City Council members want the developers of the former Heer’s building to know they feel security downtown is a big issue and could be a critical consideration in their quest for incentives.
Springfield City Council on June 17 unanimously approved a term sheet identifying preliminary incentives for the Heer’s redevelopment but only after it amended a key term in favor of increasing police presence on Park Central Square.
Under the proposal by developer Heer’s Luxury Living LLC and in coordination with city economic development staff, the Heer’s would provide a nearly 1,000-square-foot office to the Springfield Police Department.
The department, which would occupy a visible storefront on Olive Street, would have the space free of charge for 10 years, according to the original proposal. The space was offered as part of a plan to clear a $100,986 city lien on the property for costs it incurred boarding up the property plus interest for the building’s previous owner.
The new ownership group, Heer’s Luxury Living, is co-owned by Jim Nichols of Lee’s Summit-based Dalmark Development Group and Ernie Straub of Shawnee, Kan.-based general contractor Straub Construction. Dalmark had proposed $40,000 cash and 10 years free rent for Springfield Police to pay off the lien, but Councilman Doug Burlison successfully moved to amend the proposal to increase the free rent to 15 years. Council members voted 5-3 in favor of the amendment.
“The purpose of this is not to make things difficult. Hopefully, [it] is just to secure a higher presence of security for both the city downtown and for the Heer’s building,” Burlison said.
The term sheet with the city includes several monetary incentives for the $15.7 million project. Springfield Economic Development Director Mary Lilly Smith said the terms were designed to shape a more formal incentives package, which would come before council in a couple of months.
“It’s a road map. When you adopt the term sheet, you are essentially telling me to go back and negotiate using these parameters,” Smith told council, noting the additional five years of free space has a value and would likely impact the incentives in other areas.
The council-approved term sheet outlines a 25-year tax abatement plan with 100 percent of the property value abated for 15 years and 50 percent tax abatement for years 16–25. It includes a $750,000 loan from the city’s small-business development loan program for the installation of windows and doors, a $142,000 brownfields revolving loan for environmental cleanup and 80 reserved parking spaces for $20 per month apiece in the city-owned parking garage immediately west of the property.
The term sheet also calls for a 10-year, no-cost lease on storage space in the basement of the building for equipment used for events at Park Central Square. In addition, the developers agree to improve lighting in the breezeway between Heer’s and the state of Missouri office building to the east and on Patton Alley to the west of the building. Smith said the improvements are estimated at nearly $250,000.
Dalmark CEO Jim Nichols said the developers would look at the whole package of terms and make needed adjustments, but they would find a way to allow the police space at the downtown building for 15 years.
“We’ll get to the spot where the 15 years is there,” Nichols told council members.
Heer’s Luxury Living plans to convert the eight-story building into 87 market-rate apartments, with up to 14,000 square feet of ground-floor commercial space. The mezzanine and second floor would feature smaller rental apartments, while floors three through seven are designed as luxury apartments with higher rent. On the seventh floor, apartment units are planned to include two-story lofts with rooftop patios.
Nichols, and his son Zac Nichols, who also addressed council about the plans, said apartment management staff would offer on-site concierge services. Other amenities include a third-floor clubhouse with a pool, a fitness center and basement parking for residents.
Commercial real estate broker Tom Rankin, who is working to establish a $9.6 million tax increment financing district in west Springfield for his $78.5 million retail and office complex dubbed Springfield Plaza, was one of four public speakers not associated with the project to support the plans. Rankin said he considered the developers’ requests a reasonable plan.
“Heer’s has been on the table for the city for a long time. If it was easy, it would be done by now, but it’s not. These are very tough projects to put together,” Rankin told council.
Heer’s Luxury Living is the fourth development group to propose redevelopment for the former department store since 1995.
Retirement plansSt. Louis-based Lutheran Senior Services is asking council to approve a planned development for a $40 million retirement community on 34 acres in south Springfield.
Mark Schoedel, the company’s vice president of construction and information technology, said a sale of the property – west of Kansas Expressway and south of Walnut Lawn Street – was contingent upon council approving the plans.
After the meeting, Schoedel said the wooded and sloping property would require considerable site work and, even with council approval, construction work could last into 2017.
In all, the plan calls for 380 units across more than 15 buildings. Schoedel said the first phase would comprise 100 independent living units, 80 skilled-care units and 40 assisted-living units.
“The actual number of residents that would be living on-site will probably be (more than) 400 because we will probably have many couples living in our independent living areas,” Schoedel said.
Noting the retirement community likely would employ 150, he said Lutheran Senior Services operates nine continuing care retirement communities across Missouri and Illinois, with the nearest being in Jefferson City.
No members of the public opposed the plans during the hearing. Council is scheduled to vote on the proposal July 1.
Lutheran Senior Services plans to build a retirement community on 34 acres between Kansas Expressway and Cox Road south of Walnut Lawn Street.
