Under a proposal by OPAL Real Estate Group, led by businessman Peter Picknelly, the building would be developed for retail, office/institutional space and market rate apartments.
Under a proposal by OPAL Real Estate Group, 13-31 Elm St. in Springfield, would be developed for retail, office/institutional space and market rate apartments.SPRINGFIELD – A development group led by local businessman Peter A. Picknelly is in line to develop a long-vacant office building on Elm Street at Court Square into a multi-million dollar project with a mix of retail, office and residential uses.
The Springfield Redevelopment Authority, which owns the six-story office building at 13-31 Elm St., built in 1892, and four connected properties, voted unanimously on Wednesday to designate OPAL Real Estate Group, of Springfield, as the preferred developer of the properties.
“For the benefit of Springfield, that building cannot be left vacant,” Picknelly said Thursday. “It simply can’t. Springfield is our home, our city, and it (the site) has to be developed.”
The preferred developer designation is for 120 days and if successful would culminate with the sale of the property to the developer.
Armando Feliciano, chairman of the redevelopment authority, said he is excited by the project and believes it is “long overdue” for Court Square, located in the heart of downtown Springfield.
“I am going to consider you guys the magic wand,” Feliciano said to representatives of OPAL.
Picknelly is president of OPAL and Peter Pan Bus Lines. The OPAL team also includes Demetrios N. Panteleakis, managing partner; Robert J. Schwarz, executive vice-president; and Mark Healy, vice president of brokerage.
OPAL is also developing a market-rate housing project at the former Westfield State University training school on Washington Street in Westfield.
Past development proposals for the Elm Street property at Court Square have failed to materialize, ranging from a boutique hotel to mixed uses.
Connolly & Partners of Boston was named preferred developer in June 2008 among seven proposals received. The company, however, lost some of its investor backing during the recession and its preferred status was not renewed in September 2009, officials said.
The Springfield Redevelopment Authority returned to the other six proposals last year, choosing OPAL among firms still interested in the development, officials said.
Mayor Domenic J. Sarno said he is excited by the new proposed development. As indicated in a study by the Urban Land Institute, developing 13-31 Elm Street is “the linchpin” for revitalization of the downtown, Sarno said.
The building is the former Court Square Hotel, and has been proposed for various uses over the years.
Under OPAL’s proposal, the first floor would be developed for retail use, and the next four floors would be for office/institutional space, officials said. The top floor would be converted to market rate apartments.
“We think it’s the best use for that site,” Picknelly said. “It’s a great building, great bones, great structure, great history.”
City officials said there are significant challenges, including a need for parking that will be addressed during the 120-day period. The five connected properties do include two lots for parking and the former Saia law office building that was demolished.
A cost estimate for the project has not yet been determined. The properties are part of a national historic district in the National Register of Historic Places, and the developers anticipate pursuing new market tax credits and historic tax credits, officials said.
The sale would be for a nominal fee, according to city officials.
Picknelly’s brother, Paul C. Picknelly, had proposed an $18 million project at 13-31 Elm Street several years ago, but the project did not move forward due to factors including back taxes and interest inherited from a prior owner. As owned now by the Springfield Redevelopment Authority, there are no longer back taxes owed.
The site is located across Main Street from the MassMutual Center and across Elm Street from City Hall.