TAX-CREDIT PLANS FOR RIVER CAMPUS OUT

Citing legal concerns, Southeast Missouri State University has abandoned the idea of using state tax credits in developing its River Campus.

Dr. Ken Dobbins, Southeast's executive vice president and soon-to-be president, said Friday the university won't pursue the financing proposal.

The decision comes in the wake of questions raised over the legality of the plan. Kristi Jamison of the Missouri Economic Development Department said this week that the plan raised a "red flag."

Government agencies and not-for-profit organizations don't qualify for state tax credits for renovation of historic buildings because they don't pay taxes, she said.

Dobbins said Ann Perry, who administers the tax-credit program, suggested the funding plan. He said the university wouldn't have explored the idea if state Economic Development officials early on had raised legal questions about it.

"I don't see how with all the legal issues involved right now that we want to be a part of that," Dobbins said.

He said university officials weren't aware of any legal concerns until the issue surfaced in a Southeast Missourian newspaper article this week. "That was news to us," he said.

The university was exploring the possibility of allowing a contractor secure the tax credits and then pass on the cost savings in the form of lower construction costs for renovation of old St. Vincent's Seminary.

The main seminary building dates to 1843. Southeast plans to develop the former Catholic seminary property off Morgan Oak in Cape Girardeau into a school for the visual and performing arts.

The $35.6 million project would involve new construction. The renovation work on the historic building would amount to about $7 million or $8 million, Dobbins said.

Tax credits would have been sought for 25 percent of the total cost of the work on the historic building.

New construction can't be counted in calculating tax credits, Economic Development Department officials said.

Southeast spent some $11,000 for a Kansas City historic-preservation firm to put together an application to place the former seminary on the National Register of Historic Places. The move would have been the first step in an effort to secure tax credits for the project.

Dobbins said the university may still seek to have the former seminary placed on the National Register.

"After we do the rehab, we will be looking to see if we want to put it on the National Register then or not," he said.

"If it is going to be a tourist attraction, that is one thing you will want to put on it," he said.