Developer questions city’s speedy push to demolish Berkman II
The cavernous hulk of the abandoned Berkman II project on the Northbank could be imploded soon, but it’s not clear if it will be done by the city or the development company that wants to build a multi-use project on the site.
Jacksonville Riverfront Revitalization LLC is in the final stages of purchasing the site at 500 East Bay St., which has been vacant for 13 years. A construction worker was killed, and 21 others were injured when the parking garage collapsed during construction on Dec. 6, 2007.
Choate Construction, the general contractor, received a lien on the property and a $10.2 million judgment to settle a lawsuit over the accident. It later bought the property in a foreclosure sale.
In 2019, 500 E. Bay LLC, bought the property with plans to complete the construction with a 340-room hotel and family entertainment center and water park. The company was a partnership between Ohde Construction of Wisconsin and Barrington Development of Mississippi.
But a few months later, the company withdrew those plans. The company cited concerns about contamination at the adjacent Shipyards and the Navy’s decision not to give the USS Adams to the Jacksonville Historic Naval Ship Association, which wants to create a floating naval museum. The nonprofit has since procured the USS Orleck and is moving ahead with its plans for the attraction.
The city condemned the building in January 2020 and again in August 2020, sending notice a second time to the 500 East Bay LLC’s new address, giving it 30 days to correct problems that include trash, graffiti, safety issues and incomplete construction.
Wanting to control the implosion, Jacksonville Riverfront Revitalization LLC has challenged the demolition order in court.
Park Beeler of Jacksonville Riverfront Revitalization (JRR) said he is puzzled by the city’s push to demolish the building when it knows that JRR is in the process of buying the property and plans to demolish it at its own expense, which he estimates at $1 million.
“Why should the city spend money to demolish it? They’ll put a lien on the building, which would be more than it would cost us to demolish it,” he said.
The city says it is pursuing due process on the demolition but will not demolish the property provided the property owner continues to take steps toward demolition on their own.
Beeler is no stranger to imploding buildings. In 1978, he was involved in the demolition of the old Mayflower Hotel, which was the first building in Jacksonville to be imploded.
“It came down very nicely,” Beeler said. “But Berkman will be easier because it’s just concrete and steel.”
Beeler said the implosion can be engineered so that it falls away from the adjacent Berkman I and Bay Street.
Beeler said JRR is in the due diligence phase of the sale and hopes to close on the property before the end of the year. The company has already applied for a demolition permit.
Berkman II is adjacent to Berkman Plaza, a 22-story condominium with 15 riverfront townhomes. Berkman Plaza, which opened in 2003, is undergoing a facelift to repair its stucco façade. The project is expected to take about a year.
JRR hopes to start construction on it $50 million multi-use project, designed by KBJ Architects, next year.
The first phase of the project would be a low-rise building with retail and commercial space on the first floor with luxury townhomes with private garages on the second floor. Condos or apartments could be built above the townhomes. The pool and other amenities would be on the roof.
The second phase would be a high-rise hotel or apartments or combination.
Beeler said an important piece of the project is the public space along the river that includes the Northbank Riverwalk and an expansion of the Berkman Plaza Marina.
The green space would be adjacent to the Shipyards property and could form a natural link along the river all the way to Metropolitan Park.
Beeler said he and his partners expressed interest in buying the heavily contaminated Shipyards in 2004, cleaning it up and redeveloping it. But the city gave the project to LandMar Group. However, its parent company filed for bankruptcy.
More recently Jaguars owner Shad Khan’s company Iguana Investments planned to build a convention center and a hotel on the site, which is adjacent to Lot J, where Khan plans a multi-use development.
But the development agreement with the city has expired, though Khan says he’s still interested in developing the Shipyards.
By Lilla Ross
Resident community News
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