State pulls $2.05 million in incentives from downtown Cape Girardeau project

The Missouri Department of Economic Development is withdrawing its authorization of $2.05 million in state aid for a downtown Cape Girardeau dental and vision care cooperative that is led by a man on probation for passing bad checks.

The department is also referring company president Weaver Dickerson's case to the Stoddard County prosecuting attorney's office to investigate possible violations of his probation, said John Fougere, spokesman for the Department of Economic Development. Dickerson is on probation after pleading guilty in 2007 to writing more than $90,000 in bad checks.

Angie Kapp, district manager for the project, said Dickerson had no comment Tuesday evening.

In his application for Community Development Block Grant funding, Weaver, 34, signed a document saying no one who had an ownership in the company was under indictment for a felony or was on probation or parole.

But the state's investigation, completed Tuesday evening, revealed otherwise.

"We learned he did provide false statements on his application," Fougere said, adding that no state funds have -- or will be -- awarded to the company.

The funds were to go to the parent company for Hometown Holdings Group LLC, which had plans to manage a $10 million health care cooperative called Watch Me Smile in Cape Girardeau that was expected to create 135 new jobs. Dickerson has since acknowledged he is on probation after pleading guilty in 2007 to felony charges of passing bad checks.

Mayor Harry Rediger said he doesn't know what happens next.

While he was aware that the state had pulled its grants, he said he did not know about the pending criminal investigation.

"We were looking for the state to do due diligence and come back with their findings and obviously they have," Rediger said. "We support the state's decision, and we'll see what happens next."

Dickerson said Monday that the project could continue without state assistance, but Rediger said he was in no position to comment about the future of the project until he could gather more information.

State and local leaders, including Gov. Jay Nixon, gathered Dec. 8 in downtown Cape Girardeau to announce the project an a $750,000 Action Fund Loan through the Community Development Block Grant program and $1.3 million in Missouri Quality Jobs tax credits.

Nixon has since come under fire from Republicans for not doing more research into Dickerson's criminal history and authorizing the funding.

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325 Broadway, Cape Girardeau, MO