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Date: 11/10/2021
SPRINGFIELD – Downtown Springfield looks to be further revitalized thanks to a Section 108 loan discussed during the joint Economic Development and Finance Subcommittee meeting on Nov. 4.
Chief Development Officer Timothy Sheehan spoke on behalf of the $5 million loan, with the city’s application for funding being unanimously approved by the City Council in March 2021. Sheehan revealed that the loan itself was approved by the U.S. Department of Housing and Urban Development (HUD) in September 2021. “This loan guarantee is one of the most successful investment tools HUD offers to local governments. We commend the city’s leadership for their continued commitment to the revitalization of the downtown area,” said Sheehan as he read a statement from HUD.
Sheehan further explained the city’s goals in applying and executing the loan for commercial developments in Springfield. “Ultimately it was for the city to acquire properties that have been vacant or foreclosed upon…As we all know, there have been a number of properties that have languished and have lacked economic development for years,” said Sheehan.
Sheehan said the 20-year loan would be utilized to aid developments in the Main Street Convention Center area, including the purchasing, rehabilitation and eventual selling of properties by the city’s Redevelopment Authority (SRA) to potential tenants. Councilor Malo Brown inquired about how the loan could be utilized to reinvent Springfield as a market for basketball.
“Is anyone thinking about the birthplace of basketball, is any money going there? We have to create something where we can host actual games,” said Brown. In response, Sheehan discussed a riverfront sports complex that has been in preliminary discussions since the start of this year. The complex would host tournament games at the high school-level and would be in close proximity to the Basketball Hall of Fame, according to Sheehan.
A common theme stressed by the councilors was using the project to provide local entrepreneurs with business opportunities. “I wouldn’t want you guys to buy and redevelop areas and sell them to Walmart. I would love it if you sold them to entrepreneurs and Springfield citizens who want to make a difference,” said Brown. Councilors Timothy Allen and Tracye Whitfield shared similar sentiments about incorporating local business owners in the loan project.
Sheehan said that providing assistance to potential local tenants, including lower rent prices, will be a central focus in the loan’s implementation. “That is one of the focuses we are looking at. We want to try and ensure that we do get more small businesses into these buildings over time,” said Sheehan.
The implementation of the Section 108 loan will be further discussed in future City Council meetings.