Development tools benefit community

Simmons backed it up with research: From July 2003–August 2004, more than $103 million was invested downtown by private developers and public entities. That figure approaches the $130 million invested downtown during the previous four-plus years.

While the vast majority is private money, the city contributed more than $6 million in streetscape, storm-water and sewer improvements.

That’s just one example of the city of Springfield’s proactive approach to development. Public-private partnerships existed in Springfield long before 1980.

Since 1800s

“It’s nothing new for our community,” said City Manager Tom Finnie, adding that in the 1800s the local community financially partnered with Overland Stagecoach adding Springfield to its route.

Then in the 1920s or 1930s, the community partnered with the federal government to acquire land for the Springfield Federal Medical Center. And Finnie said the 1950s and 1960s era “is full of examples,” bringing manufacturing businesses such as Kraft, 3M and Zenith to town. “There was a conscious decision to make Springfield the third-largest city in the state,” Finnie said.

The use of and tools available for these partnerships gradually grew, namely by the advent of federal Community Development Block Grants, until accelerating in the 1990s.

On came Partnership Industrial Center – a collaboration of the city, City Utilities, Springfield Area Chamber of Commerce, Springfield Business and Development Corporation and businesses that buy in – and small business development and façade loans offered by the city and backed by CDBGs.

Now, public-private partnerships are spreading, led by individual developers downtown. There’s the Mansfield Opera House, Founders Park Lofts, Seville Lofts, 400 Place and Heer’s Tower – all cogs in revitalization. Jordan Valley Park as a whole is billed as a public-private partnership, hinging on private dollars to complement the city’s ice park, parking garage and outdoor park projects.

Residential partnerships

There are also residential partnership programs now available. Through its Community Development Corp., UMB Bank has been a frontrunner since coordinating with the city and Urban Neighborhoods Alliance in 2002 to offer below-market rates in five center city neighborhoods. The programs – for home improvement, rehab construction and employer-assisted housing – have helped to revitalize neighborhoods, much like the effect commercial developers have had downtown.

To date, UMB had issued 17 low-cost home improvement loans worth more than $160,000, financed $574,000 to 10 contractors for home purchases and renovations, and originated 10 loans totaling $60,000 to city of Springfield employees for down-payment assistance or home-repair funds.

UMB is getting recognized for these efforts. It is a finalist for Springfield Business Journal’s 2005 Economic Impact Awards in the innovator category.

Great Southern Bank has since launched its own CDC, and financial institutions are getting into real estate development and becoming equity partners in nontraditional projects.

CDCs can help a developer or nonprofit share the risk on a hard-to-finance project.

The Community Foundation of the Ozarks’ new building is the first Great Southern CDC project. However, the project is on hold after its collapse just two months into construction. Contractors and engineers are still sorting out the details before proceeding.

Great Southern officials have said they do not intend to compete with the private sector, rather work as another option to developing the community.

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