STRICTLY BUSINESS: WHAT'S AHEAD FOR THE CITY'S DOWNTOWN?

What lies ahead for downtown Cape Girardeau?

Thursday's announcement that the Boyd Gaming Corp. was divesting 10 parcels of property in downtown Cape Girardeau came as little surprise to many people.

Although downtown merchants have publicly expressed doubt for months that Boyd would put a riverboat casino here, many still privately hoped the gaming giant would proceed with plans that would have brought significant development to the riverfront area.

It should be noted, however, that Boyd's decision to apparently not proceed with a Southeast Missouri gaming operation, does not stem from a disillusionment with Cape Girardeau. Boyd officials often commented on the city's work-together attitude and the warm welcome the company received from the downtown business community; rather, the decision reflects more of a disenchantment with the state and gaming regulations casino operators say stifle growth and further development.

$52 million development

Boyd in 1993 proposed a downtown gambling operation that eventually wound up as a $52 million proposal, which would have included a three-deck, 254-foot riverboat; a five-level parking garage; a terminal building that would provide the main entrance to the casino complex plus a 250-seat buffet restaurant, a 225-seat entertainment lounge with a bandstand, dance floor and bar, a pedestrian bridge crossing the river wall, and the docking barge.

Between early 1994 and 1996, Boyd purchased property in the downtown area, but was at the mercy of the Missouri Gaming Commission, which placed a sort of a moratorium on new facilities south of the St. Louis area.

Boyd has a riverboat casino in the Kansas City area,

A business decision

"Boyd's decision on Cape Girardeau was a business one," said Evelyn Boardman, a downtown booster who lives in the downtown area and operates an antique shop there. Boardman was an employee of the Boyd company for more than four years until the closing of the gaming company's downtown office in February.

Boardman, like others in the downtown area, was not surprised at Thursday's announcement.

"It's been a long process," said Boardman. "We were sad that things couldn't come to fruition."

"Boyd is a good company," said David Knight, a longtime downtown businessman. "I'm sorry that things didn't work out for them."

Knight still feels that Cape Girardeau would be a great location for a gambling riverboat.

"The law that passed was for riverboat gambling in Missouri -- not Interstate 70 riverboat gambling," commented Knight.

Seven of the 11 gambling casino sites in the state are located in the St. Louis and Kansas City metropolitan areas.

Aztar Casino at Caruthersville is the only casino in the entire southeastern Missouri area.

"But, basically, I feel that every adversity offers an equal opportunity," added Knight. "The fact that all this property is available could entice another gaming company to seriously pursue the Cape Girardeau site. There were some other gaming companies interested in Missouri, and I feel that if the state eventually does away with boarding hours and the $500 loss limit that some of those companies will be looking here again."

Cape Girardeau could be a prime site, said Knight.

"We're a logical venue for riverboat gaming," he said.

Looking at new developments

Meanwhile, the downtown area will be looking at other options.

"We're always looking for new avenues of development," said architect John Boardman, who is chairman of the downtown area's long-range goals committee.

Just recently, plans were announced for a new retail office equipment sales company and an antique/collectibles mall in the downtown area.

The office equipment store opened recently, and the new antique mall is scheduled to open Nov. 1 in the building that houses Furniture Fair, at Independent and Main. The Plant Lady's Corner also opened recently at 1 S. Main.

Two more big announcements may come soon. The city has indicated it will purchase the NationsBank building at Broadway and Main for new headquarters for the Convention and Visitors Bureau, and a new lease for the old Buckner & Ragsdale Building may be forthcoming.

The CBV helped arrange the just-concluded, nine-day appearance of the Nina, a replica of Christopher Columbus' ship that sailed from Spain in 1492. The Nina left its mooring Friday morning en route to a nine-day appearance at Paducah, Ky.

Boardman and Knight agree the special attraction of the Nina was a special plus for the downtown area.

"It generated a lot of traffic downtown," said Knight. "Some of that traffic visited downtown stores."

Thousands visit Nina

Thousands of people boarded the Nina during its stay here.

"We don't have a count of all the visitors," said Mary Miller, CVB director, "but the CVB arranged visits for more than 4,000 students. That didn't include teachers and other visitors to the boat, which was open from 9 a.m. to 7 p.m."

"We have talked about the possibility of a miniature fleet of ships at the Cape Girardeau dock to promote tourism," said Knight. "The ships -- battleships, sailing ships, cruiser and others -- could be half-size models."

Knight would also like to see a hotel in the downtown area.

"We're the only major city on the Mississippi River between St. Louis and New Orleans that doesn't have a hotel overlooking the river," said Knight.

"I think we should actively recruit a major hotel for the downtown area."

Development agreement

When the city and Boyd came to terms on a development agreement for a downtown riverboat gambling operation, it didn't mean Boyd was under an obligation to come to Cape Girardeau.

What it meant, said Mayor Al Spradling, is that IF it did come, "this is the definitive agreement that we live by."

The development agreement, signed in early 1996, calls for a $51.1 million project just north of the Broadway Street river floodgate.

When the agreement was signed, the city received a one-time $150,000 payment from Boyd and $100,000 for attorney and legal fees -- a total of $250,000.

Under the agreement, the city promised not to enter into discussions with other gambling companies during a five-year period. Boyd agreed to give a 90-day notice if it decided to cancel the contract.

The city, said Spradling, was pleased with the contract. "The Boyd company is a good one," said Spradling.

Contract intact

That contract is still intact, although Boyd has notified the city of its intentions to sell its property here.

Included in the agreements are a number of projects only if the project is completed, concerning widening of roads and installing traffic signals; water and sewer improvements in the downtown area; and some special grants in addition to the regular taxes and payments required once the operation is under way.

These include $100,000 a year to the city for a period of five years, an annual contribution to the Cape Girardeau Public Schools; a one-time $500,000 grant to the Colonial Cape Girardeau Foundation to be used for purchase or renovations of St. Vincent's Seminary; and $25,000 a year for five years to the Greater Cape Girardeau Historical Association.

Other highlights of the agreement call for Boyd to construct new northbound connector road from William Street to Water Street; convert Water Street between Independence and Broadway to two lanes of one-way traffic traveling northbound; relocate the downtown clock from Main and Themis and install at a site to the city's specifications; -- construct new traffic signals with pedestrian signal at Lorimier and William Street; widen east side of Main street some 6 feet between Broadway and Bellevue to provide a separate right turn into the parking garage; replace existing 8-inch water main on Main Street with 12-inch main from Mill Street to Broadway and replace a number of other sanitary sewer mains.

B. Ray Owen is business editor for the Southeast Missourian.