CITY OFFICIALS RECEPTIVE TO SEMO TAX

Three Cape Girardeau City Council members said Thursday they would be willing to consider putting a tax measure before voters in November to help fund Southeast Missouri State University's River Campus project.

Mayor Al Spradling III and Councilmen Tom Neumeyer and Melvin Gateley said the council could act by the Aug. 25 deadline to get a tax issue on the November ballot. Both Neumeyer and Gateley said voter turnout is higher for November general elections than for other elections. Higher voter turnout would help efforts to pass a local tax measure, they said.

The university wants $17.8 million in state funding and the same amount in local funding to renovate and expand a former Catholic seminary. The site along the Mississippi River in Cape Girardeau would house Southeast's School for the Visual and Performing Arts.

University officials have suggested an increase in the motel and, or restaurant taxes to help pay for the project. They are working on a funding plan.

Don Dickerson, president of the university's Board of Regents, said Thursday that he expects university and city representatives will sit down to discuss the issue within the next few weeks.

He said the university hopes to secure financial gifts from businesses and individuals to help pay for the project. But the fund-raising effort likely wouldn't generate more than $7 million, he said.

Dickerson said a tax that would generate a combined $10 million to $12 million over a period of several years would be needed to help fund the local share of the cost.

Spradling and Neumeyer said they would prefer to see an increase in the 3 percent motel gross-receipts tax rather than an increase in the 1 percent restaurant gross-receipts tax.

"No one wants to raise the restaurant tax right now," said Neumeyer.

Unlike the restaurant tax, the motel tax is paid largely by out-of-town visitors, Neumeyer said.

Dickerson agreed that it would be easier to sell the public on a motel-tax increase. He suggested the motel tax could be doubled from 3 percent to 6 percent.

Both Spradling and Dickerson said a ballot issue could include a proposed increase in the motel tax as well as a provision to extend the motel and restaurant taxes.

The current taxes are set to expire by 2005, Spradling said. Those taxes are expected to generate about $985,000 this fiscal year.

More than $300,000 is budgeted for the operation of the Convention and Visitors Bureau. The city also uses the tax revenue to retire the Show Me Center bonds as well as bonds that were issued to fund construction of Osage Park Community Centre and Shawnee Park recreational complex.

The largest piece of the revenue pie -- an estimated $655,000 for this fiscal year -- comes from the restaurant tax. The current motel tax is expected to generate about $330,000.

Neumeyer said Cape Girardeau's motel tax is far below that of other cities. "Many cities have it in the double digits," he said.

Neumeyer said the city should support the university's efforts to develop the arts campus. "It is overdue," he said. Millions of tax dollars have been spent on sports facilities, Neumeyer said. "Now it is time for a balance."

Spradling said a city ordinance makes it legal to use motel and restaurant taxes to fund everything from tourism efforts to university projects. Chapter 15 of the city code lists development of an "educational enterprise" as one of the activities that can be funded with the tax.

Spradling said the university's River Campus could include a city museum and park.

"I don't think it is unrealistic for the city to participate in this endeavor because I think we have all looked at a potential museum use down there," he said.

Spradling said the city and university would need a written agreement before proceeding with any partnership arrangement.

He said the city would benefit from having a fine and performing arts center that would host everything from art exhibits to ballets.