City to issue BKD building bonds

The bond issue under Chapter 100 of the Missouri Revised Statutes means that the city will actually own the property in the parking lot of University Plaza. Developer Opus Northwest will buy the bonds and lease the space in the planned four-story, 100,000-square-foot office building, allowing the city to abate 100 percent of the property tax on the land improvements for the first 10 years and 50 percent for the next 15 years. The 50 percent abatement will increase to 75 percent if the project achieves Leadership in Energy and Environmental Design Silver certification.

Even with the abatements, the property is estimated to generate $2.2 million in payments in lieu of taxes over 25 years with LEED Silver certification and $4.4 million without the certification. If the property were not developed, it would generate only $37,000 in property taxes during the same period, according to city officials.

The bond issue is the last major agreement needed to begin construction, according to David Harrison, general manager of Opus’ Kansas City office. He said construction on the facility should begin within the next 60 to 75 days and be complete by the end of third-quarter 2009.

“There’s still just a couple of little final approvals that we need, but I think we’re first and 10 on the 1-yard line right now,” he said.

See SBJ’s Aug. 4 issue for more on Springfield City Council.