Springfield City Council last night unanimously approved a term sheet identifying preliminary incentives for the Heer’s redevelopment after it amended a key term in favor of increasing police presence on Park Central Square.
As part of the terms proposed by developers – Heer’s Luxury Living LLC, which 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 – in coordination with city economic development staff, the Heer's would provide a roughly 900- to 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 terms. The space was offered as part of a plan to clear a $100,986 city lien on the property for costs it incurred covering the open windows at the Heer’s under the building’s previous owner.
Dalmark had proposed $40,000 cash and 10 years free rent for Springfield police to pay off the charges, but Councilman Doug Burlison successfully moved to amend the proposal to increase the free rent to 15 years. Council member 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.
Springfield Economic Development Director Mary Lilly Smith introduced council to the term sheet, which includes several monetary incentives for the redevelopment project. She said the terms were designed to shape of 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, adding that 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 parking spaces reserved for the building 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. The improvements are estimated to be worth nearly $250,000, according to Smith.
Dalmark CEO Jim Nichols said the developers would look at the whole package of terms and make needed adjustments, but would find a way to allow the police space at the downtown building for 15 years.
“What we will do is take these thoughts, go back to the table, we’ll propose a few alternatives and we’ll get to the spot where the 15 years is there,” Nichols told council at the meeting.
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 would be larger luxury apartments with higher rent costs. On the seventh floor, apartment units are planned to include two-story lofts with roof-top 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.
Laura Head, a board member with the Downtown Springfield Community Improvement District, was one of four public speakers not associated with the project to throw her support behind the plans. No members of the public spoke against the plans. She pointed to public and private investments on and off the square as a sign of increasing interest in downtown that would be advanced by the Heer’s redevelopment.
“I feel like the Heer’s building is that final piece that we’ve all been wishing and hoping for,” said Head, who also serves as marketing director for English Management LLC.
Heer’s Luxury Living is the fourth development group to propose redevelopment for the former department store since 1995.[[In-content Ad]]
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