CAMPUS TAX TALKS GO ON; UNIVERSITY SEEKS MOTEL INDUSTRY'S CONSENT

Southeast Missouri State University officials and representatives of Cape Girardeau's hotel-motel industry haven't reached a compromise yet on a proposed tax increase to help pay for the university's River Campus project.

But Dr. Dale Nitzschke, university president, is confident an agreement can be worked out before the Cape Girardeau City Council meets Monday.

"Everybody's been very diligent in trying to respond to the mayor's challenge," Nitzschke said.

The university is asking the city to increase the hotel-motel tax from 3 percent to 6 percent and extend it until 2024 to help pay off a $10 million bond issue that would help fund the $35.6 million River Campus project.

The university is also asking the city to extend but not increase the 1 percent restaurant tax to 2024 to help pay for the project.

The university made its pitch for the project at the Aug. 3 council meeting.

The City Council is scheduled to vote Monday on whether to put the tax increase and tax extension measures on the Nov. 3 ballot.

University officials are working to raise $7.8 million through private donations and will ask the Missouri General Assembly to appropriate another $17.8 million to pay for the rest of the project.

Representatives of the hotel industry protested at the Aug. 3 meeting that doubling the hotel-motel tax, which now helps fund the Convention and Visitors Bureau and pay off construction bonds for the Show Me Center, Osage Community Centre and Shawnee Park Sports Complex, would scare off their customers.

Mayor Al Spradling III asked university and hotel representatives to work together on a compromise proposal.

Spradling has also pointed out that if the tax package is approved the 10-cent debt-service levy now assessed on real estate would be removed.

Nitzschke said university officials are taking a "no holds barred" approach during negotiations, although an increase to the hotel-motel tax is still the primary focus.

"We've discussed everything from A to Z," he said. "We really haven't foreclosed on any possibilities."

Pete Poe of Drury Inns wouldn't comment on the discussions or his concerns about how the increase might affect the hotel-motel industry, saying he wanted to wait until the discussions are completed.

"It's an ongoing discussion that all the parties are having," Poe said. "Until the negotiations are finished, I can't say anymore."

Increasing the hotel-motel tax to 3 percent and extending the restaurant tax would provide about $330,000 a year to help pay for the River Campus, said university officials.

The university calculates the increase would mean room rates would increase by a maximum of $2.80.

The university is asking that city officials include a clause in the tax package that if the state doesn't appropriate the requested funding, the tax increase and extension would be nullified, and revenue collected would be used to pay off city projects.

The proposed tax increase and extensions would still provide for paying off existing debt and funding CVB operations, said Dr. Ken Dobbins, university executive vice president.

The university purchased the St. Vincent's Seminary property with plans to create the River Campus, which would house a school for fine, visual and performing arts; a performing arts center of at least 1,000 seats; the university museum and an experimental theater.

University officials say the campus would attract more visitors to the city and spur economic development in the downtown and South Cape areas.