Tax panel leans to endorsing sports complex

The committee evaluating possible facilities to be funded by Cape Girardeau's restaurant and hotel/motel taxes soon will make its final decision, but is leaning to advocating for an indoor sports complex.

The City of Cape Girardeau/Midamerica Hotels Corp. Feasibility Study joint committee spoke with consultants via phone conference Wednesday to discuss costs and revenue of four facility options: an indoor sports complex, indoor aquatics facility, agriculture expo center and combined hotel and convention center.

The six-person panel has been tasked with selecting the option it believes is most viable and would have the most positive economic effect on the city -- particularly regarding hotel stays and restaurant spending -- and presenting that option to the Cape Girardeau City Council. The presentation is scheduled to take place Nov. 3.

Planning Design Studio consultants offered numbers for the sports complex, aquatics complex and ag expo center. The design of each facility was based on input from the committee and city staff and on existing facilities in communities similar to Cape Girardeau.

Sports complex

The proposed indoor sports complex would feature six basketball courts that could serve as 12 volleyball courts, a large turf surface that could be divided into two or three fields, an elevated walking track, batting cages, golf cages, locker rooms and a concessions area. Consultants expect the facility would in its first year bring three new soccer tournaments, each with 10 teams, as well as three new tournaments for basketball and volleyball, which would bring about 30 teams per tournament. They also estimate the facility would bring in revenue of $500,000 to $700,000.

Construction costs for the 120,000-square-foot facility were estimated at $19.8 million. The consultants expect annual operating costs to fall within $650,000 to $1 million. Based on those estimates, they said the facility could reach 100 percent cost recovery by its third year.

The consultants also estimated once the facility was running, it would bring in an annual 2,700 hotel nights and have a $170,000 positive effect on restaurant revenue.

A few committee members questioned the high construction cost and said it could be beneficial to consider whether any existing facilities could be renovated into a sports complex. They also considered whether more turf space should be included to allow larger soccer tournaments.

Ag expo center

If an ag expo center were built in Cape Girardeau, it would be at Arena Park on the SEMO District Fairgrounds. The consultants' proposal included a 150-by-300-foot main area, 2,500 spectator seats, a warm-up area for animals, meeting rooms, adjacent barn space, RV hookups and an animal cleaning area. They also suggested changeable flooring so it could feature a dirt floor for rodeos and animal shows but hard floors for car or gun shows.

In its first year, consultants estimate the facility would bring 15 weekend events, garnering 200 hotel room nights for each event. The effect on restaurants is estimated at $375,000. Construction cost could be about $16.5 million for a 110,000-square-foot facility.

Annual operating expenditures would be $500,000 to $900,000, with revenue ranging from $250,000 to $300,000 each year. The facility could reach full cost recovery by its fifth year, consultants said.

Aquatics facility

An aquatics facility in Cape Girardeau would include a 50-meter competition pool -- the panel has considered renovating Central Municipal Pool or building a new one -- in addition to a leisure pool, meeting rooms and concessions.

The consultants pointed out the existing pool already has a positive effect, and a larger facility could serve to expand the market in Cape Girardeau.

The estimated construction cost is $15 million. The facility likely would bring in $350,000 to $500,000 yearly, but would have an annual operating cost of more than $1 million. Consultants said the likelihood of reaching total cost recovery was minimal. In addition to the high operational costs, they said the Central pool was not ideal for expansion.

Ultimately, consultants recommended the sports complex to the committee as the best option.

Hotel/convention center

HVS consulting team conducted the study on the proposed hotel and convention center and offered input to the committee Wednesday. They recommended an "upscale chain scale" hotel, specifically recommending Marriott, a brand they said was "obviously absent" in the area.

The consultants proposed a facility with 155 guest rooms and a total conference space of 20,000 square feet. Because the hotel would be "group oriented," the consultants said they did not anticipate it would significantly affect existing hotels in the area.

They believe there is an "unaccommodated demand" for such groups in Cape Girardeau and estimated 27,000 room nights were turned away each year because of seasonal demands. Based on the numbers provided by the consultants, hotels in the area experience occupancy rates of nearly 80 percent in the spring and summer months, but can dip below 40 percent from November to April.

Once complete, consultants estimate the market value of the project would be $26 million. The projected cost is $34.8 million. To cover the gap, they said other areas have used strategies such as land contributions, property tax abatement and bond financing.

The projected net income was $2.3 million annually, although the consultants said it could take a few years for the hotel and convention center to reach its full potential, since groups usually book rooms years in advance.

Some committee members doubted the effect on area hotels would be as minimal as projected by the consultants and whether occupancy rates would reach desired numbers. They also questioned whether taxpayers would approve funding a hotel/convention center with tax revenue.

The committee will meet again before the Nov. 3 council meeting to determine its final plan.

srinehart@semissourian.com

388-3641

Pertinent address:

Cape Girardeau, Mo.