Public works site sold for $1 million

Three Cape Girardeau businessmen have agreed to buy Cape Girardeau's aging public works building and six-acre site on Kingshighway for $1 million, a move that Mayor Jay Knudtson says will help the city recover costs associated with the purchase of a new building for its public works department.

The buyers are Mark and Scott Rhodes, who operate Plaza Tire Service, and Adam Kidd, who operates Kidd's convenience stores.

The developers plan to raze the old brick public works building and other smaller buildings on the site.

Scott Rhodes said they have yet to finalize plans but are looking at some type of retail development, possibly a large strip mall.

The six-acre site at 219 N. Kingshighway extends back to Broadview Drive at the rear of the property where the city's recycling center is located. The recycling center will be relocated to the new public works site.

The city council in closed session two weeks ago authorized city manager Doug Leslie to proceed with the sale of the Kingshighway tract to the three businessmen, who have formed a new corporation, R2K, to develop the property.

The closing date on the sale is Sept. 30. That gives the city time to finish renovating the former Jim Wilson auto parts building at 2007 Southern Expressway and relocate its public works operations, officials said.

"We are extremely thrilled," Knudtson said in announcing the sale Friday.

City officials have long wanted to move out of the Kingshighway building, the former Richardson Tire Co. building that has housed public works operations since 1978. The city has been burdened with increased maintenance problems including repeated roof leaks.

In February, the city announced it would buy the vacant Wilson building for $1.6 million.

At the time, Knudtson said the city might end up pulling off the purchase at no cost to taxpayers by selling the Kingshighway property and possibly 12 acres of undeveloped land on Corporate Circle near the Southern Expressway tract.

But city officials have yet to decide if they will sell the undeveloped ground or possibly swap it with other undeveloped land bordering the new public works site.

Still, the sale of the Kingshighway property will cover much of the cost of buying the Wilson building, the mayor said. "The worst case scenario is that it will cost $600,000 to have a new public works building," Knudtson said.

City officials initially had hoped to get at least $1.2 million for the Kingshighway tract. The land borders one of the busiest commercial streets in the city.

The city advertised for bids of at least $1.2 million, but didn't receive a single bid at any price by the April 15 deadline.

The three Cape Girardeau businessmen then approached city officials about buying the property.

Knudtson said city officials concluded that $1 million was a fair price for the property, particularly since the developers will have to spend money to tear down the buildings.

In addition, the mayor said that the previous effort to take bids for the property demonstrated the council's desire to give all potential buyers an equal opportunity.

"Everybody had a fair chance," he said.

mbliss@semissourian.com

335-6611, extension 123