Retail center proposed for former Howard Johnson hotel

The former Clarion and Howard Johnson hotel property at 3333 S. Glenstone Ave. could be converted to an 80,000-square-foot retail center dubbed Glenstone Marketplace if Springfield City Council approves plans introduced last night.

The plans include the formation of a community improvement district and a blight designation that would support development funding for Glenstone Marketplace LLC, which was organized on May 14 by Kevin Guffey of central Missouri-based American Realty & Development, according to secretary of state records. Guffey and commercial broker Brad Thessing moved to buy the property for an undisclosed amount in August 2013 from hotel owner Morris Group Properties Inc.

Attorney Brett Roubal of Baird Lightner Millsap PC, who represented the developers at the council meeting, said the over $10 million project would generate $30 million in taxable revenue and create over 100 jobs.

“We’re not asking for money for a tax abatement. We’re not asking for the city to take on any risk in the form of bonds or any other form. We’re pretty much at the finish line. There are leases signed,” said Roubal, withholding the names of potential retail tenants.

He described tenant prospects as “junior-box” retailers, with stores between 10,000 square feet and 30,000 square feet.

“It will be a limited number of users, so not a large number of small users,” he said. 

Noting the property already is zoned for retail, city Planning and Development Director Mary Lilly Smith said the plans amount to a $2.25 million incentives request hinged on council’s determination that blighted conditions exist on the 8.2-acre property.

Smith said a sales tax up to 1 percent would be established to reimburse eligible costs, such as hotel demolition, should council approve the CID. The tax would be in place for 20 years or until the project costs are met. Blighted conditions on the property include water damage, broken and boarded windows, the presence of asbestos, extensive vandalism and missing electrical wiring, Smith said. While blight designations typically freeze property tax increases on improvements for 10 years, Smith said taxes would not be abated in this instance because the goal of the designation is to secure sales taxes from the CID.

“This is the first blight report where I’ve brought you grass growing on the inside,” Smith said referring to an area of wet, greening carpet in the ballroom. “Glenstone is really our premier commercial corridor, particularly between Sunset and James River, and this is smack in the middle of it.”

Mother’s Brewing Co. owner Jeff Schrag told council he supported the plans.

“This is a high-traffic area for the community and important for the perception not only of the residents but of the visitors to the community,” Schrag said, adding he likes that funding support comes on the back end and doesn’t impact local budgets.

A second reading and vote on the proposal is scheduled June 8.