Marquette leasing decision delayed

The fate of a proposal to turn the vacant Marquette Hotel into state offices won't be decided for two to three months, a state official said Friday.

Missouri's facilities management division had been nearing a decision on leasing 22,834 square feet of space in Cape Girardeau for the Department of Social Services and other agencies. But Carl Greeson, assistant director of the facilities management division in Jefferson City, Mo., said Friday the decision has been delayed as a result of Gov. Bob Holden's executive order issued Thursday.

The order requires new state office buildings and leased space to be in central downtown business districts with preference given to historic buildings. The move could help efforts to save the 73-year-old Broadway landmark.

Greeson said bidders who submitted proposals to the state in August to provide office space in Cape Girardeau will be allowed to submit new proposals over the next 45 days. Leases are set to expire for a number of state offices in Cape Girardeau, including the Department of Social Services.

The department currently leases a building at 130 S. Frederick owned by Cape Girardeau businessman Jerry Lipps, who has proposed a new lease.

While the executive order makes it clear that historic buildings and renovation projects will be given priority, cost remains a key factor, Greeson said. The state will lease space in a new building if it is more economical to do so, he said.

Prost Builders of Jefferson City wants to renovate the Marquette and lease office space to the state. Under the proposal, the state would pay $2.39 million over 10 years to lease space on the upper floors of the building. The remaining space would be used for retail shops and restaurants.

The proposal hinges on the builder buying the hotel from its owner, Ruby Bullock. Greeson said the developer would have to own the building before the state would agree to the proposal.

"The Marquette is still of interest to us," Greeson said.

Prost Builders submitted the second-lowest bid. The lowest bid was from a Poplar Bluff, Mo., firm that has proposed constructing a state office building on Southern Expressway and leasing it to the state for 10 years at a cost of $2.27 million.

mbliss@semissourian.com

335-6611, extension 123