UPDATED at 5:48 p.m. Thursday<\/p>\n
The deal to sell Duval Schools\u2019 headquarters building<\/a> to local developer Chase Properties has fallen through, putting a hold on the district\u2019s plan to buy a new headquarters building in Baymeadows.<\/p>\n Chase Properties CEO Mike Balanky tells Jacksonville Today that his company withdrew its offer after discovering undisclosed financial obligations that would have cost the company $6 million to $8 million.<\/p>\n The costs would have come through bond obligations tied to an adjacent community development district. Additional fees could have arisen for development rights controlled by the CDD\u2019s owner.<\/p>\n The deal\u2019s collapse comes three months after the School Board voted 4-3 to sell the building to Chase Properties for $17.2 million, after deciding against selling it<\/a> to retirement community developer Fleet Landing.<\/p>\n Chase planned to tear down the Duval Schools headquarters and build luxury condos and apartments on the riverfront site, as well as space for shops and restaurants.\u00a0<\/p>\n A Duval Schools spokesperson says \u201cno new timeline has been established for future proposals or decisions.\u201d The district\u2019s administrative offices will stay on Prudential Drive for the time being.<\/p>\n The CDD issue<\/p>\n Several years ago, Elements Development \u2014 backed by Preston Hollow Capital \u2014 created a community development district called The District<\/a> to help pay for a major revitalization project on the former site of JEA\u2019s Southside Generating Station.<\/p>\n The development became RiversEdge<\/a>, a mega project combining residences, retail and parks next to the Duval Schools headquarters.<\/p>\n CDDs are\u00a0essentially state-authorized microgovernments. Developers commonly use them to raise money to build infrastructure and amenities in large residential developments. They can issue bonds, then pass the cost on to future property owners, who see them as line-items on their property taxes.\u00a0<\/p>\n The District CDD has raised more than $35 million that way<\/a>.<\/p>\n Part of Duval Schools\u2019 headquarters property \u2014\u00a01.73 acres \u2014\u00a0is a parking lot along the river and east of the building itself.\u00a0<\/p>\n Almost a decade ago, board members agreed to swap some of the school district\u2019s land with Elements Development. According to School Board meeting minutes<\/a>, they finalized the land swap in June 2018.<\/p>\n