ST. LOUIS — The developer hoping to build a $120 million hotel project on part of the former Wells Fargo Advisors campus in Downtown West has agreed to a hefty bond to ensure the project moves ahead once the building is demolished.
The St. Louis Preservation Board, which has jurisdiction over the demolition of buildings in historic areas, voted unanimously Thursday to grant a demolition permit to Midas Enterprises on the condition that the developer place $750,000 in escrow.
The board initially voted last month to allow Midas to demolish the office building at the corner of Market Street and Jefferson Avenue, 2601 Market St., to make way for two new seven-story hotels, a Kimpton Hotel and Staybridge Suites, with the added condition that the developer be approved for a building permit for the new project at the same time the demolition permit is issued.
The board added the clause to ensure that the office building wasn’t demolished for a project that was later dropped, board members said.
But Midas, which has not yet finalized the design and details of the hotel project, said at a meeting in late December that the city’s requirement to issue both permits at once jeopardized the entire project, setting it back about five or six months and add an estimated cost of $5 million, including a $1 million penalty from one of the hotel franchisers.
When board Chairman Richard Callow suggested placing a $1 million bond in escrow at that meeting, Midas CEO David Robert countered with a suggestion for a $250,000 bond.
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