$25,000 bid made for former Cape federal building

The former federal courthouse in Cape Girardeau has drawn a bid of $25,000, the first official offer in the government's second attempt to sell the vacant Broadway building.

But the agency charged with unloading unneeded government property said Friday that the seemingly lowball offer isn't out of the ordinary, considering that is also the required deposit from all bidders.

"It's not unusual to see a deposit starting amount," said Angela Brees, spokeswoman for the General Services Administration.

While the second online auction at gsa.gov has attracted only one bid since it began Nov. 9, Brees said the second auction is garnering more interest than the first. The GSA has had numerous calls, conducted several tours and has had requests for more, she said.

The agency has also recently advertised in the Kansas City, St. Louis and Memphis, Tenn., business journals, and they've also placed an ad in The Wall Street Journal.

"Overall, we've seen a higher level of interest so far," Brees said. "Nevertheless, the market and economy remain in flux. We remain hopeful that a purchase can be made and will be watching alongside the community to see how the auction develops."

The GSA plans to announce a close date for the auction by the end of the month, which is typically two or three weeks after the announcement. That's when the GSA expects the number -- and size -- of the bids to pick up, Brees said.

The two-story, 47,867-square-foot building that was built in 1967 drew four bidders during the first auction, but the top three backed away from their offers. The top two offers of $625,000 and $615,000 even forfeited their $25,000 deposits.

Cape Girardeau Mayor Harry Rediger has expressed concern that the building will remain vacant and be allowed to deteriorate. Rediger has watched the auction closely because the building at 339 Broadway is in a high-profile location. Construction on the new Broadway corridor project is expected to begin in February and Isle of Capri's $125 million casino is slated to open next year not too far from the former federal building.

So far, the Cape Girardeau County Commission is the only entity to publicly express interest in the building for which the GSA had an asking price of $750,000.

On Friday, Rediger said he hopes the county ends up as owner of the building.

"It would improve their situation and it would put something productive in that building," Rediger said. "So hopefully we'll get some action on it soon. It's a major concern of mine."

The commission's plan centers on using the building for certain county offices until a new county courthouse could be built in Jackson. The commission authorized Presiding Commissioner Clint Tracy to buy the building, but only if the price is right.

None of the identities of the bidders have been made public. The GSA does not release names until after a sale is closed, and then only of the buyer.

Tracy has not confirmed whether the commission has even bid on the building, but Commissioner Jay Purcell has said they made a substantial offer to the GSA before the first auction began.

"We're just watching and glad to hear that there's an end date," Tracy said Friday. "We're still monitoring the situation."

smoyers@semissourian.com

388-3642

Pertinent address:

339 Broadway, Cape Girardeau, MO