Cape, Jackson look to grow retail sector with aid from consultant

The Jackson Board of Aldermen received good news Monday evening about a retail market study underway.

The cities of Jackson and Cape Girardeau have agreed to help pay the cost of a contract with Dallas-based consultant Catalyst Commercial Inc. to conduct a retail study and recruit new businesses.

The 12-month project will cost $68,000 plus expenses not to exceed $5,000.

According to John Mehner, president of the Cape Girardeau Area Chamber of Commerce, the Cape Girardeau County Industrial Development Authority will pay half the cost, with the other half to be split equally between the cities of Cape Girardeau and Jackson.

Jason Claunch, owner of Catalyst, gave the Jackson aldermen a progress report now that his firm is “about 60 days into a 90-day [initial study] process.”

He said the “pull factor” of Cape Girardeau County is about 1.5 times that of comparable counties in the area, meaning when people in surrounding areas need something they can’t find in their own towns, they often come to Cape Girardeau and Jackson.

Claunch told the board with a combined population of about 102,000 for the region, a median household income of more than $46,000 and about 50,500 employees, his firm estimates Cape Girardeau County has more than 16 million square feet of retail potential.

The study and proposed plan of action is expected to be finalized by October, and the implementation will take place over the next year. But Claunch said there are significant growth opportunities in the area, especially in the restaurant category.

When asked whether his company might inadvertently hurt local restaurants by bringing in larger franchised competitors, he assured the board his company has experience avoiding such an outcome, and a town’s restaurant climate benefits from diversity.

“There is a level of sensitivity in context in this process,” he said. “We find that there are some local restaurants that do very well when there are other choices.”

He cited East Main Street in Jackson as a site that likely will be especially attractive to developers.

“That corridor is set up really strong,” he said.

Catalyst will spend the rest of the week conducting in-person interviews with developers and property owners to determine what their hopes, plans and constraints may be.

On Monday morning, Mehner urged the Cape Girardeau County Commission to help fund the project, but commissioners made no decision. The commissioners took the request under advisement after questioning why they should help fund the consulting work.

Mehner said he was not asking the county commission for a specific amount, but requested the county provide some funding because the county government benefits from sales-tax revenue, as do the cities.

“It’s what keeps you guys from having to rely on property taxes,” Mehner told the commissioners.

Sales taxes are paid not only by county residents, but by visitors as well, he said.

Mehner said recent announcements of store and restaurant closings in Cape Girardeau draw attention to the need to recruit retail businesses.

Mehner said Catalyst is one of the nation’s top retail consulting companies. Once the initial study is finished, the consultant will spend the rest of the time recruiting businesses, he said.

According to Mehner, Jackson has signed a contract directly with Catalyst for its share of the project, while the city of Cape Girardeau has provided its share of funding to the chamber-based MAGNET economic development organization, which has signed a contract with the consultant.

District 2 Associate Commissioner Charles Herbst said the project involves “a lot of moving parts.”

District 1 Associate Commissioner Paul Koeper questioned providing more money to MAGNET. He said the commission already is providing $68,000 to help fund MAGNET this year.

Presiding Commissioner Clint Tracy said recruiting new businesses won’t necessarily generate more revenue, but rather could just end up spreading existing revenue among more businesses.

Mehner said the goal is to attract retail businesses to serve consumer needs that are not being met.

“We have places where we have holes in retail,” he told the commission.

In addition, the consulting firm knows what retailers are expanding and would make attractive recruitment targets, Mehner said.

mbliss@semissourian.com

(573) 388-3641

tgraef@semissourian.com

(573) 388-3627