Four years of work fuels Finley project
07/09/2008
Updated 07/08/2008 02:02:56 PM CDT
Posted Wed., July 9, 2008
Four years ago the Finley River Neighborhood Development was little more than a dream.
Since that time the project has moved forward even after being mired in controversy and politics. And not many could have predicted the amount of work needed to make the dream a reality.
Ozark City Administrator Steve Childers said it is a dream he still believes in-for the sake of Ozark’s future.”This is the most important project the city has, or has had for several years,” Childers said. “And it has all been in the name of giving the citizens of Ozark, as well as visitors, the opportunity to have a downtown area. One they can be proud of.”
Voters approved activating the Land Clearance for Redevelopment Act in February 2004. A three-member board, the LCRA was created to oversee the development of a 47-acre area west of Third Street and south of Jackson Street.
The city began working with Hagerman in November 2005 when aldermen approved a nearly $100,000 contract with Bo Hagerman and his family’s business, Hagerman New Urbanism, Springfield. The agreement gave the architectural firm exclusive rights in the development design, $25,000 cash and land in payment for the remainder of the $99,100 contract.
The land Finley River Development LLC currently owns surrounds the cemetery and the last two lots on the south side of West Hall Street. Hagerman has a total of three companies listed as owners of the property.
After town hall meetings with citizens and property owners within the development area, concern about the use of eminent domain eventually entered the political picture during the April 2007 election.
And, some residents protested the stigma over the designation of the development area as “blighted” in order to secure tax increment funding. Despite the problems, a developer’s agreement was executed Nov. 1, 2007.
Under the agreement with Hagerman, the city purchased the church property, or phase one, for $1.4 million and Hagerman would purchase the property from the city using funds from the sale TIF bonds and begin development.
The Ozark Aldermen killed the existing contract March 3 with Hagerman New Urbanism in redeveloping the 47-acre blighted area in center Ozark.
City Attorney David Collignon said Hagerman was in default, according to the development agreement, because it has failed to:
* Submit surveying and re-platting work of the development by Jan. 1;
* Obtain approval of the final plat by Jan. 1;
* Acquire property, specifically the O’Reilly area and the Church property, from the city of Ozark on or before Dec. 31, 2007;
* Complete survey and re-platting work on the commercial usage area by Jan. 1;
* Begin surveying and re-platting work for the commercial usage area by Sept. 17, 2007.
The city will now act as the master developer of the $10-million Finley River Neighborhood project and is pursuing a 90-percent loan guaranteed by the United States Department of Agriculture.
Hagerman filed an $850,000 lawsuit against the city May 13 claiming his company was owed for expenses over the past two years.
At the heart of the suit is the agreement between the city and FRD. The city claimed when it terminated the contract with FRD because it was unable to secure tax increment financing bonds to proceed with the project and missed all deadlines for platting and initiating construction.
A bulk of the expenses FRD claims the city owes is 7,148.45 hours, at $100 an hour, the suit claims. Of the $714,845 FRD billed to the city, the company said the city has only paid $52,150.
Other charges the FRD suit claims the city owes includes reimbursement of:
* $1,500 contribution “for Liquor By The Drink Campaign” in Ozark in 2007;
* $36,000 in charges for 2007-08 by Blackwell Sanders law firm, Springfield;
* $6,000 in survey and plat work by Gray and Associates, Springfield;
* $20,000 in fees by Eugene Norber, Economic Development Resources, consultant;
* $750 in late fees owed to the Internal Revenue Service for Finley River Properties, LLC, the company showing ownership of property within the 47-acre development area;
* $900 in city property taxes owned by FRD;
*$15,000 reimbursement for market analysis, geodemographic data and travel expenses by Zimmerman/Volk Associates, Inc., a New Jersey research and strategic analysis company;
* $4.50 fee by Ozark Bank.
“The city of Ozark feels like it has been taken advantage of,” Childers said about the lawsuit. “The city has made a lot of investment in this project-a lot of time, a lot of staff resources.”
While a new developer is in discussions with the city of Ozark to finally get the Finley River Neighborhood Development project off the ground, the city has started a condemnation process, or eminent domain, to acquire the property owned by Hagerman.
Childers said the city sent a notice of condemnation July 1 to Hagerman and Hagerman New Urbanism. Under Missouri statute 523.010, the city can acquire the land owned by Hagerman’s development company, Finley River Development LLC, by a condemnation petition.
The Land Clearance for Redevelopment Authority is moving ahead with the project, discussing terms of an agreement with PlazaCorp Realty Advisors, Inc., Kalamazoo, Mich., Childers said.
Childers said he has made several attempts to resolve the situation with Hagerman. Including making an attempt to separate the sale of the property and settling the lawsuit.
“The reality of this whole situation is that this project is going to happen,” Childers said. “We’ll get through this and when we do the citizens of Ozark will have a downtown they can be proud of.”