By: Dan Calabrese
Developer Bob Dykstra has a new idea for the development of downtown office space, and it will come to life at 111 S. Division if he can overcome an old challenge—securing private financing to go with the public subsidies that are now in hand. Dykstra recently developed The Collective, a “third place” development at the former Steelcase fitness facility on 44th Street.
His proposed NextWork project, targeted to occupy the building most recently used by the ministry group In The Image, will combine a shared work area with limited private office space, as well as a film stage and other amenities he expects will attract various types of creative professionals.
An annual membership fee of $100, plus some per-usage fees, will give users access to the shared space, while private offices and other features are available through separate fee arrangements. Dykstra will also offer various user-paid business classes in the facility.
The project last week secured $50,000 in Downtown Development Authority financing for building upgrades mainly related to fire-code issues and façade improvement. Dykstra has also secured $200,000 in Tax Increment Finance funds for infrastructure upgrades, and by May expects to have secured tax credits related to historic redevelopment.
The entire project will cost $3.8 million. While Dykstra has had numerous discussions with potential financing sources, he says the atmosphere is uncertain given the state of the economy and the banking industry.
“Most of the sources I’ve talked to today don’t know where they stand in general, with TARP 2 and what they’re doing,” Dykstra said. “But everybody I’ve talked to really likes the concept.”
Source: Bob Dykstra, NextWork
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Deborah Johnson Wood is development news editor for Rapid Growth Media. She can be contacted at [email protected].
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