City council OKs negotiations on sports complex plan

The Cape Girardeau City Council voted Monday to move forward with negotiations regarding the construction of the indoor sports complex, but not without some discussion first.

The resolution up for vote announced the selection of Midamerica Hotels Corp. to design and build the facility. It also calls for choosing South Kingshighway Investment LLC as the first alternate.

With the unanimous approval of the resolution, the city manager is authorized to negotiate a development agreement, which later will be presented to council for approval.

But Councilwoman Loretta Schneider requested the council remove the item from Monday night's consent agenda to go over a few details before holding the vote. Her questions focused on funding.

The sports complex is the next project to be funded by the city's 1 percent restaurant tax. The most recent project funded by the sales tax was the Southeast Missouri State University River Campus.

Through 2030, the restaurant tax is estimated to generate more than $22.5 million. The amended settlement agreement previously reached between the city and Midamerica Hotels regarding restaurant and hotel/motel taxes provided $5 million of the restaurant tax funds be allocated to the new police station, leaving $17.5 million for the sports complex. Consultants have estimated the facility will be financially self-sustaining in about five years.

Schneider's questions sought to clarify how the facility would be funded through those five years and confirmed that staff did not anticipate any general revenue would be dedicated to the project. Parks and recreation director Julia Thompson, a member of the facility review committee that recommended Midamerica hotels as the partner in the sports complex project, said funding would be set aside within the tax to sustain the facility within that window.

The process of choosing the sports complex as the next restaurant-tax project and choosing a private partner for its development and operation was lengthy and confusing to some at times. The project was chosen last year by the City of Cape Girardeau/Midamerica Hotels Corp Feasibility Study joint committee, then a later committee was formed to review candidates for the public-private partnership. The city manager chose Thompson, assistant city manager Molly Hood and Cape Girardeau Area Chamber of Commerce president and CEO John Mehner to serve on the facility review committee.

Each committee also hosted public meetings for project input, with the most recent in May and offering a look at the plans submitted by the top three teams looking to be the city's partner in the project.

Midamerica Hotels plans for the facility to be built at U.S. 61 at Interstate 55 at Center Junction, between Cape Girardeau and Jackson. It plans to donate 10.27 acres, with an adjoining 19.12 acres that could be acquired by the city by purchase or trade.

South Kingshighway Investment proposed building the sports complex on 18 acres near the intersection of South Kingshighway and Southern Expressway.

Councilman Mark Lanzotti, who served as council liaison to both sports complex committees, noted the project and the process seemed to garner impressive public interest. He noted the frequent engagement residents had with the council about the matter and impressive attendance at May's public meeting.

"I would just like to take this opportunity in going through this process to commend the response by our local citizens at all levels," he said.

Lanzotti also said he was proud to have been part of the process and was excited to see what was to come.

"This is a neat, big, big deal," he said. " ... I'm fired up. I can't wait."

srinehart@semissourian.com

388-3641

Pertinent address:

401 Independence St., Cape Girardeau, Mo.