Justices to decide Cape tax dispute

JEFFERSON CITY, Mo. -- The Missouri Supreme Court on Tuesday agreed to decide the validity of a 1998 tax approved by Cape Girardeau voters to help fund construction of Southeast Missouri State University's proposed River Campus.

Oral arguments are expected to be held in December or January, but no firm date is set. Decisions are typically handed down within 60 days following oral arguments, though sometimes the wait is longer.

Chief Justice Stephen N. Limbaugh of Cape Girardeau has recused himself from the case because his wife serves on the board of directors of the university's foundation. The court will appoint a special judge to serve in Limbaugh's place on this case.

The city of Cape Girardeau is asking the court to overturn lower court rulings that voided a 1-cent hike in the city's hotel, motel and restaurant tax approved by city voters in November 1998.

Cape Girardeau businessman James L. Drury and his MidAmerica Hotels Corp. sued the city, claiming the title of the August 1998 ordinance the city council adopted to put the tax issue on the ballot was too vague, thus violating the city charter and state Constitution. Both a Madison County Circuit Court judge and a panel of the Missouri Court of Appeals Eastern District sided with Drury on this point.

The proceeds from the tax were to cover the city's share of transforming the former St. Vincent's Seminary into a visual and performing arts center for the university.

Though the university isn't a party to the litigation, Southeast president Dr. Ken Dobbins was pleased the court agreed to become involved. If the city's share of funding falls through, it would further place the future of the River Campus project in doubt.

"We look forward to a very positive review by the Supreme Court," Dobbins said.

Cape Girardeau Mayor Albert M. Spradling III expressed guarded optimism.

"I'm pleased they are going to review it, but that does not guarantee how things will turn out just because they are taking the case," Spradling said. "However, it is good news."

Walter S. Drusch, Drury's attorney, said he was prepared for this possibility and is ready once again to defend his client's position.

"We will take this as it comes," Drusch said. "We have got a good track record so far."

Other cities involved

The case has attracted a number of supporters to the city's cause. The cities of St. Louis and Kansas City, the state attorney general's office and the Missouri Municipal League all filed friend-of-the-court briefs supporting Cape Girardeau and urging the Supreme Court to take the case.

In addition to claiming the lower courts erred in finding the ordinance invalid, Cape Girardeau and its backers claim the appeals court opinion, if allowed to stand, could expose municipal ordinances across Missouri -- and even state statutes -- to legal attacks.

"I think everyone is concerned somewhat as to the impact this might have," Spradling said.

Drusch dismissed the contention that any state or local laws aside from the one at issue in this case is at risk. He said raising this point was just a ploy to encourage Supreme Court review.

"This was a way for them to get their foot in the door on this," Drusch said.

mpowers@semissourian.com

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