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Heer's

The document describes the financing plan for renovating the Heer's building in downtown Springfield, Missouri. It outlines the various funding sources totaling $29.2 million, including loans from the city, state tax credits, and private investment. The plan establishes a tax increment financing district and community improvement district to pay off the loans over 23 years through increased property and sales taxes from the development.

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82 views1 page

Heer's

The document describes the financing plan for renovating the Heer's building in downtown Springfield, Missouri. It outlines the various funding sources totaling $29.2 million, including loans from the city, state tax credits, and private investment. The plan establishes a tax increment financing district and community improvement district to pay off the loans over 23 years through increased property and sales taxes from the development.

Uploaded by

SNLeader
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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LIFE

AREA FOOTBALL STADIUM RENAMED FOR COACH / 1D

NEWS-LEADER
SPRINGFIELD

NEWS-LEADER.COM OZARKSMOBILE.COM

SPRINGFIELD, MISSOURI FRIDAY, AUGUST 20, 2010 75

Back-to-college basics

Where to find the bare necessities for


your dorm room at a good price. We
compare several area stores. Life, 1C

Safe away from home

What parents can do to help keep


their kids safe when theyre away at
school. Life, 1C

INSIDE
Undersea oil plume confirmed
An undersea oil plume more than
20 miles long snaked away from the
Gulf of Mexico oil spill. Over 10 days,
researchers mapped the plume with
a robot sub. 2A

Heers total: $29.2 million


$11.8 million

$5.1 million

HUD-backed loan

Federal Historic Tax


Credits/Bridge Loan

A private mortgage
guaranteed by the U.S.
Department of Housing
and Urban Development
will be paid off over 40
years. HUD approval is
contingent on an approved
financing plan.

An eye for an eye

$3 million

... And paralysis for paralysis. A Saudi


judge wants to damage the spinal cord
of a man who is accused of leaving a
victim paralyzed in a fight. 3A

The city will loan $2 million


from its Small Business
Development Loan
program and borrow
another $1 million from the
MDFB on McGowans behalf.
Both loans are to be repaid
with revenues from a Tax
Increment Financing
District and Community
Improvement District.

City and MDFB loans

False Obama rumors endure

Hes a Muslim. Not born in America.


Not a Christian. How blatantly false rumors about President Obama can be
believed by many. 4A

CU hikes
through 13
OKd for
final vote

$4.9 million
State Historic Tax Credits/Bridge Loan

The tax credits wont be granted


until construction is complete,
so Chevron USA Inc. and
Heartland Bank will front the
money for up to three years.
Chevron gets the credits when
they are issued and pays off the
loan from Heartland.

Like the federal tax credits, these are not


paid until the completed renovation has
been reviewed. The Missouri Development
Finance Board will help developer Kevin
McGowan find a bank or banks to loan the
money in return for tax credits and will
backstop the deal, offering other tax
credits in case the expected amount of
state historic tax credits is not granted.

Utility board will vote


on yearly increases at
meeting next week.
By Wes Johnson
[email protected]

$4.4 million
Developer contribution
Money invested by McGowan and other partners,
including Mike Shannon of St. Louis. The agreement
with the city requires that the state tax credit loan be
paid off before the developers can begin paying back
themselves. The stream of tax revenue also must be
sufficient to cover 110 percent of the debt service on the
city and MDFB loans.

New card rules explained


NEWS-LEADER FILE PHOTO

The final stage of consumer protections


signed into law this year will go into effect on Sunday. What you need to know
about how changes will affect your credit, debit and gift cards. Business, 7A

Debate discord continues

Debates between the 7th District candidates for the U.S. House race are looking doubtful as the candidates cant
agree on details. Ozarks, 1B

Get exclusive deals


on your cellphone
Text GETDEALS to 44636 (4INFO).

presented by

Estee Lauder bonus gift!

ONLINE NOW
Meet moms as you talk online
Enjoy lively
conversation? Join
other Ozarks moms online to discuss
parenting issues, dining, shopping
and more.
See whats happening today at
MomsLikeMe.com

Peek inside with home galleries


Take a look inside great local homes by checking out
NLL
our Home of the Week galONLINE
NE
leries. With a new gallery
format, its faster than ever to view photos. Check out the latest home at
OzarksSpaces.com

Index

Whats included
Although earlier plans for the
Heers building called for a highend hotel or condos, developer
Kevin McGowans current plan includes:
63 market rate apartments
with high-end interior finishes,
some with private balconies or
terraces;
A renovated facade returning
the building to its 1950s design;
A rooftop pool and deck above
the two-story portion of the complex;
A common study den and fitness center;
High-speed Internet access and
cable, all-new mechanical, electrical and plumbing systems;
Indoor parking in the buildings
basement;
33,000 square feet of rentable
commercial space, which has
been pre-leased to include a Mike
Shannons Steak and Seafood
restaurant, banquet space and a
second restaurant with a bowling
alley and bar.

On page 8A
City has stake, but not directly.
Upcoming dates and deadlines.

