Large downtown buildings near sale, redevelopment

Much-needed makeovers are in the works for the former Heer's building, downtown's premier vacant space on Park Central Square, and the underutilized Bay-Wilhoit building that comprises an entire block on Pershing Street.

Both buildings are under contract for sale: Heer's to Prost Builders Inc. and Bay-Wilhoit to Recess Properties LLC.

And the new owners are ready to start spending: Heer's is a $20 million redevelopment project, while Bay-Wilhoit could command up to $10 million, according to the buildings' prospective buyers.

Heer's Tower

After nearly a decade in waiting, Heer's redevelopment could be put on the fast track under a public/private partnership, City Council members and media learned at council's July 13 luncheon. Springfield Economic Development Director Mary Lilly Smith announced the city's intent to acquire an unused parking lot west of Heer's to construct an estimated $6.5 million, 540-space multilevel parking garage. Among the proposals, city officials would acquire Heer's 30,000-square-foot lower level for $388,500, a portion of which would house a Missouri Department of Transportation management center, and lease to Prost Builders 300 parking spaces for Heer's tenants. Also, Prost Builders would lease to the city 5,000 square feet on the first floor for TV23 studios and editing rooms.

"The city feels like it is very important for us to assist in redeveloping downtown properties by seeding those leases," Smith said.

The city would pitch in nearly $7 million to jump-start the project and back tax incentives, such as a 25-year property tax abatement of the Heer's property and self-taxing districts within the redeveloped and renamed Heer's Tower.

City participation and incentives are helping Jefferson City developer Vaughn Prost complete a deal with Springfield businessman Warren Davis, Heer's owner since 1995. Davis and his team had a couple redevelopment plans over the years, but none materialized.

Prost said the project would not be feasible without the city's contributions, and federal and state historic tax credits, the project would not be feasible, Prost said.

"This is a major investment downtown," Prost said. "If we didn't have the historic state tax credits, I would not be standing here today."

Prost plans to target restaurants and retailers for first-floor and mezzanine space, while Class A office space would be developed on other floors.

CJR Commercial Realtors Larry Grover and Skip Liebman are searching for tenants. Grover said he doesn't think added sales taxes built into the redevelopment plan will scare off would-be tenants.

"We think this is where people will want to be," Grover said.

These plans require City Council approval, beginning with a first reading of the development agreement at the July 19 meeting. Council also will be asked to refer plans to acquire the parking lot and construct the parking garage to Springfield Planning & Zoning Commission, and consider the 25-year property tax freeze under what's called a Chapter 353 redevelopment plan.

Additional city funds could be used for infill and infrastructure costs such as elevators and HVAC. Those costs wouldn't be identified until the final design stage.

Prost said the deal would close if City Council approves the plans. The tentative closing date is set for mid-August.

If all goes as planned, Heer's could reopen in early 2006, Prost said.

Bay-Wilhoit purchase

At 100,000 square feet, the Bay-Wilhoit building on Pershing, between Jefferson and Robberson, is one of the biggest single structures downtown. Yet, it is almost dwarfed in hype compared to the 150,000-square-foot Heer's.

Recess Properties principal Matt Miller understands that, but sees a clear position for the building his firm has under contract.

"I think the Heer's is a very important piece of the redevelopment downtown. That's a marquee building," Miller said. "I think that the development of the (Bay-Wilhoit) building is a great compliment.

"We've got a unique opportunity there to drive up and park at your office. The Heer's has a marquee value in being in the Heer's building. I think that we'll appeal to two different types of tenants and users."

Miller expects the deal to close around the first of the year. He would not disclose the purchase price, citing confidentiality agreements.

Recess Properties, comprising Miller, Jeff Schrag and Matthew Miller, is redeveloping the Mulhollan building at North Jefferson and Main, and has completed renovations to the McDaniel School House at 237 S. Florence.

Bay-Wilhoit's redevelopment into multiuse space could take between $5 million and $10 million, Miller said.

"We would like restaurants, office, living, retail all right in there," he said. "It is big enough for it."

Miller said Bay-Wilhoit's prospective tenants "are in the market for something downtown within walking distance to all the restaurants, but with parking at the door."

Downtown condos

Another deal in the works may produce downtown's first opportunity to own condominium or commercial space.

Downtown developer Craig Wagoner has the Finkbiner building at Main and Olive under contract with the intent to develop residential condos and first-floor commercial space. Wagoner said he plans to sell the redeveloped units.

"I think it will be neat where you could have an individual buy a loft or office space," Wagoner said.

He's looking to close in fall or early 2005. The Finkbiner building, 513 W. Olive, is at the gateway of Jordan Valley Park's West Meadow, the planned parks and recreational area west of Main Street.

Wagoner is wrapping up the new Seville Hotel on East Walnut, where 15 lofts ranging from $600 to $1,200 per month will be available for rent in the fall. One of three ground level tenants has opened. Emack & Bolio's began serving its ice cream specialties and lunches June 28.

Gailey's Breakfast Cafe and Hawthorne Gallery, an art gallery, is slated for later openings.

While city officials had tabbed the vacant Seville an instrumental development, Wagoner said it's simply part of the mix.

"It's just one of many things that are making downtown happen right now," he said. "It was a big eyesore before. It will help complete (Walnut Street)."[[In-content Ad]]