipping the scales for construction of new convenience stores in different parts of Florida.

“We’re really focused a lot of our resources on jurisdictions where we could get the most bang for our buck,” he said.

What RaceTrac typically puts up is exactly the type of development that needs to be discouraged from their current configuration.  The point of the mobility fee and plan is to encourage development patterns that decrease automobile trips, and thus, decrease the amount of subsidies the city pays in expanding and maintaining the infrastructure needed to support it.  They should take a page out of 7-Eleven's book with the design of the State & Main station.

The reconstruction of the RaceTrac at Atlantic and the Hart Bridge Expwy (across from Episcopal) was actually well done with dark red brick and more modern looking pump stations. They have a Hess on the other side that still looks like Hess circa 1983. That area around St Nicholas is definitely a urban infill space.  So it appears they can use some thought in station design.

The mobility fee deals with mobility, so using red brick and more modern looking pump stations would not be a factor in reducing the fee.  I'm not sure when that site opened (I think it opened before the moratorium started), but it's fee would have been lower than building new on a site that had never been developed.  Under the mobility fee program, it would have received credits for reuse of an existing gas station site and for nearby existing density. 


http://www.rochestersubway.com/topics/2009/05/gas_station_urban_design_challenge/

If the building were placed up against the street edge and a bus stop or bike facility included, instead of a gas apron, they would have been eligible for the full percentage of bike/ped/transit credits as well.

[Bill Hoff]

I met a woman from OKC last night involved in grassroots politics and civic advocacy. The topic of our 2030 Mobility Plan cane up, and she was very impressed by it. She plans to research it and introduce an equivalent to local leaders in OKC.

Her house is pictured in MJ's recent OKC pictorial too, by happy accident. : )