Jacksonville’s Laura Street Trio Set for New Ownership Amidst Redevelopment Challenges

Jacksonville’s Historic Laura Street Trio Set for Ownership Change

Jacksonville, FL – Live Oak Contracting is stepping into the spotlight as the new owner of the Laura Street Trio, a group of historic buildings that has faced years of stalled redevelopment attempts. The proposed transfer of ownership is expected to finalize by the end of December 2023, following a decade of unsuccessful deals involving the current owner, SouthEast Development Group.

The Deal

Last month, negotiations between the city and SouthEast ended abruptly when the city filed a foreclosure lawsuit against the company. The city deemed SouthEast’s proposal, which requested $97 million in financial assistance from taxpayers, as financially unviable. The developer, Steve Atkins, had hoped to revive the buildings by bringing in new financial support from Paul Bertozzi, founder and CEO of Live Oak Contracting. However, this partnership has taken an unexpected turn, as Bertozzi is now leading the efforts to purchase the property outright.

City’s Involvement

The City Council has shown willingness to cooperate by discussing the possibility of removing the $800,000 in liens currently placed on the properties. Bertozzi expressed optimism at a recent meeting, highlighting the urgency of finalizing the purchase before Christmas to avoid further complications with lenders during the holiday season.

The Opposition

Despite the Council’s enthusiasm, the mayor’s administration remains opposed to changing the legal status concerning the liens. Mike Weinstein, the Chief of Staff, stated, “We would be opposed to any element of activity that would change the lawsuit that’s been filed. We want our $800,000.” This tension signals possible obstacles in reaching a swift resolution.

Next Steps

Council members are currently weighing options. Council Member Michael Boylan suggested a temporary arrangement that would place the outstanding liens in limbo to circumvent a potential veto from the mayor. This strategy aims to ease the negotiations and facilitate Bertozzi’s ambitions for the property.

Special committee chair Kevin Carrico has drafted legislation to try to expedite the removal of the liens and intends to introduce it as an emergency bill. However, outcomes depend heavily on ongoing discussions among Council members, the administration, and Bertozzi.

Historical Context

The Laura Street Trio has seen its share of challenges. Earlier this year, a heated negotiation for a $175 million redevelopment plan fell through due to concerns over city funding guarantees that were deemed unconstitutional by city attorneys. Subsequent revision attempts by SouthEast raised the total costs even higher, ultimately failing to meet city expectations for viable funding.

After years of negotiations and failed proposals, the city sought to re-establish control of the situation, leading to the recent foreclosure application. With new leadership in the frame, stakeholders are hoping the redevelopment of the Trio can now move forward more smoothly.

A Glimmer of Hope

The potential for a successful resolution has sparked a renewed sense of enthusiasm among Council members. “I’m very happy that Steve’s going to be out of here,” noted Council Member Jimmy Peluso, indicating a collective relief at the prospect of a more reliable developer taking charge.

As discussions continue over the coming days, the future of the historic Laura Street Trio hangs in the balance—teetering between the goal of restoration and the complexities of local governance. City officials, stakeholders, and residents alike will be watching closely as this critical chapter in Jacksonville’s redevelopment story unfolds.