Downtown property developer Jason Murray wants to convert the former Springfield Tire Exchange at the northwest corner of West McDaniel Street and South Market Avenue into a mixed-use development, but his plans hinge on City Council’s actions to declare the area blighted and to approve a tax-abatement plan.
Murray’s proposal, which was recommended for approval by the Land Clearance Redevelopment Authority and city staff, would give him 100 percent tax abatement for 10 years on new improvements and a 50 percent tax abatement for years 11–25.
Murray’s attorney, Shawn Whitney of Husch Blackwell LLP, said the $3.3 million redevelopment project rests on the approval of the tax-abatement plan.
“It’s just not feasible without the abatement,” Whitney told council during the April 23 first reading.
He said a tax-impact analysis has been completed, and with Murray’s improvements, the 0.61-acre property, which is currently valued at $835,000 and is located across the street from College Station, would be worth $2.6 million.
“The margins are too narrow,” Whitney said, noting with the abatement, Murray could expect a 5 percent cash-on-cash return.
Murray owns 10 downtown properties that serve mostly residential tenants. Last June, he unveiled a roughly $1 million renovation of 11 loft apartments in the Artifacts Ltd. building at 520 W. Olive St. Murray also owns Stove Works Lofts, Park Central Lofts and Palace House Lofts through Palacio Properties LLC, according to
SpringfieldLoftApartments.com.
His plans for the former warehouse and automotive garage include constructing 23 second-floor loft apartments, and creating three retail spaces and a parking garage on the first level, Whitney said, noting the building, previously home to Keyes Gallery and Springfield Tire Exchange, is currently vacant.
Murray said he has been working on plans for the development for the last six months. He purchased the 39,000-square-foot building in January for an undisclosed amount from Robert Brower, whose family had owned the auto shop for 50 years.
“I’ve always loved that building,” Murray said. “Originally, it had a beautiful façade with the windows and the brick. We’ll have to get all that paint removed.”
Murray said if council approves the tax abatement, he would begin renovations in June. He said he plans to put his leasing offices inside one of the two office spaces and would leave one commercial space open, so that it could be built-to-suit. He said the entire project should be finished by June 2013.
Springfield Economic Development Director Mary Lilly Smith said the designation of blight is necessary for Murray to be eligible for tax abatement. She said a number of conditions such as water damage and outdated designs qualify the building for the blight designation. According to information submitted to council as part of the redevelopment plan, the building was constructed in 1899 and has suffered “a great deal of physical deterioration to its structure and components.”
The redevelopment plan is expected to receive a vote at the May 7 council meeting.
Ban amendments smolderEfforts to adopt a series of amendments to Springfield’s smoking ban in most publicly enclosed places stalled as two council members – Mayor Jim O’Neal and Councilman Thomas Bieker – did not attend the April 23 meeting. The city charter requires all active members to be present and cast unanimous votes in order for the voter-approved ban to be amended.
O’Neal has suggested council pass amendments to the ban ahead of the June 5 election where an initiative-petition led repeal of the ban would be considered by voters.
Based on discussions during an April 17 council luncheon, council had planned to vote on individual amendments before city staff generated a single amendment bill, or a “super amendment,” as City Manager Greg Burris referred to it.
A public hearing was held last week to get feedback from the community on the proposed amendments in the absence of O’Neal and Bieker.
The proposed amendments offered exemptions for electronic cigarettes, theatrical productions, tobacco shops, private clubs and bingo halls. Burris said he would try to arrange a meeting with the full council to establish the amendment bill before the next meeting May 7.
Five business owners spoke at last week’s meeting. George Cron, owner of theatrical production company A Class Act, said many productions have strict rules about how their copyrighted materials are to be presented to audiences. Older plays might have actors stomping out cigarettes as part of the story, and if actors are stomping out e-cigarettes and e-pipes, budgets would skyrocket, Cron said.
Steve Weimer, owner of Sunshine Lanes, Enterprise Park Lanes and Holiday Lanes bowling centers, said he doesn’t support exceptions to the ban because he thinks it gives certain businesses a competitive advantage.
“Other than e-cigarettes, none of the amendments make any health sense,” Weimer said, adding that exceptions to the rule have the effect of picking business winners and losers.
Burris said the public hearing would be held over to the May 7 meeting, and a vote on the super amendment bill could be held at that meeting or on May 21.
Dodson-Williams rezoningDodson-Williams Automotive Inc. has requested the city rezone an acre in the 500 block of West Walnut Street from a center city district to a commercial services district.
Representing Dodson-Williams owner Keith Neal, Les Schulz of Schulz Architecture told council Neal has plans to expand the property on the south side of the road, where it operates its offices and the main garage.
The $50,000 project would consolidate the paint shop across the street.
Director of Planning and Development Ralph Rognstad said the current zoning for 502, 518 and 520 W. Walnut St. does not allow for a conditional use permit for auto-body repair. A vote is expected at the May 7 meeting.
