Russell Meck, the property owner who last week secured contested Springfield City Council approval of plans for a four-story apartment complex with the help of tax abatements, says the Cherry Flats complex is on hold due to construction costs.
On Nov. 10, council members voted 5-2 in favor of granting Meck’s RKJ Properties LLC up to $385,000 in property tax abatements to reverse blighted conditions and develop the Cherry Flats apartments. The Rountree Neighborhood Association had opposed the plans, saying the student-focused apartments didn’t fit with the character of the historic neighborhood and the developer didn’t deserve the abatement because he had owned the run-down site for 10 years.
Now, Meck says the roughly $6 million project will be delayed for an unspecified amount of time.
“It looks like construction costs have risen almost 30 percent since the inception of this idea for a building. Therefore, I will not be doing the project at this time,” Meck said via email. “I’m sorry, but it looks like I wasted a lot of people’s time.”
In response to a Springfield Business Journal interview request, Meck declined to provide further details at this time.
Meck proposed the 24-unit student housing development – which could accommodate up to 96 residents – tied to a designation of blight that would allow him to receive 10 years of abatements on improvements.
Supporters of the plan said the abatement is consistent with the city’s economic development policies, which have helped spur development in downtown and center city in recent years.[[In-content Ad]]
