Heer's developer misses financing deadline

But don’t expect the project’s construction crew to stop working anytime soon.

Prost already has made headway in the reconstruction of the retail, residential and office development, and he said that he continues to move forward in securing financing – an estimated $32 million, according to Prost – and in renovating the building.

Prost said financing for the predevelopment and demolition phases of the project is in place, but construction financing, the final and largest phase, is still in the works.

“Our crews will continue to work there,” he said. “It’s taking a little longer than we all had hoped, but it is moving forward.”

So far, workers have nearly finished renovating the building’s exterior brick and have begun restoring its 1915 wooden windows and 1950s wood flooring, said John Stafford, construction project manager for Prost Development Builders LLC. The next major step, he said, will be to start work on the roof and begin mechanical, electrical and plumbing installation.

Other offers?

Meanwhile, the city is accepting inquiries from developers interested in taking on the project.

If Prost’s financing is not secured by June 17, Prost could lose exclusive development rights, according to a contract extension agreement approved by Springfield City Council Feb. 17.

As of April 19, no developers had come forward, said Mary Lilly Smith, economic development director for the city.

“In the past, people would say, ‘If anything happens to that project, I might be interested in talking with you,’ but we haven’t heard any inquiries recently,” she said.

The city plans to work with Prost as much as possible, Smith said, as his investment in the project has indicated his commitment, and the city has no doubts he will come through.

“He’s getting very close, and we feel good about his prospects for being able to get the financing together,” Smith said.

“But council acted to adopt the extension agreement, so we have to be mindful of the deadlines that they put in there.”

Prost’s deadline has been extended twice; in August, the city postponed the deadline until Feb. 17, and in February, the city moved the deadline to April 17.

Stafford said the financing has been delayed because project officials underestimated the time it would take to explain the details of the project to various loan institutions.

“It’s going forward; it’s just taking longer than the city or myself would have wanted,” Prost said. “We have a multimillion dollar investment that we’ve already made, so we’re fully committed to making it happen.”

About $5 million has been invested in the project so far, according to Stafford.

Prost said the core construction work requires $20 million in financing and an additional $12 million would cover interest, development fees, tenant improvements and other soft costs. He expects to nail down the final piece of financing by the end of May.

The development will feature 23 luxury condominiums – all of which are pre-leased – and restaurant, retail and office space.

Planned office tenants include the state of Missouri, the city of Springfield and the Missouri Department of Transportation. Prost purchased the building from Warren Davis in summer 2004.

College Station also lagging

Heer’s Tower is not the only downtown redevelopment project moving slower than expected.

The construction schedule for Scott Tillman’s College Station development adjacent to the Heer’s building is being revised as initial bids for the project’s car park came in higher than expected.

Desman Associates, designer of the parking garage, originally estimated the project would cost $8.5 million, but bids from Carson-Mitchell Inc., Walton Construction and Flintco Inc. all came in around $10.5 million, according to Smith. Flintco had the lowest bid.

City officials say rebuilding efforts in the Gulf Coast region and a strong demand for construction work in southwest Missouri accounted for the higher prices.

The car park will undergo a value engineering process, and new bids are expected to be solicited next month. Construction schedules will be based on acceptance of the new bids.

Smith said an estimated completion date won’t be set until the new bidding process is under way.