CHECKING OUT THE PROPOSED TAX EFFECT ON CHECKING IN

Many of the players negotiating an increase in Cape Girardeau's hotel-motel tax to be put on the Nov. 3 ballot say they like the idea of Southeast Missouri State University developing the old St. Vincent's Seminary into a campus for the arts.

But they're keeping awfully quiet about what form that tax increase, which will help pay for the campus, might take.

Tonight, the Cape Girardeau City Council is scheduled to vote on whether to put measures on the ballot asking for an extension of and increase in the hotel-motel tax -- now at 3 percent -- to support a bond issue. The council meets at 7:30 in the council chambers at City Hall.

The university originally proposed doubling the hotel-motel tax to 6 percent and extending it and the 1 percent restaurant tax -- which would not be increased -- until 2024.

A memo in the agenda packet for tonight's council meeting indicates council members may end up voting on a measure to increase the hotel-motel tax by 1 percent, instead of 3 percent, and extend it until 2030, six years more than the original proposal.

The revised proposal would generate $8.9 million instead of the original $10 million for which the city would be responsible.

The revision would also make the university responsible for raising $8.9 million in private donations instead of $7.8 million as originally planned.

The university would still ask the Missouri legislature to appropriate $17.8 million to help pay for the development of the River Campus.

But as of Friday, when the council packets were sent out, no final proposal had been forwarded.

"Nothing's set in stone at this point," said Councilman Tom Neumeyer. "I think some more fine-tuning is needed, and I would expect to hear some more input from the people" at the meeting.

Both the original and revised proposals call for eliminating the 10-cent debt service levy assessed to pay off the bonds for the Show Me Center, which is funded by the hotel-motel-restaurant tax.

Representatives from the university, city, hotel industry and Chamber of Commerce have discussed a compromise measure.

Southeast President Dr. Dale Nitzschke said the group has "some obvious divergences" in opinion on what form the tax increase should take, but support for the project is strong, even if there is disagreement over how to pay for it.

"The Drury representatives and the chamber and the city and the CVB all indicate uniform and unanimous support for the project," he said.

Dan Drury of Mid-America Hotels and the Convention and Visitors Advisory Board said the River Campus project "would be good for the community and for the university," but until the tax proposal is finalized "I really don't have a whole lot to say."

At the Aug. 3 City Council meeting, Pete Poe of Drury Inns expressed concerns that doubling the hotel-motel tax would scare off customers, who would instead go to other communities in Southeast Missouri where hotel rates are cheaper.

Poe won't comment on the discussions or his concerns about how increasing the hotel-motel tax rate will affect business until a proposal is complete.

Chamber executive director John Mehner won't comment on the tax proposal until it is complete or on the chamber's role in discussions.

"I love the project itself," Mehner said. "I think the project itself could be the catalyst to completely redevelop that section of downtown and the south side."

CVB Director Terri Clark-Bauer said increasing the hotel-motel tax could have some impact on business.

"Leisure travelers tend to pay less attention," Clark-Bauer said. "When it comes to convention and meetings, overall room rate for a meeting planner is normally included."

A tax increase "can make a difference if we are competing with other second-tier cities, like we are," she said.

Sikeston has a 4 percent tourism tax tacked onto the price of every hotel or motel stay.

Cape Girardeau's hotel-motel tax is 3 percent, but room rates in Cape Girardeau tend to be higher, on average, than in Sikeston.

For four comparable hotels, double-occupancy room rates in Sikeston ranged from $55.18 to $86.20. In Cape Girardeau, room rates range from $60.36 to $91.25.

Totals for both cities include tax.

In his comments Aug. 3, Poe said the additional cost could make a difference in where travelers decide to spend the night.

Nitzschke says the number of visitors pulled in by the River Campus, which will include the University Museum, a new performing arts center and an experimental theater, will more than offset the number of customers scared off by higher hotel rates.

But he understands hotel owners' concerns, Nitzschke said.

"I think you always have to be attentive to your competition and what they're charging, and that's whether you're talking about higher education or hotels and motels or liquor or gas or anything," he said. "There's some legitimate concerns that need to be reviewed in that consideration."

Nitzschke is "absolutely convinced" the new facility will be a boon for tourism.

"I can almost guarantee you we can generate 100,000 visitors a year with the museum if we get in there what we want in there," he said.

In addition, Nitzschke expects a number of small businesses, restaurants and specialty shops, to pop up in the area around the River Campus, which will generate more economic development.

If the City Council opts to put the tax measures and bond issue on the November ballot, it won't be the first time the city and university have teamed up on a capital project.

City voters originally approved the hotel-motel-restaurant tax in 1984 to pay for the Show Me Center, which opened in 1987.

But not everyone in the city is thrilled with the Show Me Center. Residents have long complained the facility doesn't pull in enough cultural events or the right kind of events.

Drury reiterated those complaints.

"Look at the events that were supposed to be at the Show Me Center that aren't there anymore," he said.

Drury also said hotel prices have risen over the years and will continue to increase, and those increases have to be taken into account.

"When we opened the Holiday Inn in 1962, it cost $6 to stay here," he said. "You can't look at these issues in terms of today's dollars."

Still, Drury said, until the entire project is laid out, along with the funding mechanism, it's hard to know what to say.

COMPARING THE NUMBERS

These room rates are computed for double occupancy, non-smoking rates reserved on a weeknight. Tax is included in the total cost.

Sikeston

Drury Inn $70.98 to $86.20

Super 8 $57.97

Holiday Inn $67 to $74.19

Days Inn $55.18

Cape Girardeau

Drury Lodge $69.95 to $76.95

Hampton Inn $82.44 to $87.95

Holiday Inn $91.25

Super 8 $60.36 to $65.84