Council approves tax abatement plan for The Q Place

Springfield City Council last night approved a redevelopment plan in a long-blighted area near Missouri State University.

Council voted 8-1 in support of a plan for a student housing project at the corner of Bear Boulevard and Holland Avenue, with Councilman Craig Hosmer – who has been vocal about what he sees as an over-dependence on tax abatements by local developers – casting the lone vote against the development.

Miller Commerce LLC is preparing to tear down existing apartments on the intersection's southwest corner to redevelop the space into a new student-housing concept dubbed The Q Place. The apartments are across the street from Hammons Student Center parking and a block away from JQH Arena.

The multimillion-dollar project calls for 29 apartments comprising 116 bedroom units for lease.

Matt E. Miller, founder of Miller Commerce, said in a phone interview this morning he is pleased the plans can move forward with the support of the abatement.

“We’ve seen these abatements work downtown during the past 10 years, turning the area into the economic engine that it is today,” Miller said.  

Miller has had a hand in developing $100 million in projects, and has previously secured Chapter 99 abatements with student-focused apartments Deep Elm, The Jefferson and The Monroe. The Q Place plans call for 10 years of property tax abatement on new improvements, which is possible in blighted areas under Chapter 99 of state statutes.

Springfield Economic Development Director Mary Lilly Smith said the value of the abatement is $397,383 across the 10-year period. However, she said the taxing jurisdictions would continue to receive taxes on the property based on its assessed value prior to redevelopment.

At the Jan. 27 council meeting, Hosmer reiterated his previously expressed desire to have a council committee review and update its policies regarding tax abatements. Though a meeting on the subject had been planned for Dec. 20, it had to be rescheduled to Feb. 14, Smith said. Hosmer has gone on record saying he believes city approves abatements far too frequently.

“I’ve been on council since April, and it seems like we’ve had one or two abatements every meeting,” he said at the Jan. 27 meeting.

At last night’s meeting, no council members spoke to the redevelopment plans before they voted.

Husch Blackwell attorney Shawn Whitney, who represented the developer at the Jan. 27 public hearing, said this morning he was satisfied with the 8-1 vote.

“It’s always good when there is substantial support like that. Council has been very supportive of our projects,” Whitney said. “You can’t please everybody, but we don’t need to please everybody.”

Miller said construction should begin in late summer after existing tenants vacate. Construction is expected to be complete in seven to nine months, he said.