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Donors pledge $3 million as Spring Grove explores mixed-use reuse for former Mulqueen’s site
Summary
Officials said site cleanup is complete and investors have pledged about $3 million; the city and a real estate fund discussed a condominium-style plan that could include city hall and library space to make the project financially viable, while the library has separately been awarded a $700,000 grant.
Director Courtney Bergey Swanson updated the joint meeting on the former Mulqueen’s site, saying environmental cleanup is complete and foundation removal is the only remaining task. She told attendees that financing through the interested real estate fund currently does not meet investor return expectations given local rental rates, but that private donors have pledged about $3 million that could be donated to a public entity to help bridge the gap.
Bergey Swanson described a concept in which the city would accept donated funds and occupy part of a mixed-use building—potentially moving city hall and portioning space for the library—while the real estate fund would own and manage commercial and residential units. “They love the idea,” Bergey Swanson said when asked how investors felt about the city occupying space to make the pro forma viable. Administrator Jana Elton said she also liked the idea, noting the downtown hardware-store site offers better parking than the cinema option.
The library has received a $700,000 grant and already holds $400,000 toward a move; the EDA said utilities would be separate for the library and city spaces and parking could be provided across the alley. No final drawings or space estimates were available, and Bergey Swanson said the arrangement is still conceptual while the real estate fund and city work through financing and deed issues.
Bergey Swanson said Spring Grove Forward (formerly Spring Grove 2030) is aware of the proposal and would shift priorities so the hardware-store site can proceed without competing for funds with the cinema project. The EDA will continue to discuss tenant interest and investor terms and bring updated financing options back to the joint group.
