By Michele Leivas
The Laura Street Trio continues to face an uncertain future, following a foreclosure lawsuit filed by the city against developer and property owner Steve Atkins.
Filed Aug. 19, the lawsuit alleges the developer has allowed more than $800,000 in administrative fines for code violations to accrue since October 2015. In a statement, Atkins called the lawsuit “premature and ill-advised, let alone in bad faith.”
“Unfortunately, this is indicative of the way the DIA has acted for the last year and a half during our efforts towards the redevelopment of these most important historic properties and the revitalization of Downtown Jacksonville,” Atkins said. “I continue to hope we can find a positive path forward for this project.”
In its own statement, the City of Jacksonville said early negotiations are underway for the city to purchase the buildings and faulted Atkins for failing to maintain and preserve the historic buildings.
“The owner of the Laura Street Trio buildings has been obligated to maintain the buildings and not allow them to deteriorate,” the statement read. “By their own admission in public meetings, this has not happened, and we can no longer wait to preserve these historic buildings.”
Stalled negotiations
Prior to the filing of the lawsuit, Downtown Investment Authority CEO Lori Boyer had said the DIA would be willing to resume discussions with Atkins with his latest proposal, which included an infusion of an additional $15 million in equity, provided that he would be willing to move forward with a structure of “mini completion grants” paid out at various construction benchmarks.
“That was one of the sticking points that they found unacceptable,” Boyer said.
SouthEast Development Group lobbyist Jordan Ellsbury said in no uncertain terms, however, that working with the DIA was not an option Atkins would consider.
“I’m not going to ask him, nor will he, go back to the DIA for consideration, period,” Ellsbury said at the time.
At an Aug. 12 meeting for the Special Committee on the Future of Downtown, Atkins had floated the idea of the city buying the trio of historic buildings back from him and made his frustrations known.
“Everything that we’ve been asked to do, we’ve done,” Atkins said at that meeting. “Frankly, I’m getting to the point where I’m tired of dealing with the City of Jacksonville.”
Atkins said his legal team is reviewing the lawsuit, with further action to be taken soon.
