New Developments From Mike Shannon's Son-In-Law, The Developer...

The Springfield Business Journal is reporting today that "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."

McGowan said the market-rate loan available through Capmark (formerly GMAC Commercial Mortgage Corp) is attractive for a couple of reasons, not the least of which is a 40-year amortization schedule. The loan terms also prohibit the lender from holding the developer personally liable if the $27 million project falls through, he noted.

Mary Lilly Smith, the city's economic development director, said her department is eagerly awaiting McGowan's suggested amendments to the redevelopment agreement, which currently requires him to start construction on Heer's by Feb. 1.

The revised Heer's redevelopment plan isn't all that different from what McGowan proposed almost exactly a year ago.

McGowan said Shannon's - owned by his father-in-law and former St. Louis Cardinal Mike Shannon - is still committed to the project as the ground-floor tenant, but the city no longer plans to lease space in the building for its traffic management center and TV23 operations, making more room for apartments. Interior finishes for the apartments will be the same as those planned for the condos, McGowan said.

A swanky bowling alley similar to the Lucky Strike Lanes in Kansas City's Power & Light District also is planned for the first floor of the Heer's annex on the building's north side, McGowan said. Gone, though, is a penthouse suite that would have partially occupied the building's signature tower.

A rooftop swimming pool, a large fitness room and two lounges also remain intact.

"We think we're going to draw a heavy college/young professional crowd," he said.

Read SBJ Reporter Matt WAgner's complete story here.