Closure of Heer's deal imminent: Expected closing is later than previously stipulated deadline.
Didi Tang
News-Leader
St. Louis developer Kevin McGowan is expected to close the deal on the historic Heer's building no later than Thursday.
He has agreed to buy the building from the city of Springfield for $3 million, said Mary Lilly Smith, the city's economic development director.
Smith said McGowan's plan for the former downtown department store remains unclear. He has stated that he would build either a boutique hotel or condominiums. He could not be reached Monday.
This week's expected closing is later than a previously stipulated deadline in late October. But, the extension was a mutual agreement and isn't expected to affect deadlines for McGowan to start renovation, Smith said.
Continue reading>>>
Springfield: The Heer's Building, 138 Park Central Sq. West
Springfield: The Heer's Building, 138 Park Central Sq. West
- 5,433
Well, it looks like today's the day after all:
Hopefully there won't be any last-minute snags. I'm a little concerned that McGowan hasn't been more specific about his plans and hasn't returned News-Leader phone calls. I'm sure he's waiting to see which development will be more advantageous, but I think either a boutique hotel, condos, or a combination of the two would do well. Under the previous developer, the condo units proposed were all reserved the same day.
Springfieldians have a strong connection to Heer's, so hopefully McGowan will be able to deliver where Prost Builders could not.
City to close Heer's deal today
St. Louis developer Kevin McGowan has agreed to buy and renovate the building.
Didi Tang
News-Leader
The $3 million sale of the Heer's building is expected to close today, said Mary Lilly Smith, the city's economic development director.
On Wednesday, the city signed the sale papers for the former downtown department store, which were to be sent overnight to St. Louis developer Kevin McGowan. He has agreed to purchase the building and renovate it, Smith said.
The city expects to receive payment this afternoon, Smith said.
It was unclear Thursday what McGowan plans to do with the building — though he has talked about renovating it as either a boutique hotel or condominiums.
Continue reading>>>
Hopefully there won't be any last-minute snags. I'm a little concerned that McGowan hasn't been more specific about his plans and hasn't returned News-Leader phone calls. I'm sure he's waiting to see which development will be more advantageous, but I think either a boutique hotel, condos, or a combination of the two would do well. Under the previous developer, the condo units proposed were all reserved the same day.
Springfieldians have a strong connection to Heer's, so hopefully McGowan will be able to deliver where Prost Builders could not.
- 10K
He's got a lot on his plate right now with the break-up of McGowan Walsh - hopefully he was just too busy to return phone calls.
- 5,433
Kevin McGowan closes the deal...and speaks to the News-Leader! 
And Heer's is going to be a boutique hotel! No, wait! It may still be condos! Basically, McGowan now owns the building, but a final decision about the future of Heer's won't happen until after the first of the year, despite what the headline implies...
I'm sure whatever McGowan plans for the space will be great, but I wish Amrit and Amy Gill hadn't withdrawn their plans. They had specfic ideas for the main, mezzanine, and basement levels that would've been great, including a bowling alley in the basement level (which opens up to street level on the north side of the building, facing Olive Street). But hey, McGowan's bringing Mike Shannon's to Springfield, so that'll be nice.
I don't have a preference as to whether McGowan does a boutique hotel or condos, but I think he's pursuing the former primarily to draw tourists directly into the square. Presently the hotels nearest to downtown are situated around Hammons Field and other Hammons developments, which are a few blocks east of the square. I almost wish there was a way to accommodate both uses in the building, but it's probably not big enough for that even though it's a sizeable building and the department store that once occupied it was quite large for a city of Springfield's size.
And Heer's is going to be a boutique hotel! No, wait! It may still be condos! Basically, McGowan now owns the building, but a final decision about the future of Heer's won't happen until after the first of the year, despite what the headline implies...
Heer's owner seeks support to build boutique hotel
Didi Tang
News-Leader
As St. Louis developer Kevin McGowan became the owner of the historic Heer's building Thursday, he asked for support to build a boutique hotel.
McGowan said he is willing to gamble on such an endeavor but would not fight for a hotel tax incentive that has met much opposition in Springfield.
"The hotel does need to happen, but the community must muster its support and assure me that the tax will come my way," he said Thursday.
