State agencies check out options in downtown Cape

The decision on where three state government agencies will locate offices in Cape Girardeau could come within the next 60 days.

The Missouri Division of Facilities Management opened bids Wednesday for the 22,384 square foot space which would house offices for the departments of Mental Health, Social Services and Health and Senior Services.

Seven groups, including those affiliated with the Marquette Hotel and the L. J. Schultz School building, placed 12 bids ranging from $209,900 to $291,133.50 for renovating buildings in Cape Girardeau to be used for the office space.

Jerry and Doug Lipps of Cape Girardeau are the current landlords of the state Social Services offices at 130 S. Frederick. They placed two bids in the amounts of $245,465 and $234,505.18.

Drury Development Corporation made a single bid of $291,133.50.

Terry Wilson is the current landlord of the Social Services and Health Department building at 710 Southern Expressway. He made a bid of $245,465.50.

Pete Katsaliros, who holds various government leases throughout the state, made a bid of $209,900.

Ray Bax, the Jefferson City, Mo., man who is working with the Cape Girardeau School District on the sale of L. J. Schultz School, made a bid of $268,300.

Marquette Office Building LLC made two bids. One for $234,000 and another for $249,000.

Cape Office Building LLC made four bids, including two bids in the amount of $240,800 and two others for $262,800.

Although the Marquette Office Building LLC and Cape Office Building LLC are operating under separate names, the two groups involve the same people -- Prost Builders of Jefferson City, said Carl Greeson, assistant director for the Missouri Division of Facilities Management.

Prost Builders is in the midst of purchasing the 73-year-old Marquette Hotel from its owners, Ruby Bullock and her daughter, Carol, who oversees her mother's financial affairs from her home in Rockville, Md.

The Bullocks' Cape Girardeau real estate agent, Thomas Meyer, said he has spoken to both Prost Builders and Carol Bullock since the bids were placed and says both parties are optimistic.

"If it works out it's going to have a major economic ripple on the downtown economy," Meyer said. "Carol, of course, would be optimistic. As the owner of the property she feels it is in the best interest of the city of Cape."

Meyer said he does not know the breakdown of Prost Builders' leasing plans or why the company made separate bids for the office space.

If RMB Inc.'s Bax Construction is awarded the bid, Ray Bax plans to locate the offices in the current L. J. Schultz School. Bax's local real estate agent, Kerry Johnson of Remax Achievers, said he spoke with Bax after the bidding on Wednesday.

"He said it's still up in the air for all practical purposes," Johnson said. "From his understanding a lot of the bids were not even in the downtown district so he didn't feel they even qualified."

Gov. Bob Holden issued an executive order Dec. 20, requiring new state buildings and leased space to be in central downtown districts.

Under Holden's order, relative cost of the proposals would continue to be a major factor in awarding contracts, but the state would also give preference to historic buildings in downtown districts and other revitalization areas designated by cities.

Bax offered in January to purchase the historic L. J. Schultz School building from the Cape Girardeau School District for $2 million.

Since then his construction company has been working on an engineering study of the building.

The original completion date for the study was March 30. By that time Bax was to know whether the building would meet the state's requirements for offices.

Johnson said since the state took too long in releasing the requirements, the study now doe not have to be complete until May 30.

Greeson said the bids for state offices in Cape Girardeau will be awarded on the basis of the lowest in terms of cost and the best in terms of location.

He said the next move for the state will be to develop within the next week a committee of members from his office and each of the three state agencies who will meet with the bidders to discuss their plans.

A decision should come by mid-June or mid-July at the very latest, Greeson said.

hkronmueller@semissourian.com

335-6611, ext. 128