Old Capitol Green in the works

Project that targets eight blocks for development depends on Legislature bill

By Joshua Cogswell, jcogswell@clarionledger.com

Joe Ellis/The Clarion-Ledger The view north on Commerce Street shows several restaurant-bars and commercial buildings. LAND USE Proposed land use for Old Capitol Green project: Parking garage: 3,000 spots Office space: 550,000 square feet Retail: 134,000 square feet Entertainment-restaurant: 80,000 square feet Cultural-community: 78,000 square feet Residential: 500,000 square feet/500 units Hotel: 100,000 square feet/100 rooms Population projection: 5,500 Job projection: 1,400

A plan to transform eight blocks of downtown Jackson with new residences and businesses could hinge on passage of a bill in the Legislature.

Supporters say the "Old Capitol Green" project - bounded by State, Pearl, Jefferson and South streets -would include apartments, office space, retail and entertainment venues. For Entergy, that means more customers.

Other businesses in the proposed district say the same will be true for them. "I think it's a fantastic project for downtown Jackson because it will get more people living downtown," said state Sen. John Horhn, D-Jackson. "This is vitally needed if we are going to continue to grow as a city." Malcolm White, co-owner of Hal and Mal's restaurant in Jackson, called the project a "dream come true."

Courtesy of Entergy A concept for a revised Commerce Street would include apartments and commercial-retail property. IF SENATE BILL 2500 PASSES The state's property will be sold either to Entergy or a quasi-governmental economic development agency formed to take control of the land. Or the state will grant an option on the land, agreeing to sell it to a real estate developer once a deal is inked. Once control of the leased land is finalized, the property will be marketed for mixed-use development.

"I've been waiting patiently for 25 years, and it's a joy to me now to see someone as ... well-connected as Entergy to get behind this project," White said. "They basically came to me and said, 'Would you endorse your dream? We're going to make it happen.' "

Entergy and the state own more than 60 percent of the land in the proposed district. The power company owns two blocks and leases two other blocks from the state. Eight others own the remaining property. Senate Bill 2500 would allow the state to transfer ownership of the leased property to Entergy or a public-private partnership so the entire area could be marketed to a developer. The bill passed the Senate and is being considered by a House committee.

"If we have a developer willing to come in, we need an option on that property," said John Turner, director of economic development for Entergy. "If you have 65 percent of eight blocks of downtown real estate, you can pitch to a national audience of developers."

Harold Gater/The Clarion-Ledger HOW IT CURRENTLY STANDS Entergy owns two blocks in the proposed eight-block project. Entergy also leases two blocks from the state.

House Public Property Committee Chairman Tom Weathersby, R-Florence, suggests the project may have to wait for legislative approval.

"I just want to make sure we're doing it in the right way and make sure everything is handled correctly," Weathersby said.

Horhn said he will be pushing his colleagues in the House to pass the bill this year. Haley Fisackerly, vice president of customer operations for Entergy, said his company's aim is not to get into the real estate business. He said the goal is to make it easier for economic development groups to sell the site.

"We have a limited service area in Mississippi. The only way I can get more customers is to attract more business and industry and people to our service area," Fisackerly said. He said the company would keep some of its operations in its current location but would move the rest to other parts of the city.

Jimmy Heidel, Jackson's economic development consultant, said the city has been working to rezone the land to allow mixed-use development since he took his job five months ago. "It gives property owners a lot more freedom to choose what they want to do with their property," Heidel said.

He said the movement toward creating neighborhoods that blend living areas with office space and retail development has worked in bigger cities like Chicago, Atlanta and Memphis. "I don't think there's any question this concept could work in downtown Jackson," Heidel said. "Look at the Electric Building. There's living quarters in those facilities and there are waiting lists to get in."

The developer of the Farish Street Entertainment District, another project aimed at bringing business and people back downtown, welcomes the project and thinks it will help his efforts to recruit business to Farish Street. "A rising tide lifts all the boats," said John Elkington, whose Memphis-based real estate group Performa is working on a $12 million project on Farish Street. "The more development you have, the more chances you have to attract more."

But Elkington said outdated building codes, reluctant financiers and a complex approval process have hampered progress on his development and may hamstring efforts to fast-track the project.

Entergy spokesman Checky Herrington said the Old Capitol Green project is a first for the company in Mississippi. "We have been involved in economic development and bringing industries to the state," he said.

John Lawrence, president of Downtown Jackson Partners, has been working with Entergy and others to put the deal together. He said the timing is crucial to getting the property developed. The city has seen office space gobbled up since Hurricane Katrina hit the Gulf Coast. Occupancy rates in downtown office buildings have topped 90 percent, he said.

Lawrence, a downtown resident and advocate of redevelopment, also points to legislation Congress passed late last year as a potential catalyst.

The Gulf Opportunity Zone provides tax breaks for companies willing to locate in communities impacted by 2005 hurricanes. "The GO Zone is giving us 24 months to use the incentives that are offered," Lawrence said. "We've got some incentives. Now we've got to get the property."

Terry Butler, manager of W.C. Don's, lives and works in the proposed district. Butler, who lives upstairs from the restaurant and night spot, said more residential development downtown would be a boon to his business, especially during slow weeknights.

The project could help what Butler called a burgeoning entertainment district. "It's like a ghost town here in the early afternoons during the week and during the day on weekends," Butler said. "We definitely need that increased traffic."