McGowan signed papers and wired $3 million to the city of Springfield on Thursday. Under his agreement with the city, renovation must begin by Sept. 1.
The agreement also stipulates he must build a Mike Shannon's Steak and Seafood restaurant. He has suggested turning the bulk of the historic structure into condominiums or a boutique hotel — which is typically an independent luxury hotel.
McGowan said Thursday that his heart wants to go with the boutique hotel. He thinks it's the best choice for Springfield, but financial concerns will drive the final decision, which should come early next year.
Continue reading>>>
I'm sure whatever McGowan plans for the space will be great, but I wish Amrit and Amy Gill hadn't withdrawn their plans. They had specfic ideas for the main, mezzanine, and basement levels that would've been great, including a bowling alley in the basement level (which opens up to street level on the north side of the building, facing Olive Street). But hey, McGowan's bringing Mike Shannon's to Springfield, so that'll be nice.
I don't have a preference as to whether McGowan does a boutique hotel or condos, but I think he's pursuing the former primarily to draw tourists directly into the square. Presently the hotels nearest to downtown are situated around Hammons Field and other Hammons developments, which are a few blocks east of the square. I almost wish there was a way to accommodate both uses in the building, but it's probably not big enough for that even though it's a sizeable building and the department store that once occupied it was quite large for a city of Springfield's size.
It's old news to Springfieldians by now, but McGowan made the decision last month to proceed with condos in the old Heer's store.
Upon further review, I was hoping McGowan would pursue the boutique hotel idea instead of condos. I'd love to be able to stay in this building whenever I visit Springfield. I also really thought this plan would do the most to add life to Park Central Square. However, there was opposition to the boutique hotel since McGowan said he needed public assistance to make it work, as other Springfield hotel-motel operators were against subsidies for the project.
That said- I think condos are a sure bet. Before the first deal to redevelop Heer's fell through, reservations were made almost immediately for all of the proposed condos. The new plan still calls for restaurants and retail (inc. Mike Shannon's) on the main and mezzanine levels, so this will still add life to the square. And McGowan should have no trouble getting condos reserved in a town that strongly identifies with Heer's more than a decade after it closed. (I think I'd move to Springfield if I could get that four-level penthouse condo, but I don't have $750K to spare.)
McGowan's expected to begin work on Heer's later this year. It'll be nice to finally see some real progress on a building that will once again be the crown jewel of historic downtown Springfield.
Upon further review, I was hoping McGowan would pursue the boutique hotel idea instead of condos. I'd love to be able to stay in this building whenever I visit Springfield. I also really thought this plan would do the most to add life to Park Central Square. However, there was opposition to the boutique hotel since McGowan said he needed public assistance to make it work, as other Springfield hotel-motel operators were against subsidies for the project.
That said- I think condos are a sure bet. Before the first deal to redevelop Heer's fell through, reservations were made almost immediately for all of the proposed condos. The new plan still calls for restaurants and retail (inc. Mike Shannon's) on the main and mezzanine levels, so this will still add life to the square. And McGowan should have no trouble getting condos reserved in a town that strongly identifies with Heer's more than a decade after it closed. (I think I'd move to Springfield if I could get that four-level penthouse condo, but I don't have $750K to spare.)
Heer's developer planning condos in historic building
McGowan says lofts are "easiest, safest project" for the building.
Didi Tang
News-Leader
No boutique hotel is coming to downtown Springfield — at least not for now.
Kevin McGowan, owner of the Heer's building, announced Monday his plan to bring 40 condominiums to the historic structure.
"The easiest and safest project is to do the lofts," said McGowan, standing in front of the former department store building.
"It's not what I'm most passionate about," McGowan said. "I still believe a boutique hotel is best for the downtown."
His decision may have disappointed some, but his Monday announcement still drew a cheery crowd and a great deal of public attention.
"This is a long-waited announcement," Mayor Tom Carlson said.
Nancy Dornan, the master of the ceremonies, said this twice: "We're standing at the end of a path where the future begins."
Originally built in 1915, the building was home to the Heer's department store but became vacant in the 1990s.
Continue reading>>>
McGowan's expected to begin work on Heer's later this year. It'll be nice to finally see some real progress on a building that will once again be the crown jewel of historic downtown Springfield.
