Finley River development financing almost in place

The last hurdle before work can begin is a vote by the Ozark Board of Aldermen scheduled for Feb. 19. That vote would give final approval to the last developer agreement between Bo Hagerman’s Finley River Development LLC and the city.

The plan to redevelop 47 acres of blighted property between downtown Ozark and the Finley River will begin with Phase I, Part I: the $4 million redevelopment of the intersection of Third and Church streets, commonly called “the church block” because of the historic church building located there.

Plans for the first project include 12,000 square feet of retail space and about 20 lofts, according to Bo Hagerman of Hagerman New Urbanism, which is also the architect for the project. The retail development will be anchored by S.E. Mulligan’s, an Irish pub-style steakhouse developed inside the former church by Frank Lorenz.

“That’s why we started on that block – it’s going to be a really cool destination restaurant, and it seems like a nice place to kick off that project,” said Hagerman, noting that a groundbreaking could be held as early as March, though no official date is set.

Any forward movement is welcome for the project Hagerman called “wrought with delays.”

Ozark approved tax increment financing and community improvement districts for the development area, but Hagerman said the project hit a delay in late 2007 when he tried to sell anticipation bonds that would be repaid with future TIF and CID monies.

Investors rejected the purchase of bonds for a project yet to be built, he said. Hagerman and the city went to financial Plan B: the Ozark Board of Aldermen on Feb. 4 approved a plan to obtain a $1.1 million bridge loan to finance the infrastructure that would have been funded by the TIF and CID bonds.

“The plan was to say, ‘I’d like you to buy these bonds based on the financial report that I’ve generated, which shows that what I’m going to build will generate ‘X’ amount of dollars to pay you back,’” Ozark City Administrator Steve Childers said. “In this bond market, buddy, that ain’t good enough. That forced us to refocus and go down another avenue.”

The bond trouble is not the projects’ first setback for the project; the city had to convince the public to support the decision to redevelop the area ever since it declared the district blighted and requested developer proposals in 2005. Some residents in the district initially opposed the project.

Despite the setbacks, Childers said the Finley River project is ready to proceed.

“We’re putting the final touches on the financial agreement, and we’re going to get this sucker going,” he said.[[In-content Ad]]