STRICTLY BUSINESS: LOOK FOR MORE CONSTRUCTION IN CAPE GIRARDEAU

The construction industry in Cape Girardeau continues to advance.

Total October construction activity in the city was more than double October totals of 1995, and construction for the year is up about $600,000.

October totals were reported at $4,084,280, compared to the nearly $1.9 million last October, according to the Cape Girardeau City Permit Office.

Totals for the year show more than 425 permits issued, in the amount of $39.2 million, up from the $38.6 million through the first 10 months of 1995.

Much of the increase is due to single-family housing, said Rick Murray, building inspector and supervisor of the Cape Girardeau Inspection Services Division.

"Single-family housing has already surpassed 1995 totals," said Murray. "Only 57 new home permits were issued last year."

Fifty-seven home permits were issued through Oct. 30 at a cost of $8.6 million, an average of more than $150,000. Many of the homes were more expensive, ranging up to more than $500,000.

Residential construction

Residential construction for the month was $1,241,754, up from the $915,750 in October 1995.

Residential construction is up almost $1 million during the first 10 months of the year. Latest permit figures show a total of 57 single-family residences, 14 duplexes and 24 apartment units, totaling $11.610,630. Last year's 12-month totals show 57 single-family houses, 22 duplexes and 11 units of apartments, for a total of $10.7 million.

Nonresidential construction in the city during October, which includes commercial, manufacturing, and other buildings not designed for shelter, was reported at $2.8 million, up from only $646,000 a year ago. During the first 10 months, $27,601,461 has been spent on nonresidential construction, down from the $27,955,462 in 1995.

Murray said city construction could surpass 1995 totals of $44,367,286.

"We're looking at a lot of new homes this month," said Murray. "We've issued seven single-family home permits in November."

The largest commercial permit issued in October was to Wehrenberg Theatres, for a 14-cine theater in the Cape West Business Park. Cost of the theater is expected to top the $2 million mark.

14 new screens

Wehrenberg Theatres Inc. announced its planned 14-screen cinema here earlier this year. The new 14-screen complex will more than double the present 10 screens in town, to a total of 24.

Cape Girardeau will then have more movie screens than any city along or near Interstate 55 between St. Louis and Memphis.

Wehrenberg Theatres, the largest movie chain in the St. Louis area and among the top 20 nationally, opened its four-screen, 1,000-seat movie theater in an 11,800-square-feet area in West Park Mall in 1983.

Six screens here are operated in Cape Girardeau by Kerasotes Theaters, headquartered in Springfield, Ill. Kerasotes operates the five-screen Town Plaza Cinema and the one-screen Broadway Theater.

Kerasotes is among the top 10 theater companies in the nation.

Statewide construction

The local totals surpass statewide construction percentages.

September -- latest figures available -- construction activity in Missouri is down 13 percent from September a year ago.

Statewide totals for September were reported at $445,403,000, compared to the $514,660,000 during the same month a year ago, according to the F.W. Dodge Division of McGraw-Hill, an authority on the construction market. Totals for the year, however, were down only 3 percent, showing $4.7, billion, down from 1995 totals of $4.8 billion.

Nonresidential construction in the state during September, was reported at $156,401,000, down 5 percent from the $164,813,000 figures of September a year ago. During the first 10 months, $1.1 billion has been spent on nonresidential construction, down 18 percent from the $1.3 billion of 1995.

Residential construction for the month was $223,045,000, down 10 percent from the $246,984,000 in September of 1995. Residential construction, however, is up for the first nine months, to $2.1 billion, 17 percent more than the $1.8 billion through September of 1995.

Nonbuilding construction, which includes streets, highways, bridges, river and harbor developments, airports and a few other projects, was also down in September, at $88.9 million, compared to the $148.7 million during the same month a year ago. Nonbuilding construction through September is reported at $868,090,000, down 11 percent from the first nine-month totals of $978,931,000 for 1995.

'Good News' calls

A chamber of commerce in Eastern Missouri received a telephone call from a manufacturer on Nov. 6. The good-news call was that the company would be moving into the community.

A number of employees at a Southeast Missouri manufacturing facility also received good news Nov. 6. The company announced that it was staying in Missouri.

A Cape Girardeau manufacturer also made a telephone call Nov. 6, to a Southern Illinois chamber of commerce. It would remain in Missouri.

November 6 was the day after general election, and the overwhelming defeat of Proposition A, which would have raised Missouri's minimum wage to $6.25 an hour -- the highest in the nation.

A lot of things had been placed on hold prior to election day, 1996, said Jo H. Frappier, president of the Missouri Chamber of Commerce, which was against the proposal.

"But the state's economy is now looking up now," said Frappier.

With the defeat of the issue, there is a renewed interest in locating new businesses in the state, said Frappier. "I think we can expect a general resurgence of economic development activity in 1997."

73 percent 'NO'

Seventy-three percent of Missouri voters said "NO" to the ballot initiative.

"We're extremely proud of Missouri voters for recognizing the dangers of Proposition A," said Frappier. "This is a new beginning and our economic development outlook is brighter than ever."

Prior to the election, a number of the prospective industries and businesses had put plans for entering Missouri on hold. Missouri border businesses were looking into new locations across state lines.

Frappier said California and Oregon were not so lucky.

Voters in both of those states approved a state minimum wage of $5.50 an hour, starting in January.

The current federal minimum wage is $4.75, and will increase to $5.15 next year.

Like Missourians, voters in Montana and Denver County, Colo., rejected minimum-wage hikes which would override the federal minimums.

Loud and clear message

Missouri voters sent the message loud and clear that they are not interested in a mandate wage increases, said Frappier.

"Missouri voters are deeply rooted in a commonsense approach to economic issues," he said. "Proposition A made no sense, and the people of Missouri recognized it."

The Missouri Chamber of Commerce worked with a statewide coalition of business groups known as SOS JOBS (Save Our State's Jobs) to defeat the proposition.

The issue was placed on the ballot through the efforts of the St. Louis-based Association of Community Organizations for Reform Now (ACORN) whose members solicited the signatures needed to put the question before voters.

"Regrettably, ACORN is already talking about trying again, said Frappier.

"Although we know that the proponents of Proposition A had good intentions, there is no reason for Missouri to be out front of the other 49 states with the highest minimum wage in the nation," said Frappier. "If we're going to have a minimum wage, it should be set on the federal level, so all states can compete on a level playing field."

Proposition A would have curtained economic growth and opportunity, said Frappier. It would have hurt small businesses currently operating in Missouri and put an end to economic development in the state.

Small companies employ 85 percent of the state's work force.

B. Ray Owen is business editor for the Southeast Missourian