SEMINARY PLAN WEIGHED; SEMO EXPLORES TAX OPTIONS TO FUND PROJECT

Cape Girardeau city voters could be asked to approve a bond issue and raise the motel tax to help finance Southeast Missouri State University's development of a River Campus.

Another possibility is to ask city voters to extend the existing motel and restaurant taxes, which are set to expire in 2004.

University officials also have talked to the Cape Girardeau County commissioners about the possibility of putting a countywide sales tax issue on the ballot. Don Dickerson, president of Southeast's Board of Regents, said a tax issue could be put on the ballot later this year.

The university wants to spend $35 million to renovate the old brick buildings of St. Vincent's College and Seminary and add 90,000 square feet of new space. The new structure, which would be connected to the main seminary building, would include a 1,000-seat performance hall.

Southeast hopes to ask the Legislature next year for at least half of the estimated cost of the project or about $17.5 million.

Passage of a tax measure could strengthen the university's efforts to secure state funding, Dickerson said.

Southeast also plans to raise private funds for the project. A private phase of a fund-raising campaign could begin within the next few weeks. The public phase of the campaign wouldn't begin for at least another year.

University president Dr. Dale Nitzschke said Southeast had looked to raise some $20 million in the public and private phases combined. That goal may be raised now that the university has added development of the new arts school to its list of funding needs.

The campaign would center on raising money for the school of visual and performing arts, but it also would include funding needs for the entire university.

Southeast officials announced Wednesday that the university had purchased the former seminary for development of a school of visual and performing arts.

Cape Girardeau resident B.W. Harrison donated 11,402 shares of Exxon stock to the Southeast Missouri University Foundation. The stock was sold Thursday, raising about $800,000, school officials said.

The money will go for the purchase of the property and some initial maintenance work on the seminary buildings.

Nitzschke said some of the money also may be used for asbestos abatement. The seminary has an asbestos roof.

Sverdrup, a St. Louis architectural and engineering firm, has estimated it could cost $400,000 to remove the asbestos.

The purchase price for the seminary buildings and grounds wasn't disclosed. The Catholic group that sold the property, the Congregation of the Mission, required the price to be kept secret as a condition of the sale.

The 13.5-acre tract overlooks the Mississippi River south of Morgan Oak. The main tract encompasses more than 11 acres. The seminary grounds also include two acres bordering the river.

Cape Girardeau County Associate Commissioner Max Stovall said the university has made no formal funding request to the County Commission.

The university also hasn't made any funding request to the City Council. But school officials have had some initial discussions with city officials.

"We said we would be willing to look at it," city manager Michael Miller said of a possible tax measure.

Southeast officials stressed that the university is just beginning to explore possible funding options.

Dickerson said he hopes some financing plans could be finalized over the next few months.

Southeast's president, Dr. Dale Nitzschke, said a financing plan could be in place within six months.

Dickerson said one option might be to ask voters to double the city's motel gross receipts tax from 3 percent to 6 percent. He said many cities have higher motel taxes.

Dickerson said a combination of tax measures might be considered.

Voters could be asked to raise the motel tax and at the same time extend the motel and restaurant taxes, he said.

The motel and restaurant gross receipts taxes are expected to generate about $985,000 in the 1998-1999 fiscal year.

About $325,000 of that is budgeted for operation of the Cape Girardeau Convention and Visitors Bureau, city finance director John Richbourg said.

About $460,000 a year goes to retire Show Me Center bonds. That bond issue will be paid off in 2004.

The city also is spending $640,000 a year to retire bonds that were issued to fund construction of the Osage Park Community Centre and the Shawnee Park recreational complex. By 2004, the bond payments for those two projects will have climbed to $775,000.

Richbourg said economic development is one of the uses outlined for the motel and restaurant taxes. He said the university's project could be considered as economic development.

Wayne Davenport heads the university's fund-raising efforts as vice president of university advancement. Of all the taxing options, raising the motel tax would be the most attractive to voters, he said.

Davenport said the motel tax would be paid largely by out-of-town visitors.

Dickerson said a university-city partnership helped fund construction of the Show Me Center. Money from the motel and restaurant taxes is being used to pay off the Show Me Center bonds.

Dickerson said a similar arrangement could be used for the seminary project.

"This has to be a shared project under some cooperative partnering," he said.

Dickerson said it is important to put the funding in place as soon as possible. He said he hopes the new school could open in 2001.