SEMINARY GROUP EXPECTS BANK LOANS

Although they recently asked the city of Cape Girardeau for $250,000, people hoping to buy St. Vincent's Seminary now say the loan may not be necessary.

For more than a year, the Colonial Cape Girardeau Foundation has been looking for a way to pay off a lease-purchase agreement with the Vincentian Fathers of St. Louis. The group owes $600,000 on the seminary land and buildings.

Foundation members approached the Convention & Visitors Bureau, the city's tourism arm, about borrowing $250,000 from its building fund. Some on the CVB Advisory Board supported the idea, others didn't.

On Thursday, foundation treasurer Bill Green said the money may not be needed. The group has eight supporters who are willing to co-sign on a $400,000 loan, he said, and hopefully another two people will agree to co-sign.

If the city uses a $150,000 advance payment from Boyd Gaming Corp. to buy seminary land -- a plan already put before the City Council -- the total may be enough to clear the seminary's title. The target purchase date is Sept. 13.

"The Vincentians may be willing to accept something a little bit less than the original agreement," Green said. "We're awful close.

"I think we have the borrowing power from the banks to get the money we need, so the loan from the city may be a moot point."

A loan from the city may not be legal anyway, City Attorney Eric Cunningham said. The Missouri Constitution prohibits cities from loaning money to private corporations or individuals.

A loan may be made as an investment, Cunningham said, but city policy states investments must be prudent and the amount of expected income must be reasonably certain. The City Council must approve such an investment by a two-thirds majority.

Another part of the Colonial Cape Girardeau Foundation's plan to buy and operate the seminary was an increase in the hotel tax from 3 percent to 9 percent. The additional money would go for seminary operating expenses.

If voters passed such an increase, the income would have to be used for a public purpose. For example, if the CVB located its offices in the seminary building, the city could give the foundation money for rent. Then the foundation could use the money as members saw fit.

Hotel owner Dan Drury, who is vice chairman of the CVB Advisory Board, said he opposes an increase in the hotel tax. He also opposes moving the CVB offices to the seminary building.

"The amount of hotel tax matters when you're talking about business travelers and conventions," Drury said. "New York City already dropped its hotel tax because it was losing a lot of conventions.

"The CVB needs to be where the traffic is. The traffic is not going to be on that bridge that doesn't go anywhere; it's going to be on the interstate."

The City Council will have the final say on where the CVB goes. Several on the council had positive reactions to the idea.

Mayor Al Spradling said he wouldn't be opposed to locating the CVB offices at the seminary if a clear arrangement was made with the Colonial Cape Girardeau Foundation.

Councilman Jack Rickard said he wouldn't mind putting the offices at the seminary if someone proved it was a better site than near the new Osage Park community center.

And Councilman Tom Neumeyer expressed wholehearted support.

"I'm absolutely in favor of it," he said. "If you look at most cities located along major rivers, their CVB offices are located near the river. I can think of Jefferson City, Paducah, Ky., and Madison, Ind., right off the top of my head."