60/65 mixed-use project gains traction

The backers of a planned 600-acre mixed-use development near the junction of U.S. highways 60 and 65 haven't yet landed a major retail developer, but four handpicked local companies already have signed on to build the project's housing and ministorage elements.

Commercial real estate broker Rob Murray III said the companies - Miller-O'Reilly Co., Foster Hospitality Group Inc., Doran Communities LLC and ICP Inc. - have signed letters of intent for the multidimensional project. Murray represents the landowners, known collectively as 60/65 Partnership LLC, a group that includes Rogersville businessman Larry Childress, Killian Group of Cos. owner Bill Killian and Robert Hawkins.

While the commitments from local players illustrate the development's early momentum, the project hinges on a joint-venture partner capable of supplying more than 500,000 square feet of retail space, said Murray, who was pleasantly surprised when multiple developers began inquiring after Springfield City Council rezoned the property in late July.

"The interest level is well beyond my expectations, based on the current financial markets," said Murray, vice president of R.B. Murray Co.

"We do not have an agreement signed, but we have a lot of activity. The developers all like the demographics and the location," added Murray.

With a prominent, deep-pocketed developer on board, an estimated $64 million in necessary infrastructure improvements, including highway access, would largely be covered, Murray said. Certain developers also have long-standing relationships with popular big-box retailers needed to anchor the shopping center, he added. Costco and Dick's Sporting Goods are among the many prospects being explored.

"Even in a market as slow as we're dealing with, I think there is pent-up demand for a couple of large retailers that would like to be in Springfield, and they've never had a site ... that made sense," Murray said.

The area boasts an average household income of $76,972 within five miles, according to R.B. Murray Co. Marketing materials also estimate the development's total construction cost to be $400 million.

The Springfield-based companies recruited for the development's residential and ministorage components have proved much easier to snag; all four were the partnership's first choices.

"I think they're all very experienced and have a great track record of developing in Springfield," Murray said. "And they recognize that this location is strategic to growth in our market."

Miller-O'Reilly Co., owned by Matt Miller and Pat O'Reilly, has committed to build up to 250 "green" multifamily units similar to those at Eko Park Apartments, a 114-unit complex under way at 1744 W. Catalpa St. Eko Park's environmentally friendly features include high-efficiency mechanical systems, renewable construction materials, water-conserving showerheads and motion-sensor lighting.

The outermost ring of the development's residential component will encompass as many as 300 single-family homes constructed by Doran Communities, which developed upscale subdivisions Emerald Park, Emerald Pointe, Kingsbury Forest and Stanford Forest in southeast Springfield. While details about the homes planned for the development aren't yet known, owner John Doran said he was flattered by the overture.

"It's a dynamic project with a bunch of well-known, really successful people; how could you even think about saying no to the deal?" Doran said. "I took that as the ultimate compliment from those guys."

Foster Hospitality Group has secured the first right to develop the project's senior housing component, and owner Bill Foster said his vision for the property includes a campus comprising upscale independent living apartments as well as an assisted living facility. The property is zoned for up to 200 senior housing units, and Foster said he views the proximity to a major commercial center as a plus.

"Even though we're in senior housing, seniors like to be right on the cutting edge - many of them do," he said.

Foster pointed to two of his company's senior housing communities - Culpepper Place at Chesterfield Village and Culpepper Place at Branson Meadows - as good examples of what's on the drawing board for the 60-65 development.

Murray said construction of the three housing projects and a 100,000-square-foot ministorage facility are perhaps three years out, provided a joint-venture partner commits within the next year. Without that piece of the puzzle, the project's partners likely would pursue federal stimulus money to pay for all or a portion of needed transportation and infrastructure improvements, he added.

Regardless of who's leading the project, Murray said special taxing districts would be needed to ensure the development's success.

Tax increment financing, community improvement and transportation development districts capture a portion of local property and sales taxes to offset development costs in designated areas.

Murray said a Web site seeking communitywide input on the project -- including its name and a list of most-desired retailers and restaurants - should be up and running later this month. The site also will seek suggestions for 200 acres of green space and provide details about the development as they become available, he said.

"It should be an example for other communities," Murray said.