Heer's incentives plan introduced

Developers of the long-vacant Heer’s building last night submitted their formal redevelopment plan to Springfield City Council. The plan calls for 25 years of property tax abatement on improvements to the eight-story building and allows the Springfield Police Department 10 years of free rent in a roughly 1,000-square-foot office on the ground floor. 

Developer Heer’s Luxury Living LLC is co-owned by Jim Nichols of Lee’s Summit-based Dalmark Development Group and Ernie Straub of Shawnee, Kan.-based general contractor Straub Construction. To qualify for the Chapter 353 tax abatement, the owners must redevelop a blighted property. Springfield Economic Development Director Mary Lilly Smith said at last night’s meeting Heer’s was first declared blighted in 2004, a status the city’s Land Clearance Redevelopment Authority reaffirmed at its Aug. 6 meeting. 

The developers – who are calling for council to approve 100 percent tax abatement for 15 years and 50 percent abatement in years 16–25 – propose to turn the building into a mixed-used property featuring 87 apartments, first-floor commercial space and luxury lofts.

In all, abatement would save the developers a projected $2.29 million, which they say makes the $15.7 million project viable. With improvements partially adding to the taxable value of the property in years 16-25, property taxes would increase by $525,000 through year 25, a 94 percent increase compared to the taxes it would generate if no improvements were made, according to the plan. 

The developers are seeking a Small Business Development Loan of $750,000 from the city for new windows and doors. Smith said while the developers have the option to seek a $142,000 brownfields loan for the removal of lead paint, she said they don’t plan to at this time for fear the loan process would delay the project. 

The redevelopment plan includes a one-time payment of $40,000 and a 10-year free lease to SPD to pay off a roughly $100,000 city lien on the property for cost incurred to board up the building’s windows. In addition, 80 parking spaces in the parking garage across Patton Alley would be reserved for the Heer’s tenants at a price of $20 per space per month, with six spaces reserved on the ground level.  

Rusty Worley, executive director of Urban Districts Alliance, was one of five public speakers to throw his support behind the project. Worley said when he talks with people about center city development, they invariably ask about the latest Heer's news.

“People care about this building, this project, and they also lament the status that it has deteriorated to in the last 18 years,” Worley said. “We’ve had over $400 million in investment in center city over the last 10 years and still the barometer that a lot of people use to gauge center city’s progress is the vacant Heer’s building.”

Springfield resident Mike Schilling, the only member of the public to speak out against the plans, said he doesn’t think the property tax breaks should be a crutch for developers.

“I would certainly like to see something positive happen there, but what really disturbs me is that we are using the tax base to guarantee that this thing goes through, and I think that is really twisted,” Schilling said. “We’re tapping the keg of corporate welfare again.”

Council is scheduled to vote on the proposals during its Aug. 24 meeting.