'93 FLOOD NUDGES MID-SOUTH TO MOVE, EXPAND AND PROSPER

Not all 1993 flood victims have woeful tales to tell. Just ask Mid-South Steel president Albert L. "Sunny" Underwood.

Underwood credits the 1993 flood for nudging his business to expand.

Mid-South moved from the Red Star District in Cape Girardeau earlier this year into its $500,000 facility in the Corporate Circle development area.

"If it weren't for the river, we probably wouldn't have moved," Underwood said. "We've been under water five times since 1973, so it was time to do something."

The company was literally water-logged in 1993 when floodwater, standing 6 feet high, forced a shutdown during July and August.

"We couldn't do much about supplying our clients during that time, so they were forced to go elsewhere," Underwood said. "Take two months out of any business and you're talking about a big problem."

Mid-South's move avoided problems with the 1995 flood. Much of the Red Star District was flooded this spring.

"We just got everything moved in February, so there wasn't much time to spare before the next flood hit," Underwood said.

The river wasn't an issue when his family decided to become part of the city's first industrial park in 1954, he said, but he never thought it would be such a big part when the company looked at expanding.

Having moved from the Red Star District on Water Street to the more spacious confines of two new buildings at 1500 Riverview in Corporate Circle, Underwood was able to expand the second generation business and hire seven more workers.

The work force has increased to 35 and the company has experienced a 35 percent increase in manufacturing equipment for gas stations and farms.

Business has grown so Mid-South produces more than gas tanks.

"Actually that's only a small portion of what we manufacture," Underwood said. "Not only do we sell the pumps, but we also manufacture the canopies, lights and the whole potpourri that goes with it."

The smaller building is 19,200 square feet -- 80 feet by 240 feet. The larger building is 21,000 square feet -- 60 feet by 350 feet.

The developer for Corporate Circle benefited from a $75,000 grant in state emergency flood money. The grant paid for the sewer lines needed for Mid-South to relocate.

But Mid-South had to pay for the move with its own money.

"We didn't get any of the grant money, but we did get the loan to expand our business and that was the biggest part," Underwood said. "I guess we were lucky we had the resources to make that kind of move."

It's not that the Underwood family was opposed to expansion when the business was in the Red Star District, but securing a loan while operating on the flood plain was virtually impossible.

Underwood hoped a federal buyout would send his company packing, but that never happened.

"You have to have everyone insured and willing to move at the same time for the buyout to work and that just didn't work out," he said.