Cape Girardeau federal building auction closes

A bid for less than half the asking price for Cape Girardeau's former federal building won in an auction Thursday, but federal officials must decide whether the offer is good enough.

The auction closed at 2:30 p.m. Thursday after garnering eight bids from six bidders since opening Nov. 9. It was the second auction on the property. At 2:30 p.m. Wednesday, 13 minutes before the auction was set to expire, an anonymous bidder entered a $325,015 bid, up from the previous high bid of $300,015 posted at 2:43 p.m. Tuesday. The bid stood for a full day before the auction closed.

The General Services Administration must now decide whether to accept the bid, which fell well short of the agency's $750,000 suggested sale price, GSA spokeswoman Angela Brees said. The offer could be accepted as soon as next week, Brees said. If that occurs, the GSA will close on the building within 30 days of the acceptance.

Brees said she blamed the low bids on a tough economy.

Bidding kicked off Dec. 23 with a $25,000 offer. The GSA does not reveal bidders' identities.

More bids started funneling in as the auction's Jan. 10 scheduled end date loomed.

One of the original five bidders submitted a $209,777 bid Tuesday morning. Three hours later, the GSA's website, www.gsaauctions.gov, logged a $259,777 bid. Less than 15 minutes after the second offer, a bid of $300,015 came in. Each bid extends the auction for 24 more hours.

As the 2:43 p.m. deadline approached Wednesday, a bidder entered the winning amount of $325,015.

Mayor Harry Rediger said he was pleased the auction finally closed and is curious to see what the GSA is going to do.

"I'm glad it's off auction," Rediger said. "The auction only amounted to a further delay."

Rediger has said he is concerned that the building will remain vacant and be allowed to deteriorate. Because of the building's prominent location, Rediger has kept a close eye on the auction. 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 late this year not too far from the former federal building.

The Cape Girardeau County Commission has expressed interest in 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.

A message left on Tracy's cellphone was not immediately returned Thursday evening.

The building has been vacant since the FBI moved out last May. The auction marked GSA's second attempt to unload the 47,867-square-foot structure that was built in 1967. The agency was unsuccessful in selling the building because the top three bidders backed away from their offers. The two bidders who submitted the top offers of $625,000 and $615,000 lost their $25,000 deposits.

psullivan@semissourian.com

388-3635

Pertinent address:

339 Broadway, Cape Girardeau, MO