Hammons proposal in, Nustadia re-enters

Via hand delivery, John Q. Hammons Sept. 6 submitted a proposal for a $34 million multipurpose arena/exposition center to the city's Tax Abatement and Tax Increment Financing Commission. A $15 million baseball stadium, which Hammons announced plans for at an Aug. 29 press conference, was also included in the proposal.

Hammons' arena would contain 8,000 to 12,000 seats and approximately 40,000 square feet of exhibition space consistent with University Plaza and Jordan Valley Park , which would "complement the exhibition space available at the renovated existing trade center," according to his proposal.

The facility would be situated on the former Thompson Pontiac-Cadillac site. Hammons anticipated the baseball project would be operational by 2003 and the multipurpose arena would be operational in 2004.

The baseball stadium would be the home of a Double-A minor league baseball team and located on Trafficway east of Hammons Parkway, which would include the property occupied by Color-Graphic Printing Inc. at 925 E. Trafficway.

Parking for both facilities was also addressed in Hammons' proposal and involves 800 surface spaces on the property bordered on the north and south by Trafficway and St. Louis and on the east and west by Walgreens and the U.S. Courthouse, including the area now known as Hampton Avenue, which Hammons' proposal states would be vacated by the city.

The proposal also requests that:

the city construct a parking garage to accommodate approximately 1,200 vehicles on the site now occupied by what is known as the "Sears parking deck," next to the trade center, which Hammons owns and which the city would demolish;

the city construct surface parking of approximately 250 spaces at the recreational ice facility;

the city construct 120 surface parking spaces west of the ballpark;

all parking be city-owned and financed through TIF proceeds and parking revenue and be made available to guests and invitees of Hammons for the arena/exhibition center and baseball stadium events at the same charge that is made to all other users;

the city would agree to set parking rates for the parking garage and that during the first two years of operation, the rate shall not exceed $3 per vehicle.

Reduced-price, long-term parking rates would be available for monthly parking in both the parking garage and on the surface lots.

Hammons and the city would agree on the parking rates for the surface lots and stadium lots to ensure the rate does not deter attendance at the stadium.

The Center City Development Corporation would own both facilities, issue taxable bonds to finance their development and construction, and lease the facilities to the city.

Hammons, or an entity formed by him, would develop, construct, operate and maintain the facilities and would pay the city an amount after certain incentives to amortize the bonds, with the first payment being due six months after the facilities open.

Hammons' ability to back the bonds for the arena may give him an edge the arena's long-term financing was not addressed in the other developers' proposals.

The estimated cost of Hammons' arena is also on track with the city's consultant's idea of what a Springfield ice arena should cost.

The city in June commissioned Minnesota-based Ankeny Kell Architects to perform a comparison review of Horn Chen's and Tony Sansone Jr.'s Group Seven's proposals. In an Aug. 29 presentation to City Council, Tom Betti of Ankeny Kell estimated a multipurpose arena that would serve the city's needs would cost in the neighborhood of $35 million.

The management agreement between the city and Hammons would be for 30 years or a term equal to the term of the bonds, and would give Hammons the exclusive licensing rights to manage the facilities.

The agreement would permit Hammons to receive all revenues from the facilities in order to support the annual payment and to establish a revenue source to support the facilities' operations, maintenance and profits.

Phoenix, Ariz.-based Nustadia Developments USA Inc., which was removed from consideration as a developer for the Jordan Valley arena in June due to lack of information, faxed a letter Sept. 1 to Mary Lilly Smith, the city's economic development coordinator, asking that its $23.8 million proposal stand for consideration by the TIF Commission.

Smith said that the original June deadline for arena proposals was superseded by the city's decision to use tax increment financing for development in Jordan Valley Park.

The TIF application required a new request-for-proposal process, which is the reason the city is considering Hammons' and Nustadia's proposals, she said.

Nustadia's letter stated the company would be willing to work with Hammons on the arena project.

"... we would be pleased to work with the city and/or Mr. Hammons' alternate proposal to provide to the city of Springfield the various elements envisioned in the Jordan Valley Park project," John Akerly, senior vice president of Nustadia, wrote. "On the other hand, it may be in the city's interest to parcel out some of the projects for future competitive bidding."

Chip Sheppard, attorney for Chen, Sept. 1 faxed a letter to Smith stating Chen still wants his $17 million proposal considered by the TIF Commission. Ankeny Kell's review of Chen's and Sansone's proposals determined "significant concerns" with both proposals.

Sansone Sept. 6 faxed Smith a letter stating Group Seven has retained HOK Sports to assist the company in its review and in addressing all issues raised by Ankeny Kell.

"Although this process has been confusing and somewhat disconcerting, due to the time and effort put forth by our team, we remain interested," Sansone wrote.

"Over the three-year period we have been involved in this project, the countless hours we have expended and the substantial dollars invested have undoubtedly proven that we have complied with all requirements set forth in your RFP. If selected, we intend to address any and all concerns with the city, the TIF Commission and CCDC might have," Sansone added.

The TIF Commission will hold a public hearing on the Jordan Valley TIF plan and projects at 3 p.m. Sept. 21 in council chambers, 830 Boonville.