The financing of renovations to One City Centre may be taking another step forward soon.
The city of St. Louis is requesting a $5 million loan from the Missouri Development Finance Board to help pay for improvements to the 25-story Class A tower. $4 million in New Markets Tax Credits have already been allocated to help pay for improvements to the building; the price tag for the planned improvements could total $25 million.
Lewis Rice is reportedly considering moving to One City Centre from its current space at 500 N. Broadway. If this happens, it should have a nice impact on downtown's Class A vacancy rate, while delivering a blow to the Class B rate. However, Lewis Rice would be leaving behind a large block of very affordable, well-finished space that, combined with existing vacant space at 500 N. Broadway, could be very attractive for a budget-conscious large tenant.
The area around St. Louis Centre is in desperate need of help. Renovating the office tower and attracting new tenants would be a great first step toward revitalization. Demolition of the St. Louis Centre skybridge and construction on The Laurel would hopefully come next, with the renovation/repurposing of St. Louis Centre itself following.