Cape sees record year for building permits

By Tony Rehagen

Special to Business Today

For those Cape Girardeau residents who think they've noticed an excess of cranes, concrete trucks and construction workers in their city this summer: Don't worry, it isn't just you.

The Cape Girardeau Department of Inspection Services recently announced that 2004 will be a record year for new commercial building construction within the city limits. City public information officer Tracey Glenn said that a record number of permits for new commercial buildings has already been issued this year, and she said city officials are projecting that the valuation on this year's new commercial projects will exceed last year's record total before the close of the calendar year.

Through June, the city reports, 29 permits for new commercial buildings were issued, including expansions at both hospitals and the construction for Old Navy. That total already tops the 28 such permits issued in 2003. The valuation for the 2004 permits is $19 million, $7.6 million short of 2003's record total of $26.6 million. However, Glenn said that in the coming months, the city expects to receive plans for review on a number of other large projects, including new retail and motel development, that will push this year's total valuation over last year's mark.

People in the industry have mixed opinions on this prediction.

Glen Hinkebein, director of business development with Penzel Construction Co., said the projection may be a bit premature.

"It's a little early to make a prediction," Hinkebein said. "We really don't have a good perspective as of yet."

Hinkebein said that although spring, summer and early fall are the times that people can see development in the form of construction crews out in the field, the behind-the-scenes planning of the late fall and winter will dictate the actual numbers.

But project coordinator Steve Berry of Contrend Inc. said that judging by the number and size of the projects his company has on its plate and coming down the line, he thinks the city's optimistic extrapolation is a pretty safe bet.

"If they do miss it, it won't be by much," Berry said.

Berry said he's seen an increase in the valuation of the commercial projects. He attributes that both to the size of the projects and to the increased cost of construction due to spikes in the price of materials.

Regardless, city manager Doug Leslie said the numbers in commercial construction and the increase in development interest and inquiries in the city are a sign of a robust economy.

"It's indicative that Cape Girardeau is a regional hub for medical, education and retail opportunities," Leslie said.

Tony Rehagan is business editor of the Southeast Missourian.