The St. Louis Development Corporation (SLDC) is acting on plans to revive the historic Railway Exchange Building despite not yet knowing the official cost of acquisition, moves that come amid concerns about the structure's steep decline. The building, a one-time bustling commercial hub with 1.24 million square feet of history, has faced issues ranging from trespassing incidents to structural damage. "Our first goal was to ensure that the deteriorating garage is demolished," SLDC President Neal Richardson said, according to Fox2Now.
Decisive action is being taken by city officials who are closing in on the forced acquisition of the building through eminent domain in a project anticipated to restore the edifice to its former glory, however, the building currently appraised at $5.3 million bears over $30 million in mortgage debt, and considerations for its renovation are between $300 to $400 million, while the city has also kept a vigilant eye on the property, having already installed steel barricades to ward off unwelcomed guests. "Railway Exchange is number one on my desk right now," Richardson conveyed in an interview with KSDK, noting the high priority of the project and the city's commitment to finding a suitable developer once the acquisition process is complete.
The push to transform the building comes after numerous failed attempts at redevelopment, with previous projects receiving government backing falling through, the city is now eyeing various funding mechanisms from low-income housing tax credits to historic and new market tax credits to enable the financial overhaul required. Richardson explained that this aggressive strategy is necessary, stating "Without us going through this condemnation process, the building would have set deteriorating and vacant for eternity," as KSDK reported. The aim is to repurpose the space into mixed-rate housing or apartments, offering new vitality to the historic core of St. Louis.
In the winding down efforts to finalize the building's takeover from Florida-based Hudson Holdings, a current dispute over the property's worth is being settled, with the city's appraisers valuing it at $5.3 million while Hudson Holdings contends a $13 million tag. Richardson mentioned that once the official price is determined, they will proceed with purchasing the Railway Exchange Building and preparing for the nearby parking garage's estimated $3-4 million demolition; this development underscores the high-stakes gamble the city is willing to make to revamp a place so marred by neglect and desolation. Richardson told KSDK, "We would be exploring all possible tax credits that would be available from low income housing tax credits to historic tax credits and new market tax credits that can support these projects."