You know times are tough when Kevin McGowan has trouble getting financing together for major projects. Now it looks like the building that was home to Springfield's leading department store from 1869 through the mid 1990s may be home to offices instead of condos or a hotel:
I have mixed emotions about the changes to the plans for Heer's. First we were talking about a boutique hotel that would bring 24/7 activity to Park Central Square (well, at least as close to 24/7 as one would expect in Springfield). Then the plan became condos, which would ensure a captive audience for the growing shopping/dining/nightlife options in the immediate area.
Office space seems like the least attractive option since the upper floors of the building would be dead after 5:00 or 6:00 p.m., but at this point the presence of any tenants would be a good thing after all of the delays (none of which have directly been McGowan's fault throughout this process as far as I can see). At least the first floor will still be home to a Mike Shannon's, and I still think there will be retail space on the remainder of the first floor and mezzanine levels, so it isn't like the entire building will be dead when workers go home. Other restaurants in the area besides Shannon's will surely benefit from this as well.
Unfortunately, the same cannot be said for other office buildings in downtown Springfield, including the adjacent Landers Building which is home to state offices and a Department of Revenue license office. So with first and second floor retail, Heer's would still be a big plus to downtown and bring some much-needed life to the NW quadrant of the square.
Heer's developer changes plans, cites credit crunch
Lofts scrapped in favor of possible business with hundreds of workers.
Wes Johnson • News-Leader • October 2, 2008
St. Louis developer Kevin McGowan said the national financial credit meltdown will force him to change plans for the Heer's building on Park Central Square.
Instead of selling 38 upscale lofts in the historic building, McGowan said he is trying to ink a deal with a Missouri business that would put 200 to 300 employees in the downtown landmark.
"We don't know how many floors they might occupy," McGowan said. "They have a sincere interest in the Heer's building. They want to have their employees in a downtown location. We're working to make that happen. They would be great for downtown, all the restaurants and businesses down there."
McGowan's Blue Urban company bought the Heer's building from the city for $3 million two years ago.
McGowan planned to convert it into 38 lofts, with a Mike Shannon's Steaks and Seafood Restaurant on the ground floor.
In an interview Wednesday with the News-Leader, McGowan said he has no intention of walking away from the project and taking a $3 million loss.
If the commercial client comes through, McGowan said construction could begin by late summer 2009.
Continue reading>>>
I have mixed emotions about the changes to the plans for Heer's. First we were talking about a boutique hotel that would bring 24/7 activity to Park Central Square (well, at least as close to 24/7 as one would expect in Springfield). Then the plan became condos, which would ensure a captive audience for the growing shopping/dining/nightlife options in the immediate area.
Office space seems like the least attractive option since the upper floors of the building would be dead after 5:00 or 6:00 p.m., but at this point the presence of any tenants would be a good thing after all of the delays (none of which have directly been McGowan's fault throughout this process as far as I can see). At least the first floor will still be home to a Mike Shannon's, and I still think there will be retail space on the remainder of the first floor and mezzanine levels, so it isn't like the entire building will be dead when workers go home. Other restaurants in the area besides Shannon's will surely benefit from this as well.
Unfortunately, the same cannot be said for other office buildings in downtown Springfield, including the adjacent Landers Building which is home to state offices and a Department of Revenue license office. So with first and second floor retail, Heer's would still be a big plus to downtown and bring some much-needed life to the NW quadrant of the square.
- 1,364
In case anyone is wondering, here's the Street View of the building.
http://tinyurl.com/6hxm7v
And what it used to look like:
http://thelibrary.org/lochist/postcards ... ilding.cfm
http://tinyurl.com/6hxm7v
And what it used to look like:
http://thelibrary.org/lochist/postcards ... ilding.cfm
- 17
I remember hearing a few weeks ago that lofts would now be leased instead of sold in the latest Heer's plan, but it has taken me a while to dig up that source. My googling skills have declined in recent months.
http://sbj.net/main.asp?SectionID=18&Su ... M=41212.21
I must say I am quite impressed with McGowan's perseverance. Also impressive is that rents will start at $600 for 1 bedroom apartments. The new movie theater and grocery store blocks away should make this even more attractive.
http://sbj.net/main.asp?SectionID=18&Su ... M=41212.21
St. Louis developer Kevin McGowan is attempting an end run around the frozen credit markets to secure federally insured financing to renovate the Heer's building as apartments.
