Downtown developer seeks tax abatement

Plans for Wagoner’s property at Chestnut Expressway and National Avenue were presented to council at its Jan. 29 meeting. Wagoner’s Big Windows Redevelopment Corp. LLC will spend $9 million renovating two large buildings into 110,000 square feet of retail, loft and condominium space called The Lofts at Jordan Creek.

Wagoner is asking the city to declare the area blighted, allowing him to receive partial property tax abatement once it is redeveloped – 100 percent for 10 years, followed by 50 percent for the next 15 years.

Wagoner told council that it’s the first project for which he has used the Chapter 353 Redevelopment process. He estimates that even with the proposed abatement, taxing jurisdictions would receive about $669,000 during the next 25 years; in its current state, the city estimates the property would only generate about $94,000 during that period.

Council members seemed excited by the idea of redeveloping the vacant land, which Councilwoman Mary Collette called “the eastern gateway to the Jordan Valley area.”

Councilman Bob Jones told Wagoner: “I know that in our criteria, we don’t look at the track record of a particular developer. This is one where I see the quality of the projects you’ve done, and if there were a ranking, you’d be at the top.”

Council is expected to vote on the bill Feb. 12.

Jordan Valley TIF

Springfield is also trying to find a new use for some prime downtown real estate.

The Jordan Valley Tax Increment Financing Commission met Jan. 29 to discuss plans for 1.7 acres of vacant land on St. Louis Street between the Springfield Expo Center and the Jordan Valley Car Park.

The original plan for the property was a downtown arena, but that changed when developer John Q. Hammons instead put his backing behind Missouri State University’s new athletics arena. Construction of the on-campus JQH Arena began in December.

The TIF Commission considered three likely scenarios for the land, along with the projected assessed values and sales that each would generate:

• A hotel would be assessed at $2.8 million and generate $3.4 million in sales.

• A retail development comprising 20,000 square feet would be assessed at $864,000 and generate $4 million in sales.

• A four-story office development comprising 80,000 square feet would be assessed at $2.7 million and create $300,000 in sales.

Those property and sales figures are important, as the TIF district would capture 100 percent of the increase in property tax and 50 percent of the increase in sales-and-use tax for the development.

The next step is finding a developer; the city has issued requests for proposals, which are due back by Feb. 20. Development concepts do not have to fall into one of the suggested scenarios.

The commission will hear presentations from interested developers Feb. 26 and meet March 5 to choose a proposal to recommend to City Council.

Commercial Street liquor

Council approved, by a 7-1 vote, a change to the regulations regarding liquor licenses for the Commercial Street Historic District.

The new regulations remove the 200-foot distance requirement between two establishments with liquor licenses, and they reduce the distance to 100 feet between a drinking establishment and a church or school. The change in relation to churches and schools is in line with state regulations.

The Commercial Club, Urban Districts Alliance and the Hospitality Resource Panel all supported the change as part of the Commercial Street’s strategy to focus on live entertainment.

Prime Real Estate

City Council is looking at the three possible developments for the land between Springfield Expo Center and Jordan Valley Car Park in downtown Springfield.

Scenario 1: Office

Size: Four-story building, with 80,000 square feet (including minimal retail)

Cost: $9.6 million ($120 per square foot)

Assessed valuation: $2,764,800

Annual sales: $300,000

Scenario 2: Retail

Size: Single-story building, with 20,000 square feet

Cost: $3 million ($150 per square foot)

Assessed valuation: $864,000

Annual sales: $4 million

Scenario 3: Hotel

Size: Four-story hotel, with 120 rooms, 80,000 square feet

Cost: $9.6 million ($120 per square foot)

Assessed valuation: $2,765,000

Annual sales: $3.36 million ($28,000 per room)

Source: City of Springfield

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