PERRYVILLE, Mo. — At a city council meeting Tuesday, Perryville Mayor Debbie Gahan sought to dispel rumors the city intended to fund a recently discussed purchase of industrial land by ending its contract with the Perry County Economic Development Authority.

The land at issue, the Perryville Industrial Park, is owned by the Perryville Development Corp. It consists of a roughly 100-acre parcel Gahan described as "basically a bean field."

At a recent closed session, Gahan said, the council discussed purchasing the land from the Perryville Development Corp. and adding paved roads and utilities to attract industrial development to the area.

Several options for funding the project were raised, including adding a new tax, which Gahan said the council might hesitate to do in the current economic climate, Gahan said.

Though the idea of not renewing the city's contract with the Economic Development Authority may have been tossed around during closed session, nothing was decided, she said.

"Wild, rampant rumors began," she said.

On Dec. 22, Kim Moore, vice president of Perryville Development Corp., sent Gahan a letter stating the corporation voted to withdraw the sale offer on the land if the city could find no other options to fund it.

"It is the belief of the Perryville Development Corp. that an independent, countywide economic development function is vital to the progress of Perryville and Perry County," Moore wrote.

The board intended to work with the city to find an alternative means of funding other than cutting ties with the Economic Development Authority or raising taxes, Moore said.

Moore also spoke at Tuesday's meeting, saying the board did not wish to put Perryville in a difficult position.

"The bottom line is that we're trying to help the city grow, but do it in a way that is financially responsible," Gahan said.

Ward 3 Alderman Gary Schumer said he would be against the idea of taking city funding away from the Economic Development Authority.

Gahan said the council will opt to renew its half of the contract, the other portion shared with county authorities, but only after a committee meets to discuss adding more reporting and accountability requirements into the new contract with the Economic Development Authority.

The committee will be a "steering group" of city, county and economic development representatives to provide a "viable mesh of funding and direction" for the city's new contract with the Economic Development Authority, Gahan said.

bdicosmo@semissourian.com

388-3635