Developers Eye $70M in City Projects
Date Posted: June 2, 2020
Posted In: Projects,
From St. Louis Business Journal: Developers are planning some $70 million in new projects in the city of St. Louis, mostly multifamily developments.
The projects were revealed in city documents, as a public board on Tuesday (May 26) is slated to consider endorsing various tax subsidies.
Otis Williams, executive director of the city’s development agency, St. Louis Development Corp., said the pipeline shows that those who were working on developments prior to the Covid-19 pandemic are continuing to push forward.
“I can’t think of one project where people have decided, ‘We aren’t going to do this,'” Williams said. “There are a few out there who are going to take awhile to get to the end just because of things going through.”
The projects being considered Tuesday are:
1800 Washington Blvd. A vacant, 110,300-square-foot commercial building in Downtown West.
Developer: MacDonald Building LLC, tied to Kansas City attorney James Freeman.
Plan: 72 residential units, to be studios and one bedrooms. Fifty-two parking spaces would be located inside the building.
Acquisition cost: $2.2 million.
Redevelopment cost: $13.5 million, including $2.1 million in federal historic tax credits, $2.5 million in state historic tax credits and $5.9 million in debt.
Subsidy ask: Ten years of property tax abatement (five years based on 90% of assessed value and five years based on 85% of assessed value). The property currently has an assessed value of $272,000, but city documents say the project would represent a fiscal benefit to the city of $262,000 over 10 years and $646,000 over 20 years.