Heritage foundation loses bid to slow down Horace Mann's East Washington Street project

The Springfield City Council refused Tuesday to take up the reconsideration of a Feb. 21 vote that gave Horace Mann Educators Corp. $600,000 in tax increment financing (TIF) funds to help pay for a proposed tear-down of two buildings on East Washington Street.

The tear down would pave the way for construction of 28 parking spots and green space.

The rebuff came despite a proposal from the Downtown Springfield Heritage Foundation that called for a partial demolition on the back side of one of the structures, stabilization of the buildings, and a smaller sleeve of parking.

Dave Leonatti, an architect based downtown and vice president of the foundation, said the group was looking for a little more time from Horace Mann.

More:Over objections, city council approves redevelopment agreement for Horace Mann

"(These buildings are) still there and they're an opportunity and we want to get a reprieve for them," he said.

Ward 8 Ald. Erin Conley, who was a "yes" vote two weeks ago, brought the vote up for reconsideration Tuesday, but it never took flight, losing on a 6-3 vote, thwarting any debate on the issue.

Conley was joined by Ward 6 Ald. Kristin DiCenso and Ward 7 Ald. Joe McMenamin in pushing for a reconsideration vote.

Conley said after the meeting that the entire process was rushed, and the city didn't do enough to vet the project.

"My vote would have been a 'no' if I had known then what I know now," she said.

Officials from the Springfield-headquartered insurance company planned to sock $1.9 million into the tear down and construction of the "beautification project." The buildings at 618 and 622 E. Washington St. sit in the Central Springfield National Register Historic District.

That project would be a complement to the $2 million purchase and renovation of the Witmer-Schuck building, which dates from 1867, at the southwest corner of Seventh and Washington streets. The building has commercial/retail space on the first floor and corporate residences on the second and third floors.

The two buildings west of Witmer-Schuck continue to deteriorate, said Tony Schuering of Brown, Hay & Stephens, serving as counsel for Horace Mann.

"There's still a big hole in the roof, there's still mold, there's still asbestos," Schuering said after the meeting. "(The city council tonight) recognized the need for a better alternative and that's really what this beautification plan offers: a better alternative."

Philip Kaufmann, assistant vice president and assistant general counsel for Horace Mann, said a demolition permit for the 622 property has been issued. He added the demolition permit for the 618 property was applied for on March 1 and is subject to a 60-day hold.

Horace Mann owns the 622 building which has adjoining structures and has a contract to buy the 618 building.

Steve Myers, who is on the board of the heritage foundation and owns property downtown, said there was no master plan "anywhere that includes the demolition of buildings that have been declared historic and replacing them with 28 parking spots."

Horace Mann officials have said that a number of spots will be available to the community free of charge during the evenings and weekends.

McMenamin agreed that the process should have been slowed down, pointing out that the project never went through an official meeting of the city economic development commission.

The Springfield Historic Sites Commission, an advisory committee, moved its meeting to Monday to hear out both sides but ended up not taking a position on the matter.

"We didn't follow our own process," DiCenso said. "That's why we have these boards and commissions. If we're not going to use them in the appropriate ways, then why do we have them in the first place?"

McMenamin said Horace Mann came before the city council two weeks ago with "significant incorrect information, not just (about the historic district map) but also that no one cares about the building, that no one has an alternative for this building.

"What we heard tonight was, yeah, people do care about this building, and they do have an alternative. I think it's a huge mistake to put $600,000 into tearing down buildings. We have to save those limited funds to rehabilitate buildings."

McMenamin added that the incident was "kind of a black mark on Horace Mann."

Michelle Eccles, a spokeswoman for Horace Mann, said she understood that both sides were passionate, but the project "was about taking two buildings that were dilapidated and trying to make it look better and do something good for the community.

"We are passionate about historical buildings. That's why we renovated the one at Seventh and Washington. (With these two) there's not any great viable alternative."

The heritage foundation proposal would cost $761,000. In addition to mold and asbestos removal and other cleanup costs, it would include restoration of the facade on the 622 building.

"It may be a matter of money and of creative cooperation between TIF funding, historic tax credits, private investors, and owner and tenant investment to make this work, but it can be done," said Leonatti, the foundation vice president.

Surface lots, he added, aren't beneficial economically or in the long term and the surface lot would be "for that particular (Horace Mann) project. They started by restoring (the Witmer-Schuck building) prior to this development."

Eccles confirmed Horace Mann representatives and heritage foundation members met about a month. She said Horace Mann was ready to have a further conversation if a plan surfaced.

"(Monday) was the first day we even saw a proposal," she said.

Conley was hopeful, though, that "a meaningful conversation" could happen between the two sides.

"Horace Mann's position this entire time," said Schuering, counsel for Horace Mann, "has been if a viable alternative that is in line with the needs and desires of that block...presents itself, we will be more than willing to have a conversation."

Contact Steven Spearie: 217-622-1788, sspearie@sj-r.com, twitter.com/@StevenSpearie.

This article originally appeared on State Journal-Register: Springfield council won't reconsider vote giving Horace Mann TIF funds