LRA Reassigns Options on Nina Properties

Historical December 1981 report or notice. Original dates, prices and contacts describe the source period; current availability has not been established.

At a regular meeting of the Land Reutilization Authority (LRA) Commission on Nov. 3, the Commission’s decision on two parcels, 5900 McPherson and 5858 Nina Place, located in the Nina Place triangle, was appealed. LRA confirmed the purchasing rights awarded to BMB Investments on Oct. 20. Josephine Lockhart, of Nina-McPherson Partnership, contested this decision.

She had previously sought and received options to buy both properties.

According to Skip Coburn, present Executive Director of LRA, Lockhart had acquired the option on the 5900 McPherson property in January of 1979.

He said she has held the option on 5858 Nina Place since the summer of 1980.

During this time, Lockhart, a resident of Skinker-DeBaliviere since 1976, and her partner, Richard G. Ross, a general contractor, had developed a proposal to rehabilitate the two vacant apartment buildings on the above sites into condominiums. Architectural plans were drawn and submitted to the LRA.

The Lockhart-Ross team, incorporated as NinaMcPherson Partnership, proposed to complete work on the exteriors of the buildings, prepare a model unit, and then sell each unit as completed. Lockhart stated that they were ready to begin construction within 60-90 days of their renewal application. Nina-McPherson had received a verbal commitment of support from the Community Development Agency (CDA) and written assurance of financial backing on file from North St. Louis Trust Company. Ross said he was present to assure the Commission that Nina-McPherson’s financial backing was secure. Wayne Harvey, attorney for Nina-McPherson, asked the Commission to consider the difference between the letters of financial support.

According to Harvey, while North St. Louis Trust Company’s letter to NinaMcPherson was a firm commitment, the letter to BMB from Landmark Northwest Plaza Bank showed only general support and interest in further examination of the proposal. Thomas Mangogna, who acted as spokesman for the Commission, stated there was “no question about financial capability.” Lockhart had on file letters of support from Skip Coburn, then Executive Director of the Skinker-DeBaliviere Community Council (SDCC), the board of the SDCC, and Washington Heights Neighborhood Assoc.

On the question of community support Mangogna said, “How much neighborhood support you or Bearden-Century 21 has has not been a factor in our determination.” (BMB Investments is a partnership among Michael Bearden, Carl Madsen, and John Bearden, all members of Century 21 Bearden Real Estate Company located at 7382 Pershing, University City. Michael Bearden became a resident of Parkview in 1981.

According to Mangogna, BMB Investments intends to develop both properties simultaneously, rent the units at market rates and later offer them as condominiums.

No representative of BMB was present at the hearing.) Mangogna said that the decision was based on Bearden’s claim that BMB did not require CDA support, that their project would use only private funding. Lockhart said that she was advised by staff at CDA that it was not feasible in the present market to offer market rate rentals without subsidization. Mangogna said that Lockhart’s options had expired on both properties before the Commission met to award the options to BMB on Oct. 20 (at which meeting both Lockhart and Bearden were present). Lockhart replied that she “wasn’t allowed even to submit a request for renewal on the second building.” Subsequent to the meeting, Lockhart was asked to clarify whether she had filed for renewal before the options had expired. Lockhart said she had not been notified of the expirations and that the death of her brother had taken her out of St. Louis at the time of the first parcel’s expiration, but she phoned the LRA offices and the staff member in charge of renewals told her she would have time to file before the Commission met.

The office accepted her delayed submission which was later returned to her. Though she sought to file for renewal on the second parcel before the option on it expired, she was not permitted to do so.

According to Coburn, options are not automatically renewed even if filed for prior to the expiration date. Unless the option is exercised (the property is purchased from the city), the property comes before the Commission at the time of expiration. Coburn said his office would as policy in the future notify all holders when the date of expiration on their option approached. (Options can be granted for 6, 9 or 12 month periods as the discretion of the Commission.) Mangogna said the overall plan of BMB prompted the Commission’s decision.

He said that BMB’s recent acquisition of the adjacent property was not a factor except that BMB’s many purchases in the vicinity were indicators of its commitment to upgrade the area.

He said that BMB’s proposed staging of development was a key factor.

He stated the Commission’s contention that the units, to be sold as completed under Nina-McPherson, would remain unsold, that a purchaser or lending institution, because of the Nina Place location, would need to see a fully completed project before investing.

He said that a speedy completion of both buildings would best benefit the area. Lockhart said that she, her partner, and North St. Louis Trust Company obviously did not subscribe to the necessity of simultaneous development.

She pointed out that Nina-McPherson was ready to begin construction.

She said that if speed and completion were the issues, they would have completed work on both buildings by the summer of 1982, and that the summer of 1982 was when BMB proposed to begin development. Mangogna said, “I think what you’re talking about here is a judgment call.” Ross said that BMB had been in operation less than a year. Mangogna said he did not check their incorporation papers.

He called upon Kenneth McCormack, Deputy Director of LRA, who confirmed Ross’ statement.

According to the partnership papers on file at LRA, BMB Investments was incorporated Aug. 7, 1981. Mangogna said, “We’ll consider this matter closed.” Lockhart protested, saying the decision was made before the hearing took place. Mangogna said the Commission had “seen no reason to reconsider its decision.” The LRA is governed by a Commission of three members: an appointee of the Mayor (Frank Meyer), an appointee of the Comptroller (Thomas Mangogna) and an appointee of the Board of Education (Michael Konroy).

The LRA is not under city authority, but is an independent agency established by state law. Appeals of LRA decisions are heard in the Circuit Court.

Originally published in The Paper, December 1981.

Read this article in the original newspaper issue.

Original source: SD_Times1981_12.pdf, printed page(s) 5; PDF page(s) 5.