New project pitch sought as River Campus bonds are set to expire

Since 1998, voter-approved taxes from hotel stays and dining out in Cape Girardeau have gone toward retiring nearly $9 million in bonds for Southeast Missouri State University -- and to fund the city's Convention and Visitors Bureau.

Revenue has fluctuated with the economy, but for the last several years it has increased from the year before. Estimates indicate by the end of this year, the River Campus debt will be paid in full.

What that means for the city is stopping the collection of the portion of the tax that goes toward the River Campus bonds and a renewed effort to come up with a project voters would approve adding to the community.

While the idea of a convention center was floated several months ago by city officials, a study indicated subsidization of such a facility would be too costly and there would be too much competition from existing venues. The city council showed no interest.

What to pitch to voters in an effort to extend the taxes -- 1 cent for restaurants and 4 cents for hotels -- ultimately will be up to the council.

Southeast Missouri State University's River Campus Friday, March 8. Estimates forecast that the revenue from the voter-approved tax on hotel stays and meals out in Cape Girardeau will have paid off the nearly $9 million in bonds used to build the campus by the end of the year. (ADAM VOGLER)

City manager Scott Meyer said a ballot question, which could come as early as August --or appear in November or later -- would need to contain the details of a new project combined with the question of whether to continue funding the Convention and Visitors Bureau.

The bureau's advisory board, made up of council members Loretta Schneider and John Voss, along with members of the chamber of commerce and others in the community, is charged with developing project ideas.

Meyer said the council is waiting for recommendations, which will need to come soon to allow the council to have time to discuss the recommendation and make a decision.

Members of the advisory council, including Schneider and Cape Girardeau Area Chamber of Commerce president John Mehner, said the group has met often the past few years to discuss recommendations.

"There's so many good things that we could prioritize, but we haven't done that yet," Schneider said. "Things have changed so much over the last few years -- the fact that we have the casino and different funds now,

She added, "We've got a whole different set of priorities that we need to come up with, but I think our voters have been so good about voting quality of life. We just need to come up with some decisions."

Mehner declined to give details on projects the advisory council is evaluating, but he said several have been researched extensively.

City finance director John Richbourg said revenue for the restaurant tax in the first eight months of this fiscal year are up 4.4 percent from last year to $872,679. Hotel tax revenue is up 11.5 percent to $448,554.

About two-thirds of the revenue, most of which comes from the restaurant tax, goes toward the River Campus bonds. The remaining third goes to the Convention and Visitors Bureau for operations and projects, according to Mehner.

The portion of the tax that goes to the River Campus expires when the bonds are paid in full, per terms of an out-of-court settlement between the city and the late Jim Drury, owner of Mid-America Hotels Corp., who filed a lawsuit questioning the validity of the River Campus bond issue. The city had until 2023 to pay off the bonds.

eragan@semissourian.com

388-3627

Pertinent address:

401 Independence St., Cape Girardeau, MO