City Council Selects Indoor Sports Complex Partner

The Cape Girardeau City Council selected the MidAmerica Hotels Corporation as the first proposal for the City Manager to begin negotiations for an agreement to design and build an Indoor Sport Complex in Cape using Restaurant Tax revenue.  City staff will now negotiate with them and bring back an agreement for Council approval.  Should they not be able to reach an agreement with MidAmerica, the Council selected a first alternate and authorized the City Manager to continue negotiations with them.
Facilities supported by collection of the hotel/motel/restaurant tax have resulted in tremendous economic impact and opportunities related to tourism and business attraction to the Cape Girardeau region. These include the Show Me Center, the Osage Centre, the Shawnee Park Sports Complex and the River Campus. The complex is intended to increase sports tourism and the local economy.
The Restaurant Tax is estimated to generate more than $22.5 million through 2030. An Amended Settlement Agreement provides for $5 million to be allocated to the new Police Station, leaving approximately $17.5 million for the indoor sports facility. Finance Director John Richbourg recommends the City finance no more than approximately $12.5 million for project construction, leaving approximately $5 million for initial staffing, equipment, operations, bonding costs and reserve funds until revenue neutral or a positive revenue stream can be achieved. The consultant Ballard King estimated this time frame to be 3 – 5 years.
The operation is expected to be self-sustaining within five years.