Heer’s developer misses financing deadline

Prost already has made headway in the reconstruction of the retail, residential and office development and, according to a city news release, has indicated that he continues to move forward in securing financing – an estimated $20 million.

Prost retains the option to develop the project if he completes the financing before the city considers proposals from other developers. However, Prost could lose exclusive development rights if financing is not secured by June 17, according to a contract extension agreement approved by Springfield City Council on Feb. 17.

City Manager Tom Finnie could not be reached for comment but said in the release that the city intends to work with Prost as much as possible.

“Mr. Prost already has made a significant investment in site work for the project, and we will keep working with him if he continues to move ahead with his financing,” he said.

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

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

Prost said he expects to nail down the final piece of financing within six weeks.

The Heer’s project features 23 luxury condominiums – all 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.

Meanwhile, the construction schedule for the 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. 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.