Business moves that made headlines in 2014

Pepsi MidAmerica to bring over 70 jobs

Pepsi MidAmerica will be the first tenant at the Greater Cape Girardeau Business Park, a move that's expected to bring about 74 jobs to the region.

Construction of the $3.1 million customer service center is beginning at the 18-acre site at Interstate 55 and LaSalle Avenue. The center could be open by midsummer 2015.

It will distribute items from the company's snack division, including Pepsi beverages, Starbucks coffee, Gatorade and Frito Lay products.

Choices for grocery shoppers expand

The new Ruler Foods store on William Street in Cape Girardeau opened in September, and a Wal-Mart Neighborhood Market will open nearby next month. (Glenn Landberg)

A new Wal-Mart Neighborhood Market is expected to open in early 2015. The market is a scaled-down version of a full-sized store. It has been under construction since June at 2021 Independence St. in Cape Girardeau.

Anne Hatfield, director of communications for Wal-Mart, recently said the new 41,000-square-foot store would employ up to 95 people. It will offer fresh produce and groceries, a pharmacy, health and beauty items, baby and pet supplies and select household merchandise, Hatfield said.

Ruler Foods opened at 2103 William St. in September. A subsidiary of Kroger, the store moved into the old Dushell's Furniture building after extensive renovation. The building has about 20,500 square feet, with an additional 9,500 square feet available for a future retail store.

Status of Cape Postal Service facility in flux

Early this month, Roy Blunt and Claire McCaskill were among 28 Missouri senators who joined in sending a letter to the postmaster general, alleging the U.S. Postal Service is not following its own guidelines in consolidating postal facilities.

The argument is based on a report by the office of the USPS inspector general, which found the postal service did not complete service standard impact evaluations and work sheets as part of area mail processing feasibility studies.

Employees of Cape Girardeau processing and distribution center also have expressed concerns that mail service could suffer a slowdown once the St. Louis facility absorbs the remainder of the local processing responsibilities. Cape Girardeau's role in disseminating mail is set to end in April, making the facility at 475 Kell Farm Drive only a distribution hub.

The $7 million windfall that was 'Gone Girl'

Spectators watch from the Common Pleas Courthouse as extras rehearse for a scene for "Gone Girl" in September 2013 in downtown Cape Girardeau. Production of the film in Cape Girardeau resulted in more than $7 million in business, the studio reported in October as the hit movie premiered across the country. (Southeast Missourian)

Cape Girardeau buzzed in 2013 with the filming of "Gone Girl," and, in 2014, went Hollywood gaga with the film's premiere.

Coinciding with its October opening were details outlining the film's economic impact on the area.

Production of the 20th Century Fox film in Cape Girardeau lasted about two months and generated more than $7 million, according to data released by the studio in October. The production hired 116 Missourians, including more than 30 off-duty law enforcement officials, and used about 1,400 extras. The cast and crew also amassed more than 7,000 hotel room nights.

Hospital moves forward on efficiency

SoutheastHEALTH's executives say "financial improvement" and "operational refinement" are the goals of an initiative that recently produced changes in leadership and will identify efficiencies needed to help face a challenging time.

If Southeast can make changes in the six key areas of the initiative, including clinical documentation improvement, human resources, labor, nonlabor, physician solutions and revenue cycle, a potential for $32 million in annual savings may come its way, said John Skeans, the organization's interim CEO, said in November. Another $9.5 million could be paid to Southeast through backlogged billing.

The need for change at SoutheastHEALTH is being triggered by financial decline; the system this year received a downgrade in its bond rating. The agency that made the downgrade said it "reflects significant and unexpected operating losses in 2013, which resulted primarily from billing and revenue cycle issues."

This year, five members of Southeast's senior management have left, including Wayne Smith, CEO; CFO Hugh King and Dr. Dennis Means, vice president and chief medical officer; chief operating officer Sly Moore; and Jim Limbaugh, executive vice president of planning and business development.

