Latest Agreement for Ballpark Village Announced Today
Earlier today information on the revised Ballpark Village development agreement was released:
CARDINALS, CITY OF ST. LOUIS AND THE CORDISH COMPANY REACH BALLPARK VILLAGE DEVELOPMENT AGREEMENT
Stifel Nicolaus Plays Critical Role in New Agreement
ST. LOUIS, July 23, 2008 – The St. Louis Cardinals, The Cordish Company and the Honorable Francis Slay, Mayor of the City of St. Louis, today announced that an agreement has been reached to proceed with the development of Ballpark Village, a world-class entertainment and lifestyle development planned north of the new Busch Stadium in downtown St. Louis.
Ballpark Village will transform multiple blocks of downtown St. Louis into one of the premiere mixed-use developments in the United States, acting as an important catalyst for the continued revitalization of downtown St. Louis.
“This is an exciting day for the St. Louis Cardinals organization, our fans, and for the city of St. Louis,†said Bill DeWitt III, president of the St. Louis Cardinals. “We greatly appreciate the efforts of everyone involved in reaching this important milestone. We are absolutely committed to delivering a development of the highest quality for our fans and for the City.â€
DeWitt also noted that many developments of the same scope as Ballpark Village have stalled or been put on hold throughout the country, which makes this announcement all the more meaningful.
“The Cordish Company has been a terrific partner in working through an extremely complicated mixed-use, public/private development deal,†DeWitt said. “We chose Cordish as our partner because of their track record in delivering these types of projects in other cities. But we have also been impressed with their design team’s willingness to tailor this project to the specific characteristics of the St. Louis market.â€
St. Louis Mayor Francis Slay said Wednesday that he supports the new agreement and will recommend it for immediate approval to the Board of Estimate & Apportionment, the St. Louis Board of Aldermen, and the State of Missouri.
“We are very pleased to be moving this project forward. It will undoubtedly have spin-off benefits for the entire metropolitan region,†Mayor Slay said. He added: “In today’s market, it is extremely rare to finance a development of this size without putting any existing tax dollars at risk. With zero City risk and zero City direct investment, Ballpark Village will create thousands of new construction and permanent jobs, generate tens of millions of tax dollars for City services, and create new office space to keep and attract high-paying professional jobs.â€
“Ballpark Village is going to be spectacular, and we are thrilled that an agreement has been reached,†said Blake Cordish, senior vice president of The Cordish Company. “Most importantly, as we have experienced in other cities, Ballpark Village will act as an anchor for the continued renaissance of downtown St. Louis. We passionately believe in the future of St. Louis, as evidenced by what will be a multi-hundred-million-dollar investment in the City, and are committed to delivering a world-class development that will celebrate St. Louis and feature a connection between the ballpark and the City which will be unmatched in the U.S.
“The tenant interest in the project has been unflagging and overwhelming from the beginning. At the end of the day, when you have positive tenant interest, projects always find a way to happen. We look forward to making announcements as the development proceeds and opening a world-class development for the City, the Cardinals, and their fans.â€
DeWitt added that Ballpark Village will provide new class A office space which will help fill a void in the market. “With views of the Gateway Arch, Busch Stadium, downtown, and the river, Ballpark Village will offer signature office space unavailable anywhere else in the region,†DeWitt said.
DeWitt, Mayor Slay and Cordish all commended Stifel Nicolaus and its chairman, Ron Kruszewski, for assisting in the complex negotiations which made today’s announcement possible. Mayor Slay enlisted the company several months ago to help facilitate negotiations between the parties in a financial environment that was undergoing rapid change. Kruszewski commented, “We were charged with modifying the previous development agreement to give the development team more flexibility to respond to changing market conditions while also preserving the City’s core principles, primarily that no existing taxpayer money or credit be put at risk in any way. This new agreement accomplishes all of these goals.â€
David Cordish, chairman of The Cordish Company, said, “The City administration should also be applauded for showing remarkable creativity in enlisting the private sector to help accomplish its goals. Stifel has spent hundreds of hours, noncompensated, and successfully helped structure a partnership between the developers and the City of St. Louis for a project that will dramatically change the St. Louis region for the better.â€
Highlights of the deal include:
As with the previous agreement, the City is not at risk and does not use general funds to finance the public portion of the project – all public money comes from a portion of the future tax revenues of the project itself.
Approximate phase 1 costs increase from $280m to over $320m and the approximate total project cost (phases 1 and 2) from $387m to over $600m.
The percentage of city and state participation (plus TDD/CID assessments within the project) in the first phase decreases from 35% to 32% in the anticipated phase 1 and decreases from 30% to 24% upon the anticipated completion of phase 2.
Over 3,000 construction jobs are expected to result from phase 1 development as well as over 2,000 permanent jobs.
The office component is now a range of between 100,000 – 750,000 square feet in phase 1. The current plan for phase 1 calls for approximately 300,000 square feet of office.
