The Jefferson City Council made the right decision in selecting the Chesterfield Hotels group as a potential developer for the Missouri State Penitentiary.
Now, however, it needs to proceed with caution.
The group's proposal is ambitious and would be costly. It would divide the city's MSP land into eight redevelopment areas, some of which could be done in later phases by other groups.
In addition to a Tapestry by Hilton Hotel, conference center and parking garage, the proposal would include a two-sheet ice arena, parking garage and expo center.
Other proposed uses include a museum, mixed use/commercial, train station, residential town homes and another east-side amphitheater.
"I know I have a lot of skepticism about the finances of this thing, but if owner equity of $27 million means that (the developer) thinks it's feasible, then I might nod my head and say they know something about spending their money in a way that I don't," Ward 2 Councilman Rick Mihalevich has said.
Some council members rightly have expressed their concerns with the financial elements of the larger Chesterfield proposal and the feasibility of the project.
"While I initially preferred Chesterfield's proposal, it's clear now that there's really no plan at all for delivering anything more than their hotel and the publicly financed conference center," Ward 5 Councilman Jon Hensley said in a previous story. "Even if it is built someday, it could require up to $100 million from taxpayers."
That's a staggering investment even in a good economy. Because of the COVID-19 pandemic's effect on the economy, the council needs to continue to evaluate the financial viability of a conference/convention center.
The council also must aggressively negotiate with the Chesterfield Hotels group to make sure the city's investment is minimal.
This is a public-private partnership. Jefferson City is providing the land and some funding from a dedicated part of the lodging tax. Negotiations with Chesterfield should have the expectation that the group finds other businesses to invest in the project.
We've waited a long time for MSP redevelopment and even longer for a convention center. Let's keep pursuing those goals, but let's proceed cautiously so that we get them right.
News Tribune