Mayor cautions against favoritism for arena-site developers

At a June 12 meeting to discuss the 11-member panel’s procedural boundaries, Mayor Tom Carlson directed tax-increment financing commissioners to vet the proposals for compliance with criteria in a formal request issued by the city in April. He further advised them to eliminate the ones that don’t meet minimum requirements for a hotel-office complex on the 1.7-acre, city-owned parcel next to the Springfield Exposition Center.

Prior to Carlson’s comments, some commissioners were unsure whether they would rank the firms or possibly recommend a single developer to council, based on each proposal’s projected economic impact.

Carlson, however, implored the Springfield Tax Abatement and Tax Increment Financing Commission to remain neutral.

Picking a top firm or grading the proposals could jeopardize the selection process, the mayor said, pointing to the Heer’s redevelopment project. In that case, Restoration St. Louis, one of two St. Louis firms vying for the project, withdrew its proposal after perceiving favoritism toward its competitor, Carlson said. City officials are now negotiating with the remaining firm, McGowan|Walsh, for the Heer’s project.

“If you’re the only game in town, negotiation’s a whole different story,” Carlson said.

Furthermore, Carlson warned of the stunning setback that might occur if negotiations with a firm endorsed by the commission fell through at the eleventh hour, particularly if other firms already have moved on.

“There’s a certain tension here we’ve got to work with,” he told the commission.

A decision-making framework

In March, City Council established some informal ground rules for negotiating with interested developers.

The city, which doesn’t want to assume any debt or financial risk, is seeking a “straightforward deal,” Economic Development Director Mary Lilly Smith said at the time. That deal should include a competitive price for the sale or lease of the site and a commitment to buy or lease a portion of the adjacent Jordan Valley Car Park, an underperforming parking garage subsidized by the city.

Council also expressed a preference for a development that dovetails with downtown revitalization goals, creates or retains high-paying jobs, and includes first-floor retail space, if possible.

A revised request for proposals sent out in April explicitly asked developers to include an office building with at least 100,000 square feet of Class A office space and a four-star hotel with at least 150 rooms.

Branson-based HCW Evergreen LLC, John Q. Hammons Hotels & Resorts LLC and BC Development Co. of Kansas City all proposed hotel-office towers. A fourth firm – Opus Northwest LLC, based in Minneapolis with an office in Kansas City – pitched a corporate headquarters building for BKD LLP accounting firm but argued that a hotel on the site isn’t financially feasible.

Sally Hargis, vice president of corporate strategy with Ozarks Coca-Cola/Dr Pepper Bottling, is one member of the commission who thinks that Opus Northwest should be eliminated for not including a hotel in its proposal.

But commissioner Brad Bodenhausen, executive vice president of the Springfield Area Chamber of Commerce, said the Opus Northwest proposal still falls within the basic criteria, because the design leaves space on the lot for a future hotel. Eliminating the firm before city staff has adequately analyzed its proposal would be premature, he said.

Commissioner connections

The TIF commission is a group of well-connected individuals with an array of local business and political ties.

At least one commissioner, Springfield attorney Rodney Nichols, has indicated he will abstain from the commission’s final vote on the proposals. Although Nichols has no direct connection to any of the developers, another member of his law firm – Carnahan, Evans, Cantwell & Brown PC – has previously represented HCW Evergreen.

“From my personal standpoint, I don’t want there to be any appearance of impropriety,” said Nichols, who represents the Springfield-Greene County Library District on the commission.

Springfield City Attorney Dan Wichmer said he agreed with Nichols’ decision to disclose his law firm’s link to HCW Evergreen.

Greene County Presiding Commissioner Dave Coonrod is another TIF commission member with a documented connection to one of the developers. Coonrod’s campaign contributors include Hammons’ company, the Killian Group of Cos. and architecture firm Butler, Rosenbury & Partners. Hammons has enlisted BRP to design his company’s proposed hotel-office tower, which would be built by Killian.

In last year’s county commission race, Hammons gave Coonrod $1,100, according to campaign finance reports filed with the Missouri Ethics Commission. The Killian Group of Cos. contributed $2,000 to the presiding commissioner’s campaign, while BRP principal Tim Rosenbury and his firm gave $900.

Coonrod, who has not sought legal counsel about potential conflicts of interest, said he did not plan to recuse himself from the commission’s final vote.

“There are people that give me money that have not gotten my vote on planning and zoning cases,” Coonrod said. “Once the campaign is over, it’s over, and I vote my conscience no matter what.”

Commissioner Hargis doesn’t appear to have a connection to any of the developers, but she is a longtime member of the Springfield Convention & Visitors Bureau board. The board hasn’t taken an official position on the proposed hotel-office development, but CVB Executive Director Tracy Kimberlin has been an outspoken proponent of adding upscale hotel rooms and convention space downtown. Hargis shares Kimberlin’s viewpoint.

“I still feel as though a hotel is critical for downtown. I think it’s critical for our meetings and convention business to continue to grow,” she said. “I don’t think we’ll be able to stay status quo with our meetings and convention business if we don’t add a hotel.”

Hargis doesn’t see her position on the CVB board as a potential conflict, but rather a valuable asset for the TIF commission as it reviews the four proposals.

“I think it adds to the knowledge base,” she said.

City of Springfield Tax Abatement and Tax Increment Financing Commission

Mayoral Appointments

Gary Deaver, City Council

Rodney Nichols, Springfield-Greene County Library District Board

Brad Bodenhausen, Springfield Area Chamber of Commerce

Sally Hargis, Ozarks Coca-Cola/Dr Pepper Bottling Co.

Jan Horton, retired

Rusty Worley, Urban Districts Alliance

Greene County Appointments

David Coonrod, Greene County Presiding Commissioner

Roseann Bentley, Greene County Commissioner

Springfield R-XII School District Appointments

Norman Ridder, Superintendent

Debbie Tolliver, school board member

“Other Taxing Jurisdictions” Appointment

Brian Fogle, Great Southern Bank (chairman)