Jackson aldermen waive utility late fees; approve hotel construction extension

Acknowledging the impact the COVID-19 pandemic has had on area residents and businesses, the Jackson Board of Aldermen on Monday night voted to waive penalties on late utility payments for the March, April and May billing periods.

The board also approved a request from the owners of a new hotel to extend the deadline for the hotel’s completion under the terms of a special financing district agreement.

Developers of the new Best Western Plus hotel along South Old Orchard Road near the junction of U.S. 61 and Interstate 55 sent a letter to the city last week requesting a one month extension in the hotel’s construction timeline, pushing its opening date from June 15 to mid-July.

Ghanshyam “Sam” Patel, a partner with Midwest Hospitality Group LLC, said in the letter despite construction delays caused by the diverging diamond interchange project at the Center Junction interchange of the highway and the interstate, it was anticipated the hotel would open next month. However, he said the coronavirus pandemic has further impacted his hotel’s operations.

“Being we were not an operating business, we were unable to take advantage of the national PPP (Paycheck Protection Program) relief funds per the program requirements,” Patel said in the letter.

Under the terms of a Tax Increment Financing (TIF) agreement, Midwest Hospitality Group had until June 30 to complete the hotel or face a $25,000 fine.

“With this virus and the ever-changing effects it is causing daily, our backup plan is to open in mid-July,” Patel said. “Regardless of the virus, our final plan is to have the hotel open mid- to late July.”

Patel’s request was approved by a 5-2 vote with board members Katy Liley and Larry Cunningham voting “no.” Alderman Tommy Kimbel was absent and did not vote.

As for the utility late-fee forgiveness, the board’s action means the city will waive late-fee penalties amounting to $10,416 for the month of March, $13,905 from the April billing cycle, and an estimated $15,000 worth of penalties that would have been assessed on late payments this month.

Jackson city administrator Jim Roach told the board at a study session earlier this month utility customers will still be responsible for their bills, but not the late payment penalties. Those penalties, he told the board, will resume in June “unless something dramatically changes.”

In other actions taken during their business meeting Monday night, the aldermen:

• Approved a change order reducing the amount payable to Penzel Construction Co. for work on the new Jackson Police Department headquarters by $174.21.
• Accepted the bid of Squeaky Clean Cleaning Service LLC of Jackson in the amount of $1,483.50 a month for cleaning services at the new police headquarters.
• Set 6 p.m. June 15 as the time and date for a public hearing on a special-use permit to expand an existing parking lot in the 200 block of North Missouri Street near the new county courthouse.
• Accepted the bid of Precise Target Locating of Cape Girardeau for utility locating and marketing services at an estimated monthly cost of $7,305.
• Approved the minor plat of Radiology Investment Group Subdivision near the intersection of Shawnee Boulevard and East Jackson Boulevard as submitted by Radiology Investment Group LLC of Cape Girardeau.
• Approved an ordinance authorizing a contract with Montgomery Bank related to the bank’s “adoption” of the central island of the East Main Street and Shawnee Boulevard roundabout as long as the bank’s sponsorship sign does not exceed 6 square feet. The board agreed to review any signage larger than 6 square feet.