Year in Review: 5. Construction begins on downtown Heer's building

SPRINGFIELD, JAN. 9—After decades as a developer’s pipe dream and a month sitting in tax code limbo, construction finally began on downtown’s Heer’s building.

In January, Dalmark Development Group and Straub Construction were on the cusp of taking a step three previous developers never made, but Heer’s Luxury Living LLC co-owner Jim Nichols said construction plans were delayed by more than a month as developers awaited an Internal Revenue Service ruling handed down in January.

The $15.7 million project is being funded through a combination of property tax abatements on new improvements, federal historic preservation tax credits and a $750,000 small-business loan through the city. Through the National Parks Service, Heer’s Luxury Living has secured federal credits to pay an estimated $11.7 million in expenses and tax-credit sales generated roughly $5.6 million to support the redevelopment plan.

The large, yellow tube protruding from the Heer’s was called “the most talked about trash chute in Springfield” and in April, crews began work on the eight-story structure.

Heer’s Luxury Living plans to turn the building into a mix of 80 apartments, first-floor commercial space and luxury lofts on the upper floors. The renovation plans call for converting the mezzanine and second floor into rental apartments targeting professionals and college students, while designing floors three through seven as luxury apartments with higher rent. Top-floor units would include two-story lofts with rooftop patios. Rental rates range from $700 to $1,700 per month. Other planned amenities include concierge services, a clubhouse and pool on the third-floor roof deck, and a fitness center.

On June 20, building owners held a media tour and public groundbreaking ceremony to thank local supporters and celebrate construction work.

In October, Nichols said the project was ahead of schedule and should be complete by September 2015 in time for the building’s centennial celebration. As of December, there already are 75 people on the apartment wait list.