Jackson Free Press

Old Capitol Green developers cannot take advantage of $20 million in state bonds for infrastructure work because the state and city have not committed to the bonds.

"It's still in the hands of the government bodies of Hinds County and the city of Jackson, and we would be interested in knowing when a partnership of this type could be done by these two bodies," said Malcolm Shepherd, Full Spectrum South director of development. He says Full Spectrum South is trying to begin the first phase of the extensive project along Commerce Street in downtown Jackson.

Shepherd submitted development plans to the Jackson Redevelopment Authority this month outlining the construction of a $27 million "roboticized" parking garage and an adjoining $4 million multiple-building air-conditioner. The company is moving forward with development this year on the garage using JRA bonds and New Market Tax Credits. It is also beginning construction on a neighboring commercial building with $45 million in industrial revenue bonds approved through the Mississippi Business Finance Corp., he said.

The company would also like to make use of a $20 million low-interest bond state legislators approved three years ago, Shepherd said.. But the county and city must first commit to be a co-sponsor to the loan before the company can receive the money.

"The state has put up $20 million in infrastructure for Old Capitol Green. They did this at a time when we had Mayor Frank Melton, who put up a roadblock for legislators. They said, 'We wouldn't give Frank Melton a dime, but what we will do is pass a bill for the county to borrow $20 million, and we expect them to enter into a partnership with the city.'"

So far, that hasn't happened. Hinds County Supervisor Doug Anderson said the county is looking at steep budget cuts last year and probably this year, and is not in a position to be responsible for a new $20 million loan.

"I think Old Capitol Green could be something beneficial for the county someday, but right now it's a matter of resources," Anderson said. "We don't have money."

Shepherd said the county is only partially responsible for the loan because it must join the city in a partnership committal. In any case, the two governments are only responsible for the loan if the project fails to create revenue, which is not the future Shepherd foresees.

"Their commitment may be on paper, but on the ground, what really would happen is Full Spectrum, along with the other property owners in Old Capitol Green, would be responsible for ensuring that the money was paid back," Shepherd said.

He added that the company is fully committed to the development, which has been in the planning phase for almost four years, and has invested heavily in the project because it smells success in the venture.

"We've been spending Full Spectrum's money for three and a half years now. We've spent more than $1 million on this project. We've paid for studies for retail, residential, commercial and office buildings. We've paid the state more than $5,000 a month in lease payments since October last year. We've been paying for office space, development of the new ordinance (for the area) and sending out notifications, and renderings, and then there's the salaries, flights, hotel rooms, meals, sub-consultants, the surveys, the soil borings. I think we've demonstrated that we're committed to this project."