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A Tale of Two Buildings

Once upon a time, Heers Tower and College Station were to be the crown jewels of downtown Springfield. Here’s where the stalled projects stand today.

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Back Story

Several years ago, city-owned real estate was sold to Tillman Redevelopment, owned by Scott Tillman, for a project anchored by a multi-screen movie theater. Since then, only the cinema has materialized, though the city built two parking decks to accommodate the anticipated shoppers.

The Current Plan

City reps say they are hopeful for a full build-out of eateries, boutiques and other urban cash-magnets. Bart Pinkerton of Wilhoit Properties is working to  lease the space, and says negotiations are ongoing, and if a negotiation pans out, we may see a large user in College Station before long.

The Catch

The economy, mostly. Commercial lending is almost non-existent, and  Pinkerton says many national businesses that would make ideal tenants for College Station are in survival mode, not expansion mode. Of course it’s not just that simple; there’s a fair bit of bickering going on, as well (read below).

The Current C-F

Hollywood Theaters is suing Tillman for not paying in full a $1.6 million rent allowance fee. Tillman is counter-suing the Portland, Oregon-based chain, claiming it is in breach of contract for not filing financial reports on gross sales. Mixed up in the mess are an insurance spat and a dispute over square footage on the original lease signed more than four years ago, when the whole she-bang was just a parking lot.

Associated City Cost

The City spent more than $10 million on the College Station parking facility, then sold the ground floor to Tillman for a little less than $245,000. The primary burden now is the lower-than-expected retail tax revenue coming in, which had been planned on (up to $17 million in taxable sales at full build-out, Smith says), helping deplete the city’s already strapped general fund. Springfield Director of Economic Development Mary Lilly Smith says the city is not involved in the College Station lawsuit.

The Prospects

Last December, Smith says, the city amended its agreement with Tillman to require him to lease no more than 20 percent of the CS space to non-retail businesses (restaurants and clothing shops = good; offices, check-cashing places = bad). That stipulation burns off in May 2010, so we have until then to avoid College Station—at least potentially—turning into another homogenous Springfield strip center.

Click to next page to read about Heers Tower...