The ground floor would be used for the commercial space and the other floors of the five-story structure, that will see an addition built, are slated to be used for housing. There would also be parking built for both tenants and shoppers.
The project is being led by the Turner Foundation who is working with developer Dillin LLC. Springfield city commissioners have given approval for Springfield City Manager Bryan Heck to enter into a Community Reinvestment Area Agreement regarding the property.
That agreement relates to the commercial space that will be created as a result of the project being undertaken by the Turner Foundation and Dillin LLC. It would create a 50% abatement related to improved property tax evaluations on the commercial space for a period of 15 years.
Aaron Horn, a development coordinator with Dillin, said the abatement would benefit future tenants and small business owners since it would lower their tax burden during that 15-year period. He said it would especially be the case since their commercial leases include paying property taxes.
“It really goes a long way in supporting future tenants on the ground floor space,” Horn said.
A request for a tax abatement regarding the residential aspect of the project would be a separate agreement. Horn said he believes that process would start after the apartments were completed.
The Turner Foundation previously received up to $2 million in historic state tax credits for the project. However, there are plans to apply for a new pool of tax credits that could provide more money for the project and replace existing tax credits received. Those awards will be announced at the end of the year.
If those new tax credits are awarded to the project, construction would be slated to start early next year and would take between 16 to 18 months to complete.
Efforts to turn the McAdams Building into apartments and retail space have been in the works for a number of years. Previous plans ranged from building up to 36 and 56 apartments as well as adding on to the building or constructing a 20,000-square-foot addition.
Renovations slated to begin in 2020 were postponed after a potential developer for the project pulled out, citing concerns over the return investment on the property.
The scheduled renovations were expected to cost around $10 million to $12 million depending on the number of apartments created and what amenities they would include.
But with Dillin working on the project now, the idea is to create more apartments, construct an addition to the building and create retail space.
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