Contract for MSP sale headed to City Council

The city hopes to see the red brick building, shown above in this March 2017 photo, developed in the 32 acres of the old MSP grounds.
The city hopes to see the red brick building, shown above in this March 2017 photo, developed in the 32 acres of the old MSP grounds.

The Jefferson City Council will hear the finalized land conveyance agreement for the Missouri State Penitentiary redevelopment next week.

After nearly 10 months, the City Council will have its first reading of the finalized Contract for Sale of Real Estate on Monday and will vote on it May 21. The contract lays out the state's expectations and timeline for the 31.28-acre redevelopment project at the old prison site.

"This is really an exciting moment and exciting time, seeing this move forward," Jefferson City Mayor Carrie Tergin said. "It's such an overwhelmingly positive step forward, and it will allow us now to really get into the process of moving forward and working on the exciting redevelopment possibilities. What a boost that will be - not just for our city but for our state."

The soon-to-be-city-owned land is between the historic site and Chestnut Street, as well as some right-of-way and the old shoe factory, the second-oldest building on the prison site.

The contract lays out timelines for the project, stating the city should select a developer within two years of closing on the conveyance and begin constructing improvements or infrastructure within four years of closing. These periods can be extended by one year, though.

The primary uses for the redevelopment site, according to the contract, include hotels, auditoriums, entertainment venues, office buildings, boating landings/marinas, museums, libraries, educational or governmental institutions, athletic facilities and convention centers.

The contract notes the city should try to retain the old shoe factory and adapt it in a way that is consistent with Missouri State Penitentiary Master Plan - created by a task force in 2001. The master plan recommends it be turned into a convention center.

Several members of the Missouri State Penitentiary Community Partners said they would like to consider the redevelopment area as a possible site for a convention center.

"We need one somewhere, and (the redevelopment area) is a good location," Cole County Presiding Commissioner and MSPCP member Sam Bushman said previously. "But we need a convention center; we really do. We've been talking about this for so, so long and it just hasn't happened yet, and I think we're missing out on a lot of potential groups that we could have coming into Jefferson City."

Since voters approved a lodging tax increase in 2011, the 4-cent tourist fund accumulated more than $4.43 million for the convention center.

Other primary uses include loft-style apartments and condominiums only if the space dedicated to these uses does no exceed 50 percent of the redevelopment area.

Secondary uses of the land include full-service and fast-casual restaurants, bars, coffee shops, retail bakeries, banks and retail establishments. These features can be no larger than 10,000 square feet each.

The city also can construct parking spaces, one parking structure, green spaces and pedestrian plazas on the redevelopment land.

All buildings, fixtures and improvements must be of similar style to the existing Missouri State Penitentiary historic structures, the contract states. The 32-acre redevelopment would not include the historical buildings used for prison tours, as the historic buildings will remain in the state's possession, including the gas chamber.

The city cannot place traditional fast-food restaurants, restaurants or retail establishments with drive-thru facilities or that provide in-car services, or an enclosed shopping mall on the redevelopment area. It also can't provide any residential use other than the condominium units and loft-style apartments.

As part of the redevelopment, the contract states, the city must construct the MSP Parkway, which would extend Chestnut Street northward and provide vehicular access between the Lafayette Street cul-de-sac and Chestnut Street. The city anticipates an MSP Parkway would take up 4.4 acres of the 32 soon-to-be-city-owned acres.

The city should also maintain the old prison wall in "substantially the same appearance or restore the wall to its former historical appearance." The wall can't be modified or demolished without approval from Office of Administration, Division of Facilities Management, Design and Construction director.

The state has a right to approve demolition, design and construction plans for the site, according to the contract.

If the city does not meet the timeframe goals or develops the site in a way that's inconsistent with the contract, the state has the right to terminate the contract. This right of re-entry expires after 25 years.

Jefferson City would pay $10 for the 32 acres, according to the contract.

The city and state have been working to finalize a contract since Gov. Eric Greitens signed over 31.28 acres of the Missouri State Penitentiary to Jefferson City in July following legislative approval. City attorney Ryan Moehlman and Ryan Burns, Missouri Office of Administration communications director, said it is not uncommon for land conveyances to take months to finalize.

If the City Council approves the 32-acre conveyance agreement, the MSPCP may meet May 25 to look over the contract and discuss their next development steps, Tergin said.

Part of the contract states two representatives from the state - the commissioner of the Office of Administration and Office of Administration general counsel - should be added to the MSPCP as voting members. Missouri Office of Administration Director of Facilities Cathy Brown is currently the only state representative on MSPCP and would remain on the board.

The contract notes MSPCP cannot recommend to the City Council a developer, development plan or amendments to the plan without approval from two of the three state representatives.

MSPCP also consists of Tergin; City Councilmen Mark Schreiber, Rick Prather, Rick Mihalevich and Ron Fitzwater; Cole County Commissioners Sam Bushman, Jeff Hoelscher and Kris Scheperle; Jefferson City Area Chamber of Commerce President Randy Allen; and Jefferson City Convention and Visitors Bureau Director Diane Gillespie.

The MSPCP plans to use the agreement and MSP Master Plan to guide redevelopment.

Approving the contract would not give the city possession of the nearly 32 acres, Moehlman said. If the contract is finalized, the city and state will work on a Quit Claim deed, which would give the city possession of the proposed redevelopment site. This deed would need to be approved by the Office of Administration before going to the City Council for approval.

Moehlman and Burns said they do not know the timeline to draft a deed, as it can vary.

The contract states closing on the land conveyance must occur by July 1 unless the city and state agree to extend the timeline.

The state is pleased to finalize the land conveyance agreement with the city, Burns said, and "looks forward to continuing its partnership with the city to bring this transfer to fruition in the near future."

Of the site's 140 acres, 128 are undeveloped. While the city will develop 32 acres, the state will control 95 acres to the east.

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