Two businesses interested in Thorngate property

After sitting empty for nearly two years, the Thorngate Ltd. building may soon spring back to life with new jobs.

The city of Cape Girardeau is seeking a $430,000 Community Development Block Grant to help bring in two companies that have expressed interest in the property on Independence Street.

One packaging manufacturer and another service-oriented business, both of which currently operate in Southeast Missouri, are considering expanding their businesses at the Thorngate site, according to Mitch Robinson, executive director of Cape Girardeau Area Magnet. The names of the companies are not being released at this time, pending approval of the grant from the Missouri Department of Economic Development.

Together, the two companies would create 50 to 100 new jobs in Cape Girardeau.

"To bring new jobs in the downtown and midtown areas was one of my goals as I took the reins as mayor," said Cape Girardeau Mayor Harry Rediger.

During a special city council meeting Wednesday afternoon, an ordinance to approve the division of the Thorngate property will be considered, an important step for redevelopment at the site to occur, Robinson said.

If approved, the ordinance will separate one and a half acres and one building on the Thorngate property from the nine-and-a-half-acre site.

The proposed redevelopment has been months in the making as Magnet, city staff, the Cape Girardeau Area Chamber of Commerce and the Southeast Missouri Regional Planning Commission have worked with the two companies behind the scenes, Robinson said.

Thorngate Ltd. shut down its Cape Girardeau operation in early 2009. The facility that manufactured high-end men's clothing eliminated 250 employees from its sewing department in November 2008 before shutting down the cutting department, which employed 60 workers in February 2009.

"Any empty building we can fill with a business that brings new jobs to our city is important, but this one in particular is really a win-win for us because it is a building that couldn't be marketed very easily due to its structure," Rediger said.

The height of its ceilings and its age were factors that made it unappealing and unsuitable for many types of businesses.

"A new business coming and thriving there will certainly help the promotion of other empty buildings," Rediger said.

City officials expect to be notified by the Missouri Department of Economic Development if they will receive the grant before the end of the year. The funding would be part of the state's Action Fund Loan economic development program, designed to assist companies investing in property and equipment to create new jobs. At least 51 percent of those who are employed by the companies must currently be low to moderate-income individuals.

The loan will be secured by the assets of the business, so there is no direct financial risk to the city.

mmiller@semissourian.com

388-3646

Pertinent address:

1507 Independence, Cape Girardeau