Broadway Theatre redevelopment moves forward

It was standing-room only Monday, May 1, in the Cape Girardeau City Council chambers as council members heard from the public before making a decision about what to do with the dilapidated, but historic, former Broadway Theatre.

Council members voted 4-3 in favor of the first reading of an ordinance authorizing the City of Cape Girardeau to enter into a development agreement with Brennon Todt to save and redevelop the building.

Mayor Stacy Kinder, Robbie Guard and Shannon Truxel voted against the measure.

"If you build it, they will come. I've never heard anybody say 'If you tear it down, they will come,'" Councilman Nate Thomas said prior to casting his vote in favor of saving the building.

The decision came after more than 50 minutes of comments from audience members — the overwhelming majority in favor of redeveloping the building — and almost as much discussion from council members.

Broadway Theatre in the aftermath of the March 2021 fire.Southeast Missourian File

Broadway Theatre in the aftermath of the March 2021 fire.Southeast Missourian File

Following formal approval at the next meeting, the municipality will enter into a development agreement with Todt that includes potential decades worth of tax abatement, sales tax reimbursement and city funding for stabilization of the structure.

The voting lines were identical to those at the March 6 meeting where Todt first presented his plan to save Broadway Theatre as the city was finalizing bids to raze it.

Todt's 11th-hour plan outlined a multiyear, multiphase and multimillion-dollar project to stabilize and turn the century-old building into retail spaces, upscale apartments and eventually a small movie theater.

The plan received support from numerous organizations in Cape Girardeau, including Old Town Cape and the Cape Girardeau Historic Preservation Commission.

The divide among council members Monday was over whether what many characterized as a "landmark" agreement for the municipality was a positive or negative precedent to set.

Kinder, Guard and Truxel all voiced support for having the building redeveloped, but opposed using public tax dollars for that development for various reasons, including that they were unsure whether the work would be completed because Todt didn't have financial confirmation from his bank for all three phases. He does have a confirmation letter for Phase 1.

"This will be the first instance where we would be providing financial assistance in the redevelopment. I am not talking about tax abatements, I'm talking about cash," Truxel said. "That is my hesitancy in this, but I fully support your vision."

Council members Thomas and Tameka Randle were the most passionate supporters of the plan. Both argued the precedent would be good for the city and lead to future economic development.

"Will it set a precedent? OK, but that's how things evolve and elevate," Randle said

Broadway Theatre has been closed for more than 25 years and fallen into significant disrepair. It has been a stalwart of the city endangered building list since the list was created in 2012.

The structure has been wrapped in fencing, buttressed by metal supports and slated for demolition for more than a year. A March 2021 fire caused significant structural damage to the building and destroyed much of the roof.

Truxel, in essence, cross-examined assistant city manager Trevor Pulley about a 2021 city inspection that found 40% of the building was unsalvageable in the aftermath of the fire. Pulley said the buidling's foundation would likely remain the same, a point Todt echoed. Truxel pressed Todt on whether he had solicited an engineer's estimate prior to submitting the development plan. Todt said he was relying on his own experience for initial estimates and planned to bring in engineers if the agreement was approved.

City officials issued — and extended — numerous repair orders in the year following the fire but all lapsed without progress.

The agreement includes a potential 50% property tax discount for up to 25 years — depending on whether Todt completes all three phases of the project — under Chapter 353 of Missouri Statute, which is for tax incentives for development of "blighted areas." It also includes sales tax reimbursement for "development costs."

The developer would cover the cost to stabilize the building up front with potential reimbursement from the city. If he begins stabilization efforts within 30 days of the execution of the agreement and completes the work within 90 days, the city will pay him $100,000. If he completes Phase 1 of the project — three retail storefronts and two up-scale, upper level apartments — within 15 months, he will receive another $49,972.84. Todt said in previous comments that his participation in the redevelopment was contingent upon garnering city funding for stabilization.

Thomas said approving the agreement was a chance for council members to "walk the walk" of various mantras often stated by them at meetings, including valuing input from strategic partners and supporting developers and economic development in Cape Girardeau.

As a formality, council members voted unanimously against accepting the $293,743 from Strack Excavating LLC for demolition. The bid had to be voted upon at the Monday meeting because it expires Tuesday, May 2.