Railway Exchange, Macy's projects move ahead

Mar 13, 2010 — St. Louis Post-Dispatch

Tim Bryant

Mar. 13, 2010 (McClatchy-Tribune Regional News delivered by Newstex) -- St. Louis aldermen gave final approval Friday to public incentives meant to spur the $112 million renovation of the Railway Exchange Building and remodeling of the downtown Macy's store.

"The end result is that we will keep Macy's downtown," said Alderman Phyllis Young, who sponsored the measures. "I'm looking forward to shopping in a new store."

Aldermen approved tax increment financing and other public assistance that could reach $28.7 million. The redevelopment area is comprised mainly of the 21-story Railway Exchange Building, which houses Macy's, and the parking garage across Olive Street from the store.

Macy's plans to downsize the store from seven to three floors. Much of the first phase of TIF funding -- $8.4 million -- will be used in the store remodeling, Young said. The company has yet to provide remodeling details.

Developer Rick Yackey and Clayton-based Bruce Development agreed in October to pay Macy's $18.5 million for the Railway Exchange, the garage and the parking lot at Olive and Sixth Street. Efforts Friday to reach Yackey and Bruce officials were unsuccessful.

City officials said Yackey and Bruce could close on the purchase in April. Young said Yackey told her the Macy's remodeling will begin immediately after the developers sell the $7 million in federal New Markets Tax Credits a city agency has allocated to the project. That sale could take place between May 15 and June 30, officials said.

Barbara Geisman, the deputy mayor for development, said Friday she was unconcerned that Macy's has agreed to only a five-year lease at the Railway Exchange Building.

"A five-year lease gives us the chance to get the store reconfigured and make it more successful," she said. "We are really happy that two experienced local developers have arranged for the purchase of this building. And we're really happy they're going to work with Macy's to redo the store and remerchandise it."

Renovation of the rest of the building will likely take years. Macy's plans to use two upper floors for offices but most of the building has been vacant since 2008, when Macy's closed its Midwest headquarters.

Newstex ID: KRTB-0187-42858804