JACKSONVILLE, Fla. — An unsigned agreement obtained by Action News Jax’s Ben Becker reveals a proposed partnership between two Jacksonville public agencies involving more than $30 million in publicly owned property and two former CEOs who have faced intense scrutiny.
The draft memorandum of understanding between the Jacksonville Transportation Authority and Jacksonville Housing Authority shows the names of former JTA CEO Nat Ford and former JHA CEO Cheron Corbett Waller.
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Under the proposal, JHA and JTA would have worked with private developers to build workforce housing and other transit-oriented development on four JTA-owned properties totaling more than 13 acres.
‘Non-starter’
The properties include two parcels at 1201 Kings Avenue, including the Homewood Suites by Hilton Jacksonville Downtown-Southbank, and the San Marco Skyway parking garage and adjacent parking lot valued at approximately $28.2 million. Also noted were properties on West 44th Street and LaVilla Center Drive worth another roughly $2.5 million.
The agreement would have given JHA two years to study the properties and potentially enter long-term ground leases lasting as long as 99 years.
But JHA was not in a position to enter the land development deal, according to its board chair.
“The optics are clearly not great, a non-starter for us,” JHA Board Chair Daniel Blanchard told Becker. “I encouraged her (Corbett Waller) to put the brakes on that.”
‘Subject matter expert’
The JHA proposal is now drawing new attention after the board fired Corbett Waller last week amid controversy over a compensation package she proposed. Corbett Waller was seeking the bonus as a self-proclaimed “subject matter expert.”
Corbett Waller was asking for 12 percent of certain developer fees received by the housing authority. Action News Jax reported one potential payout could have approached $1 million. And the deal for more development projects with JTA could have meant greater paydays for Corbett Waller.
“It showed where her focus was and our visions were not aligned,” Blanchard said.
Ford’s involvement
Ford was introduced in Dallas last week as the head of DART, the transportation agency there. That came after leaving JTA with a $39 million financial crisis that has led to layoffs and suspended and reduced services. JTA’s finances are now also subject to a Florida Attorney General criminal investigation.
The draft agreement between the two Jacksonville authorities includes Ford’s and Corbett Waller’s names. When asked about the status of the deal, JTA said it is “not aware of any role played in the development or negotiating the agreement by CEO Nat Ford.”
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But in another part of its response, JTA said the discussions “occurred several months ago between the former CEO and staff level only,” adding “a draft MOU was sent to the JTA for consideration and did not advance to a formal agreement.”
According to JTA, the city’s Office of General Counsel sent the MOU to JTA’s legal counsel for review on July 29. The authority said that review was never completed and staff had no further discussions with JHA about the agreement. Ford announced his resignation on July 3 and, at the time, planned to remain at JTA through January 2027.
JTA says deal is dead
JTA also said there were no conversations with private developers related to the proposed agreement although some of the properties identified in the agreement have separately been studied or marketed.
JTA said the property at LaVilla Center Drive, known as the Johnson Lot, was included in U2C and commuter rail transit-oriented development studies. The authority also said the Gateway property had previously been appraised.
The Johnson Lot and Kings Avenue Surface Lot are currently being marketed as ground lease opportunities, according to JTA.
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However, the authority said that marketing is separate from the proposed JHA agreement.
JTA told Action News Jax it “has no intention of pursuing this agreement or leasing any properties to JHA.”
Blanchard expressed a similar view, saying the financial problems facing both authorities make such a partnership especially difficult to justify now.
“It’s a terrible time for the housing authority and a terrible time for JTA,” Blanchard said. “So again, it’s a non-starter, highly unlikely anything would have gotten through the board if it was presented.”
How we got here
The latest questions come after three years of Action News Jax investigations into JHA, including financial red flags, no bid contracts, vendor payment problems, leadership turnover, criminal charges against the agency’s former deputy chief financial officer, and multiple investigations by Jacksonville’s Office of Inspector General.
JHA has also faced past disputes involving executive compensation. Former CEO Dwayne Alexander alleged he was “pushed out” by the Mayor’s Office after asking for a $100,000 raise. The board also pushed back over contract demands from CEO candidate George Guy.
What’s next
JTA said it will continue actively marketing some of the properties for potential long-term ground leases that it said are in the best interests of the authority and its customers.
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