BE OUR GUEST: `YES' VOTE ON JUNE 8 WILL PAVE WAY TO ECONOMIC OPPORTUNITY IN CAPE GIRARDEAU

David B. Knight of Cape Girardeau founded David B. Knight & Associates in 1974. The firm manufactures commercial barbecue equipment sold throughout the United States and abroad. He holds a masters degree in business administration from Arkansas State University.

By now, most people have read the basic facts about the proposed $37.5 million riverboat development. The purpose of this article is to discuss these facts as well as other issues currently being raised, and to encourage "yes" votes on June 8 for approval of this most important economic opportunity.

As we move into the post-modern era, new industries, particularly the traditional ones that convert raw materials into finished products, are becoming harder and harder to attract. Further, the recession has taken a heavy toll on our local economy. The failure of the Exchange Bank, for example, has left many businesses with no way to refinance their operation. Many people lost their life savings, others lost their jobs or had to take early retirement or lower paying jobs. Compared to other communities such as Springfield, Mo., the population of Cape Girardeau has not increased significantly in the last 20 years.

Add to all this the fact that we are now bracing for higher federal income taxes, energy taxes, not to mention the corresponding higher cost of raw materials, transportation and utilities.

Therefore we, as a community, must redefine our economic vision for the 21st century.

What kind of new jobs will be created by the riverboat?

New jobs created as a result of the riverboat fall into two general categories: Direct jobs (estimated at 800) and indirect (estimated at 800). Direct jobs are those which involve working directly for the riverboat operation.

Indirect jobs are those created in our community due to increased business activities resulting from the riverboat; these include delivery personnel, workers required to staff existing hotels and restaurants, as well as more police, fire, sanitation and other municipal staff, due to the large influx of out of town visitors.

How much will these new jobs pay?

Missouri gaming law requires that the lowest wage on a Missouri riverboat gaming facility must be at least 25 percent above the federal minimum wage. (That would be a minimum starting salary for any worker of approximately $5.44 per hour).

What about the investors taking the profits out of our town?

New jobs are created by new businesses. New business are created by investors with the expectations of making a profit. This is an economic fact of life. It is necessary to encourage outside investment into our community, which will in turn create new jobs and additional tax revenue. Many out of town businesses currently take profits out of our city, but in the meantime, the goods and services they sell or produce provide much needed employment for our citizens.

What about organized crime?

When legalized gaming first began some 50 years ago in the United States, members of organized crime controlled the action. Over the years, however, constant government regulation and control of the gaming industry has changed its makeup significantly. The Internal Revenue Service, for example, takes a dim view of skimming profits to avoid federal income tax. Legalized gaming in the '90s is more often controlled by people like Merv Griffin and Donald Trump than Al Capone and John Dillinger. Quite frankly, organized crime has its current interest based in illegal gambling (as simple as a telephone call to your local bookie), thus avoiding the scrutiny of stringent state, federal and local government monitoring.

What are the economic risks versus the benefits of economic growth?

It will impact our entire region not only immediately, but for many years to come.

The good news: It doesn't cost us anything up front. The Boyd Group will pour a $37.5 million investment directly into our community.

Better news: We will begin reaping the benefits immediately. Construction jobs will start immediately after passage June 8. Approximate construction time is one year.

The best news: We will continue to reap benefits of increased employment, sales tax and passenger fee revenues as long as the boat operates.

What if it isn't successful?

In the unlikely event that the venture is unsuccessful, the riverboat would probably leave the area. However, the area would still retain all of the $13.5 million capital investment in land and building as well as previously benefiting from tax revenues, and employment opportunities.

Will only local people use the facility?

No. The estimated visitor count is one million individuals per year, most of which will be tourists. It is likely that riverboat gaming could do for Cape Girardeau what country music has done for Branson.

Will our streets be able to handle the traffic?

Yes. The riverboat offered by the Boyd group accommodates a maximum capacity of 1,350 people. Boarding is by reservation and occurs at three hour intervals. This allows for orderly traffic flow. In comparison, the Show Me Center, which can accommodate up to 8,500, routinely handles its traffic load with only occasional congestion even for the most popular events.

Can you ride the boat even if you don't choose to gamble?

Yes. No one is required to gamble. The boarding fee permits you to move freely throughout the vessel during the excursion.

Will prostitution become prevalent?

No. Solicitation or pandering as well as engaging in prostitution are serious crimes in both the city of Cape Girardeau and the state of Missouri. Also, it is in the operator's own best interest to discourage vice activities as they serve as a distraction and detriment to their business.

Will our children be encouraged to gamble?

No. Under Missouri gaming law, no one under 21 years of age is permitted to gamble. Advertising by riverboat gaming facilities is also regulated by the Federal Communication Commission and the state of Missouri.

What are riverboat gaming facilities really like?

Many people who will be voting on this issue June 8th have never had the opportunity or inclination to actually visit a casino, much less a riverboat gaming facility. I would suggest to those who would like to make an informed decision on this matter take the time to drive to Metropolis (approximately 70 miles) or to Alton, Ill., and see first hand what these riverboats are like.

If you have ever been to a casino or gaming facility, you have seen first hand that they serve as a source of entertainment and tourist attraction in resorts located in other parts of the country and globe. Also, they all share the following features regardless of where they are located: middle to upper income clientele; safe environment; cleanliness; professional service; and absence of vice.

In conclusion, it is my belief that the prospect of a riverboat development is a great opportunity for our community and region.

What your "yes" vote won't do is: cost the taxpayers of Cape Girardeau anything; promote vice or corruption in our community; take money out of our community.

What your "yes" vote will do is: create 1,600 new jobs; increase local tax revenues by more than $10 million over the next five years; contribute to our overall economic growth and stability for our area; allow the plans to materialize immediately upon approval June 8; bring $37.5 million in new capital to our region; bring in one million tourist visitors a year.

A "yes" vote on June 8th will be our best chance as a community to prepare for into the 21st century.