Deal to buy taxi company waiting on one decision

~ The transit authority has requested financial help from a senior citizens board, but the purchase will go forward either way.

The Cape Girardeau County Transit Authority awaits a decision from a board that spends tax money raised on behalf of senior citizens to finalize a deal to buy Kelley Transportation Co. Inc., transit board chief Doug Richards said Tuesday.

The authority has requested the Senior Citizens Service Fund Board provide up to $40,000 annually to help retire the bank loan that will finance the deal, Richards said.

Kelley Transportation is owned by Kimberley and Terrence Kelley. The company provides a private taxi and courier service and provides a subsidized public transportation service within Cape Girardeau city limits. The transit authority, which provides public transportation in other areas of the county, announced in March that it planned to purchase the Kelleys' business.

The Kelleys have signed the contract for the sale, Richards said. He will sign the contract on behalf of the transit authority when the senior citizens board makes a decision, he said.

The board members' decision will affect the authority's deal with the bank, Richards said, but "we will structure our final financial package with or without their participation."

The authority has agreed to pay the Kelleys $360,000 for their business. The authority will continue to provide private taxi and courier services and will begin running bus service in Cape Girardeau in early July. It will be the first regularly scheduled fixed-route public transportation service in the city in decades.

The Kelleys provide public transportation through a subsidized system that provides coupons for taxi rides to targeted groups.

The takeover is the result of years of study of public transportation in Cape Girardeau. Providing better public transit has repeatedly topped the list of community concerns in surveys conducted by the United Way and other agencies.

The Senior Citizens Service Fund Board distributes the proceeds from a special tax to various agencies, including area senior centers and health-care providers. The board leader, Dale Rauh of Jackson, could not be reached Tuesday for comment on whether he is willing to provide the funds requested by the transit authority.

Transit authority leaders had hoped Tuesday would be the day they sign the final agreement with the Kelleys. When questioned about those plans, Richards revealed the authority is waiting on word from the senior services group.

"Their board has other financial commitments," Richards said. "They are acting soundly and making sure they are staying within their financial constraints. If they don't participate, it is not going to stop the program."

In an interview Monday, transporation authority director Jeff Brune said the agency is still hiring bus drivers and people willing to drive taxis at night. Applicants need a chauffeur's license to apply.

rkeller@semissourian.com

335-6611, extension 126