CAPE WORKING TO LAND AIRCRAFT MANUFACTURER

Cape Girardeau will put up $2.1 million in bonds to help an aircraft manufacturer set up shop at the Cape Girardeau Regional Airport -- a move that eventually could create as many as 200 new jobs for area residents.

City officials say Delaware-based Renaissance Aircraft plans to manufacture an updated version of the Luscombe, a two-seat, single-engine aircraft, at the airport.

Details of an agreement between the city and the company will be discussed at tonight's City Council meeting at City Hall.

Airport Manager Bruce Loy said he is excited by the prospect of a company such as Renaissance doing business in Cape Girardeau.

"It's a pretty big deal for the city," Loy said.

"It does provide a number of jobs and, in my opinion, will be a catalyst for the airport industry and hopefully maybe draw other businesses to the airport that are in this type of business."

In exchange for the company's commitment to locate at the airport, the city has agreed to provide up to $1.6 million for construction of a roughly 50,000-square-foot building on airport property.

The city also has agreed to provide up to $200,000 for furniture, fixtures and equipment, $100,000 for road improvements and parking, and $200,000 for extension of water and sewer lines to the facility.

The city will fund the project through the issuance of Public Facility Authority bonds, which will be repaid over time by Renaissance.

Although the company anticipates employing as many as 200 people in the future, Loy said there likely will be about 30 jobs created initially.

"Obviously, in the beginning you won't see that many jobs," he said. "You have to crawl before you can walk."

Once burned, twice shy

Negotiations between the city and Renaissance have been in the works for about six months, but Loy said officials have been trying for much longer to get a company such as Renaissance to Cape Girardeau.

The agreement between the city and Renaissance calls for the company to pay $25,000 upfront to the city for bond counsel and other administrative costs involved with acquiring funding.

Mayor Al Spradling said that provision was included in the agreement because of a failed 1999 endeavor with aircraft manufacturer Zenair.

Two months after announcing its Cape Girardeau plans, Zenair pulled out of its agreement with the city and relocated to Georgia, leaving the city to pick up the tab for labor and paperwork.

"They bailed and went to Georgia after we spent considerable amounts of money on bond counsel," Spradling said. "We learned our lesson because we had to foot the bill on all that."

Despite being burned by Zenair, Spradling said the city welcomes the opportunity to work with Renaissance and see new jobs created.

"Anytime you can create more jobs, it's very important to the community," he said. "We hope it will work out. We're looking forward to them coming in here and starting to build airplanes."

Loy said the key now is getting the bonds issued for the project.

"Once the bonds are issued, we'll be in business," he said. "The main thing is to get these guys in here and start building planes, and we'll work from there."

CAPE GIRARDEAU CITY COUNCIL AGENDA

Monday, Jan. 8, at 7 p.m.

Council Chambers, City Hall, 401 Independence

Study session at 5 p.m.

Consent ordinances

* An ordinance amending Schedule Q of Section 26-258 of the City Code repealing certain parking at the airport and establishing new parking at the airport.

* An ordinance levying a special assessment for Walnut Street from Kingshighway to Commercial Street and authorizing the issuance of special tax bills therefor.

New ordinances

* An ordinance authorizing the mayor to execute a quit claim deed to Truman R. Cole, trustee, for storm water detention basins along Lexington Avenue.

* An ordinance authorizing the issuance of a special tax bill for the demolition of a dangerous building under the provisions of Chapter 7 of the Code of Ordinances.

Resolutions

* A resolution authorizing the city manager to execute an agreement with Truman R. Cole Jr., trustee, for the transfer of real property and maintenance of storm water detention basins along Lexington Avenue.

* A resolution authorizing the city manager to execute an agreement with Mid-America Services for the Sloan Relief Sewer Project.

* A resolution authorizing the city manager to execute an addendum to an engineering services contract with Koehler Engineering and Land Surveying for the New Madrid Street Project.

* A resolution authorizing the city manager to execute a Memorandum of Understanding with Renaissance Aircraft, LLC, for an aircraft manufacturing facility at the Cape Girardeau Regional Airport.

* A resolution authorizing the city manager to execute an agreement between the Cape Girardeau Police Department and the Police Executive Research Forum.