Jacksonville, FL — JEA is now in final negotiations with Ryan Companies over construction of a new headquarters, and they're looking to fund the project without touching your rate.
A proposal from Ryan Companies for a new HQ and parking garage on West Adams Street, by the County Courthouse, was selected as the best of three bids by the JEA Board this week. The other two proposals were for Lot J by TIAA Bank Field and Kings Avenue Station on the Southbank.
Board Chair Alan Howard sat with WOKV to talk about the decision. He says the strength of the development team is one of the factors that stood out to him.
"Ryan Companies had far more experience in building headquarters on a build-to-suit basis than the other bidders. You look at the manner in which they conducted themselves during the negotiation, their responsiveness, obviously the financial bid, and across all of those criteria, we found that Ryan Companies outperformed the other two bidders," he says.
The move is still at least two years out, but Howard says it's needed for many reasons. Chief among those- the current HQ is too large for what they need, and because of its age and upkeep there are major systems problems, which are costly to repair and maintain. Building a new tower that's smaller, more energy efficient, and includes new systems will create a lot of cost savings, according to Howard, even if JEA will now face annual lease payments.
“You can’t really say that this is a $9 million a year new outlay, because you need to take in to account the savings moving from the old headquarters to the new headquarters,” he says.
The anticipated cost of leasing and operating the new building over the 15-year lease is $9.3 million annually, according to JEA's analysis. In the scheme of things, considering the projected savings and JEA's budget, Howard says he's not concerned about taking on this project.
“This cost really doesn’t move the needle, and certainly will have no impact on our customers’ rates,” he says.
GALLERY: Ryan Companies plan for JEA headquarters on West Adams Street
One area where this proposal scored lower than both other bids was in projected economic development. Ryan Companies spoke strongly about believing the building should stay in the civic core of Downtown, but Howard says- for him- the location was a “happy coincidence”, and he doesn’t think JEA’s role is to be an engine for economic development.
“Our job at JEA in regard to site selection for our new headquarters was really to find the ideal location for our customers and for our employees. And I think that this location meets both of those criteria,” he says.
So with the final negotiations underway, Howard says he’s excited and relieved to see where this project is going.
“I think that this is something that we will be able to look back on in years to come and say JEA made the right decision here. Not only for its customers and employees, but for the city of Jacksonville,” he says.
Ryan Companies has 90 days from the vote this week to secure the land from the City and execute a final lease with JEA. That lease will then be brought back to the Board for final approval.
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