A GANNETT NEWSPAPER
VOL. 120, NO. 232 2010, NEWS-LEADER

Business
Classified
Comics
Crossword
Cryptoquip
Dear Abby
Deaths
Employment
Garage sales
Heloise
Horoscope
Life

7A
5C
3C
2C
2C
2C
6A
5C
7C
2C
2C
1C

Lottery
Merchandise
Nation/World
Opinion
Real Estate
For Sale
Rentals
Sports
Stocks
Sudoku
Television
Weather

1B
6C
2A
3B
7C
7C
1D
7A
2C
6D
4B

Weather
sunny, hot
94 Partly
and humid today.
73 4B
Precipitation: 25%

DOCUMENT

Online: Read the term


sheet and financial plan
at News-Leader.com

Document describes how project


would be paid for, adds provisions.
District sales tax.
Designed to pay off the debt
Members of Springfield City within 23 years, the plan includes
Council have much to digest be- a number of provisions to limit
fore Monday, when a plan to spur the citys liability.
renovation of the downtown
THE CITYS PART
Heers building is up for public
Under the proposed financing
hearing.
Difficulties obtaining the final $3 plan, the city would loan Mcmillion needed for the $29.2 mil- Gowan a total of $3 million, with
lion project have stalled developer two-thirds of the money coming
Kevin McGowans plans for the from the citys Small Business Debuilding, but Mayor Jim ONeal velopment Loan program.
The other $1 million would
and city staff want the city to fill
come from the Missouri Developthe gap with a low-interest loan.
They released a proposed term ment Finance Board which
sheet and financing plan outlin- doles out a variety of incentives to
promote economic development
ing the deal Thursday.
Heavy with acronyms and fi- in the state with the city acting
nancial lingo, the seven-page doc- as a middleman.
The loans, which carry interest
ument describes how the project
will be paid for and lenders rates of 5 percent, are to be paid
paid back along with various off with money from two sources.
A TIF district will be created
provisions and protections rethat will capture:
quested by the parties involved.
100 percent of the real properKey to the plan is a $2 million
loan from one of the citys revolv- ty tax at the site over and above
ing loan programs, which, com- current collections, referred to as
bined with another $1 million the PILOT payments in the docucity will borrow on McGowans ments;
50 percent of the new city and
behalf, could provide the final
piece to the long-running puzzle. county sales tax revenue (state
Both loans would be paid back sales tax is exempt), called Ecowith revenues from a proposed nomic Activity Taxes or EATs.
Tax Increment Financing District
See Heers, Page 8A
and a Community Improvement
By Amos Bridges

[email protected]

Painting a caring picture of Springfield


Amanda Johnston (bottom center), Betty Finley (right) and
Rosemary McBrayer (standing)
paint inside the lines of a mural
artist Lillian Muffy Fitzpatrick
(left) sketched on a hall at the
Boys & Girls Clubs Musgrave
Unit during the United Way of
the Ozarks 18th annual Day of
Caring in Springfield Thursday.
This was the citys largest Day
of Caring ever, with more than
1,800 volunteers from 90 companies working on 160 projects.
More photos on 3A.
JEROME T. NAKAGAWA / NEWS-LEADER

GALLERY

Online: View our staff


coverage of the activities at News-Leader.com

The CU Citizens Advisory


Council unanimously endorsed
the utilitys plan for three electric rate hikes in 2011, 2012 and
2013.
The Advisory Councils recommendation now goes to the
City Utilities board for a vote
next week.
The Advisory Council had a
public hearing on the proposed
electric rate package, but no one
from the public showed up to
speak at the Thursday afternoon
meeting.
Their next opportunity to
speak will be at the 3 p.m. CU
board meeting next Thursday.
The electric rate hikes would
increase an average CU electric
customers monthly bill by $2.34
beginning in October 2011; $1.75
in October 2012 and $1.75 in October 2013.
CU General Manager John
Twitty reminded the council
that CU has tried to keep utility
rates as low as possible for as
long as possible.
But a natural gas rate hike in
2006 prompted a change in direction.
The City Council asked us to
do rates more regularly and
keep them at a more moderate
level, Twitty said.
CU now revisits each utility
rate gas, water and electric
every three years.
It seems to us this gives our
customers especially our
commercial customers lots of
advance notice and a better ability to plan their expenses, Twitty said.
The rate package raises rates
for both residential and commercial customers.

See Rates, Page 8A

Carnahan
joins Blunt
for tax cut
extension
By David A. Lieb
THE ASSOCIATED PRESS

SEDALIA In a change from


her previous position, Democratic Senate candidate Robin
Carnahan said Thursday that
she now supports the extension
of all tax cuts enacted during the
administration of
President George
W. Bush.
Carnahans position moves her
closer to that of her
Republican Senate
rival, U.S. Rep. Roy Carnahan
Blunt, who has said
repeatedly that he
wants to make permanent all of the
NOV. 2
Bush-era tax cuts
U.S.
that are due to exSENATE
pire in January.
Now is not the
time to be doing anything to
raise taxes, Carnahan said at
the Missouri State Fairs annual
ham breakfast. Were still in the
midst of a downturn in the economy, so we need to keep those
tax cuts in place all of them.
Blunt and Carnahan, who is

See Carnahan, Page 8A

sale

0000230580

NEWS-LEADER

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