BOYD, CITY ON VERGE OF PACT

The city of Cape Girardeau and Boyd Gaming Corp. have come to terms on a development agreement expected to be approved and signed over the next two weeks.

The first reading of the ordinance authorizing the city's participation in the agreement is scheduled to occur at Tuesday's city council meeting. Boyd officials also are expected to attend.

"Signing this agreement does not mean Boyd Gaming is under an obligation to come to Cape Girardeau," Mayor Al Spradling said Friday. "What it does say is that if they do come, this is the definitive agreement that we live by."

The development calls for a $51.1 million project to be located just north of the Broadway Street river floodgate. The riverfront development will include a 1,600-passenger riverboat casino, a parking garage and other land-based developments to include a restaurant, lounge and boarding facilities.

When the agreement is finally signed -- probably on March 4 following a second reading of the proposed ordinance -- the city will receive a one-time $150,000 payment from Boyd Gaming to he paid in March or April.

Under the agreement, the city promises not to enter into discussions with any other gambling company during a five-year period.

"We're pleased with the agreement," said Spradling. "The Boyd company is a good one, and I think this is a step toward a commitment they made earlier."

Mark Grimm, who handled the negotiations for city, and Boyd Gaming officials will be present at the March 4 meeting.

Boyd Gaming already has made substantial investments in Cape Girardeau, purchasing property and on-site development work.

Boyd Gaming will present the agreement to its board of directors Thursday, a company spokesman said. With the details already negotiated, approval by both Boyd and the city council is expected.

Included are development agreements for construction of the actual "excursion gambling boat" project, a number of public projects 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.

Under the development agreement, Boyd Gaming agrees to file an application with the Missouri Gaming Commission for a license to operate a gambling facility here within 60 days after the commission states it will process applications for licenses in the general vicinity of Cape Girardeau.

Or the developer may notify the city, in writing, at that time that is no application is being filed because the project is "economically infeasible." In such case, the city will terminate the agreement.

The commission announced last June that it would not process any additional applications along the Mississippi River from the St. Louis area to Caruthersville for a period of 12 to 18 months.

HIGHLIGHTS OF BOYD GAMING AGREEMENT

The Boyd Gaming Corp. Development Agreement calls for Boyd to:

-- Provide a 50,000-square-foot excursion gambling boat of about 1,600-passenger capacity.

-- Provide a 39,000-square-foot land-based terminal, including buffet restaurant, entertainment lounge and waiting area.

-- Provide a 339-vehicle parking garage.

-- Renovate Buckner-Ragsdale building at Water Street and Broadway for dining and lounge facilities.

-- 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 location to the city's specifications.

-- Create public parking lot at the former location of northbound Main Street between Merriwether and William.

-- Construct new traffic signals with pedestrian signal at intersection of Lorimier and William Street.

-- Widen east side of Main street approximately 6 feet between Broadway and Bellevue Street to provide a separate right-turn into the parking garage.

-- Install traffic signals with pedestrian signal at intersection of Main and Broadway.

-- Provide traffic signage.

-- Replace existing 8-inch water main on Main Street with 12-inch main from Mill Street to Broadway.

-- Replace a number of other sanitary sewer mains.

-- Upgrade downstream sanitary sewers between Independence Street and Lift Station No. 3.

-- Prepare a written plan for approval by U.S. Army Corps of Engineers, Main Street Levee District and North Main Street Levee District to formalize a new temporary levee location what will separate the two levee districts from interior flooding.

-- Agree to start construction of project within 60 days of receipt of all necessary permits and approval.

-- Agree to complete project within 12 months after being selected by the Commission for investigation for licensing.

-- Agree to pay city one-time $150,000 payment.

-- Agree to pay $100,000 per year for five years to city's general revenue fund.

-- Make annual contribution to the Cape Girardeau Public Schools in the amount of 20 cents per admission.

-- Make quarterly contributions to the city in the amount of 55 cents per admission.

-- Make a single lump sum payment of $500,000 to Colonial Cape Girardeau Foundation within 20 days after first full quarter of operation.

-- Make payment of $25,000 a year for five years to the Greater Cape Girardeau Historical Association.