No. 1: Heer's work stalls

The city severed its relationship with Jefferson City developer Vaughn Prost and emerged from a fierce custody battle with ownership of the Heer’s building, a seven-story downtown landmark overlooking Park Central Square.

Prost’s plan to convert the former department store into a mixed-used development with class A office space and luxury condos on the upper floors and retail and restaurant space on the lower levels was supposed to materialize in 2006. Instead, it fizzled.

In February, City Council granted Prost an extension to secure financing for the $32 million redevelopment project made possible with historic preservation tax credits.

But when the financing wasn’t in place by April, the city decided it was time to play the field again and began marketing the project to other interested developers. In June, city officials publicly aired their disappointment with Prost.

Prost’s strained relationship with the city bottomed out in mid-August, when the city issued a formal request for qualifications from developers interested in taking over the project. A week later, Prost lost the exclusive right to redevelop the building when his redevelopment agreement with the city officially expired.

City officials immediately began exploring ways to legally pry away the project from Prost and into the hands of one of three firms interested in picking up where he left off.

Magers Management Co. of Springfield and Restoration St. Louis and McGowan|Walsh, both of St. Louis, submitted redevelopment proposals, and representatives from each firm pitched their plans to city staff in October.

In November, Springfield City Council approved a resolution to enter into a short-term, low-interest loan for $3.1 million with the Missouri Development Finance Board to purchase Prost’s loan from Great Southern Bank.

When Thanksgiving arrived, Prost had little to be thankful for concerning Heer’s. The city had rejected his revised plan to convert unleased office space on the building’s third and fourth floors into condos, acquired his loan from Great Southern Bank and announced it would foreclose on the property.

But on Dec. 18, 24 hours shy of a scheduled auction on the steps of the Greene County courthouse, Prost acquiesced and signed a deed transferring ownership to the city.

The agreement was described as “amicable” in a city news release that quoted Prost.

Prost, who remains in the running for the project, bought the dilapidated building for $2.2 million from Warren Davis Properties in 2004. His company, Prost Builders Inc., completed a substantial amount of remediation work inside Heer’s by removing asbestos and lead paint.

A selection committee reviewing the various Heer’s redevelopment proposals is looking to make a recommendation to City Council in early 2007.

Developer Strikes Out

Aug. 18, 2005: Heer’s developer Vaughn Prost misses construction financing deadline from Great Southern Bank.

Feb. 17, 2006: Prost misses second deadline; Springfield City Council extends final deadline to Aug. 17.

April 17: City begins marketing the redevelopment project to other interested developers.

Aug. 17: Prost misses final construction financing deadline.

Aug. 18: City issues a formal request for qualifications from developers interested in taking over the Heer’s project.

Aug. 22: The city’s redevelopment agreement with Prost expires, and he loses the exclusive right to redevelop Heer’s.

Sept. 19: City receives proposals from Prost and three other developers interested in taking over Heer’s project.

Oct. 3: Representatives from the four development firms make presentations to city officials.

Oct. 16: City Council approves a resolution to enter into a short-term, $3.1 million low-interest loan with the Missouri Development Finance Board to purchase Prost’s loan from Great Southern.

Oct. 18: City buys Prost’s loan.

Nov. 20: City announces its plans to foreclose on the loan and auction Heer’s building to the highest bidder.

Dec. 18: The day before the foreclosure sale, Prost transfers ownership of the building to the city at no additional cost.