YOUR BUSINESS AUTHORITY
Springfield, MO
by Eric Olson
SBJ News Editor
eolson@sbj.net
Springfield City Council on Aug. 2 took the first steps to pave the way for the sale and pending redevelopment of Heer's downtown. Council approved two bills, one allowing for a Chapter 353 redevelopment designation and another solidifying the city's partnership with Springfield Office Building LLC and Prost Builders Inc. to renovate Heer's and construct an adjoining parking garage.
The latter bill included an amendment in which developer Vaughn Prost asked the city to assist in financing the acquisition and startup costs.
"We don't know the exact details of that," said City Attorney Howard Wright, "but we have been asked to pledge securities in the amount of $1.54 million."
Both bills passed unanimously, but not before Councilman John Wylie asked for assurance that the city be "adequately protected" in the bill's language. "Such as first mortgage holder, first lien holder something so that we are assured that we are going to be in a solid position when we are putting this much money of public payments into this."
Before the amendment passed, Mayor Tom Carlson explained that the bill would not commit the city to anything, only communicate a willingness to consider different proposals.
"Matters of this nature are by necessity frequently very complex," Carlson said. "Deals change and move as people negotiate."
Wright said Great Southern Bank is representing a consortium of local banks working to finance the approximately $20 million project. The city has committed $6 million to build the 540-space parking deck and $388,500 to acquire office space within Heer's.
City and state offices are the named tenants so far.
Prost did not address council.
Dental services transfer
Dental services expansion at Jordan Valley Community Health Center is leading city and county officials to consider transferring their own dental services there. City Council considered a bill that would move dental services for children, adults and jail patients from the Springfield-Greene County Health Department to the Jordan Valley Community Health Center.
Dentists at Jordan Valley Community Health Center can see more patients than can those at the Health Department and in a more efficient manner, said Bob Cumley, assistant city manager.
The health center is adding two dentists, five chairs, a dental hygienist and two assistants.
According to Springfield-Greene County Health Department Director Kevin Gipson, the health department sees six to eight patients a day due to space limitations and staff size; Jordan Valley Community Health Center dentists can see 15 to 25 patients per day.
The Health Department would pay $135,000 to the Jordan Valley Community Health Center to fund the additional costs.
"It makes perfect sense for us to ship those dollars," Gipson said.
The difference between the two entities is that the federally funded Jordan Valley Community Health Center recoups 100 percent of its costs, compared to 40 percent recouped by the Springfield-Greene County Health Department.
"We think this is a win-win situation for both entities," Cumley said.
Councilman Bob Jones said he is glad to see the city step in, but added that he has concerns with the health center's waiting list of more than 2,000 patients, most of which are children of families on Medicaid that private doctors won't see due to poor reimbursements.
"I'm really happy that we're doing this. However, this is not going to solve the problem," Jones said. "If we care about our children, we ought to put a lot into this."
Cumley said approving this agreement would be a step in the right direction. "It's going to make terrific headway," he said.
Council is scheduled to vote on the matter at its Aug. 16 meeting.
Railroad crossing study
Council also learned that nearly $800,000 of federal money is available to the city to study at-grade railroad crossing alterations for the city's most traveled crossings. A first reading bill proposes acceptance of a $795,280 Federal Railroad Administration grant for the studies.
Public Works Director Marc Thorns-berry said the grant would fund studies of the three most heavily used railroad crossings: on James River Freeway, Chestnut Expressway and Division Street. The freeway crossing, just west of the Highway 65 interchange, is considered the top priority in the state, Thornsberry said.
Attorney Dudley Martin asked that the study include Broadway Avenue's railroad crossing, which the city has proposed closing. Martin represented the Woodland Heights Neighborhood, whose residents oppose closing Broadway, he said.
"Let's do a little something for the north side," Martin said. "Let's include Broadway."
City Attorney Howard Wright said that wouldn't be likely. "Broadway is not included within the grant offer," Wright told council.
Carlson said the studies are the first steps in a long-term and expensive process to redesign those crossings. One project could cost as much as $100 million, he said.
"Once your study is done, you start getting in the pipeline and ranked for future (project) funds," he said. "I don't want anybody to think that just because we get the study that we're going to do the next step. It's not going to be possible ... without a long-term plan and a lot of help from the state and the federal governments."
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