Standard Life restoration, hotel project to start soon
By WAPT Channel 16
Thursday, June 28, 2007
Standard Life restoration, hotel project to start soon
By Jack Mazurak
jmazurak@clarionledger.com
Construction on two projects key to revitalizing downtown could begin this summer - one a restoration of the iconic Standard Life Building, the second a $190 million-plus hotel, residential, office and retail development to support the Capital City Convention Center. The Jackson Redevelopment Authority board voted Wednesday to accept an $11 million-plus proposal from King Edward Hotel developers to renovate the 78-year-old Standard Life Building.
Plans call for retail businesses on the first floor of the 18-story art-deco tower and up to 58 one- and two-bedroom apartments. The project is expected to take about 15 months once under way.
The board also signed a memorandum of understanding with Dallas-based developer Mark Small and his TCI MS company for the convention center hotel project. A formal agreement is expected as early as Friday. Preliminary work on the convention center hotel project could start soon. The estimated $190 million development will span three blocks between Pearl and Pascagoula streets, from Court to Roach streets. Contractors will build two hotels, two parking garages, an office building, apartments and condominiums.
"We've got environmental engineers coming in now to look at the existing buildings ... We hope to start (construction) by the end of the summer," Small said.
The two projects join a host of other developments under construction - the King Edward Hotel revitalization, Capital City Convention Center, Pinnacle at Jackson Place, Farish Street Entertainment District and the Mill Street Viaduct. City planners figure those developments will feed into the city's arts district - the Russell C. Davis Planetarium, the recently renovated Mississippi Museum of Art and Thalia Mara Hall - to create a cohesive atmosphere of offices, restaurants, residences and entertainment.
JRA Board Chairman Brent Alexander said negotiations on details of the project will begin soon. The board could vote in next month's meeting to sign a memorandum of understanding with developers.
The board had received three proposals for the project. The winning proposal came from the King Edward Revitalization Company LLC, a coalition of New Orleans-based HRI Properties, Jackson lawyer David Watkins, restaurateur LeRoy Walker Jr. and Saints football star Deuce McAllister. The group is investing $73 million in the King Edward.
"The consensus of the board was that the Standard Life project worked better if it were to be integrated with the King Edward Hotel rather than as a standalone project," Alexander said.
HRI development project manager Ken Milvid said restoration won't be easy. "The big issues are building-code related. We'll have to put in a second stairwell. The structure's fine but we'll have to gut the inside and rebuild," he said. Asbestos and other environmental hazards are likely lurking, which will require expensive remediation, Milvid said.
Small and TCI MS also had put in a bid on the Standard Life Building. The third Standard Life bidder was The Roberts Companies, a St. Louis-based development, real estate management and broadcasting conglomerate. The Roberts Companies own CW34 WRBJ-TV and Hot 97.7 WRBJ-FM in Jackson.
HRI representatives said funding for the Standard Life Building will tie into the King Edward's. The company, which specializes in revitalizing historic buildings, already has millions in new market tax credits. By restoring historic structures, developers qualify for federal tax credits, which can be sold to generate cash. HRI will get tax incentives through the Gulf Opportunity Zone Act. Capitol One and Chevron helped provide the financing, said HRI vice president Sidney Barthelemy, former New Orleans mayor.
The financing, the group's strong local ties and its plans to devote most of the Standard Life Building to residential space rather than hotel rooms, all helped win JRA's blessing.
It's also a defensive move to keep from stepping on the planned boutique hotel in the King Edward, Barthelemy said. Although the King Edward will offer apartments, both developers and city planners figure the more the merrier when it comes to downtown housing. As is, the city offers only about 100 units.
McAllister said what got him on board were the synergies the two neighboring buildings would create. Besides being able to use a single rental office and parking structure planned in the King Edward, tenants will be able to shop and use amenities of both buildings.
John Lawrence, president of Downtown Jackson Partners, a pro-development business association, said the two projects will address housing and parking, two aspects critical for revitalization. "The Museum of Art, the planetarium and Thalia Mara Hall are all places trying to do more business and need the additional parking. This will alleviate some immediate problems they're having in addition to creating some opportunities on other development sites," Lawrence said.
"Residential development is certainly Downtown Partners' No. 1 priority. Until we get enough people living in the heart of our capital city, it's going to remain difficult to attract retailers and restaurants and all the amenities we want for our visitors to see. You have to have that base of residents to support it."
To comment on this story, call Jack Mazurak at (601) 961-7271.
