Council hears tax abatement plan for Heer’s

The proposal would give developer Vaughn Prost of Heer’s Redevelopment Corp. a 25-year abatement on property taxes. During that time, Prost would make the equivalent payment to the city to pay for the construction of the adjoining parking deck.

In August, City Council approved Heer’s Tower’s redevelopment plan, which calls for 116,000 square feet of commercial space, for office, retail and restaurant uses, and about 32,000 square feet of condominium space.

At the meeting, City Contract Development Specialist Mike MacPherson said the plan, which originally called for all commercial use, needed to be changed because “the market has changed the scope of the project.”

The changes apparently have been successful; Michelle Cantrell of Carol Jones, Realtors, the exclusive leasing agent for the condominium spaces, announced in September that all 23 of the condo units have been reserved for purchase. The smallest of the units start at about $150,000.

Construction on the parking deck, which MacPherson called essential to the success of the redevelopment project, is expected to be complete by fall 2006.