REGENTS SET TO APPROVE NEW PLAN FOR ARTS CAMPUS

Southeast Missouri State University's Board of Regents is expected to move ahead today with a new financing plan for the River Campus project.

The regents are scheduled to meet at 1:30 p.m. in the University Center Ballroom.

Dr. Dale Nitzschke, Southeast's president, said the move would help the university in its effort to lobby Gov. Mel Carnahan and the Legislature for state funding.

Nitzschke and other Southeast officials have talked with both the governor and a number of lawmakers.

"There is no doubt in my mind that the governor and those legislators with whom we have met are very interested in and appear to be very supportive of the seminary project," Nitzschke said.

But he said state officials have said funding could be tight for capital improvements for fiscal 2000 because Missouri must pick up the cost of unfunded mandates from the federal government.

The new financing plan, accepted by the Cape Girardeau City Council on Monday, would clear the way for the university to have $8.9 million in bonds issued for the project through a state bonding authority.

The city would direct portions of proceeds from its hotel-motel and restaurant taxes into a university-held account, with that money going to help retire the bonds.

The bonds won't be issued until the university is assured of state funding, school officials have said.

Southeast wants to spend $35.6 million to develop Cape Girardeau former Catholic seminary into a school for the visual and performing arts.

Southeast want the state to pay half of the cost. Bonds and private donations would pay the other half.

Dr. Ken Dobbins, Southeast's executive vice president, said the regents are expected to discuss the River Campus project behind closed doors today because it involves a contractual matter.

The regents are expected to approve a revised agreement with the city of Cape Girardeau on the River Campus project.

Following the closed session, the board is expected to announce its decision.

A number of other items are on the agenda for the open session, including conferring degrees for students graduating at Saturday's winter commencement.

Sarah Long, vice president of the board, said it is important to move ahead with a funding plan for the River Campus.

"I think it is a viable option," she said of the plan to ask the Health and Educational Facilities Authority to issue the bonds.

Last month, Cape Girardeau voters approved a measure that increases the city's motel-hotel tax and extends the restaurant and motel-hotel taxes to the year 2030.

But an accompanying measure that would have allowed the city to issue bonds for the River Campus project failed to garner the 57.2 percent approval needed for passage.

The issue could have been resubmitted to voters in April, but project supporters settled on the bonding authority route instead.

Southeast doesn't expect to get all of the needed state funding in one chunk.

The Missouri Coordinating Board for Higher Education in October recommended the state provide $8.8 million in funding for the project in the coming fiscal year. That amount would be just under half of the amount requested from the state.

Nitzschke said it is vital that Carnahan include the project in his state budget recommendations.

The governor will unveil those recommendations in his state budget message to the Legislature on Jan. 20.

Nitzschke said Southeast officials likely won't know if the project is in the governor's budget until several hours before the speech.

"There is no question that there is an urgency to this one," Nitzschke said of Southeast's funding request.

Cape Girardeau resident B.W. Harrison provided the $800,000 financial gift to purchase the property and provide for some essential maintenance of the site.

But Nitzschke said the university can't maintain the seminary buildings long term without state funding.

He also said the university's ability to raise private funds for the project hinges on first securing state money.