Building the future at College and Market

A decision on the fate of new housing downtown will come later than expected.

Mayor Tom Carlson applied the brakes to the recommendation process at the July 14 City Council meeting when he referred review of three Market Avenue housing proposals to the Plans and Policies Committee. The move could delay a final decision until September; a decision was previously expected as early as Aug. 9.

However, the would-be developers Recess Properties LLC, Tillman Redevelopment LLC and Place Makers LLC are not disheartened by the delay.

"Obviously, we want to know sooner than later, so that we can get going," said Matthew Miller, developer with the Recess Properties team. "But in reality, this project doesn't get a green light unless the City Council says it's a go. I'd rather have them involved in the process from the beginning; that way they can make a (really) educated decision."

Scott Tillman of Tillman Redevelopment added, "I have no problem with them taking all the time they need. This is something that's going to be highly scrutinized by the public."

The proposals

The three development proposals were turned in June 30 in response to a request for proposal by the city of Springfield. The proposals are on display in Room 230 of the Busch Building.

Although the request for proposal identified specific city criteria, the diversity of the proposals pleases city planners.

"We wanted to set some guidelines and put some information out to get the thing started, but we didn't want to inhibit peoples' ideas," said Vern Morgan, senior planner. "We'd rather hear what the developers think is the best way to go."

City officials said the recommendation will be based on the developer's experience, financial capacity, project design and parking solution.

Plans & Policies committee chairman Conrad Griggs said there is no set timeline for a recommendation. No meetings were scheduled as of July 16, and Griggs said it would take at least two meetings; one for committee review and another to hear developer presentations. Meetings are open to the public.

Jordan Quarter

Developers on the Recess Properties team say they are responding directly to a city feasibility study that determined a need for a minimum of 300 new living units downtown. The study called for rentals between $400 and $700 per month. Recess Properties' plan brings 72 apartments, and an estimated 100 people to the area.

Recess Properties comprises Matthew Miller of DDEC.net, Jeff Schrag of the Daily Events and real estate broker/agent and developer Matt Miller.

Matthew Miller and Schrag are partners of another entity, Squire Properties LLC, which leases eight downtown loft apartments. Miller says there is a waiting list "a mile long".

In addition to the city study, Recess Properties based its plan on an informal survey of existing tenants and those inquiring about living space downtown. Miller said 320 participated. Results showed 98 percent were interested in living in a new apartment with an urban feel and 77 percent were willing to pay $400 to $800 per month.

People interested in downtown living "are more concerned about quality ... as opposed to size," and are willing to sacrifice square footage for aesthetics, Miller said.

"I don't think we would have understood that if we hadn't conducted this informal survey," he added.

Recess Properties would purchase the site at its appraised value. The city of Springfield has not had the property appraised.

The plan would dedicate one parking space per unit, and reconfigure the existing surface lots for a net gain of 60 parking spaces, according to the proposal. The proposal also states the city could share in its profits that exceed the baseline return of 10 percent on the original amount expended on the project.

The plan includes a second phase comprising condominium, retail, office and dining space, but that is contingent on construction of a parking garage on the land.

Market Place

The partners of architectural firm Pellham Phillips Hagerman, reinventing themselves as Place Makers LLC, are taking a different approach with their plan for 34 townhouses, bringing homeownership into the picture.

Place Makers LLC is made up of Jerry Hagerman, his son Bo, Larry Phillips, Jeffrey Wells and Chuck Foster.

"If apartment dwellers are going to stabilize downtown better than homeowners, then I think apartments are the right solution," Hagerman said. "We think we could do more in the downtown in terms of creating an urban infill with housing, with people who feel invested in the area."

The townhouses would range in price from $150,000 to $200,000, and target young professionals and empty nesters. However, Hagerman said rental is an option, and would be approximately $1,000 per month.

Although it strays from the city's criteria in terms of pricing, Hagerman and company believe the market can handle it.

"I think there is a big market for this kind of thing," said Bo Hagerman. "This is kind of what developments are doing across the nation. It's kind of a new trend."

The lower density of their housing proposal also will limit parking demands, they said. The townhomes would include first-floor parking for residents. By reconfiguring and improving existing parking, the plan would net an additional 25 public parking spaces.

Place Makers would pay the city about $150,000 for the land.

The plan calls for six phases, beginning Oct. 15 and ending in July 2005. It includes retail and office units, as well as five lofts.

Tillman Redevelopment

Downtown developer Scott Tillman's unnamed proposal answers the parking question with its own public parking garage.

"There is already a parking issue down there," said Tillman, who has 17 downtown redevelopment projects to his credit. "Building owners and businesses feel like there is inadequate parking there at certain times. I would hate to see (the city) put the cart before the horse."

"Let's do it in conjunction with the building."

The development is not named because "it's not meant to be something different. It's meant to fit in and be an extension of downtown," said Sam Freeman, Tillman's marketing consultant.

In keeping with the flow of downtown, Tillman proposes 19,350 square feet of storefront space with 52 residences above. The living units would rent at $325 to $650 a month, with a purchase option.

"This would allow somebody to open a small business on the first floor and live overhead," Freeman said, adding that he gets many calls from people seeking that kind of opportunity.

Added Tillman, "Downtowns are built on storefronts on the first level, not housing units."

Tillman Redevelopment would pay $100,000 for the city land. There is no financing plan for the garage, according to the proposal.