Submitted by Suanne Z. Thamm
Reporter – News Analyst
May 28, 2014 1:00 a.m.
Those looking to see quick and dramatic change to Fernandina Beach’s Front Street vistas will need to wait a bit longer. Front Street Property, LLC, the new owner of what locals know as the Tringali property (.64 acres zoned Waterfront Multiple Use at 105 N. Front Street) and the Standard Marine property (2.07 acres zoned Commercial-3 overlay at 101 N. 2nd Street), is currently focusing on cleaning up the properties, which have languished following 6 years of legal issues involving both bankruptcy and foreclosure. There are no plans for any development.
Background
In 2004, the Lane Company, an Atlanta-based development company, purchased the two properties and began working with the city of Fernandina Beach and the local community on future use plans. Between 2005 and 2008, Lane invested approximately $1.5M in community charettes, planners and designers focused on transforming the Standard Marine property into multiple residential and commercial uses. Both the city’s Historic District Council and the Technical Review Committee approved their plans. But profitability of the plan hinged on the Fernandina Beach City Commission’s (FBCC) approval of density changes from one unit per platted lot of record to two. When asked to support the change, the Commission voted 3-2 in opposition. Commissioners Joe Gerrity, Bill Leeper and Ron Sapp opposed the measure; Commissioners Bruce Malcolm and Ken Walker supported it.
The FBCC’s failure to approve the measure coincided with the national recession and the burst of the Florida real estate bubble. With the changes in the real estate market, George Lane, Lane’s CEO who had personally guaranteed the loan, was left holding a $7.65M loan for property that had significantly decreased in value. Lane stopped making interest payments on the loan in 2008 and ultimately declared bankruptcy in 2012.
In June 2013, the court approved foreclosure on the property, which was taken over a month later by Synovus Bank out of Alpharetta, GA, the largest creditor. Synovus approached Tony Quattrochi of JDM Real Estate Services, LLC, to serve as their sole broker and local consultant for a six-month period. During that period Quattrochi showed the property to 26 serious and qualified potential buyers from as far away as Beijing, China. He also obtained current property appraisals that valued the Tringali property (including submerged lands) at $750K and the Standard Marine property (including the primary and secondary buildings) at $2.375M.
Independent of any action by an outside party, the FBCC in 2011 approved Land Development Code changes in this area, commonly known as the Amelia Riverfront CRA (Community Redevelopment Area), which allow for an increase potentially from one to three residential units per platted lot of record. There are 34 platted lots of record included in the Standard Marine parcel and two partial lots in the Tringali property.
Current ownership
The new owner of Front Street Property LLC on Front St., Alachua St., Broome St. and North 2nd St. also owns and has owned the Goodsell Nassau LLC property on Front Street, Alachua Street, and North 2nd Street for over 10 years. During the time of Dick Goodsell’s ownership there have been numerous changes in the commission, the city manager and the office of mayor. There has been no consistent or strong leadership, in Goodsell’s opinion. With the Commissioners “on again, off again” approach to Front Street improvements and infrastructure along with the extremely time consuming and expensive permitting process Goodsell believes that it has become prohibitive to attracting any new development. (Click here for previous article, “Does the City of Fernandina Beach really want waterfront development? “So, from Goodsell’s perspective, “Development of these properties will have to wait until the City’s attitude and actions are conducive and sustainable to induce the high risk of development.”
Until then Mr. Goodsell has a lot of parking spaces available for rent.
Editor’s Note: Suanne Z. Thamm is a native of Chautauqua County, NY, who moved to Fernandina Beach from Alexandria,VA, in 1994. As a long time city resident and city watcher, she provides interesting insight into the many issues that impact our city. We are grateful for Suanne’s many contributions to the Fernandina Observer.
With the slow, but continued, improvement in the economy I would hope that Dick would approach the City Manager with what his expectations would be in terms of “assistance” from the City to see that development takes place. He already has approval for his North 2nd Street development so what will it take to start the development. His holdings are such that with the City’s help he can make a major step in the redevelopment of the waterfront and northern downtown area.