DEED approves demolition loan to raze grain elevator
The Department of Employment and Economic Development (DEED) has approved a loan for the demolition of the old grain elevators located in Springfield.
The City of Springfield and the Economic Development Authority (EDA) made application in July for a Demolition Loan from DEED to remove the functionally obsolete and blight wooden grain elevators from the central business district. The elevators have been unoccupied for more than 15 years and the structure has begun to deteriorate beyond economic repair.
DEED will soon be contacting Springfield city officials to begin negotiating the terms and securing documentation necessary to proceed with issuing the loan documents, Commissioner Steve Grove wrote on Sept. 19 in an official letter to Mayor Lowell Helget.
The elevator building is currently owned by the Springfield Cooperative Creamery, but the Springfield EDA and the Springfield Creamery have committed to an agreement that the EDA will purchase the property for $1.
The EDA will retain ownership of the property once the demolition of the grain elevator is complete. The City and the EDA have several plans for leasing and subsequent recruiting efforts to identify partners interested in developing the property.
According to the agreement, the commissioner may forgive principal of the loan and interest accrued and up to 50 percent of the original loan amount upon completion of the redevelopment plan.