Building continues in Cape despite news of recession

The nation and the state may be mired in a recession, but the economic downturn hasn't stopped commercial growth in Cape Girardeau.

The city's building permit records show businesses undertook fewer but larger construction and renovation projects this year.

So far this year, the city has issued 96 commercial permits for construction work totaling $32.2 million. During the same period last year, the city issued 165 permits for projects totaling $18.6 million.

"We had the high school this year. That pushed things up," said Tarryl Booker, director of inspection services for the city.

The Cape Girardeau School District is building a new high school at a cost of $17.5 million.

But even without the new high school, there are signs of healthy business growth.

"We still have a pretty full plate," Booker said.

Long-term investments

The new commercial construction includes two $1 million projects, a Best Buy consumer electronics and appliance store and a Logan's Roadhouse restaurant, on William Street near St. Francis Medical Center. Dexter Bar-B-Que is building a $500,000 restaurant at 236 S. Broadview adjacent to Applebee's restaurant.

The commercial growth doesn't surprise Dr. Bruce Domazlicky, a local economist and director of the Center for Economic and Business Research at Southeast Missouri State University.

Building projects aren't decided overnight. "One of the things about investments like that, they are more long-term investments," he said.

Domazlicky and other economists predict a short-lived recession. "The recession could be over within the first quarter of next year," he said. "The economy is not going to be impacted greatly."

It's not surprising that Cape Girardeau is landing new restaurants, Domazlicky said. Americans eat out even in a recession.

"I don't think anybody cooks dinner on a Friday night in this area," he said.

Bruce Vancil said the recession hasn't deterred him from plans to open his third Dexter Bar-B-Que restaurant. His new 7,200-square-foot restaurant is under construction and should open in March.

"Cape is a boomtown," the Dexter, Mo., businessman said. "I don't see the economy getting soft in Cape."

Vancil said Cape Girardeau benefits from being a medical and shopping center for the region.

"If any town around here is recession-resistant, it is going to be Cape. It just looks to me like there is a ton of business in that town," he said.

A year in the making

Drury Development, based in St. Louis, is the developer on both the Best Buy and Logan's Roadhouse projects.

"These deals have been at least a year in the making," said Tim Drury, president of Drury Development.

Construction is under way on an 8,000-square-foot Logan's Roadhouse at 3012 William at the northwest corner of the intersection with Silver Springs Road. It is expected to open in March. A 30,000-square-foot Best Buy store is to be built just to the west of the new restaurant at 3026 William.

Drury said he expects the city to issue a permit and construction to begin on the Best Buy building within the next few weeks. The store should open in July or August.

Best Buy is leasing the land and building from Drury. Logan's Roadhouse, on the other hand, is leasing the land from Drury but will own its building.

Best Buy, based in Minneapolis, Minn., has 477 stores in 44 states, including a dozen in Missouri.

'Terrific growth spurt'

The recession hasn't halted Best Buy's expansion plans. "We are on a terrific growth spurt right now," said Connie Stelter, a company spokeswoman. Best Buy plans to open 60 stores a year through 2003.

"We are just going ahead with the plans that we have," she said.

Stelter said the company's expansion reflects the growing demand for consumer electronics products.

Logan's Roadhouse, based in Nashville, Tenn., isn't worried about the recession either.

It operates 80 company and 10 franchise restaurants in 15 states. Logan's Roadhouse, which offers peanuts to customers and encourages them to throw the shells on the floor, is opening about 15 new restaurants a year. The one in Cape Girardeau will be its first in Missouri.

Ralph W. McCracken, senior vice president for Logan's Roadhouse, said the recession hasn't hurt the company.

McCracken said Logan's Roadhouse with its varied menu and moderate prices -- the average meal costs $12 -- still draws customers.

"They are still going out," he said. "They are just looking for better value and we are offering that."

mbliss@semissourian.com

335-6611, extension 123