January 21, 2010
By Kelsey Volkmann
St. Louis Business Journal
The stalled Streets of St. Charles project moved forward Tuesday night when the city council approved $40 million in bonds for the $385 million mixed-use development.
Cullinan Properties Ltd., based in Peoria, Ill., has been pursuing the project since 2007, shortly before the nation’s housing and bond markets began to deteriorate. With the recession, the project couldn’t get the financing it needed, said Jeff Giebelhausen, a partner with Cullinan.
But now the $40 million in city-backed Neighborhood Improvement Bonds for streets, sewer and waterlines will get the project rolling again, said Nadine Boon, economic development director for the city of St. Charles. The interim financial agreement means the bonds issued by the city will eventually be replaced with bonds backed by sales and tax revenue from the development.
Nationwide, the only projects getting done are ones with cities “putting their bonding capacity on the line,” Boon said.
The development, planned for the 26-acre site of the former Noah’s Ark restaurant and motel at Interstate 70 and South Fifth Street, calls for 540 residential units, 250,000-square-feet of retail space and 150,000-square-feet of offices.