A Department of Housing and Urban Development-backed loan is emerging as his best option, McGowan said, after traditional lenders balked at his original plan to transform the former department store in downtown Springfield into roughly 40 for-sale condominiums above a Mike Shannon's Steaks and Seafood Restaurant.
I must say I am quite impressed with McGowan's perseverance. Also impressive is that rents will start at $600 for 1 bedroom apartments. The new movie theater and grocery store blocks away should make this even more attractive.
- 5,433
The Heer's saga and the fallout from the McGowan-Walsh divorce continues...
BTW, every time the Post-Dispatch mentions this development, there's always some cutesy pun like "Heer's to You". Nice try, but Heer's is pronounced "hers".
Anyway, it looks like this may be settled out of court. I have to imagine that the difficulty of securing financing in this economy is the only thing that's keeping this project from moving forward, especially now that square renovation work is underway.
Springfield Business Journal
Former partner sues McGowan over Heer's project
by Dee Dee Jacobs - Online Editor
A former business partner has sued Heer's developer Kevin McGowan, claiming he is owed payment for his work on the downtown Springfield project.
McGowan and Nat Walsh, both based in St. Louis, took on the Heer's project together in summer 2007 but dissolved their partnership later that year. McGowan then formed Blue Urban LLC and bought the building from the city in November 2007.
Walsh now is seeking a $100,000 consultant fee that he says McGowan promised him regardless of the status of the project, according to a report last week in the St. Louis Post-Dispatch. Walsh also is asking for pre-judgment interest from Oct. 1, 2008.
Continue reading>>>
BTW, every time the Post-Dispatch mentions this development, there's always some cutesy pun like "Heer's to You". Nice try, but Heer's is pronounced "hers".
Anyway, it looks like this may be settled out of court. I have to imagine that the difficulty of securing financing in this economy is the only thing that's keeping this project from moving forward, especially now that square renovation work is underway.
ThreeOneFour wrote:BTW, every time the Post-Dispatch mentions this development, there's always some cutesy pun like "Heer's to You".
You're not kidding. Seems every other headline in the Post these days features a pun. Annoying as hell.
- 11K
STLCardsBlues1989 wrote:In case anyone is wondering, here's the Street View of the building.
http://tinyurl.com/6hxm7v
And what it used to look like:
http://thelibrary.org/lochist/postcards ... ilding.cfm
Holy crap - when was Springfield abandoned?
- 5,433
Grover wrote:Holy crap - when was Springfield abandoned?
Yeah, this isn't the most flattering view of downtown Springfield, although Heer's hasn't really been flattering since it ceased operations as a department store in early 1995. The glass and steel cladding that was installed in 1969 was removed early this decade after some of the panels fell onto the street below, exposing the damaged and weathered terra cotta facade along with all of the windows which were boarded up in the 1969 remodel of the store.
(Ironically, when it closed, Heer's was one of the few signs of life on the square. Its parent company went under, otherwise, it may have lasted at least a few more years. It might even be around today, but I fear McMacy's would've found a way to kill it.)
Park Central Square is a bit of a dead zone still, but there have been some positive additions to it in recent years. Two nice restaurants (Trolley's and Riad) opened several years ago on opposite corners of the square at Park Central East (the block that connects the square with St. Louis Avenue).
On the SW quadrant of the square, where you can see construction in Google StreetView, a new library branch has opened in the former Kresge's (which is bigger than it looks), with lofts above and behind and with an adjoining coffeehouse (The Coffee Ethic) which also fronts the square and adds some needed life to the area. The sidewalks around the square are also being redone with new lighting and landscaping.
One of my pet peeves is the amount of ground floor space consumed by the state office buildings. The Landers Building on the NW quadrant and the JC Penney Building on the NE quadrant are home to state offices, and the Levy-Wolf Building on the SE quadrant houses offices for Missouri State University. All of these take up ground floor space that could add to the life of the area. And on the NE side, the old Gem/Electric Theatre has been a church for years. I'd love to see it redone, but there are already theatres downtown (the College Station multiplex and Moxie, an art film theatre), and the recently restored Gillioz Theatre on Park Central East serves as downtown's performing arts center.
