Tourism group votes to support bike race

The Missouri Tourism Commission set up a potential battle over its independent status Friday by voting to stick by its support of the Tour of Missouri bicycle race and by verbally challenging Gov. Jay Nixon's authority over its spending.

During a special meeting called after the state's $1.5 million commitment to the tour was frozen by Nixon's administration, members asserted they could spend tourism promotion dollars as they saw fit. The comments echoed and expanded on statements made earlier by interim tourism division director Robert "Bob" Smith III, who said Nixon's power ended when he set the division's spending limit.

The point is a fine legal one, but whether Smith is correct could determine the fate of the cross-state race, which is scheduled to have its third outing this fall, including a stop Sept. 8 in Cape Girardeau. The only legal question, Smith said, is whether Nixon can order the Office of Administration, which handles the nuts-and-bolts operations of state government, to refuse to issue a check to the race organizers.

"The governor has the right to withhold money from us," Smith said. "He does not have, nor does the Department of Economic Development, have the right to tell us how to spend the money. That authority lies with the staff with the approval of the tourism commission."

The Tour of Missouri is threatened because Linda Martinez, director of the Department of Economic Development, sent a memo to the Office of Administration outlining how her department would cut $9.9 million from its budget. The memo put $1.5 million for the Tour of Missouri on the chopping block, potentially eliminating the state's sponsorship of the race.

As a result, funding for the race is frozen. Organizers and supporters of the race said Thursday that if the cut stands, the race will be canceled. The $1.5 million represents Missouri's commitment as the title sponsor of the race, which is scheduled to begin Sept. 7 in St. Louis. On Sept. 8, the cyclists were scheduled to race from Ste. Genevieve to Cape Girardeau.

The local organizing committee, which must prepare a health fair and line up hotel rooms and meals for race participants, has signed contracts for the hotel rooms, said Tracey Glenn, vice-president of the Cape Girardeau Area Chamber of Commerce. But those contracts can be broken without cost, she said, and no money has yet changed hands.

The local committee has a $20,000 commitment from Saint Francis Medical Center and has received $20,000 from Southeast Missouri Hospital, she said. And most of the work since the host cities were announced has been planning, including signing up volunteers. "It is pretty much staff and planning time" that would be wasted if the race does not take place, Glenn said.

Activity would have picked up after Wednesday, when the race route was scheduled to be announced, Glenn said.

Effects of canceling

The commission's vote to support the race came at the end of a meeting where Lt. Gov. Peter Kinder led the members through a discussion of the legal and economic effects of canceling the race. The members in attendance voted unanimously to back the race. Kinder is chairman of the tourism commission.

Kinder has made the Tour of Missouri his pet project. He takes a high-profile role in promoting the race and dedicates staff time from the lieutenant governor's office to the race. As the only Republican in a Missouri statewide office, he is seen as a likely candidate against Nixon, a Democrat, in 2012.

Members were told by Rich Aubuchon, chief of staff to Kinder, that their power is independent of the governor once the tourism spending limit is set. A step taken this week to freeze all spending by the Missouri Division of Tourism is an unprecedented move against an independent agency not under suspicion of wrongdoing, Aubuchon said.

The race is expected to draw large crowds, many from outside Missouri. The organizers have made promises to draw top cycle racing teams, including Astana, the team that includes Lance Armstrong, as well as other financial commitments that could get the state into trouble if the race is canceled, Kinder said.

"Every person I have talked to has said we are incurring the certainty of a breach of contract lawsuit," Kinder told the commission. "We are inside 60 days of pulling off this event. Contracts have been signed, motel rooms have been booked and all kinds of arrangements have been made."

Other members of the commission agreed that the state must follow through on the promise of support made in April. "Our reputation as a state is being tarnished and spending the money with no return is ridiculous," said state Sen. Jack Goodman, R-Mount Vernon.

No contract signed

Actually, no contract has been signed committing the state to fund the race, Smith said in an interview before the commission meeting. The papers are being prepared, and he said he is under orders from the commission to sign the contracts when they are ready.

"For me to say the state has a contract for the bicycle race would be incorrect," Smith said. "The plan was to sign a formal sponsorship contract immediately and we are in the process of getting all that paperwork drafted up."

Although there is no formal contract, the state's promise of support led to spending by the not-for-profit Tour of Missouri Inc. and it is likely the courts would consider the promise binding, Aubuchon said after the meeting.

Nixon's spokesman, Scott Holste, did not respond directly to questions sent via e-mail asking for an explanation of what powers Nixon believes he has to counter tourism commission decisions. Holste also did not respond directly to a question about the legal obligations.

The proposed cuts to tourism "are just like the recommendations the budget director received from each of the departments on how Missouri state government can live within its means and continue to provide essential services during these tough economic times," Holste said. "Those recommendations are going to be reviewed, and decisions will be made within the next few weeks."

The tourism commission is making its final budget decisions Monday. The commission has been told it must find $3 million in savings from its $23.5 million budget.

While no commission member voiced objections to funding the race this year, there were signs that support may not be as strong in the future.

Eric Rhone, the newest member of the commission, said he supported this year's race. "I want to make sure and clarify -- this year, we are on the hook. But next year and subsequent years, are we pledged or obligated to do the tour next year?"

"The answer to that is no," Kinder said.

rkeller@semissourian.com

388-3642

Pertinent address:

Jefferson City, Mo.

Cape Girardeau, Mo.

Ste. Genevieve, Mo.