A developer involved in renovation of the historic Olivia building said he expects to restart work by year's end if currently pending refinancing of the project costs come through by then. Sawyer Smith, a partner in family businesses Blue Haven Investments and Bykota REI, read a letter from Olivia ownership on the status of the project at a Joplin City Council meeting Monday. Smith, asked by the Globe in January about work stoppage at the building, said the owners had put it on hold to seek new financing.
The cost of the project had ballooned from $7.9 million to $10 million since its start because interest rates had quadrupled, Smith said then. The intention was to find financing that would lower the costs to carry the debt after construction.
He said then the renovation of the Olivia was half done and that the developers intended to finish the project. The statement Smith read at the Monday meeting: "As you know, the Olivia Building has been one of Joplin's most prized architectural landmarks since its construction in 1906. In 2020, a fire threatened to destroy the beloved structure and it would have if not for the timely help of the city of Joplin and many of its residents who created a partnership between the city and the owners of Blue Havens Investments to get the building back into functioning order as a centerpiece of the downtown Joplin living experience.
"Since the start of the renovation, several roadblocks have been thrown at the team. Currently the project is stalled due to the cost increasing far beyond the original estimate. However, the project owners are committed to seeing it through to completion and are on the path to restart construction.
"The main hurdle we are overcoming is to secure new financing from a new lending partner based on a fixed budget. Based on our progress thus far, our goal is to have construction started again by the year's end." He said that once construction restarts, he expects it to take a year to 18 months for completion.
"We have weathered this long pause at great personal expense and hope the city of Joplin and its people can appreciate our commitment to this project and continue to bear with us as we do whatever it takes to save one of Joplin's most iconic pieces of history." Council member Doris Carlin asked when the Blue Haven principals expect the financing to be committed. Smith said they are going through the process of an appraisal of the building for the financing.
"So that is a big piece of it, and it's step by step right now, and we're continuing to move forward." Councilman Ryan Jackson asked if the city would remain holding first position even if there is refinancing. In 2021, the city provided $250,000 in matching money spent for labor and material costs to replace the burned roof after that fire and to secure the building to try to prevent trespassing, which was suspected in the fire.
Smith and contractor Jeff Neal told the council then that it was imperative to get a roof in place in order to secure the remainder of the building from the elements. In return for the city investment, Smith and his partners agreed to fully renovate and redevelop the building within two years. City officials extended the completion date to 2023 after the roof was fully repaired.
At that time, renovation of the building had been expected to be completed by the end of 2024. The city assessed a special tax bill against the property to hold an interest until the construction is finished and the city issues a certificate of occupancy. The payment agreement was intended to limit city liability if the developer walked away from the damaged five-story building and the city had to pay for demolition.
That cost could be as much as $500,000, city officials had said. The Olivia was built as a luxury apartment building and served early entrepreneurs and their families who came to Joplin during the lead and zinc mining era..
