SPRINGFIELD – The Springfield Economic Development Agency (SEDA) acquired the former site of Springfield Buick at 702 A St. and the adjacent parking lot at 751 B St. from The Motors LLC on May 28 for $1,750,000.
Springfield Buick operated from 1948-2019, when the business closed. Robert Scherer, 702 A St. and 751 B St.’s previous property owner since 2017, attempted to create an eight-story, mixed-use building that would primarily be housing just down the street from Springfield Buick at 740 A St.
Ultimately, that project was deemed unable to continue June 26, 2023, which led SEDA to exercise a provision in the Predevelopment Loan Contract with Blue McKenzie LLC. This exchanged loan forgiveness for project assets, including the deed to the property. Negotiations continued for six months, and SEDA officially owned 740 A St. on Dec. 27, 2023.
On Sept. 25, 2023, economic development manager Allie Camp stated that the development of 702 A St. and 751 B St. “can assist in meeting the goals for downtown of communicating the viability of dense, market rate housing and providing a market comparable for future, private projects.”
Land banking, which is the practice of aggregating parcels of land for future sale or development, allows SEDA to have more certainty when considering access and control of land. This long-term investment strategy also allows for flexibility in how the land can meet community needs while being economically-viable.
Camp wrote on Feb. 12 that the “acquisition of (702 A St. and 751 B St.) would provide more developable area available to support future projects at the Blue McKenzie site, 740 A St.”
Scherer was eager to provide the Buick property and its parking lot to SEDA. He had said in 2021 that he wanted to use this property as an investment and a way to give back to the community he has lived in his whole life, and that mentality has not wavered.
“Purchasing the property is the best way the City and SEDA can control development in Springfield and bring something great to Springfield that I wasn’t able to on the last project,” Scherer at the May 28 meeting.
SEDA now owns:
• 138 Main St. was purchased in June 2013 for $669,000 to develop “Mill Plaza,” but that property was not adopted into the downtown urban renewal plan at that time due to oversight.
• 735 A St. (commonly known as the Memorial Building). Purchased along with 765 A St. in December 2020 from Willamalane Park & Recreation District for $785,000.
• 765 A St. (commonly known as the Memorial Building). Purchased along with 735 A St. in December 2020 from Willamalane Park & Recreation District for $785,000.
• 236 Main St. Purchased in July 2021 for $790,000 from Springfield Utility Board based on redevelopment interest by SUB and a private party along with four other properties, three of which SEDA no longer owns.
• 240 Main St. Purchased in July 2021 for $790,000 from SUB based on redevelopment interest by SUB and a private party along with four other properties, three of which SEDA no longer owns.
• 740 A St. Obtained Dec. 27, 2023 as part of the loan forgiveness for project assets because the Blue McKenzie project was deemed infeasible.
• 437 Main St. (formerly a U.S. Bank). Purchased April 8 because SEDA deemed it a “strategic location” to be in possession of since it connects South A. Street and Main Street. The sale transaction may still be underway with the legal guidance of Radler, White, Parks, and Alexander since 437 Main St. has not made its way back onto a SEDA agenda since April.
• 702 A St. was purchased May 28 for $1,750,000 along with 751 B St.
• 751 B St. was purchased May 28 for $1,750,000 along with 702 A St.
A complete list of all SEDA-owned properties is in the works. SEDA does not have plans for any of these properties, according to Camp.
