University Plaza Hotel begins $5 million makeover

As demolition crews cleared the University Plaza Hotel atrium last week to make way for a redesign, Springfield City Council heard a bill approving funding for the renovations.

Per the city's developer agreement with John Q. Hammons dated as of Sept. 1, 2002, Hammons is responsible for improvements to the hotel and trade center. The city is assisting in obtaining financing for the projects. In return, the city gets ownership of the trade center, as it is now an extension of the Exposition Center.

At its June 2 meeting, Council considered a bill to approve $8 million of Land Clearance for Redevelopment Authority taxable revenue bonds to fund improvements.

"It is part of the overall development of that area," City Manager Tom Finnie said of the projects. "It is a great benefit to the city."

Finnie said the city is involved because the improvements are expected to boost city sales, hotel/motel and Community Improvement District tax revenues.

According to the bill, $5 million is earmarked for hotel improvements and $1.3 million will go for improvements in the former trade center. The remaining $1.8 million is for the cost of issuance, interest, reserve fund and a contingency bond issue.

These funds do not cover the new rooms Hammons also is required to add to the hotel.

"That's a later commitment," Finnie said.

Hammons has posted his debt-free University Plaza Convention Center and a second mortgage on the hotel as collateral, Finnie added.

"We are adequately protected based on the advice we get from our independent financial advisor, as well as our finance director," he told Council.

G&M Contracts out of Dallas is the general contractor. The estimated completion date is October.

Green Space LLC

A newly formed corporation, Green Space LLC, has signed a contract to purchase about 16 acres of greenspace in southeast Springfield that was marked for development. But the deal cannot close without City Council assistance. That's because funding for the $1,125,000 purchase would largely be generated through a self-taxing Neighborhood Improvement District.

Council took the first step last week as it approved creation of Lone Pine Greenspace Neighborhood Improvement District. The district is expected to generate $675,000 for the land purchase. Another $300,000 is coming from private donations, leaving the district about $150,000 short.

The land is located at South Lone Pine Avenue and Southern Hills Boulevard.

Dan Chiles, president of Southeast Springfield Neighborhood Association, whose members are included in the Neighborhood Improvement District, requested city contributions at an earlier meeting. Chiles heard support from Councilman Bob Jones at the June 2 meeting. Jones made a push for city financial cooperation, saying it would be consistent with the plans of Springfield-Greene County Parks Department and Vision 20/20, and would set precedent for the formation of other Neighborhood Improvement Districts.

However, Mayor Tom Carlson shut the door on talk of city involvement. "We're not at that point yet," he said.

Two more resolutions will follow before the Neighborhood Improvement District can purchase the property. It has until the end of June to close with landowners Lee McLean and Hammons, according to attorney Art Haseltine, who represents the district.

The developers were seeking to rezone the land from residential to commercial and office use, but received public opposition from nearby property owners who sought to keep the land undeveloped. Council denied the rezoning request in January.

About 585 property owners formed the district, according to Haseltine. Neighborhood Improvement District officials presented a petition of 800 signatures at the meeting.

"A lot of people would like to see it be pristine," Haseltine said. "There is a lot of potential for it."

Council will hear two more final resolutions June 16.

Approvals

In other business, council approved the following:

rezoning for a new TelComm Credit Union branch at Jefferson Avenue and Chestnut Expressway;

rezoning for Junior League of Springfield's acquisition of the former Oak Grove School; and

rezoning for a duplex community in the 3700 block of West Chestnut Expressway.