PORT OFFICIALS ARE WORKING HARD TOWARD EDA-FUNDED PROJECT

SCOTT CITY - Commissioners and staff of the Southeast Missouri Regional Port Authority are working to finalize plans and financing arrangements for projects that will be funded by a $1.2 million Economic Development Administration grant.

The grant, which will be used for acquisition of a railroad branch line into the port and other infrastructure improvements, was announced in October by Vice President Dan Quayle during a stop at the port.

"The EDA grant was quite an achievement for the port and will make a big difference down here," said Executive Director Dan Overbey, who assumed duties two months ago.

Grant funds will not be released until all of the projects are under contract, and plans have to be approved by the EDA before projects can be bid. "We need to get everything approved and then go out for bids," said Overbey.

Negotiations are under way with Union Pacific to purchase a rail line to serve the port. Overbey said he is optimistic the purchase can be finalized before the end of the year. The other projects may not be started until next year.

Overbey explained that starting the projects too soon could leave the port with cash-flow problems because of the local match requirements and the need to have other operating funds. Also, some of the improvements are not going to be essential to port operations until the completion of a Nash Road extension into the port.

The other projects to be funded by the grant include: paving the dock; constructing the rail spur and lead track from the branch line to the dock area; and extension of the waterline around the port.

Overbey said all of the projects, including the branch line purchase, are in various stages of review. The purchase of the branch line requires a lot of detail work, which is now under way.

The first phase of the rail spur construction has been completed, with grading and a road bed in place. The actual laying of the rail to complete the line is almost completely designed, but Overbey said it may be next year before work on the line begins.

To receive the federal grant, the port authority must come up with a 40 percent match. That means to get the $1.2 million the port authority needs at least $800,000.

"We have been trying to make arrangements for financing on our end of the deal," said Overbey. "The board and I are trying to work through a timetable."

Several funding options have been considered, but at this point Overbey said the board of commissioners has decided to ask the Cape Girardeau and Scott County commissions to provide a loan guarantee of $500,000 each for the port authority.

Overbey said the port still has money in its capital account from the four-year sales tax, but those funds need to be available for improvements that would be needed if an industry locates at the port.

"We certainly don't want to let $1.2 million in federal money slip away from us," said the director. "We're just doing what we can to line out all the details."

Besides the EDA-funded projects, port officials are also involved in the Missouri Highway and Transportation Department's effort to extend Nash Road into the port. As its part of the project, the port authority is acquiring some right of way and necessary permits.

Overbey said the preliminary design for the road is well under way and there is a good chance the Ramsey Creek bridge will be bid this winter. Completion of the project is slated for late 1995.