The owner of the long-vacant Heer’s building said he’s ironed out the last wrinkle in the renovation project’s financing and expects to present a term sheet to the city by the end of the month.
“We believe we’ve got the financial aspects of this deal laid out,” said Kevin McGowan, Heer's owner and president and CEO of St. Louis-based development company Blue Urban LLC. “From our perspective, we’re happy with the direction it’s headed in.”
According to McGowan, the final $3 million of funding for the project will come from a bridge loan by a St. Louis bank, though he declined to release the name of the bank.
By the end of the month, McGowan said he hopes to have a final term sheet, which lays out what tax credits and incentives are expected to be used, submitted for city approval.
Once the proper approvals are received, McGowan said the project will file its application to the U.S. Department of Housing and Urban Development, which would insure the loan for the project.
Once the application is submitted, HUD spokeswoman Dale Gray said the department will have 60 days to review the package, and if it is approved, Blue Urban will have 90 days to get closing documents ready. Read more about downtown development, including the Heer’s renovation, in the July 26 print edition of Springfield Business Journal.[[In-content Ad]]