Jackson, developer buy land near I-55 from Southeast Foundation

The city of Jackson has partnered with Benton Hill Investments to buy almost 80 acres for future development.

The property, on South Old Orchard Road near the East Main Street interchange at Interstate 55, was purchased from the Southeast Missouri University Foundation, a separate, not-for-profit organization that raises funds and manages property on Southeast Missouri State University's behalf.

"The city of Jackson and the University Foundation have been talking about the property probably for a few years now," Jackson Mayor Dwain Hahs said.

The possibility of acquiring the land first was broached by former Jackson mayor Barbara Lohr, but the bulk of the deal was hammered out over the past year, said Kathy Mangels of the University Foundation.

For the past several years, the foundation leased the land to a local farmer.

Several years ago, the foundation sold a similar parcel on the other side of the interstate in Cape Girardeau. Its development was successful, and Pepsi now conducts business on the property.

"We were not really able to use the property anymore for the support of academics," she said. "So this allows the property to have use for economic development in the region."

The foundation recently sold the nearly 80 acres for just over $1.9 million, Mangels said.

The city bought a 12-acre lot from the parcel, known as Lot No. 2, for $293,000. The city intends to build an electric substation there as part of its long-term utilities improvement plans.

Don Schuette, the city of Jackson's director of electric utilities, said via email the substation will service the eastern corridor of the city. It may incorporate transformers and would be designed with anticipation for growth in the area.

Hahs said any construction, however, likely is five years away.

"That's depending on growth in the area and when we get to it," he said. "But perhaps sooner."

The city also plans to use the property to expand its sewer treatment system.

The Jackson Board of Aldermen approved the sale Monday night. If all paperwork goes according to plan, the sale will be finalized by the end of this month.

Benton Hill Investments entered the deal when the University Foundation wanted to sell the entire parcel, but Jackson wanted only a dozen acres. Because Benton Hill owns adjacent property near the interchange, they agreed to buy the remaining 66 acres for future development, including modern shopping facilities of integrated design, retail sale of merchandise, professional and personal service establishments and other facilities.

"That really kind of depends on the business climate," Benton Hill president Tim Goodman said. "It's just an investment opportunity for us."

He said his company paid the same per-acre price as the city, although he didn't have the exact figure on hand.

While time will tell how commercial development there will progress, Goodman said he's optimistic.

"We like the current [city] leadership, and we see some great opportunities," he said.

Hahs expressed similar satisfaction with the deal.

"The collaboration of the three parties involved is a testament to their dedication to the growing Jackson business community, which will benefit from the development opportunities and utility infrastructure provided by this real estate transaction," he said. "The parties involved are committed to providing the best opportunities possible for the residents of Jackson and the surrounding community. We all understand the potential economic impacts to the area."

tgraef@semissourian.com

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