The retail component is now a range of between 225,000 and 360,000 square feet. The current plan for phase 1 calls for approximately 300,000 square feet of retail.
The residential component is a range of between 100 and 250 units and will likely be developed in the second phase.
The agreement enables increased office space as well as a hotel component in the first phase of Ballpark Village.
Developer provides cost overrun protection.
Developer provides completion guarantee backed by financial penalties.
The Cardinals and Cordish are expecting to begin construction on the site work for the project shortly. The exact date will be announced in the coming weeks. This will allow the developers to get a jump start on the construction schedule as the final approvals make their way through the City and State governmental bodies. The final closing for the public portion of the financing is expected to occur in early 2009.
So how does this stack up against the original agreement? On paper it looks very similar. The plan two years ago called for 100,000 sq. ft. of office space. Today they are saying the office portion will be three times as large and possibly seven and a half times as large.
I endorse Steve for Mayor. There is such a total lack of leadership in St. Louis that it is hard to describe in a short post. It is a leadership that is bought, but not earned. Steve has earned his leadership status.
It is simply time to rid ourselves of the same old tired solutions and the same political/corporate hacks who have been running everything for decades. They are failures, the proof is in population lost, demolished buildings, corporations lost, jobs lost, airports moorings lost and on and on, I’m not making this up.
Steve has proven he can listen, can provide a synthesis and develop new ideas from the old. That is the hallmark of a leader.
If you look at Ballpark Village and the loss of residential housing, it only points to the fact even the dense downtown area is not a “walkable, sustainable, green environment.” Coordination between an Arch proposal, Ballpark Village and the new sculpture park in the Gateway Mall should be included in a major international architectural competition and in all planning discussions. Instead everything is considered in isolation, by itself. It is the exact opposite of city planning. There are no connections developed to establish what should be the ultimate urban environment: downtown St. Louis.
Instead you walk in an urban wasteland unless you are in older downtown sections. Ballpark Village is a perfect example of clueless development, on par with Union Station and the failed St. Louis Centre.
It follows that the current proposal for Ballpark Village would not be desirable for residential. Who would want to live in this sea of isolation divided from the surrounding city?
Coordinating urban planning between Ballpark Village, the Gateway Mall and the Arch grounds is the natural purpose of urban planning.
Steve can provide that type of leadership. The Danforth’s have vision and leadership, although they fall short in ensuring that the “What’s in it for Me Crowd” doesn’t end up controlling the outcome.
The downtown is a whole, the city is a whole. The failure to coordinate diverse planning elements into a new vision illustrates vividly the shortcomings of the current leadership. It is why the city is failing. it is also why the leadership should be replaced from top to bottom.
I am confident Steve can take St. Louis to the next level. He understands urban issues and will insure that the voice of the people will be heard and that a city will be built that serves the welfare of all of it’s citizens, not just a few insiders.
The failures of the current corporate/political leadership are destroying the City of St. Louis and contributing to the decline of America. It is time for a change.
[slp — Thank you for the personal endorsement.]
I’d put my mood as one of resignation. The developers have been hammered by the downturn in the economy, so it’s no surprise the schedule has slipped. I am relieved that the incentives are tied to what’s finally delivered, and not being increased to make up for any anticipated lost profits. And being a pragmatist, I realize that the market drives what survives over the long haul – we may want more residential and less hotel, for instance, but if there’s no one out there to consume it, why should it be built, and if there are consumers, why not meet that demand?
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I do agree with Steve’s concerns about both restoring the old street grid and the urban form. But looking at Cordish’s other projects around the country, I’m not all that concerned – they seem to follow a pretty predictable model of urban-feeling storefronts facing some sort of plaza. My concern is that the news realease is silent on how any sort of urban design review, input or comment will be accomplished – apparently the City will be doing things the old-school way and we taxpayers will just be told what we’re getting, after the connected insiders have decided what they can make money on and we deserve.
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Given the present economy, I can easily see the developer aiming low, and just throwing up some one- and two-story retail structures, housing primarily sports-themed entertainment retail – that’s essentially what Cordish did in both KC and Louisville (the high rises in Louisville were there before Cordish came in and reinvigorated their version of a dead downtown mall). It’s what they do and they’re good at it. My guess is that the other stuff (office, residential and hotel) is more of a distraction and a platitude, and that only the minimums will ultimately be built.
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And I have to disagree with “Several hotels already exist within a block of the project so I’m not sure if this is a good thing. Additional hotel rooms may just siphon business from other hotels.” We’re a nation built on free trade and competition – a new hotel will only negatively impact existing properties if it’s both cheaper and better than what’s out there now. If the existing properties aren’t competetive, they should close (and they have the advantage of not having to pay for a brand new building at today’s inflated construction costs)!
References:
http://www.powerandlightdistrict.com/
http://www.4thstlive.com/
http://www.tampabay.com/news/business/economicdevelopment/article735759.ece
[slp— when the new guy gets lots of financial incentives its hard to apply free market economics.]
