COUNCIL TABLES FUNDING ISSUE

City Councilman Melvin Gateley wants the city to establish a board of governors to look at funding public-private partnerships such as the one proposed for Old St. Vincent's Seminary.

The Cape Girardeau City Council tabled the matter Monday night over the objections of Gateley, who said the city needs to formulate a strategy to fund a wide range of economic development projects.

Gateley said the board of governors, which would consist of five members, could look at using motel and restaurant tax money, as well as finding alternative sources of funding for such projects.

Councilman Richard Eggimann said the whole idea needs more study.

The council's action followed discussions with officials of the Colonial Cape Girardeau Foundation, who requested the city help fund its plans to turn the former Catholic college into a museum and cultural center.

Mary Robertson, foundation chairman, said the not-for-profit corporation needs financial, physical and political support.

Mayor Al Spradling III said the foundation needs to disclose its finances before the council can even consider providing any funding.

Robertson then presented the council with a one-page operating budget. It shows a $175,000 budget for the 1996 calendar year.

The expenses: $25,000 in salaries and wages for a director, secretary and custodian; $96,000 for utilities, insurance and building and grounds maintenance; and $54,000 in interest payments to the Vincentian Fathers.

The foundation bought the property from the St. Louis-based church group for $700,000. But $600,000 of the purchase price is in the form of a short-term loan from the Vincentian Fathers.

"We would like to get them out of the deal as soon as possible," said Kevin Spaeth, the foundation's lawyer.

Robertson said banks want to see the cultural center up and running before they will look at loaning any money to the foundation.