LETTERS: RIVER CAMPUS: LET VOTERS DECIDE

To the editor:

Because it's not right.

That is why Midamerica Hotels Corp. is opposed to Southeast Missouri State University's River Campus project.

Last summer, University and city officials told all of us: Support our performing arts project, It's a lot of money, but the state of Missouri and the university will pay three-fourths of the cost. The city will pay one-fourth by issuing city bonds. The bonds will be paid with tax revenue from an increase and extension in the hotel tax and an extension of the city's restaurant tax. The bonds and the tax are a package deal. Both must be approved by the voters.

That is what they said.

We were skeptical, because $35.6 million is an incredible amount of money. Compare this amount to the $12.3 million cost of the impressive Donald L. Harrison College of Business, which many consider to be the premier building on campus, or the Show Me Center, built for $13 million.

Nonetheless, at the urging of university officials, we agreed to support the project, as long as it was not at the expense of critical city needs and as long as the people of Cape Girardeau had the final word.

This controversy is simple to understand in many ways. The voters did decide. The voters said "no" to the package deal -- the city shall not commit its resources to support this project.

Although each voter had his or her own particular reasons, it's easy to understand why the vote came out like it did. Local residents would pay a significant portion of the taxes generated. Our figures show that at least 75 percent of the restaurant-tax revenue is paid by area residents.

Moreover, the city is facing a severe economic crisis. Not too long ago, the police department could afford neither decent vehicles nor bulletproof vests for our law enforcement officers. Important projects such as comprehensive disaster planning and a youth activities center remain underfunded. The condition and needs of our city school are well known.

As reported in the Southeast Missourian Feb. 9, the city faces the prospect of paying for $75.5 million in capital improvements, including new fire stations, public works and administration buildings and airport and parks improvements. According to the newspaper, an increase in the city sales tax is a likely source of funding.

Given these circumstances, no one can argue that the voters made anything but a rational decision.

Unfortunately, university and city officials discovered a way around the vote. They would use city tax revenue to pay for state bonds. The sincere promise to the voters that the tax and bond initiatives were a package deal was forgotten, and the democratic process was trampled.

At the same time, the state of Missouri shows little interest in this project. As of today, just $4.6 million (only 26 percent of the funds due from the state) are tentatively budgeted for the project. This leaves a #13.2 million shortfall in the state's share of the project's costs.

The university means a lot to our city. And redevelopment of St. Vincent's Seminary would be a big step in revitalizing deteriorating areas of the city. But fiscal responsibility and the city's many other pressing needs should not be abandoned in the rush to bring Broadway productions to Cape Girardeau. We suggest a reasonable approach can serve both city and university needs:

-- Get real. As planned, the River Campus costs exceed $200 per square foot. Instead, create a realistic budget. We believe a tremendous facility could be constructed in the range of $20 million, which is, by any measure, a lot of money.

-- Put a fixed dollar limit on the bonds. If the voters would authorize city participation, the one-fourth share of a $20 million project would be $5 million. Subtract from that figure the downtown merchants' pledge of $1 million. This, bonds which would be paid by city tax revenue should be limited to the principal amount of $4 million. A blank-check approach is irresponsible.

-- Ensure tax revenue goes only for the purpose intended, to retiring the bonds in the quickest manner possible. The potential revenue generated by the restaurant-hotel tax is substantial. When the bonds are retired, the taxes should automatically terminate. These items should be clearly spelled out on the ballot. Not tax-revenue slush funds.

-- Encourage the use of local resources whenever possible. There are many firms and professionals in this area capable of producing quality design and construction.

-- Most importantly, put it to a vote. It's the voters who bear the cost of the project. They should be the ones to decide whether we use city revenue to retire state bonds. Because of the important nature of this decision, we have offered to pay an equal share with the city of the costs of a special election on this issue.

We want the university to succeed. But the city must survive and prosper as well.

We welcome the opportunity to discuss these issues with university and city officials in any open forum.

JAMES L. DRURY, Chairman

DANIEL M. DRURY, President

Midamerica Hotels Corp

Cape Girardeau

James L. Drury is a charter member of the Copper Dome Society of Southeast Missouri State University