RIVER CAMPUS TAX TO BE PROPOSED; CITY MAY ASK VOTERS TO DOUBLE MOTEL TAX

Cape Girardeau voters may be asked in November to approve a measure to double the city's motel tax to help fund development of Southeast Missouri State University's River Campus.

University officials led by Dr. Dale Nitzschke, SEMO president, are scheduled to meet with the City Council at 5 p.m. Monday at City Hall.

Besides Nitzschke, the school will be represented by Don Dickerson, president of the university's Board of Regents, and Ken Dobbins, the school's executive vice president and chief financial officer.

Nitzschke said university officials still haven't put the finishing touches on a tax proposal, but Dickerson said Thursday they are looking at asking the City Council to submit a ballot measure seeking to increase the 3 percent motel gross-receipts tax to 6 percent.

The ballot measure also could include extending the motel and restaurant taxes, which are set to expire in five years.

Dickerson said he hopes any tax measure would include a sunset clause allowing the tax to automatically expire after a period of possibly 10 or 20 years.

Dickerson said a tax measure could benefit both the university's River Campus project and city projects and programs such as the operation of the Convention and Visitors Bureau.

School officials would like to have a tax measure put on the November ballot. To do so, the City Council would have to act by Aug. 25.

Dickerson said school officials don't want to tell the City Council what to do, adding that it was strictly up to the City Council whether a tax measure will be submitted to voters.

Nitzschke said university officials have concluded that a motel tax is preferable to a countywide sales tax.

The city's 3 percent motel tax is expected to generate about $330,000 this fiscal year. If the tax is doubled, it could generate $660,000 annually.

Dickerson said the university has looked at financial options with its bond counsel.

The university wants $17.8 million in state funding and the same amount in local funding to renovate and expand a former Catholic seminary. The site along the Mississippi River in Cape Girardeau would house Southeast's School for the Visual and Performing Arts.

School officials have suggested the local share could come from a tax and donations from individuals, businesses and private foundations.

Approval of a tax could help secure state funding for the project, university officials have said.

If a tax measure is placed on the November ballot, Dickerson said the Cape Girardeau Chamber of Commerce likely would be involved in promoting it to the voters.