Groundbreaking ceremony heralds Pepsi center at business park

The Greater Cape Girardeau Business Park formally welcomed its first tenant Wednesday with a groundbreaking ceremony for a new Pepsi MidAmerica distribution center.

Owners of the company headquartered in Marion, Illinois, with city of Cape Girardeau officials and staff, Southeast Missouri State University administrators and state and local economic development representatives, spoke to about 100 people attending the ceremony before shovels brought up ground.

Pepsi MidAmerica, the country's largest privately held franchise company, announced plans last year to build a $3.1 million facility at the city-owned business park. The facility, called Pepsi Depot, is expected to create 74 jobs distributing beverage and food products.

Dr. Ken Dobbins, left, president of Southeast Missouri State University, introduces Harry L. Crisp II, chief executive officer of Pepsi MidAmerica, at a groundbreaking ceremony Wednesday for the company's new Cape Girardeau facility at the Greater Cape Girardeau Business Park. (Fred Lynch)

The city bought the land to develop the business park from the university foundation in late 2012.

A vintage Pepsi-Cola delivery truck was displayed at a groundbreaking ceremony for Pepsi MidAmerica on Wednesday at the Greater Cape Girardeau Business Park. (Fred Lynch)

Economic development incentives secured through local and state governments are aiding the company's development in Cape Girardeau.

Cape Girardeau Mayor Harry Rediger said the business park along Interstate 55 and LaSalle Avenue will be an economic engine for the area.

"Two years ago, this site was nothing but a vision," Rediger said. "It was raw farmland."

Plans to develop the business park came together after the construction of LaSalle and Veterans Memorial Drive. Both roads were funded by the city's Transportation Trust Fund, which draws from revenue collected through a half-cent sales tax.

The university foundation had wished to use the business park land as part of a 400-acre technology village and science research park. A demonstration farm once on the property moved to Gordonville.

A vintage Pepsi-Cola delivery truck was displayed at a groundbreaking ceremony for Pepsi Depot on Wednesday, June 3, 2015 at the Greater Cape Girardeau Business Park. (Fred Lynch)

The plan fell through, university officials said during the land's sale to the city in 2012, because of reluctance from businesses to expand during the economic downturn.

Development of business and residential areas also was included in the university's plans.

The city is paying for the nearly 250-acre tract over 12 years with money generated by the operation of Isle Casino Cape Girardeau. A down payment on the property was made by the Greater Cape Girardeau Area Benevolent Association, a business group that created the industrial park along Nash Road. The purchase price was $6 million, according to Southeast Missourian archives.

City officials have said the land is best suited for use by businesses involved with distributing, light manufacturing and technology, so Pepsi MidAmerica's project fit the bill.

Pepsi MidAmerica CEO Harry L. Crisp II said because the project is the first at the business park, the groundbreaking was exciting not only for the company, but for the area.

Among the products the company distributes are Pepsi, Mountain Dew and Dr. Pepper soda brands, hot and cold Starbucks coffees and other snacks.

The 18-acre site being developed by Pepsi MidAmerica will hold three buildings for offices, sales and transportation operations. It is expected to open by the end of the year. The company is running an operations office in Cape Girardeau to handle human resources and hiring for the new center.

Crisp said university president Kenneth W. Dobbins helped connect the company's new venture to the business park. Dobbins also acted as the master of ceremonies during the groundbreaking.

The Crisp family started Pepsi MidAmerica in 1936 and has a long history of financial contributions to the university, including donations that created Southeast's Malden campus, renovated a main campus nursing building and placed a regional museum at the River Campus.

Members of the Crisp family also have served on the university foundation board and have been involved with Southeast through club membership and volunteerism.

City engineer Casey Brunke said a Community Development Block Grant helped the city pay for utilities and streets in the business park.

Components of the the economic incentive package for the company allow for including the Pepsi MidAmerica property in an enhanced enterprise zone, which qualifies the company for a 50 percent tax abatement on real property for 10 years; participation in the state-run job creation program Missouri Works; and the grant.

Speakers on Wednesday said public-private partnerships such as the one in the Pepsi MidAmerica deal grow economic development.

Officials expect the Pepsi MidAmerica project to initiate further interest in the business park.

"We pledge soon," Rediger said Wednesday, addressing company representatives and the audience, "to get you partners, so you won't feel all alone up here. But this is huge, getting some steel up and getting something going here, so those that drive by and everybody recognizes that this is the place to be to create jobs and make economic benefit happen."

Cape Girardeau Area Chamber of Commerce president and CEO John Mehner, who also leads Magnet, an economic development arm of the chamber and local governments, recently said talks are continuing with several prospects for the business park, but details cannot be released.

eragan@semissourian.com

388-3632

Pertinent address:

3800 Business Park Place, Cape Girardeau, MO