CITY VIEWS USES FOR GAMBLING RECEIPTS

If Cape Girardeau voters approve riverboat gambling June 8, city officials will have to decide the best use of local revenue from riverboat proceeds.

Councilman Al Spradling III, whose current term on the council expires in 1996, said two projects would top his list.

"If it passes and we get the revenue that's anticipated," Spradling said, "I would push for the resurrection or demolition of the old St. Francis hospital building and the Marquette Hotel."

The city council repeatedly has discussed how best to deal with the dilapidated buildings, and Spradling has voiced his frustration that demolition of either building is too costly to justify in the city's budget.

"They are severe eyesores in our city, in the downtown area," he said. "We have been trying to find ways in the past to deal with the problem, and this would be a funding source we could use."

Spradling's idea conforms with the type of projects riverboat gambling proceeds could finance, said City Manager J. Ronald Fischer.

Fischer said he would favor using the money for such things as sewer and street improvements.

Missouri's gaming law requires that a share of the local revenue from riverboat gambling be spent on law enforcement.

According to the law, 10 percent of the state's 20 percent share of riverboat casino net receipts is earmarked for law enforcement in the city or county where the riverboat is docked.

Officials with The Boyd Group, a Las Vegas-based gaming company, have estimated that annual tax revenue in Cape Girardeau will be about $900,000.

Also, a $2-per-passenger fee on the boat would be split between the state and the city. One dollar would go to the state's gaming commission for administrative costs and the other to local government.

Boyd Group officials predict a riverboat in Cape Girardeau would attract one million visitors annually.

Fischer said he's discussed the impact gambling revenue would have on the city with Police Chief Howard "Butch" Boyd Jr. and Public Works Director Doug Leslie.

He said the types of projects that could be funded by the money would include street improvements in the city's five-year capital improvements plan.

"If as has been projected there's a significant increase in traffic flow, we'd be talking about improving the main east-west arteries: Broadway, Independence and William," he said.

Improvements to Independence and Broadway already are in the five-year plan.

"If this comes about, the additional revenues that are generated would let us move a little faster on that five-year plan," Fischer said. "But I'm kind of hesitant to even talk about it because it's kind of counting your chickens before they hatch."

Councilman Melvin Gateley, whose term also expires in 1996, said he thought it inappropriate to conceive ways to spend the riverboat money until voters have their say in the matter.

"It's probably premature to say how the funds would be spent until the decision is made by the voters," he said. "I wouldn't be serving the citizens of Cape by establishing a wish list."

Gateley said the city would want to be certain it doesn't use the money for general city operations or new programs that would continue to rely on the revenue.

"The boat could leave us caught holding the bag," he said. "At this point, though, I would rather let the people decide and then take a closer look at that later if it passes."

Fischer said there's no rush to make plans. He said if voters approve the measure, any gambling firm would first have to apply for a state license, then build their facility.

"You're probably talking a year or a year and a half before we'd be looking at any revenue," he said.

Fischer said the city would have to be careful how it spends the gambling revenue.

Proponents of riverboat gambling have said in campaign advertisements that the local revenue could be used for trash collection.

An increase last year in the city's trash fee and the elimination of one of two weekly trash collections prompted many citizen complaints.

But Fischer said trash service, an ongoing, essential service, is not the type of program the city should finance with gambling revenue.

"I would be very much opposed to using the revenue from riverboat gambling for anything other than capital improvements," he said. "I'm very much opposed to things that would have an ongoing cost, such as new programs or hirings, so that if that revenue ever did cease, you're budget would be tied to it."

Spradling said he agreed.

"You want to look at special projects that will be a one-time shot, and use that revenue source so that you don't rely on an ongoing stream," he said. "You're not going to know the amount of revenue or the length of time you'll continue to receive it."