SALE OF SEMINARY SET FOR SEPT. 5; LOAN WOULD BAIL OUT FOUNDATION

St. Vincent's Seminary will be sold on the courthouse steps if Colonial Cape Girardeau Foundation doesn't pay its loan.

Foundation members have tried to raise money to clear the property's title since April 1995. It was then that the Vincentian Fathers of St. Louis, who own the seminary and grounds, granted the foundation a short-term loan.

The loan was due Oct. 1, and the foundation missed that date and others since. The most recent deadline was Monday, which came and went without action.

Now Lowes and Drusch, the Cape Girardeau law firm representing the Vincentians, plan to run a legal advertisement in Friday's Southeast Missourian. The ad states the seminary property will be sold for cash on Sept. 5 at Common Pleas Courthouse in Cape Girardeau.

There is still time to cancel the sale, said Tom L. Meyer, a Realtor and trustee for the Vincentians.

"They were given until Monday at 2 p.m., and nobody bothered to talk to us," Meyer said. "I don't want to go through with (the foreclosure) any more than anyone else, but they entered into a legal agreement over a year ago. All the attorney is doing is carrying through with the terms of the agreement."

If Sept. 5 arrives and full payment hasn't been made, members of Colonial Cape Girardeau Foundation will be welcome to bid on the seminary like anyone else, Meyer said. It would be a gamble -- another bidder may offer more.

Foundation members, along with eight local businessmen, recently took steps to avoid losing the property.

The foundation was approved for a $650,000 loan through Union Planters Bank of Southeast Missouri, Boatmen's Bank and First National Bank. The amount will cover the principal and interest due the Vincentians.

Eight cosigners are needed to guarantee the loan, which will mature 12 months after it is granted. At that time all principal and interest -- an estimated $60,000 -- will be due.

Mary Robertson, foundation president, declined to comment on how many of the eight have signed. She said she expected all to do so before the end of the week.

If the foundation is unable to pay the loan, all eight will be responsible for payment. Jim Limbaugh, president of Boatmen's Bank, said some may be responsible for bigger portions than others.

Even in view of Colonial Cape Girardeau Foundation's past history of missing payments, Boatmen's Bank wanted to participate in granting a loan, Limbaugh said.

"It is a noble effort to preserve a landmark in Cape Girardeau," he said. "There are some individuals willing to take a personal risk, and we felt comfortable with that. If they are willing to put themselves at risk, we feel it can be successful."

Cape Girardeau businessmen B.W. Harrison and Paul Miles, two of the potential cosigners, both said they will sign the document.

Miles said the men involved in guaranteeing the loan will make a strong effort to raise money to clear the seminary's title.

Other potential cosigners are Jerry Lipps, Earl Norman, Bob Blank, Gene Rhodes and Norman Wood, all of Cape Girardeau; and R.E. Meyer of Dexter.