JACKSONVILLE, Fla. — City of Jacksonville attorneys this week asked a Duval County circuit judge to order a foreclosure sale on the Laura Street Trio, the historic buildings in the heart of downtown that have been the center of city debate for years.
Attorneys argue in the lawsuit that the developer failed to address code compliance issues with the property, resulting in a lien of more than $800,000. The proceeds of the sale would go toward paying the fines.
The Times-Union has requested comment from the city of Jacksonville and SouthEast Development Group, the owner of the buildings since 2013, but did not receive an immediate response.
The city did not announce the lawsuit, but it is the latest escalation in debate with the development group and owner, Steve Atkins. The Downtown Investment Authority board of directors voted in June to cease negotiations for an incentive package with SouthEast Development Group until it could put more equity into the project or bring in a financing partner.
A City Council special committee has since picked up the project to decide a path forward.
The city alleges in the foreclosure suit that the buildings have not been brought into compliance with safety and maintenance code since 2015, growing the fines by $250 per day. It was not immediately apparent which parts of the code were violated.
The suit was filed against Laura Trio, a limited liability company with SouthEast Development as its sole managing member, according to state records.
The legal maneuvering against Atkins echoes a similar strategy City Hall took against the former owner of the then-vacant historic Bostwick Building in 2014. In that case, the city successfully convinced a judge to order a foreclosure sale based upon the accumulation of thousands of dollars owed in code violations. That building reopened years later as the Cowford Chophouse.