Developer proposes all-suite hotel for Heer’s

Restoration St. Louis and McGowan|Walsh both favor a mixed-use concept that would convert the dilapidated seven-story building into condominiums, offices, restaurants, retail shops and a banquet hall.

Both plans call for converting the building’s mid-section into high-end residential units. McGowan|Walsh plans to sell its units while Restoration St. Louis would offer a mix of leased and for-sale units.

Also unveiled today was an alternate plan by McGowan|Walsh principal Kevin McGowan to replace the condos with an all-suite hotel, with a Mike Shannon’s Steak and Seafood Restaurant occupying the main floor. The hotel – possibly a Hilton Homewood Suites – would have about 70 rooms at a nightly rate of $140 to $150, McGowan said.

Regardless of whether Heer’s has lofts or a hotel, McGowan said his firm is seeking a commitment from the city to spruce up Park Central Square.

“It is the single most critical piece to our getting involved in the Heer’s development,” he said.

Amy and Amrit Gill with Restoration St. Louis are also looking beyond the Heer’s building. The Gills said they are prepared to purchase and renovate the Woodruff and McDaniel buildings on Park Central East as lofts if the city selects them to redevelop Heer’s.

“Heer’s is not big enough to support a really good management team, maintenance staff, leasing/sales staff,” Amy Gill said. “With just one building, we can’t give them the kind of service we want to give them. But with three buildings, we can give them the same level of service that we can give in St. Louis. That’s what turned the corner for us.”

The Gills also said today that they made a trip to Washington D.C. and received approval from the National Park Service for historic tax credit purposes.

Renovating the Heer’s, Woodruff and McDaniel buildings would cost between $20 million and $30 million, Amy Gill said. McGowan said his firm expects to spend about $25 million renovating Heer’s.

According to their written proposals, both firms have indicated that they could purchase Heer’s, acquire a construction loan and complete renovations by late 2008.

“I like that,” said Mary Lilly Smith, the city’s economic development director. “And I think the folks downtown will like it, too.”

The city hopes to choose one of the firms this spring, Smith said.

See SBJ’s March 26 issue for an in-depth look at the Heer’s redevelopment proposals.