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NewsDecember 8, 1991

The board of directors of the Cape Girardeau Chamber of Commerce appointed a task force Saturday to look at future funding for the chamber-operated economic development office. The action by the 18-member board came during its two-day retreat, held Friday and Saturday at the Lone Star Industries' natatorium...

The board of directors of the Cape Girardeau Chamber of Commerce appointed a task force Saturday to look at future funding for the chamber-operated economic development office.

The action by the 18-member board came during its two-day retreat, held Friday and Saturday at the Lone Star Industries' natatorium.

The economic development office has been in operation for nearly three years, funded by contributions from chamber members and subsidized by chamber funds.

But chamber officials said the chamber can't continue to fund the $75,000-a-year economic development office all by itself.

Robert Hendrix, chamber president, said most of the cost of operating the office, housed in the chamber building, has come from voluntary contributions made by chamber members over a three-year period.

Those contributions run out at the end of this month, but the chamber board said it would continue to fund the economic development office out of chamber reserve funds for another 90 days.

"At the end of that period of time, we will take a look at where we are," said John Mehner, incoming board chairman.

"We have assured Judy Moss (economic development director) that she has a position and can continue to work for 90 days," said Mehner.

In the meantime, the newly appointed task force, headed by Jim Limbaugh, will explore ways to permanently fund the economic development office.

Limbaugh said the task force will report back to the chamber board in January.

Besides Limbaugh, the task force consists of Kala Stroup, Bob Neff, Joe Buerkle, Jim Erlacker, Craig Felzien and Mehner.

Mehner said, "There is a very strong feeling on the board that the economic development position has to be kept alive in some way.

"There is an equally strong feeling that the chamber funded it for three years and now it is time for some participation from the city," he said.

Hendrix said the chamber cannot continue to fund the economic development office indefinitely.

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It currently costs $75,000 a year to operate the office, with its staff comprising the economic development director and a half-time secretary.

The voluntary contributions have paid about $55,000 of the cost annually, with the chamber contributing the other $20,000.

"The chamber has been subsidizing that operation over and above its members' contributions, so it has all been from the chamber," said Hendrix.

Moss said, "It's almost impossible to continue to ask these businessmen to put out this kind of money."

She said the sole reliance on chamber funding is unusual for economic development offices. "I think that it should be understood that this chamber is one of the very few chambers in the United States and probably the only chamber in Missouri that wholly supports an economic development office."

Hendrix said the funding issue was the main topic of discussion at the retreat Saturday. "There was all kinds of discussion about what to do, where to go and how to do it," he said.

Limbaugh said the task force will look at the whole economic development situation.

"There is a sense of urgency I think in the whole economic development thrust for the city as it relates to the existing structure," said Limbaugh.

"I think this is clearly an effort to try to establish permanent funding for the position or for the (economic development) effort," he said.

Harry Rust, outgoing chairman of the chamber board, submitted a letter to the city council last month suggesting that some of the city's motel and restaurant tax revenue should be used to fund the economic development office.

The City Council received about 30 proposals from various organizations and individuals for use of revenue from the city's tourism fund, which is financed with the motel and restaurant taxes.

The council has asked the city's Convention and Visitors Bureau Advisory Board to review the various proposals and report back by March 1.

In his Nov. 13 letter, Rust said the chamber board believes the use of motel and restaurant tax money to fund the economic development office "would be an excellent way to share the results of the tax and fulfill one of the objectives of the tax."

Limbaugh agreed Saturday with the need for city funding of the economic development office. He said the motel and restaurant taxes were clearly designed to fund both tourism and economic development efforts.

At the weekend retreat, new board members were elected. In addition to Mehner, new officers are Harry Rediger, chairman-elect; Karen Hendrickson, vice chairman; and Jim Erlacker, treasurer. As outgoing board chairman, Harry Rust will also serve on the executive committee. The new board takes office Jan. 1.

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