RUST REPLIES TO DRURY'S RIVER CAMPUS QUESTIONS

To put the River Campus issue in context, I am reprinting my column of Oct. 21, 1998, that discussed the proposed vote on a bond issue and increase in the city's hotel-motel tax that were on the ballot Nov. 3.

That headline read: "River Campus has potential to spark downtown." Here are excerpts from the column:

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"In the next couple of weeks before the election on Nov. 3, the SOUTHEAST MISSOURIAN will be discussing the proposed amendments to the Missouri Constitution and will try to put them into simple, understandable (non-legalese) language. We will also be giving more information on some of the candidates. ...

"Two local-interest issues that are generating the most questions are Amendment 9 on the boats-in-moats question (which I will discuss next week) and the River Campus plan for Southeast Missouri State University's arts campus and museum, with it accompanying downtown economic development.

"I describe it that way because that's the broad perspective to consider. You've heard a lot ... with more information to come ... on utilizing the 60,000 square feet of ST. VINCENT'S SEMINARY buildings and adding 115,000 gross square feet of new space.

"The 16.6 acres of the best riverfront property between St. Louis and Memphis cannot be duplicated and is irreplaceable. This facility will also free up 50,000 square feet of existing campus space currently being used by the departments of art and music, as well as the facilities of dance and theater, and permit the university museum to develop a regional history museum in conjunction with the university museum (which now can only display about 25 percent of its collection.)

"I would anticipate many additional art donors will select this Cape facility for display of their art pieces when they know the space is available for full-time display.

"Like they said in the baseball movie "FIELD OF DREAMS" ... "Build it and they will come." ... It is easy to envision the RIVER CAMPUS becoming the tourist attraction (with its wonderful view of the Mississippi River) that Cape has sought for years. What an ideal site to view the new (to be display-lit at night) EMERSON BRIDGE.

"And the project is to be funded by a three-way partnership of private and public money.

"The university's foundation will raise $8.9 million as part of its campaign. The Cape Girardeau City Council has submitted to the voters at the Nov. 3 general election a bond-issue proposal which would generate another $8.9 million. And the governor and General Assembly will be asked for a $17.8 million capital appropriation to complete the financing a proposal that Governor Carnahan spoke favorably about while in Cape last week ... but which first requires passage of the local vote. Note: Passage requires two votes. One is the authorization of the sale of the bonds, and the other is the passage of the tax.

"To fund the local bond issue, the hotel-motel tax would be raised 1 percentage point, from 3 percent to 4 percent, and extended to the year 2030. Visitors to Cape would pay most of this tax. The present 1 percent restaurant tax would not increase but would be extended to 2030. The existing property tax will sunset in 2004 as presently scheduled.

"The hotel and motel tax will cost visitors less than 75 cents additional on a $75 motel room bill.

"I've come to full support of the proposal only after weighing the benefits and value added to our community and university versus the costs.

"I've long felt the community must not lose the historical significance and site of the seminary property ... but felt it a hard economic decision to fund the use and maintenance of the building without a bigger vision.

"This proposal has that VISION.

"The final key has been the broad efforts and enthusiasm of so many people in our community for the project ... AND, my recent trip to LITTLE ROCK, ARK., where (along with San Antonio, Indianapolis, Chicago, Richmond, Chattanooga etc.) the downtown RIVERFRONT AREA has been revitalized, bringing excitement, tourism and economic development to those communities."

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After the votes were counted Nov. 3, 1998, the increase in the hotel-motel tax and the extension of the restaurant tax passed. The bond issue received 53.1 percent approval, but it required a 57.1 percent majority (four-sevenths) to pass.

Jim Drury's major point -- made in his recent full-page ads -- is valid, in my opinion, that at the time both issues had to be passed to implement the city's putting its bonding capacity in back of the sale of the bonds and the sales tax extension and increase.

AFTER the election, the leadership at Southeast Missouri State University became aware of an alternate avenue to back the bonds. The Missouri Health and Educational Facilities Authority was approached, and it authorized the use of its bonding capacity so the city of Cape Girardeau no longer was obligated, nor was it necessary for the city to guarantee the bonds.

The city and university elected to proceed with the sale of the MoHEFA bonds which was heartily endorsed by most of the large crowd that attended a public hearing where the new financing plan was thoroughly discussed. (Jim Drury was in attendance but made no comments.) The bond sale has been tied up in court by a lawsuit filed by Jim Drury shortly after the meeting. This lawsuit still awaits settlement.

SINCE THEN ... the state has appropriated $16.55 million, and Southeast Missouri State University is well on its way to raising its now increased portion of $10.15 million.

The merits of the River Campus project can be debated, but even Jim Drury approved of the project prior to the 1998 election, as demonstrated in his letter supporting the River Campus. But at this point $26.7 million (75 percent) appears to be in hand; however, the city's $8.9 million is threatened by the lawsuit, which jeopardizes the entire project.

Another election, as Jim Drury suggests, is not needed. Voters approved the sales tax to pay for the city's share of the project, and the state bonds need no vote.

Jim Drury's claim that the increased hotel-motel tax will ultimately raise $100 million -- far more than the city needs -- is unfounded.

First, the agreement between the city and university clearly states that the sales tax increase will be dropped when the bond issue is paid off. Second, if for some reason the bonds aren't paid off by 2030, the entire sales tax ends unless it is extended again by a vote of the people.

And the hotel-motel and restaurant sales taxes are paying off Show Me Center bonds as well as the development of the soccer complex at Shawnee Park and the new Osage Centre at Osage Park. The sales tax also funds the operations of the city's Convention and Visitors Bureau.

The city estimates it will take approximately 16 years to raise its share of the $8.9 in funding from the MoHEFA bonds.

~Gary Rust is president of Rust Communications, which owns the Southeast Missourian and other newspapers.