Prost relinquishes Heer’s ownership

The deed transfer came at no cost to the city, which previously gained the authority to take over Prost’s $3.1 million loan on the building through Great Southern Bank. The city had planned to foreclose on the building Tuesday so that it could get the ball rolling on the downtown landmark’s development.

The city now plans to do just that. Four firms – including Prost’s – are in the running for the project: Magers Enterprises of Springfield; McGowan|Walsh of St. Louis; Restoration St. Louis; and Prost’s Springfield Office Building LLC. The firms were chosen based on their qualifications submitted at the city’s request in August.

Prost bought the building in 2004 for $2.2 million and has since sunk roughly $3 million into its redevelopment beyond the outstanding loan amount. The city began taking steps earlier this year to terminate its development agreement with Prost after he missed a series of financing deadlines.

“We are very pleased that we have reached an amicable resolution regarding ownership of the tower, and we want to thank Mr. Prost for the initiative and risk he has taken to bring this vacant building back to life,” said Mary Lilly Smith, the city’s economic development director, in a city news release.

Prost, who could not be reached for comment, says the deed transfer is “in the best interests of all the parties involved,” according to the release, and he remains interested in pursuing the project.

No timeline has been set for selecting a developer.[[In-content Ad]]