Former arena site plan takes another turn

But the number of firms in the running to develop a former arena site in downtown Springfield may soon be back up to four – or more, depending on how many respond to the city’s second request for proposals later this month. Developer John Q. Hammons said he’s crafting a proposal, and an unidentified St. Louis developer also has expressed interest.

City officials said significant changes to two pending proposals – submitted by Springfield accounting firm BKD LLP and Branson-based HCW Evergreen Inc. – and a desire for more detailed parking plans warranted a second RFP.

The first formal solicitation – issued by the city in January – invited developers to submit proposals for 1.7 acres east of the Springfield Exposition Center. Hammons jettisoned plans for an arena on the property late last year after partnering with Missouri State University to build the $67 million JQH Arena on the MSU campus.

At its April 9 meeting, the Springfield Tax Abatement and Tax Increment Financing Commission voted unanimously in favor of a second RFP that will explicitly ask developers to address three criteria: hotel rooms, office space and associated parking.

Based on negotiations with BKD and HCW Evergreen, city attorneys are now exploring the possibility of leasing or selling all or part of Jordan Valley Car Park to avoid legal complications stemming from tax-exempt revenue bonds issued to finance the $12.7 million parking deck. The city has been subsidizing the car park, which isn’t currently self-sustaining, with general revenue, said Mary Lilly Smith, the city’s economic development director. She noted that the bond debt now stands at about $9 million.

“We think it would be best at this point to slow down and solicit new proposals,” said city consultant Rick McConnell, a public finance attorney with Kansas City-based Gilmore & Bell PC. “By targeting the RFP, we think the responses will be better.”

City: Delay justified

Slowing down the selection process to attract definitive proposals and fortify the city’s legal footing is worth the additional delay, Smith said.

“As one of the council (members) has said, this isn’t a fire sale,” she added.

But HCW Evergreen principal Rick Huffman said the city should expedite the second round of proposals for the sake of all parties involved.

“Everybody has reasons that it needs to get done,” he said. “The city needs to get it done because they need to know what they’re going to do about their debt service (on the car park). BKD needs to know where their new home is going to be. And we need to know where we’re going to focus our staff efforts.”

Huffman said he understands the city’s argument for reissuing proposals, but he is less than thrilled about jumping through the same hoop twice.

Huffman’s bout of déjà vu will almost certainly include a competing proposal from Hammons, whose original plan for a BKD headquarters with first-floor restaurant/retail space was snubbed by commissioners in March.

Hammons, who was pleased to hear that the city is issuing another RFP for the former arena site, said he will submit another proposal.

Details were scant, but Scott Tarwater, vice president of development for John Q. Hammons Hotels & Resorts Inc., said “there are some very exciting plans on the table right now.”

After the commission passed on his initial proposal – and after Hammons said another downtown hotel wasn’t feasible – Hammons announced at a March 9 news conference that he would build a four-star hotel on the south side of St. Louis Street across from the expo center.

It is unclear how the proposed hotel would figure into Hammons’ new proposal for the former arena site.

Other players

Also unclear is whether BKD will resubmit its own proposal, partner with HCW Evergreen or align with another developer interested in the project.

BKD Operations Partner Bill Kirkman said his firm is eagerly waiting to see the terms of the second RFP before making a decision.

“It’s probably more likely that we won’t (resubmit),” he said.

“Our intent is to work with whomever the city ends up awarding the development rights to, but we’re not looking to hook our wagon with any one of them specifically,” he added.

Kirkman said BKD’s interest in building a corporate headquarters on the site is no secret.

“I think that’s the overriding big factor,” he said. “This is a great site for what we’re looking for.”

A St. Louis developer with local ties also has expressed interest in submitting a proposal, Smith said, declining to name the developer.

Kevin McGowan with McGowan|Walsh, the St. Louis firm working with the city to redevelop the Heer’s Tower and enhance Park Central Square, said his firm isn’t eyeing the former arena site.

“We’re looking at some other projects in Springfield, but that is not one of them,” he said. “That’s somebody else.”

Smith said the city hopes to issue the second RFP by April 20, with proposals due back in 30 days.

The TIF Commission will meet June 4 to review the proposals and decide which ones should be referred to city staff for further negotiation.

The faster the process moves, the better, Huffman said.

“We’re like everybody. We’re busy, and we have a lot of other cities we’re working in,” he said. “We just need to focus our efforts in the places where we’re wanted.”