BKD headquarters agreement gets green light

On Monday night, Springfield City Council approved the development agreement between Hammons and Opus Northwest, as well as BKD and the city.

Under its terms, Hammons has agreed to sell part of the University Plaza parking lot at St. Louis Street and John Q. Hammons Parkway to Opus, which will build a stand-alone facility to house BKD’s new headquarters. BKD currently leases space across the street in Hammons Tower.

Hammons also has agreed to pay $7 million for the Jordan Valley Car Park, as well as the vacant site between the car park and the Expo Center, on St. Louis Street. BKD will lease space in the parking deck when its new office is finished.

The biggest difference between the development’s term sheet that was approved in October 2007 and the finalized agreement is the timetable. The deadline for the property’s sale has been pushed back from July 31 to Oct. 31, and the deadline for commencement of construction has moved from Sept. 30 to Dec. 31. Opus is still required to complete construction within 16 months of the start date.

City Economic Development Director Mary Lilly Smith said the delay in finalizing the agreement was due to parking agreement details that had to be worked out.

Also included in the agreement is 100 percent incremental property tax abatement for the first 10 years, followed by 50 percent abatement for the next 15 years. If Opus builds the new facility to Leadership in Energy and Environmental Design Silver standards, the developer will receive an additional 25 percent abatement.

Mayor Tom Carlson said that while it is good to question any potential tax abatement, the overall value of the deal far outweighs any potential loss of tax revenue.

“What we’re going to do is wipe out the debt we have on the car park and sell the land,” he said. “In the end, the question is whether you think the price you’re getting is fair for what you have to sell. I think we’re all in unanimous agreement that this whole deal means a lot to the community.”

After a unanimous vote to approve the agreement, Carlson spoke for many of the city staff with his closing statement to developer Opus: “Now, just go build the darn thing.”

See SBJ’s July 7 issue for more Springfield City Council news.