NEWS

Student housing on the way, demolition begins at former Earthgrains site

Thomas Gounley
TGOUNLEY@NEWS-LEADER.COM

Demolition at the site of the former Earthgrains building in Springfield is underway — the first step toward a planned $38.3 million student housing development on the 4.65 acre plot.

Austin, Texas-based developer Aspen Heights, which has 14 off-campus student housing developments near universities around the country, is planning four five-story residential buildings at the location in the 1000 block of East St. Louis Street, just north of Missouri State University and just south of Hammons Field. Plans call for 166 units, with 564 beds.

Plans also call for a four-story parking deck and surface parking lot, for a total of one off-street parking spot per bedroom. The development will also include an outdoor pool and 6,000-square-foot clubhouse with a fitness room and computer room.

Aspen Heights Vice President of Development Ryan Fetgatter told the News-Leader on Wednesday that the development is expected to be complete and ready for occupancy for the fall 2016 semester.

"When we evaluate potential markets for off campus student housing, we look at a range of factors from enrollment growth to rent levels and existing (and planned) supply," Fetgatter said in an email. "We always seek to differentiate our product offerings by delivering a top notch living experience with a focus on amenities, community, quality of design, and best in class customer service and management. We are excited to bring these qualities to the Springfield market and have the Missouri State student as our customer."

Springfield City Council approved a redevelopment plan last year that designated the property as blighted, allowing for a 25-year partial property tax abatement. Originally, Aspen Heights was hoping to finish the buildings in time for occupancy this fall.

The development will include two, three and four-bedroom apartments, with one bed per room. A bed is expected to rent for between $689 and $709 in a two-bedroom unit, between $679 and $699 in a three-bedroom unit and between $589 and $709 in a four-bedroom unit.

The redevelopment plan also includes other projected annual income, providing an interesting window into the operation of a housing development. Aspen Heights forecasts that 8 percent of residents will pay rent late each month, with the $50 fee adding up to $27,000 annually. Ten percent of residents are expected to pay the one-time $250 pet fee. There will be 435 parking spaces, which will be rented out for $20 a month, grossing more than $100,000 annually.

Rent will include all utilities and some furnishings, according to the plan, but 50 percent of residents are expected to pay an average of $20 a month to rent additional furniture. Options will include beds, nightstands, tables, chairs and desks. Residents are forecast to pay an average of $50 annually to cover damages.

The Earthgrains plant had about 150 employees when it closed in July 2003 as a result of Sara Lee Bakery Group's decision to consolidate its facilities nationwide.

The development ends more than a decade of questions surrounding what would happen at the site. At one point, a parking complex for nearby Hammons Field was seen as an option, and in 2009 the property was discussed as a possibility when officials considered where to build a new bus transfer facility.