Once McGowan gets to work on Heer's, I think it will be transformative for the entire area. A lot of progress has been made, but as you can see, there's still a long way to go. Just south of the square, South Avenue and Walnut Street have many restaurants and shops, and a lot of activity. Hopefully we'll see more of this in and around Park Central Square once Heer's renovations are complete, and hopefully this will inspire the state (cough, cough) to open up the ground floors of adjacent buildings for additional retail space.
The wait has been long (actually, since the store closed in early 1995), but it looks like a renovated Heer's is one major step closer to reality...
McGowan still has to complete the formal application process, but it looks like things might finally move forward. Hopefully similar HUD funding proposals here in St. Louis for McGowan's Ballpark Lofts and the Park Pacific development can move forward ASAP as well.
Developer announces plans for $25 million Heer's makeover
By Wes Johnson
News-Leader
July 17, 2009
The Heer’s building on Park Central Square may not be an eyesore much longer, according to St. Louis developer Kevin McGowan.
Early this afternoon, McGowan announced plans to begin a nearly $25 million makeover of the dilapidated former department store building — now vacant with plywood-covered windows — by the start of next year.
“This will be a 12-month construction,” McGowan said. “At the end of the day, that Heer’s building will shine.”
The major step forward was made possible by a letter from the federal Department of Housing and Urban Development that invites McGowan’s Blue Urban company to formally apply for an $11.8 million HUD loan.
The letter follows an intense analysis of the Heer’s building by HUD inspectors and and a conclusion that his plan to build 61 apartments, a restaurant and bowling alley “is worthy of consideration.”
Last month, HUD officials indicated the project likely would receive the federally insured loan.
Blue Urban now must finish the formal application process, but McGowan said he was confident the loan would be approved.
Continue Reading>>>
McGowan still has to complete the formal application process, but it looks like things might finally move forward. Hopefully similar HUD funding proposals here in St. Louis for McGowan's Ballpark Lofts and the Park Pacific development can move forward ASAP as well.
- 17
For anyone interested in Heer's Tower goings on:
I attended a pre-bid meeting today in the Heer's Tower. A couple of representatives from Blue Urban were there along with a fellow from HBD Construction in St. Louis who is the general contractor on this job. The guys from Blue Urban talked for a while about the scope of the project which will involve restaurant/office space on the first floor and residential units on floors 2 through 7. No one mentioned Mike Shannon's specifically, but that has long been the rumored anchor restaurant. In fact, the set of plans that I got to look at show the front of the building with a "Mike Shannon's" sign on the south side of the building.
The gentleman from HBD Construction seemed very confident in the progress of the project. He said nearly all tax credits and incentives (including HUD funds) had been secured and that the project will go forward as scheduled. That schedule, according to the documentation I saw, says construction will start May of 2010. The man from HBD said he expected construction to last about a year.
If anyone is interested, pictures were snapped today of the inside of the building as everyone had a chance to snoop around and see firsthand the state of decay in which the building currently sits.
http://www.flickr.com/photos/tylerabele ... 712852943/
I attended a pre-bid meeting today in the Heer's Tower. A couple of representatives from Blue Urban were there along with a fellow from HBD Construction in St. Louis who is the general contractor on this job. The guys from Blue Urban talked for a while about the scope of the project which will involve restaurant/office space on the first floor and residential units on floors 2 through 7. No one mentioned Mike Shannon's specifically, but that has long been the rumored anchor restaurant. In fact, the set of plans that I got to look at show the front of the building with a "Mike Shannon's" sign on the south side of the building.
The gentleman from HBD Construction seemed very confident in the progress of the project. He said nearly all tax credits and incentives (including HUD funds) had been secured and that the project will go forward as scheduled. That schedule, according to the documentation I saw, says construction will start May of 2010. The man from HBD said he expected construction to last about a year.
If anyone is interested, pictures were snapped today of the inside of the building as everyone had a chance to snoop around and see firsthand the state of decay in which the building currently sits.
http://www.flickr.com/photos/tylerabele ... 712852943/
- 5,433
^ Thanks for sharing the photos of the Heer's interior and the rooftop views. I spent part of a summer in Springfield in the late 1990s, just a couple of years after Heer's closed, and I always wanted to explore what was left of the place. It's sad to see it in that shape, but it's encouraging to think of the potential that space has.
