Tax is wrong, not downtown project

In response to reports to the contrary, neither I nor Midamerica Hotels Corp. has an objection to the seminary project as a Southeast Missouri State University-sponsored program, although I believe any expansion should take place on the existing campus for economics and student convenience. In time, a meaningful project should be developed on the seminary grounds which would vitalize and promote the downtown area.

During the campaign before the election on a city sales-tax proposal and a bond proposal for the River Campus, the city, the chamber of commerce and the media widely publicized that both issues must pass, including a four-sevenths majority on the funding mechanism. Both issues did not pass.

The proposed taxes are in reality a sales tax of 1 percent on all prepared food (restaurants, convenience stores and grocery stores included) and a 4 percent tax on all hotel-room revenue. A large majority of the total taxes collected will be from the 1 percent on prepared food, of which approximately 80 percent is paid by Cape Girardeau residents. Therefore, the tax impacts the budgets of everyone living in Cape Girardeau the very most.

The university and the city collaborated after the election by amending a pre-election agreement to legitimize a failed election, which was a highly unethical and questionable course of action and a slap in the face to the voters.

The amended agreement, in essence, dedicates the so-called restaurant and hotel tax to the university by a yearly appropriation from the city to the university, which, in turn, retires the bonds sold by the university to fund the city's $9 million commitment. This is indebtedness. Consequently, it requires another election, which has not occurred. This is another issue in our lawsuit which has never been ruled on by the courts because the city ordinance authorizing the election and agreement has been ruled illegal. It becomes a moot point unless the courts rule the ordinance legal, at which point we will pursue the sales-tax and indebtedness issue further in the courts, along with other issues which will also be addressed pending the Missouri Supreme Court decision.

Shortly after the election, I offered publicly to fund another election and let the taxpaying public decide the issues rather than out-of-town judges. I pledged to abide by the election results, dismiss the lawsuit and not bring any further lawsuits on this matter. The city and university prefer to continue to spend your tax dollars on high-priced attorneys to legitimize a failed election.

Not looking for money

It was never my intention to have any of the collected restaurant or hotel-tax money returned to us, because it is the taxpayers' money. I and Midamerica Hotels Corp. do not and will not make a claim to this money.

There is no question that the River Campus project will exceed the $36 million estimate. Remember the $75,000 library fountain on the university campus that cost $350,000? The continued efforts of the mayor and city council to dedicate the taxpayers' money, which could be as much as $100 million for the 30-year duration of the taxes, is both wrong and shameful, considering all the other city needs and responsibilities to the citizens. Now the mayor and city manager suggest "some sort of tax to help all city departments." The university will hold title to the project that city taxpayers helped finance.

The university has received or will receive funding for the River Campus project from the Missouri Department of Transportation and the state, among others, and now it proposes to receive funds from the current $123 billion federal spending bill that funds education, health and labor programs. This is more of our tax dollars. The university is awash in money from every possible funding source, including gifting, while the city struggles to make ends meet.

When Midamerica Hotels Corp. first filed this lawsuit almost three years ago in the state courts, the city's attorneys had it removed to the federal courts. After a year, the federal court determined it had no jurisdiction to hear the case and referred the case back to the state courts. This was an unnecessary delay caused by the city's St. Louis attorneys who took the case to the wrong court. This was another slap at our local attorneys. Hereafter, the circuit court ruled in our favor. The city's attorneys appealed to the three-judge appellate court, which ruled in our favor. The city's attorneys requested the appellate court to rehear the case or transfer it to the Missouri Supreme Court. The appeal was rejected on both counts. The city's attorneys then requested the Supreme Court to hear the case, and it has accepted, bringing in St. Louis, Kansas City, state and university attorneys, which has no relativity to the intent of the election, which is the local issue. The matter could have been resolved years ago with another election.

Using tax dollars

The mayor and city council and the university continue to pursue all avenues, sparing no taxpayer expense, to legitimize a failed election and their questionable ensuing actions. The city and university have characterized our lawsuit as "nonsense" and "silly" and based only on a technicality, but we hope the citizens will understand there are far deeper consequences and issues involved. Midamerica Hotels Corp. stands on principle, and we will continue to oppose tyranny in any form and in particular the denial of due process of the electoral process on which the foundation of our freedom was created.

As always, we at Midamerica Hotels Corp. are willing and open at any time to discuss these and any issues relative to the betterment of all of the Cape Girardeau community.

Jim Drury is the chairman of Midamerica Hotels Corp. in Cape Girardeau.