UPDATED: Contractors get glimpse of Heer's project

Heer's owner Kevin McGowan opened the building's doors to roughly 100 contractors last week, signaling a final step toward financing the key downtown redevelopment project.

Representatives of McGowan's St. Louis-based development company, Blue Urban LLC, and the Heer's general contractor, St. Louis-based HBD Construction, led a Nov. 19 tour of the empty, iconic structure on Springfield's square. Roughly two-thirds of the contractors were from Springfield, with the rest making the roughly three-hour drive from St. Louis.

Each construction crew has hopes of securing a portion of the multimillion-dollar construction contract, and representatives will be submitting bids for such work as plumbing and electrical system installation, tuck-pointing and terra-cotta restoration.

The deadline to bid is Dec. 9, and the Heer's project manager says his firm would keep a close eye on the numbers.

"We're not buddy-buddy with anybody," HBD Project Manager Brian Kowert said. "If you come in, you can do the work and you have the right number, we'll play ball with you. If your number is screwy, we'll tell you it's screwy."

McGowan plans to redevelop the 94-year-old structure as 63 one-, two- and three-bedroom apartment units with a Mike Shannon's Steaks and Seafood restaurant on the ground floor. In July, he received permission from the U.S. Department of Housing and Urban Development to apply for an $11.8 million loan for the $27 million project.

"What happened (Nov. 19) is a very good sign in that we're at the point now where we're finalizing the numbers for HUD - they want to know the exact numbers so they can start drawing the loan documents," McGowan said.

He noted that the initial cost estimates sent to HUD were based on preliminary estimates from a few subcontractors, but putting the project out for bid could lower those numbers.

Once contractors have been selected, McGowan can submit a final project budget to HUD. McGowan said he could receive HUD loan approval by late December or early January, and construction would begin immediately.

"I don't want to say that it's a matter of routine (but) HUD is willing to make the loan," he said. "Now, we have to make sure ... that what we represent is in fact in place and ready to go. Then they give you the formal acceptance."

The construction schedule is set for 12 months. The space could be ready for tenants by early 2011, the developers said.

While the HUD money is a significant portion of the funding puzzle, it's less than half of the estimated project cost. The remaining funding would come from a variety of sources; McGowan said the city has helped to secure about $3 million in federal stimulus funds set aside for historic renovation projects, and he has gathered another $1 million on his own. He said the remaining cost could be covered by a combination of state tax credits and local incentives.

Springfield Economic Development Director Mary Lilly Smith said it's unclear exactly what city incentives McGowan will seek, partly because there's no final budget in place.

"Traditionally, the city will do a community improvement district or a transportation development district to pay for eligible costs," Smith said. "If we're going to consider anything above that - Chapter 353 redevelopment corporation tax abatements or creation of a tax increment financing district - those all have statutory requirements, and ... you have to have hard numbers."

A square deal

The city, meanwhile, is working to secure separate funding for renovation and "refreshing" of the Park Central Square interior, Smith said. Those efforts were put on hold following concern about the historic nature of the design by West Coast architect Lawrence Halprin, who died in October at age 93.

Now, there is some urgency to move the project forward or risk the loss of funding.

The city received nearly $2.2 million in federal HUD grants between federal fiscal 2003 and fiscal 2006 to go toward a multipurpose facility. But when Missouri State University built JQH Arena - and the city signed an agreement to use the existing Hammons Student Center for events - the need to build an arena disappeared.

Smith said Springfield City Council has since granted permission for city staff to amend its HUD application to use the money on both the East Trafficway quarry and the interior of the square.

Smith said that planned work on the square would include replumbing and renovating the fountains, adding sound equipment to better facilitate outdoor concerts and new security cameras.

"I have to file four amended requests, one for each fiscal year, and they responded back on the fiscal '03 money with approval," Smith said, noting that HUD asked for more budget details on the remaining three years.

She noted that it's unclear how much of the money would be spent on the square and how much would go to the quarry. But, she added, work has to begin quickly because the fiscal 2003 money expires in September.

Heer's developer McGowan said that while his project is on a separate timetable, he's eager to see the square work get done.

"Back when we first considered getting involved in rehabbing Heer's, we felt it was important for the city and for the building to do something to improve the square," he said. "We're very supportive of them moving forward with the interior redesign, but that's a separate issue from the building."[[In-content Ad]]