Last updated 3:33 p.m. April 12.The Springfield Public Schools Board of Education has agreed this week to a third contract extension with Larino Properties LLC for the development company’s $2.5 million payment toward the purchase of the former Hickory Hills school. The latest extension requires the developer to pay the district monthly, nonrefundable cash payments above the purchase price, board members decided in an April 10 executive session.
Larino was scheduled to remit $2.5 million to the district April 13, according to SPS communiuty relations officials.
The Springfield school board agreed to give a five-month extension on the condition that developer Paul Larino pay a $12,500 per month premium until the lump-sum payment is made, according to an SPS news release.
Previously, Larino’s monthly cash payments were applied to the $4.45 million purchase price.
“We understand this is an extremely complex project and the developer continues to work toward meeting the contract requirements,” school board President Tom Prater said in the release, which noted Larino’s development plan for Hickory Hills Marketplace requires more than $8 million in public infrastructure and involves the city of Springfield, Greene County and Missouri Department of Transportation. “It has been a long and frustrating process, but we have a fiduciary obligation to protect the district’s interests.”
A recent state audit was critical of the district’s handling of the sale, pointing out the district had only received $97,500 roughly a year after agreeing to the sale.
Board officials cited the development plan’s heavy reliance on financing from a Neighborhood Improvement District, for which Greene County has not yet issued bonds. The release said the county has added several steps to the financing process.
“It appears the county is being much more stringent in its requirement for this NID than previous ones it has approved,” Prater added in the release. “This has caused numerous delays in the developer fulfilling his commitment to us.”
Another delay is demolition of the building, which the developer is required to complete. The city has not yet granted Larino a demolition permit, the release said.
Despite the project’s complications, Prater said the school board is committed to seeing it through because of construction work, jobs, and property and sales taxes it would bring to the area.
“The risk of not proceeding is that the property will remain in its undeveloped state, and unsold, for the foreseeable future,” Prater said.
The released noted project milestones such as:
- City Council’s approval of a Community Improvement District;
- creation of an intergovernmental cooperative agreement to define the responsibilities for the developer and each of the governmental agencies involved;
- the receipt of bids for water detention, storm and sanitary sewer, water and gas, and building demolition work; and
- the signing of anchor tenant Menard’s home improvement store.