“will create thousands of new construction and permanent jobs, generate tens of millions of tax dollars for City services, and create new office space to keep and attract high-paying professional jobs”
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They said that about every downtown project since the Gateway Mall. Why will this work out any better?
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Would tenants locate here instead of say North Park or McKee’s new North City project?
Doug,
Downtown is a different market than North Park or McKee land. Residential is being reserved for future phases. There will be lots of permanent jobs and construction jobs. During construction, lots of suppliers and professionals will get work. There’s lots of good in this.
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Understand had the Cardinals left STL for Riverport or elsewhere, none of this would be happening, and we’d have a big empty stadium downtown.
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Word.
Most likely to be affected – Union Station, followed by LaClede’s Landing.
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No construction job is permanent, and what we need are fewer entry-level service sector jobs and more professional ones.
Re: Union Station and Laclede’s Landing: That’s fine. The station doesn’t work as a mall, and the Landing needs to be a real functioning urban environment rather than Tom Purcell’s cartoonish Ye Olde Binge Drink theme park.
I’m actually surprised they aren’t including residential. Cordish is WAY off the mark by suggesting the residential market isn’t there.
Residential units overlooking or near the ballfield will be an extremely attractive situation. It’s all about location and it is an A+ premiere site, especially given this town’s fascination with the Cardinals.
The fact that Cordish hasn’t offered to presell some condos indicates to me that this latest plan might just be some latest smoke and mirror campaign.
If 200 units were available for presell, I am convinced there is still enough hard money out there who would take a gamble and they would sell half the units rather quickly.
I have no strong opinion on the specific mix of uses proposed. I do wish that more attention was paid to the form of the design however. Markets change over time and the form of this development should be flexible enough to allow different uses to inhabit it as needed.
My main concern about the last design for BPV is how the buildings seemed to turn their facades inward towards a central plaza type area. They seemed to be turning their backs to the surrounding streets, leaving them just as dead as they currently are. Granted, this area is mostly filled with bland parking garages, but we need to start addressing the city street-scape at some point. BPV has the potential to really enliven these streets. The parking structures could be re-faced or replaced with a better design at some other time down the road to further improve the area.
Once Centene pulled out, I ceased to be excited about this project. It will be great if the office component will help allow downtown to retain the law firms whose leases are up for renewal, but having Centene on board would have been huge.
Excellent interview ‘An Obsessive Compulsion towards the Spectacular’
Dutch architect Rem Koolhaas talks about new trends in architecture and urban development, the end of the European city, the rise of Dubai, Russia and China, the obsession with XXXL and the difference between the people who design buildings for a living and “star architects.”
Here is a snippet
The irony is that in the West, of all places, an overemphasis of the economic forces us into permanent chaos. In the past, an airport could be proud of the fact that its paths, from the airport entrance to the gates, were short and direct. Nowadays the large numbers of shopping areas have turned airports into labyrinths.
http://www.spiegel.de/international/world/0,1518,druck-566655,00.html
While I have little faith in Cordish as a developer (Charlie Brennan has uncovered Cordish half ass projects around the nation), I still feel as if the real problem with Ballpark Village is a lack of an overarching city plan. The role of government is to provide a framework for developers and help create the atmosphere and need for hotels, residential and similar uses. Ballpark Village as conceived is isolated and will only suck the life out of other areas.
Even if Steve is not interested in running for Mayor, there is a tremendous need for similar qualities in new people moving into politics. People with the ability to analyze, synthesize, and create new solutions based on the urban planning needs of the City of St. Louis. Politics is where the solutions lie.
The current failure is ongoing. Despite the crisis modes in energy, there is still no call for a major overhaul of urban and regional planning into a more sustainable form. This is true, even when faced with the fact that energy conservation trumps all other forms of energy creation.
The current leadership of the city needs to be totally revamped to create new ways of thinking. Otherwise Ballpark Village is destined to become another half ass project that is poorly connected with the rest of downtown. In another decade the latest John Steffen will be buying an abandoned Ballpark Village because of this lack of understanding on how to formulate and build an integrated and thriving city.
I have never lived in St Louis, never even lived in the state of Mo.; in fact, I’m definitely an outsider! but for whatever reason I’ve always loved and followed the city of St Louis. As an outsider looking in, it seems to me the real problem lies with the city & county reconciling their differences and opening the door to St Louis becoming a world class city again, not Clayton, Mo. Who has heard of Clayton? The greater St Louis area needs to work to promote St Louis. St Louis is truly the gateways to the American west, start marketing it that way! Mayor Slay, Dan Cordish & the rest of the so-called visionary planners need to quit thinking about themselves first, and start thinking about St Louis. Thanks for the opportunity to share my thoughts. Go Cards!
Over in Louisville, more of the same: http://www.courier-journal.com/apps/pbcs.dll/article?AID=/20080805/NEWS01/808050416/1008
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