CITY ENTERS CONTRACT OUTLINING OPERATION

The Cape Girardeau City Council unanimously approved an agreement with Southeast Missouri State University Monday to jointly develop a visual and performing arts facility.

The proposed River Campus, as it is being called, would be built on the site of the former St. Vincent's Seminary on Morgan Oak Street. The university purchased the property last spring.

However, the estimated $35.6 million project hinges on passage of two ballot measures by city voters today and future allocation of funds by the State Legislature and private donations.

The first ballot measure authorizes an $8.9 million bond issue to fund the city's share of the project. Passage requires a four-sevenths majority, or 57.1 percent voter approval.

The second ballot item, which must win only a simple majority, asks voters to increase the city hotel-motel tax from 3 to 4 percent and extend the tax, slated to expire in 2004, until 2030. The measure also asks voters to extend but not increase the 1 percent restaurant tax from 2004 to 2030.

Cape Girardeau City Manager Michael Miller said the endeavor would be a worthwhile investment for residents.

"We feel it will ultimately generate a revitalization of older parts of the community and makes good use of historical structures which someday, if nothing is done, might have to be torn down," Miller said.

Both measures must pass for the project to proceed as planned.

If the ballot proposals pass, the university would have through December 2001 to raise $8.9 million in private donations and secure an additional $17.8 million from the Missouri General Assembly.

Miller said if the university and state money did not materialize, the hotel-motel and restaurant taxes would revert to existing levels and would sunset in 2004 rather than at the extended date of 2030. Funds generated by the taxes would go into an escrow account and be used to retire the bonds that financed construction of the Show Me Center during the 1980s.

Under the River Campus cooperation agreement, which Southeast's Board of Regents approved last month, the city and the university would jointly develop the site. However, the university would own the property and any buildings on it.

An unpaid, six-member Board of Managers would be appointed to supervise the facility if built. The City Council and Board of Regents would each appoint three members to the board.

The Board of Managers would develop written policies governing the use of the River Campus and annually review those policies. The initial policies and any future changes would require approval of both the council and the regents.

The university would retain the sole authority to set use fees, though the public would maintain free access to the scenic Mississippi River overlook.

The university would be solely responsible for maintenance of the River Campus and expenses for day-to-day operations.

The cooperation agreement would remain in effect in perpetuity, though the City Council and the Board of Regents could mutually amend it.

Current development plans for the historic, 16.6-acre seminary site include renovating as many of the existing structures, the oldest of which dates to 1843, as possible. New construction is planned as well.

In addition to classrooms and other space to house Southeast's School of Visual, Fine and Performing Arts, the River Campus would include a 1,000-seat auditorium, a 500-seat performance theater and a 22,000-square-foot regional museum.