PROPOSAL WOULD ALLOW CENTER JUNCTION WORK; DEVELOPER, GOVERNMENTS INVOLVED

An effort is under way to form a not-for-profit corporation to finance and carry out improvements to the U.S. 61-Interstate 55 interchange between Cape Girardeau and Jackson.

Involved in the movement is developer James Drury, who plans to develop the commercial area around the interchange, and Cape Girardeau County and city and Jackson governments.

James E. Mello, a lawyer with Armstrong Teasdale LLP in St. Louis, and Chauncy D. Buchheit, director of economic development with the Southeast Missouri Regional Planning and Economic Development Commission at Perryville, are trying to put together a plan all the players can agree to.

The Cape Girardeau County Commission on Monday gave initial approval to the effort. Planners hope to get everyone on board within the next two weeks.

Jackson Mayor Paul Sander said all three entities are informally in agreement. The collaboration has been percolating off and on for several years, he said.

"I think the renewed cooperation between Jackson and Cape helped that along," Sander said of meetings the two cities has held recently to discuss mutual concerns.

County Presiding Commissioner Gerald Jones said, "If this thing works out the way we think it will, it should be a win-win situation for everyone."

The plan calls for a transportation corporation made up of the three governments and the developer to issue about $8 million in construction bonds. The local governments would pay the up-front costs of construction of the highway improvements, and in 2004 the Missouri Department of Transportation would buy back the improvements. The state wouldn't pay interest costs, which are estimated at $1.2 million at the end of the four years.

In the meantime, Drury, who owns property on all four corners of the interchange, would develop fast-food restaurants, retail businesses and other stores. Those businesses would generate sales taxes, helping to offset the cost to the local governments.

Mello said a number of elements must be in place to make the project work.

A key element is a contract with MoDOT to buy back the improvements in 2004. Planners face a March 1 state deadline for the proposal. Also key is an agreement with Drury that he will develop properties at the intersection. Also, Cape Girardeau County, Cape Girardeau and Jackson must agree to pay the up-front costs of construction.

MoDOT's plans for the interchange, commonly called Center Junction, call for moving westbound lanes of U.S. 61 closer to the eastbound lanes and moving I-55 access ramps farther away from the interchange to improve turning movement.

MoDOT anticipates making improvements to the interchange but not until 2005 and 2006.

Sander said: "MoDOT has made an informal offer that if we can get together and pay interest on the project for a couple of years, it will move forward immediately. They will pay the cost of it two or three years down the road."

The timeframe could be moved up considerably with local financial contributions, said Scott Meyer, MoDOT district engineer.

A variety of means exist for local governments to raise money for road construction, including formation of Tax Increment Financing districts and developer participation.

Jackson is forming a TIF district to capture tax money that could go toward infrastructure improvements such as those at Center Junction and acquisition of East Main Street interchange with I-55.

Conversations with Drury about Center Junction improvements have been ongoing for a number of years.

County commissioners are interested in improvements to U.S. 61, which fronts the county parks to the east of the interchange.

The county has an agreement with the Missouri Department of Conservation to put a Conservation Campus in the North Park. Jones expects a large increase in traffic to the park, and entrances to the parks may be relocated.

"I want to make sure everyone knows of our plans," said Jones. We don't want anything to come as a surprise down the road."