City Foundry Developers Lining Up Financing for Second Phase

By on October 10, 2017

From St. Louis Post-Dispatch:  Even while tenants and financing for the first portion of the City Foundry project in Midtown are still being finalized, the developers behind it are seeking funding for the next phase.

Representatives from the Lawrence Group, the St. Louis firm planning to redo the Federal Mogul industrial site along Highway 40 (Interstate 64) into a retail, office and restaurant hub, say interest from potential tenants means they have to line up financing now. They made their case Wednesday to the city’s Tax Increment Financing Commission, which reviews requests for the development incentive that allows new taxes generated by a project to be used for financing.

Lawrence Group CEO Steve Smith said two national firms, one retail and one office, are interested in significant spaces in the development. The first phase, he said, can’t accommodate them. “They physically won’t fit,” Smith said.

The $97 million second phase calls for 45,000 square feet of retail space and two office buildings with a total of 130,000 square feet of space. About $17 million in TIF assistance would supplement $45 million in loans, $25 million in private investment and funds from other sources.

“We have an institutional equity source,” Smith told the commission, referring to the investor in the project. “We are really close to bringing them on board.”

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