The planned $340 million redo of the Federal-Mogul foundry in midtown 50度灰视频 as a trendy food hall and high-rise apartments and offices includes taxpayer help.
Many tax incentives are proposed to help finance the project鈥檚 $134.2 million first phase. The largest, if approved by city officials, would be $19.4 million in tax-increment financing. Also factored into the project are $14.9 million in federal historic preservation tax credits, $17.4 million in state historic preservation tax credits and $5 million in state brownfields tax credits for environmental cleanup.
If fully built, the project would have more than 755,000 square feet of office, retail and residential space on nearly 17 acres east of the Cortex technology district. Lawrence Group, the developer, estimates 1,800 new jobs at the project it calls City Foundry 50度灰视频 at Cortex.
Tax-increment financing would total 14.5 percent of the first-phase cost and pay for much of the infrastructure needed for the entire project. The request meets the city鈥檚 guideline that TIF covers about 15 percent of a redevelopment project鈥檚 cost. The TIF Commission could decide the City Foundry request at a public hearing Nov. 2.
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Lawrence Group also plans to establish City Foundry community improvement and transportation development districts that would levy 1 percent sales taxes. In addition, the developer wants 10 years of full property tax abatement followed by 15 years of 50 percent tax abatement.
Included in the project鈥檚 funding sources is a $51 million first mortgage, according to Lawrence Group鈥檚
Otis Williams, executive director of the 50度灰视频 Development Corp., said Thursday the agency will closely examine City Foundry incentives, adding that his agency is implementing that said 50度灰视频 lacks a plan for citywide redevelopment and incentive use.
The development鈥檚 first phase focuses on the project鈥檚 centerpiece: renovation of the foundry, the oldest part built in 1929 for Century Electric Co., a maker of electric motors. The company expanded the foundry Federal-Mogul used later to make brake parts before closing it in 2007.
Lawrence Group bought the property last December after Pace Properties was unable to carry out its plan to replace the foundry with stores. The new owner went to work and, in March, released preliminary City Foundry designs.
Environmental cleanup at the site began a month ago. Lawrence Group hopes to open City Foundry鈥檚 first phase in fall 2018, said Steve Smith, the company鈥檚 chief executive.
Its food hall would be the first such development in 50度灰视频. Unlike shopping mall food courts, food halls 鈥 typically in rehabbed historic buildings 鈥 have upscale restaurants, specialty grocers and stores.
Lawrence Group鈥檚 TIF application mentions possible City Foundry tenants, including a national retailer eyeing 30,000 square feet of space in a building planned for rehab. In addition, Lawrence Group is negotiating City Foundry space with a 鈥渘ational software developer鈥 currently in Clayton and a 鈥渘ew innovation center,鈥 according to the application.
Smith declined this week to provide details about the potential tenants but said City Foundry will appeal to younger workers.
鈥淚t鈥檚 validating the idea that companies that want to be competitive in recruiting young people need to have interesting offices,鈥 he said.
City Foundry鈥檚 planned second phase is a 24-story apartment building on Forest Park Avenue next to a 500-car parking garage included in the first phase. Lawrence Group plans to market the approximately 280 apartments primarily to people at Cortex, 50度灰视频 University and the Washington University medical complex.
Phases three and four include two multistory office buildings, commercial space and parking on Vandeventer Avenue south of Forest Park Avenue. Market demand will determine when those phases are built, Smith said.
Renovation plans for the former foundry include 鈥渁 new common area street-like environment bisecting鈥 the site, according to the TIF application. Redoing an unused rail trestle on the site for biking and walking also is planned.
City Foundry has grown in scope since it was first announced. Smith said in August that Bull Moose Industries will take 鈥渁 significant ownership interest鈥 in the project. Bull Moose, a maker of metal tubes mainly for the construction industry, is part of London-based Caparo Group. Chesterfield-based Bull Moose shares ownership of the Missouri Theatre building with Lawrence Group, which is redoing the structure, at 634 North Grand Boulevard, as a hotel and Bull Moose鈥檚 new headquarters.