Jefferson City Council approves additional time in selecting MSP developer

The entrance of the Missouri State Penitentiary is seen Wednesday October 10, 2018 on Lafayette Street.
The entrance of the Missouri State Penitentiary is seen Wednesday October 10, 2018 on Lafayette Street.

Despite disagreement among council members, the Jefferson City Council on Monday approved a resolution allowing for additional time in selecting the developer for the historic Missouri State Penitentiary site.

In December, two potential developers presented their plans for the 32-acre site to the council and the public - Farmer Companies and a group made up of Chesterfield Hotels, Arcturis, Peckham Architecture and Central Missouri Professional Services.

The resolution establishes a 45-day period for both developers to provide the council with more information on their proposals, including renderings and a summary of basic financing details which would be "100 percent available to the public."

Ward 5 Councilman Jon Hensley, who sponsored the resolution and requested the vote Monday, said the resolution does not favor one proposal or the other at this time.

"This resolution doesn't select either proposal. It doesn't give an opinion on either proposal," Hensley said during the meeting. "It allows 45 days to allow both proposals to provide us information that they were required to provide in their original proposal."

Hensley said the additional information will allow the council to make the most informed decision possible.

"When it comes times for us to vote on this, I just want to be able to have all of our answers and all questions answered and have every available data point relating to both proposals and the perspectives of all of our neighbors," Hensley said. "I think it's at that point we'll be able to make a reasonable, informed decision."

The resolution states the developers will submit their "best and final proposal," and at that point, both will be invited to attend a council meeting to present those plans to the council and public.

The council was divided on the issue, with three council members - Ward 5 Councilman Mark Schreiber, Ward 2 Councilwoman Laura Ward and Ward 4 Councilman Ron Fitzwater - voting against the resolution.

Fitzwater said he opposed the resolution because the council should be considering the unanimous recommendation of the Missouri State Penitentiary Community Partners - which was established after the 32 acres were conveyed to the city in 2018 - in their decision and move forward with that proposal.

The MSPCP voted unanimously in favor of the Chesterfield/Arcturis proposal. Schreiber, Mihalevich and Fitzwater, along with Ward 1 Councilman Rick Prather, Jefferson City Mayor Carrie Tergin and other community representatives, were part of that committee.

"My impression is that recommendation would come back to this council and we would either vote it up or down," Fitzwater said. "I do not support the resolution. I think we had a process that we all agreed to up front, and I don't think we're living by that process. We are ignoring the wishes of that group."

Fitzwater sponsored another resolution that was not voted on by the council, which would have moved the process forward with Chesterfield while still seeking more information from both developers.

Despite voting in favor of the Chesterfield/Arcturis proposal as part of the MSPCP, Prather and Mihalevich voted in favor of the resolution to move forward with both proposals Monday, in favor of gathering information.

"I see this proposal as a short amount of time, relatively," Mihalevich said. "It has the value of gathering information originally requested to better inform council members. It also allows the disclosure of basic financial information that I think will serve to inform the public, for which we need the public to come back and inform us."

Mihalevich said he still supports the Chesterfield proposal. Mihalevich and Prather will no longer be on the council when the 45-day period ends, as they will term out April 7.

Schreiber said he is in favor of moving forward with the Chesterfield proposal and did not support the resolution.

"I hope it's not one of those situations where for another 30 years the can is kicked down the road," Schreiber said. "If it happens, then we've certainly failed, and that would be a sad thing for our community."

Tergin also voiced her disagreement with the resolution. She said the Chesterfield proposal has a bigger picture with more room for future development and expansion, and she would have supported moving forward with it.

The Chesterfield proposal includes a new hotel and convention center on the MSP site, as well as possibilities for future development. Proposed uses include an ice arena, museum, outdoor areas, office buildings and two types of housing - apartments and single-family townhomes.

"There is one that clearly brings a broader scope for more potential future investment and fitting our needs, and fitting growth for the future," Tergin said.

Tergin said she would have preferred the council move forward with the Chesterfield proposal but not make a final decision that would remove the Farmers' proposal from consideration.

"By moving forward with one, it doesn't mean you have to sign a contract and make that final selection," Tergin said. "It means you move forward with one and continue to decide, 'Is this what we want for our final selection?' If so, you move on and continue negotiations. If not, you choose a different path."

Ward 4 Councilman Carlos Graham said taking 45 days to gather more information would not harm the process, so he voted in favor of the resolution.

The agreement between the city and the state of Missouri gives the council until July to select a developer. Tergin said they should still have enough time after this period ends to meet that deadline.

Also during Monday's meeting, the council gave city staff approval to apply for a federal disaster relief grant to be used for infrastructure on the MSP site.

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