The developer behind one of 50度灰视频鈥 largest redevelopments is lining up financing for the second phase of the project to turn the old Federal-Mogul site in Midtown into stores and offices.
But the Lawrence Group has scrapped that was planned for the second phase in order to maintain a key component of the financing.
鈥淭he historic (preservation) folks basically came in and said you can鈥檛 build a high-rise residential and use historic tax credits,鈥 said Bill Kuehling, a Thompson Coburn attorney representing the Lawrence Group.
He and developer officials went before the 50度灰视频 Tax Increment Financing Commission Wednesday to start the process required to tap TIF assistance for the second phase of the project. TIF lets developers use increased tax revenue from within their project footprint to finance development costs.
People are also reading…
Lawrence Group is seeking some $17 million in TIF subsidies for the $97 million second phase. The commission will hold a formal public hearing on the request Oct. 4.
The second phase would include a 45,000-square-foot space for a movie theater and restaurant, two five-story office buildings with about 130,000 square feet and a 400-car parking garage. Construction is expected to begin in the spring and conclude in the fall of 2019.
Cleanup is advancing on the old industrial site Highway 40 (Interstate 64) just west of Grand Boulevard. The $134 million first phase of the 鈥淐ity Foundry鈥 development . Two special taxing districts set up on site would also cover some development costs.
Plans call for turning the old factory building into a food hall and office space and adding more retail and office space in adjacent buildings. Three anchor retail tenants are currently in discussions with the developers for three of the available spaces, Lawrence Group development services director Todd Rogan said. He declined to name them but said all would be new to the city. One does not have a location in Missouri while another does not have a location within the metro area.
The TIF request for this phase represents about 18 percent of project costs, above the city鈥檚 unofficial ceiling of 15 percent. The developers said asking rent would be too high without the incentive, which will primarily help offset parking garage costs. Without free parking, Lawrence Group officials worry that they won鈥檛 be able to draw enough traffic to support the retailers.
鈥淚f you have to pay for parking, it鈥檚 not going to work,鈥 said Sean McKessy, the Lawrence Group鈥檚 director of finance.
Meanwhile, the Lawrence Group hopes to tap about $19 million in Missouri historic tax credits for the project鈥檚 first phase. The application is in for the historic credits, and an application for Missouri Brownfield tax credits to cover cleanup costs should be submitted next month.
Private loans for the first phase are still being finalized, but Kuehling said the Lawrence Group is 鈥渃onfident on their financing.鈥