SoutheastHEALTH hired a new CEO, Kenneth W. Bateman, on Dec. 15. Bateman previously was CEO of a New Jersey health care system. He said at a recent news conference that some of his goals for SoutheastHEALTH include improving communication between employees and administration and aiding the organization in its desire to remain independent.

Data breaches cause woes in Cape

The Cape Girardeau Jimmy John's store was among 216 locations affected by a data breach this year.

Company officials discovered a security breach in July and hired investigators to look into it. An intruder stole login credentials from the point-of-sale vendor and used them to access payment-card systems at the stores, according to a news release posted on the company's website.

During the summer, hackers stole personal information from 76 million JPMorgan Chase customers in one of the biggest breaches of a financial company. The bank said only nonfinancial data were taken -- names, addresses, phone numbers and email addresses. In September, Home Depot advised that malicious software lurking in its checkout terminals between April and September affected 56 million debit and credit cards that customers swiped at its stores, making it the second-largest breach for a retailer on record.

The disclosure put the data breach behind TJX Co.'s theft of 90 million records, disclosed in 2007 and before Target's pre-Christmas 2013 breach that compromised 40 million credit and debit cards. Hackers also have attacked Schnucks Markets, SuperValu, Michaels, United Parcel Service and Neiman Marcus in the past year. The Department of Homeland Security warned recently that more than 1,000 retailers could have malware in their cash-register computers, The Associated Press has reported.

Noranda Aluminum begins layoffs

Noranda Aluminum's attempts to lower its Ameren Missouri electric rate have thus far been unsuccessful.

After state regulators denied its initial request, Noranda announced in early fall that it would lay off 125 to 200 people at its New Madrid, Missouri, smelter during the next six months. As of the beginning of the 2014, it employed about 900 people; 23 employees were laid off in September, and the company offered retirement packages to another 27 workers.

The smelter has been pushing for a lower electric rate from St. Louis-based Ameren Missouri since February.

After a requested rate cut was rejected by regulators, the state Office of Public Counsel filed a new compromise proposal with the Missouri Public Service Commission, seeking a reduced rate for the plant. The proposal originally was submitted in August but was not considered by the commission, which had recently rejected Noranda's request for lower rates. On Oct. 1, the commission determined Noranda's petition should be denied, saying the company had failed to meet the burden of proving its rates are not just and reasonable.

Noranda officials also announced in September that without lower rates they would be forced to scale back infrastructure investments, including a $30 million plant expansion. Officials also said they were considering moving the construction of a new, $45 million rod mill from New Madrid to another state.

Mild temps, ample rain lead to bumper crops

A cool, mild summer and ample rainfall were responsible for record-setting yields of corn and soybeans, which meant more grain going to market and lower returns for farmers. Grain storage grew in importance as some farmers held back at least some of their harvest with the hopes of winter bringing back higher prices.

The per-bushel corn price fell by more than half between October 2014 and October 2013, when demand was higher because of a slower drydown period for plants that meant less availability. It dropped from about $8 to about $4.

Votes split on downtown CID

The half-cent sales-tax issue considered by Cape Girardeau voters in September passed successfully by voters living in the downtown community improvement district, but a property-tax issue failed.

Proponents of the community improvement district said funds from the taxes would be applied to improving safety and cleanliness downtown.

A property tax imposed within the special business district in the riverfront area of Spanish, Main and Water streets already existed but would have dissolved once the CID property tax took effect. The taxes were equal in value, meaning property owners in that area would notice no difference. But those along Broadway who fell within the CID's boundaries would have paid the tax for the first time in 2015.

That business district property tax generates about $20,000 annually and has paid for improvement projects such as streetlights, the clock at the intersection of Themis and Main streets and some parking areas.

The CID sales tax, which will go into effect sometime in 2015, is estimated to bring in about $200,000 a year.

To see the full version of this story, pick up the January issue of Business Today or visitsemissourian.com/topic/businesstoday.