It looks like Mike Shannon's will still be the primary main level tenant. I hope Kevin McGowan will consider adding retail and perhaps another restaurant that doesn't compete with Shannon's to the remaining commercial space- and I hope the mezzanine can be incorporated as well.
When McGowan was considering conversion of Heer's into a boutique hotel and/or condominiums, I know there were plans to utilize the tower that rises above the main building (where the sequentially illuminated Heer's letters used to be and hopefully will be again at some point). Now that apartments are planned for the space, I hope McGowan still plans to turn the tower into at least one residential unit. The floorplates are very small, but it would make for one unique residence!
Anyway, I'm glad to see McGowan is still moving forward with this development. Now, it would be nice to know what he has in store for the Ballpark Lofts here in St. Louis. The last I heard, he was exploring HUD financing for it as well, but I don't know how far along that process is relative to the timeline for Heer's.
It looks like Mike Shannon's will still be the primary main level tenant. I hope Kevin McGowan will consider adding retail and perhaps another restaurant that doesn't compete with Shannon's to the remaining commercial space- and I hope the mezzanine can be incorporated as well.
When McGowan was considering conversion of Heer's into a boutique hotel and/or condominiums, I know there were plans to utilize the tower that rises above the main building (where the sequentially illuminated Heer's letters used to be and hopefully will be again at some point). Now that apartments are planned for the space, I hope McGowan still plans to turn the tower into at least one residential unit. The floorplates are very small, but it would make for one unique residence!
Anyway, I'm glad to see McGowan is still moving forward with this development. Now, it would be nice to know what he has in store for the Ballpark Lofts here in St. Louis. The last I heard, he was exploring HUD financing for it as well, but I don't know how far along that process is relative to the timeline for Heer's.
Considering the issues that Kevin McGowan has had including the major setback with the Ballpark Lofts at Cupples Station, this is also terrible news, but it is not surprising in the least...
Continue reading...Bid to develop Heer's Building fails
Chris Wrinkle
Reporter
St. Louis developer Kevin McGowan and his loan company Berkadia Commercial Mortgage have missed a third deadline to receive U.S. Department of Housing and Urban Development insurance on an $11.8 million loan to help fund redevelopment of the Heer’s building, said Dale Gray, HUD spokeswoman.
The loan insurance application was due today.
Previous missed deadlines were the original Oct. 6 deadline and then Berkadia's self-set Oct. 15 deadline a week later.
Gray said a representative from Berkadia asked HUD officials on McGowan’s behalf this morning whether another extension would be considered. That request was denied, Dale said.
McGowan, who develops under Blue Urban LLC, released a statement this afternoon regarding the Heer’s project.
“After several years of efforts by Blue Urban and by many city and state government and other professionals, it is with regret that Blue Urban announces its decision to not move forward at this time with the submittal of an application to HUD in connection with the Heer's Building in downtown Springfield,” McGowan, president of Blue Urban, said in the statement.
Could this long-stalled project be "on" again? This is encouraging...
KC developer talks about plans for upscale apartments at Heer's
Kansas City-area developer Jim Nichols says he’s learning that, when it comes to the Heer’s building, there’s no shortage of public interest.
“It’s a cool building,” said Nichols, the CEO of the Lee’s Summit-based Dalmark Group. “We’re excited about the opportunity to do it.”
On Friday, Nichols said he and his partner, Ernie Straub of Straub Construction, plan to renovate the long-vacant department store into “market-rate, luxury-style apartment homes.”
Details of the plan are still a work in progress, he said, but a news release with more information should be available by Monday.
Operating as Heer’s Luxury Living, LLC, the partners have asked the city to help develop term sheet and redevelopment agreement outlining some of the tax incentives that could be available for the project.
Vacant since 1995, the building has been in limbo since St. Louis developer Kevin McGowan mothballed his $29 million renovation plan in 2010.
The former department store went through foreclosure and was sold at auction April 22.
Now a Kansas City-area development company wants the city to discuss possible incentives as it works on another redevelopment plan.
Continue reading...
- 2
It was completely renovated and even a small start up tech company holds down the street level retail portion of the building. The building looks really good on the inside and out. It's made a nice addition to the growing downtown Springfield.