PUBLIC FORUM SHOWS STRONG SUPPORT FOR RIVER CAMPUS

The Cape Girardeau City Council made it clear Monday that it will support a university proposal to save the River Campus project.

More than 140 people packed a meeting room at the Osage Community Centre for a public forum on the project's future.

Sentiment was unanimously in favor of salvaging the joint effort between the city and Southeast Missouri State University to build a visual and performing arts center on the former St. Vincent's Seminary site.

After hearing positive comments from 10 city residents, several of whom represented various community organizations, all seven members of the City Council voiced their support for the university's latest funding plan.

Although six options were put forth -- three each by the city and the university -- discussion centered around just one. That option calls for the university to go through a state bonding agency to provide the project's funding mechanism.

Immediately following the forum, Dr. Dale Nitzschke, Southeast's president, said he was encouraged by the turnout and the apparently strong community desire for the project to go forward.

"I'm particularly pleased with the unanimous endorsement by our city council," Nitzschke said.

"For me it was a wonderful opportunity to hear first-hand what people think of the facility. It gives me a renewed sense of commitment to make it happen."

In early November, city voters defeated a ballot measure that would have allowed the city to issue bonds to fund its share of the project. Although it received 53 percent of the vote, it fell short of the 57.2 percent required for passage.

However, voters did approve a tax measure intended to pay off the bonds.

Ken Dobbins, Southeast's vice president of finance and administration, outlined the university's plan.

Under this option, the university would ask the Missouri Health and Educational Facilities Authority (MOHEFA) to issue bonds for the project.

The City Council would annually appropriate the tax revenue from the voter-approved increase and extension of the hotel-motel tax and an extension of the restaurant tax to the university. The money would be placed in a designated account from which the university would pay off the bonds over up to 30 years.

The other two bonding options Dobbins explained would involve higher interest rates and therefore would make the project more expensive.

There is at least one advantage for the city under Southeast's suggested plan. "The city would not be liable for any tax shortfalls; the university would be," Dobbins said.

Under the original proposal, the city would have been forced to make up a shortfall by raising property taxes or through some other source.

Councilman Frank Stoffregen said fear the city could be left holding the bag is why he was the lone opponent on the council of the original bond issue. The new proposal, he said, eliminates that concern and has his full support.

Mayor Al Spradling III said the council will vote on this option at its meeting Monday.

Southeast's Board of Regents will consider the matter on Dec. 11.

The university will not ask MOHEFA to issue bonds unless it is successful in convincing the Missouri General Assembly to authorize $35.6 million for the River Campus. Supporters are counting on state funds to pay for half of the project.

The other three funding options were outlined by John Richbourg, the city's finance director.

Those choices:

-- Issuing special obligation bonds. This option would cost $1.1 million more than issuing general obligation bonds, which voters defeated.

-- Issuing lease-held improvement bonds. In that scenario, city property would be used as collateral on the bonds. This option would cost $300,000 more than general obligation bonds.

-- Asking voters in April to reconsider the bond issue they defeated in November.