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ST. LOUIS — The Gateway Arch Park Foundation has closed on its acquisition of the long-shuttered Millennium Hotel, clearing one of the first hurdles toward the downtown property’s potential redevelopment. 

The foundation, a nonprofit dedicated to the preservation of the Arch grounds, paid $7.5 million, real estate records show. The organization used its own funds to acquire it. 

The hotel is one of a handful of prominent, vacant buildings in downtown’s central business district that civic and business leaders believe hinder the city’s progress.

It occupies prime real estate one block south of the Arch grounds near the riverfront, an area many consider to be the front door to the region. Officials are hoping to transform the site with new housing, office space, an amphitheater, a food hall and other amenities, and are working with the developer behind Ballpark Village on the $670 million project.

On Wednesday, officials praised the closing of the foundation’s purchase as a symbolic step toward a new future.  

“Today is truly a day of hope for our downtown and for ºüÀêÊÓƵ,â€� Mayor Cara Spencer said at a press conference at Ballpark Village. 

It will be several years before the city’s new skyline is built: The Arch foundation and its development partner, The Cordish Cos., are waiting on the state of Missouri to approve its environmental remediation plan as well as their request for Brownfield tax credits to help fund it. Ryan McClure, the foundation’s executive director, said the remediation and demolition will take 18 months to two years to complete. 

“This is an important moment for our city,� McClure said. “We have to get it right.�

Once ºüÀêÊÓƵ’ largest hotel with nearly 800 rooms, the Millennium was known for its cylindrical tower and rotating, top-floor restaurant. It opened in 1969 as Stouffer’s Riverfront and later carried the Clarion and Regal Riverfront names.

Its last owner, Singapore-based real estate corporation City Developments Ltd., shuttered the hotel in 2014 and briefly flirted with a possible renovation. 

But ºüÀêÊÓƵ officials became impatient with the company, which had no immediate plans to reopen the hotel and which reportedly stopped communicating with officials in recent years. Last year, Spencer, who was then the alderwoman for the neighborhood, urged the city’s economic development agency to use eminent domain against the owner to push for a redevelopment. 

Instead, City Developments listed the property for sale. Wednesday’s announcement comes nearly a year after the Arch foundation publicly disclosed its interest in buying the hotel. 

“For the first time in 26 years, this site is locally owned and ºüÀêÊÓƵ will have a role in its future,â€� McClure said.

Earlier this year, the foundation selected The Cordish Cos. to redevelop the hotel site in conjunction with city officials, the region’s business lobby and independent experts. 

“With this project we’re going to exemplify a new set of priorities for our region,â€� Dustin Allison, the interim CEO of Greater ºüÀêÊÓƵ Inc., said. “Priorities focused on growth, priorities on people, on our future and on reclaiming our place as the best damn city in America with the best damn downtown in America.â€�

°ä´Ç°ù»å¾±²õ³ó’s plans call for a 41-story luxury apartment tower, 283,000 square feet of prime office space and retail shops, a parking garage, cultural and outdoor space.

Exactly how the project will be financed is still in the works, though Cordish said private money will be used in addition to the potential to receive a $72 million tax break from the city for the project. 

The ºüÀêÊÓƵ Board of Education, citing the expected aldermanic action, went on record Tuesday night to oppose the proposed incentives for the project. Board member Ben Conover said the forgone property tax revenues to ºüÀêÊÓƵ Public Schools would total about $62 million over 20 years.

“We’re getting absolutely screwed by proposals like this,� he said.

The school board’s vote was unanimous.

The president of the Board of Aldermen, Megan Green, said Wednesday that her and Alderman Rasheen Aldridge will work with school officials on finding a solution that “works for everyone.� Aldridge is sponsoring the bill for the tax incentives. 

“It’s not a zero-sum game,� Green said. “We can do development and also support our kids and SLPS.