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NewsDecember 21, 1993

Potential riverboat operators in Cape Girardeau will have until Jan. 15 to submit their proposals to city hall. The city council Monday approved a request for proposal (RFP) document with minor changes that will be used to solicit proposals from riverboat developers...

Potential riverboat operators in Cape Girardeau will have until Jan. 15 to submit their proposals to city hall.

The city council Monday approved a request for proposal (RFP) document with minor changes that will be used to solicit proposals from riverboat developers.

The only changes in the document, which was drafted by the city staff, were suggestions made Monday by representatives of the Cape Girardeau Ministerial Alliance.

Many of the 12 items brought to the council by the Rev. Kim Ferguson, pastor of Cornerstone Assembly Church, already were either included in the RFP or are part of Missouri's riverboat gambling law.

Those items not already covered will be added to the RFP as additional considerations riverboat developers can include in their proposals.

It's all part of the process the city has undertaken to select a riverboat operator by March 7.

City Manager J. Ronald Fischer said the RFP document will ensure that the city realizes every available advantage from riverboat gambling in Cape Girardeau.

"The idea is not to punish a riverboat, but to ensure that a good company comes to the city," Fischer said.

But Councilman Mary Wulfers said she prefers an "auction" rather than a "sealed bid" process to solicit the most advantageous proposals from riverboat operators.

Fischer and Assistant City Manager Doug Leslie said that once proposals are submitted, the city will be able to negotiate additional items with prospective developers.

"There has to be some standard measure by which we accept proposals submitted by a set time," said Leslie.

Wulfers also asked whether it would be appropriate to include a base minimum tax on gambling revenue above what's already required by state law.

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"St. Louis is talking about a 7 percent tax above what they already get by state law," she said. "That's a lot of money."

But Leslie said most cities have left the amount open.

"Setting it too high may be seen as unfair," he said. "But we felt that setting it too low might leave us short-changed and keep developers from going as high as maybe they otherwise might."

The RFP document invites developers to propose such things as improvements to city streets and sewers affected by the riverboat operations.

The RFP requires background information and the financial qualifications of the developer. The company also is required to comply with any conditions set out by the U.S. Army Corps of Engineers, U.S. Coast Guard, levee districts, and other agencies with jurisdiction over the development site.

The RFP also asks for developers' plans to address the "social costs associated with problem gambling."

Some of the items Ferguson suggested ought to be addressed by any riverboat operator are:

-- That a certain portion of the land-based development be completed before a riverboat is docked and begins operating.

-- That any tax increase needed as a result of the riverboat gambling operation be brought to a vote of the people.

-- That the convention and tourism tax not be used on services to or promotion of the riverboat.

-- That the entertainment provided by the riverboat be family oriented.

-- That the city's billboard advertisement laws be strictly enforced to prevent an "influx of riverboat gambling advertisements" in the city.

The council Jan. 3 will again discuss the riverboat selection process to update citizens on its progress.

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