Lonero plans another downtown redevelopment

Joe Scott

Of the Suburban Journals

North County Journal

07/05/2006

E&J Market will be the next building in downtown Ferguson to get a facelift courtesy of businessman Joe Lonero.

The Ferguson City Council heard highlights of the proposed project during its June 27 meeting. Lonero estimated the redevelopment at South Florissant Road and Suburban Avenue would cost $2.5 million.

"I've been working on that project for three years — even before I started working on the (Ferguson) Lofts," Lonero said.

Some difficulties arose because parts of the area are in a flood way and a flood plain, he said.

Ferguson City Manager A.J. Krieger said the project has great strategic value for the city.

"It will be an entryway into our city from the NorthPark redevelopment, and it will be a landmark for people driving down Florissant Road," Krieger said.

Like Lonero's Ferguson Lofts project, it will be a mixed-use development blending retail, office and loft apartment space.

Previously, Lonero has purchased and rehabbed the buildings that house his businesses, the Corner Coffee Shop and Vincenzo's Restaurant on South Florissant Road.

He also refurbished the old Sportsprint building, which he renamed the Ferguson Lofts. As part of an agreement on the E&J Market project, Lonero would lower the cap on reimbursing his expenses for the Ferguson Lofts project by $130,000.

The city council heard the highlights of the proposed $450,000 tax increment financing project. The TIF would use increases in taxes to reimburse Lonero for expenses in purchasing the property, demolition and landscaping.

Under the agreement, Lonero would receive a $225,000 payment up front. When the development is substantially completed, he would receive another $225,000 payment. The city would reimburse itself by capturing increased taxes as a result of the redevelopment.

Krieger explained that $450,000 would be the maximum TIF amount.

"At no point would we pay more than his expenses," he said.

Krieger said the city is protected by the TIF agreement.

"(Lonero) has to perform," he said. "There is protection built in for the city in the form of deeds of trust."

Lonero agreed to abide by the city's downtown vision statement as opposed to the city's zoning ordinances, giving assurances that construction quality and the businesses he recruits will be those mentioned in the vision statement.

The city also will convey an adjoining empty lot at 423 S. Florissant Road to Lonero. The city purchased the gravel lot from St. Louis County for $27.

Lonero said he was encouraged that Ferguson's downtown has attracted outside investors. Recently, Rob Birenbaum, founder of Drum Percussion in Maplewood, purchased the building at 137 S. Florissant Road. Expectations are that Birenbaum's redevelopment also will be mixed use.

"We gone from no lookers to a lot of lookers to some people actually taking a bite," Lonero said. "And they are good people. It's not just the investors, but the quality of the investors."