per presby, looks like interest in Downtown West is heating back up a bit as now the vacant Dragon Trading building at 17th and Locust joins the growing roster of buildings being eyed for redevelopment and that have a Board Bill introduced.
There are at least 3 Board Bills in now for the redevelopment of 4 buildings in addition to a number of other projects already underway or planned.
Business Journal has picked up the story. Sovereign Partners, who had planned to renovate the building back in 2008, is still behind the wheel on this. The article is subscriber only content, but I could pry a few extra words out of it to confirm that much. Early stages, expected to cost $9 million.
The developer of 1701 Locust St. would receive a 10-year real estate tax abatement under a bill being considered by the St. Louis Board of Aldermen.
Board Bill 128, sponsored by Alderwoman Marlene Davis, would designate the area, which it says is unoccupied, as “blighted.”
It would also stipulate that the city’s Land Clearance for Redevelopment Authority (LCRA) cannot acquire properties in the area using eminent domain.
Sovereign Partners, a New York developer led by Darius and Cyrus Sakhai, has owned the building since 2005. It paid real estate taxes on the property of $25,563 in 2014, $25,568 in 2013 and $35,410 in 2012, according to city records.
Board Bill 128 says the owner would still be required to pay fees to any special taxing district. Sovereign paid $12,134 in special business district taxes from 2012 to 2014, city records show.
It also says that if the LCRA owns property within the blighted area and leases it to a corporation, the corporation will make payments in lieu of taxes based upon the assessment on the property, including land and improvements.
Sovereign plans to invest about $9 million into the four-story building, creating 57 apartments with 2,000 square feet of commercial space on the ground floors.
The property, formerly called the Dragon Trading building, would also have 36 basement parking spots.
The property sits next door to the MERS/Missouri Goodwill Industries headquarters in downtown and about four blocks southwest of the City Museum.
Sovereign specializes in buying properties that have been poorly managed or have struggled with inefficiencies in the capital market.
robertn42 wrote:It would also stipulate that the city’s Land Clearance for Redevelopment Authority (LCRA) cannot acquire properties in the area using eminent domain.
robertn42 wrote:It also says that if the LCRA owns property within the blighted area and leases it to a corporation, the corporation will make payments in lieu of taxes based upon the assessment on the property, including land and improvements.
Can someone explain this to me? Does this matter of is it more just boilerplate that's always incorporated in these deals?
Would language like this have prevented an Arcade type deal from happening if the Arcade say directly next to 1701 Locust? I think that was an LCRA property and sale that may have involved a full tax abatement for Dominium (with no payments in lieu of taxes). It seems maybe they want to protect their investment, but hopefully that's not to the detriment of further progress and investment in the immediate vicinity.
^ That's boiler plate language and I think the "area" means the specific properties that are being redeveloped under the BB; also the Arcade was sold by LCRA and not leased so the PILOT language wouldn't apply regardless even if "area" had a broader definition.
I see. I guess the language makes it he "area" sound more broad than it really is - especially the clause about the city leasing land within the area. But I can see why the developer would not want the new "blighted" status to allow the City to turn around and purchase it through eminent domain.
I heard that this project is likely stalled/dead. So it may be on life support along with the 2035 Lucas/2030 Delmar project in Downtown West. Hopefully the project on 20th & Wash with the old firehouse is moving forward.... I know they were issued building permits but last time I was by that stretch (maybe a month or so ago) I didn't notice any work.
Butler Bro's finally happening makes this a great time to try again with this building. Just as big of an impact for the neighborhood as the MLS stadium IMO
Fun fact! Was originally planned to be 10 stories, similar to its neighbor to the east. Meaning the structural system is oversized for what was built, so there could easily be the potential for a penthouse or additional amenity space on the rooftop. The listing photos show renderings for that.
