Council talks renewal of hotel/motel, restaurant taxes

The Cape Girardeau City Council on Monday discussed whether to renew hotel/motel and restaurant taxes, as well as the projects these taxes might fund.

Council members discussed asking residents to renew the tax, but to be cognizant of how to present the proposal. Council members agreed a specific plan for the use of the money is necessary, especially with revenue coming from Isle Casino Cape Girardeau.

"Passing even a renewal of taxes now is a different animal, situation, than it was last year," Mayor Harry Rediger said. "We need to be sure that we're taking something to our citizens that we're comfortable with, that promotes the good of the citizens and our community."

Several options discussed include a new police facility, an indoor sports facility, an amphitheater and a minor league park.

"I kind of view it as a big funnel," city manager Scott Meyer said. "There's a lot of big ideas out there, and we need to funnel them down."

Council members disagreed whether the tax revenue should be used strictly for recreational purposes or also allowed to fund public safety.

Councilman Mark Lanzotti said the expenditures can be broad, not strictly recreational, and that the council should fund public safety first, and then use the rest of the money for other projects.

"I'm putting in the funnel a police station," Lanzotti said.

Several members were uncomfortable with using money from the taxes to fund public safety.

Councilwoman Loretta Schneider supported looking at projects that will benefit a whole spectrum of people and not just certain age groups. She said the tax is justified, and the product should be something residents can use year-round.

The council decided to draft a timeline to see if this proposal would fit on an April ballot.

Sales tax holiday

The council also unanimously approved an ordinance on its first reading to allow the city to participate in the back-to-school sales tax holiday.

Councilman Wayne Bowen said the financial impact is manageable, and the budget can accommodate the loss.

The city's participation would result in an estimated $57,000 loss in revenue, shared by five funds: general revenue, public safety, capital improvements, transportation and park and stormwater sales tax funds.

Rediger said the city's inclusion should encourage local vendors to look for ways to promote their businesses.

Public hearings

The city council also held two public hearings to discuss applications for Community Development Block Grants: one to buy and renovate a building on Broadway for a Creative Labs and Industries Incubator, and another to improve public infrastructure for an incoming company.

The incubator would be a two-part project with retail business and galleries on the first floor and business aspects and labs on the second floor.

The incubator would cultivate collaboration between artists, designers and programmers within a laboratory setting, along with providing a place for entrepreneurs to market their products in a lower-risk environment.

"We want to be a part of what's going on downtown," said James Stapleton, executive director of the Douglas C. Greene Center for Innovation and Entrepreneurship at Southeast Missouri State University. "Between Broadway and the university, there's a number of blocks there that are just great opportunities."

Few details on the new company that could be moving to the city have been made public. The $750,000 grant would primarily build roads, Meyer said.

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