University officials are in negotiations with a local developer in hopes of furthering efforts to bring a much-needed state-of-the-art conference center to Mississippi State University and Starkville communities.
David Shaw, vice president for research and economic development, said MSU administration made the decision this past summer to put out a call for new proposals in early August because the original project had changed so much in scope up until that point.
“This project has been going on for well over four years now, and we just felt like in that length of time, we needed the opportunity to step back and see what group brings the best use of the Cooley Building and what group brings solid financial backing so that we can put a package together and move this project forward,” Shaw said.
After reaching a Sept. 4 submission deadline, Shaw said administration evaluated the proposals that were received and selected Columbus-based developer Mark Castleberry to replace Mark Nicholas, managing member of Nicholas Properties LLC in Ridgeland.
Shaw said MSU and Castleberry are continuing to uphold an exclusive agreement to negotiate for a 120-day period in hopes of preparing a contract that will be approved by the Mississippi Institutions of Higher Learning Board of Trustees in the March to April time frame.
“We’re very excited about how the negotiations are going, and we are very pleased with the ideas that the developer has put forward,” he said. “We’re certainly very optimistic that the board will continue to support this as they have in the past.”
Located on the western entrance of campus, the Cooley Building operated as a cotton mill until the early ’60s and currently houses MSU’s physical plant department.
Although the project is still in the negotiation and planning stage, Shaw said MSU plans to retain ownership of the Cooley Building and lease it for 41 years to Castleberry, who would oversee its renovation.
In addition, Castleberry would oversee the construction of a 20,000 square foot conference center in the eastern end and office space in the western end of the Cooley Building, as well as a full-service Courtyard Marriott hotel built southeast of it.
Shaw also said MSU recently received approval from the IHL Board to sell Castleberry the 1.129 acres of land on which the hotel would be built.
Castleberry said there has also been discussion about potentially having three to four restaurants on the site.
“We’re trying to be selective as to the type of restaurants that would go there to really create a lot excitement,” he said.
Starkville Mayor Parker Wiseman said there are plans for a parking garage that would be funded entirely through Community Development Block Grant funds, and it would be the city’s responsibility to manage the grant.
“Since the city is not funding the project directly, other than through the grant program and tax incentives, there are no tax implications associated with the project,” he said.
Wiseman also said he believes the development, especially the proposed state-of-the-art conference center, will serve as a driver for future tourism in Starkville and the Golden Triangle Region.
In addition to his own funds, Castleberry said he plans to utilize bank financing for the project, and two banks that are financing other projects of his have already shown great interest in this development.
“We feel very confident in our ability to finance the project,” he said. “The economy is definitely a factor, but through the last several years, we have still been active in development and been able to put deals together even in tougher times.”
While there is no agreement in place, Castleberry said he plans on asking the city for a tax increment financing agreement to help offset the cost of public improvement features, such as streets, sewers and water systems.
Shaw said he believes the lack of a conference center has served as a major impediment to MSU and Starkville in previous years.
“We believe that there are a number of conferences that would be associated with Mississippi State that we’ve just simply not been able to host, and they’ve gone to another university,” he said. “We’re talking about wanting to get the word out on the great things that are happening here at Mississippi State, and hosting conferences is one way that we can get people here, so they can understand the quality of education, the quality of research and the quality of the outreach programs that we have.”
The overall project will have the potential to generate at least 150 jobs, Shaw said.
Although the original cost of the development was estimated at $176 million and is currently estimated at $60 million, Shaw said he still believes that is a substantial investment.
“Our feeling is that once we begin development in that area, it’s just going to explode,” he said. “We’re looking at this as kind of the anchor and as a catalyst to get a lot of other things started, and I firmly believe that will be the case.”