REGENTS ACT ON RIVER CAMPUS

The Southeast Missouri State University regents' discussion of the River Campus project was private, but Friday's decision was an open book.

The board met briefly behind closed doors. The regents then returned to open session to announce that the university would move ahead with plans to make use of a state bonding authority to help finance the $35.6 million River Campus project.

Bonds would be used to finance a fourth of the cost. Motel-hotel and restaurant taxes would be used to retire the bonds.

Private donations would pick up another fourth of the cost. The state is being asked to pick up the other half or $17.8 million.

Southeast wants to develop old St. Vincent's Seminary into a visual and performing arts school.

"We are alive, well and kicking, and off and running," said board President Don Dickerson.

He said the board's decision was unanimous.

Southeast officials have insisted that the bonding plan is critical to the school's efforts to secure funding from the state Legislature.

Voters last month approved a measure to use motel-hotel and restaurant tax money to help pay for the project. But a companion measure that would have allowed the city to issue general obligation bonds to help fund the project failed to receive the necessary four-sevenths majority.

By going through the bonding authority, the city and university avoid having to resubmit a bond issue to the voters.

The Cape Girardeau City Council approved the move on Monday, revising its original agreement with the school.

The new plan makes the university responsible for any revenue shortfall when it comes to retiring the bonds instead of the city and local taxpayers.

"We thought that was a fair trade," said Dickerson.

The university doesn't plan to ask the Health and Educational Facilities Authority to issue bonds unless the Legislature comes through with at least partial state funding in 1999.

The Coordinating Board for Higher Education has recommended the Legislature appropriate $8.8 million for the River Campus project next year.

Assuming that the first phase of state funding is secured, Dickerson said he hopes bonds can be issued while interest rates remain low.

Low interest rates make it more affordable to issue bonds, he said.

In other action, the regents approved the annual 1998 audit report.

"We are in good financial condition," said Dr. Ken Dobbins, Southeast's executive vice president.

One part of the audit showed the campus housing occupancy rate at 83 percent in the fiscal year that ended June 30. Southeast had 1,660 students living on campus.

Dobbins said next year's report should show an improvement in housing occupancy now that Dearmont residence hall has been reopened to students.

In other business, the board established three centers. One will deal with entrepreneurial studies and small-business management. A second will focus on manufacturing technology. The third focuses on economic and business research.

Southeast officials said the centers will be funded partly with private funds. They said the centers are designed to help meet the needs of the region.