Salem Selects CBRE for Kinney BoulevardThe Salem City Council has selected national real estate firm CBRE to market the city owned Kinney Boulevard property on West Main and I-57.
The decision came Monday night after CBRE made its presentation outlining a four step approach to marking the land which they feel could hold five new businesses. Associate Max Holter says the company will begin gathering information in January, put together its marketing plan and materials in February, and then roll out its marketing plan in the spring through digital mailings, calls, and interviews. The fourth phase is qualifying prospects and working through the transactions. Holter says CBRE will be asking a total of 2.376 million dollars for the five parcels.
"We'll talk to hotels, gas stations, restaurants, even grocers" Holter said.
Holter says they will most likely be dealing with regional franchisees and not national developers that traditionally seek the biggest concessions from cities. He sees the positives of the property as its location next to the interstate. Holter says weaknesses are its close proximity to Mt. Vernon and Effingham and the overall weakness in the retail marketplace, something he reports is beginning to turn around. He reports they will be working with companies to open new locations in Salem, and not to relocate from a nearby community. Mayor John Raymer added a movie theater to the wish list of businesses they'd like to see locate on Kinney Boulevard. He's also looking at another development possibility.
"We're looking to get a truck stop, whether on that side or the other side of the highway. We'd like to market to First National gas and local manufacturers" Raymer said.
Raymer admits disappointment CBRE was not able to bring a Cracker Barrell to the property. Holter said Cracker Barrell had changed its business plan and was no longer in the expansion plan and not likely a possibility in the near future.
The council picked CBRE over Barber Murphy, who made a presentation at the last meeting. Council members agreed the Barber Murphy proposal was lacking in information on how the company would market the site. City Manager Bill Gruen and Economic Development Director Jeannie Gustafson, who favored working with Barber Murphy because they solely concentrate on the St. Louis and Southern Illinois area, are hoping to still be able to work with them.
CBRE's proposal includes working with other real estate firms in locating businesses for Kinney Boulevard.
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