COUNCIL WEIGHS TAX BREAK FOR BUSINESS

The public will have a say on whether a telemarketing business interested in coming to Cape Girardeau gets a major tax break.

At their Monday night meeting, Cape Girardeau City Council members set a public hearing for 7:30 p.m. Aug. 5. Residents are invited to express their opinions on a plan to lure the potential employer to the city.

The company likely would locate in the city's 21-square-mile Enterprise Zone, which offers tax breaks. Included in the contiguous zone are downtown, the Southeast Missouri Regional Port Authority, Nash Road and Cape West Business Park.

Unlike some manufacturers and wholesale distributors working there, the telemarketing center may be eligible for a 100 percent tax break. The others only get 50 percent.

Industrial recruiter Mitch Robinson attended a council study session to tell members more about the business, which was discussed at a meeting two weeks ago.

At that time the council, along with the Cape Girardeau County Commission, pledged $25,000 each in job training money to lure the business here. Another entity has come forward with the same amount, Robinson said.

Robinson and the councilmen are keeping mum about the nature of the business. Councilman Richard Eggimann called it a "major company with major credentials."

If the company chooses Cape Girardeau, it would establish a customer service center, providing about 200 jobs. The minimum salary for those jobs would be $16,000 a year.

It is a move the council will have to make to get the additional jobs, Robinson said. Two other Missouri cities are in the running.

Mayor Al Spradling III said he was in favor of changing the city ordinance to give an additional tax break to the business.

"We thought businesses would come because we have a great community," he said. "We do, but that won't be the only reason they come. The benefits of this move tremendously outweigh the cost."

If a resolution to give an additional tax break passes, the city will loose out on $6,700 in property taxes a year. The school district initially may lose tax money, but will gain when employees buy homes and invest in other properties, Robinson said.