Davenport Land-Based Casino Moves Forward

A land-based casino in Davenport, Iowa moved a step closer to reality as the city's Plan and Zoning Commission voted to recommend that the city council approve the final development plan. If the council approves the proposed 34,000 square foot gaming floor and seven-story hotel, the development could be completed in spring 2016.

The Davenport, Iowa Plan and Zoning Commission recently voted to recommend that the city council approve the final development plan for a land-based casino site at Interstates 74 and 80. Commissioners also approved a recommendation to change the zoning from Agriculture to a Planned Development District and to change the city’s 2025 Comprehensive Plan. Developers’ attorney Gregory Jager said, “We are happy that the Plan and Zoning Commission saw merit to the proposals and we look forward to the council’s consideration.”

The development will include a 34,000 square foot casino, seven-story hotel and 1,500-seat entertainment complex. Developers hope to break ground in spring 2015 and open the casino in spring 2016—that is, if the city council approves the plan. The council will hold a public hearing on the issue on Wednesday, October 8 and take a final vote in mid-October.

The Plan and Zoning Commission’s votes were not unanimous, and the commission chair had to cast the tie-breaking vote regarding the Comprehensive Plan. Commission Vice Chair John Gere said, “I think it does give the city a message that there are some questions about this.”

Community members, particularly residents who live near the casino site, already have expressed their concerns about traffic, lighting and future development possibilities. Tom Jacobson, president of the Jersey Farms Neighborhood Association, said, “Obviously we’re disappointed about the vote. The Comprehensive Plan was kind of kicked aside.” But Jager assured them that “the developers agree that we want to try and make sure that those impacts are addressed.”

The new Davenport casino could be smoke-free if Governor Terry Branstad has his way. But, speaking at a health care forum at Des Moines University, he said, “I’m a realist. I can tell you you’re up against one of the most powerful and prosperous industries. The casino industry has a huge amount of clout. They have a lot of money. They have a lot of impact.”

Casinos were exempted from the state legislature’s 2008 ban on smoking in workplaces, including bars and restaurants.

Branstad, a Republican like most of the state legislators, said, “Just because they’re the same party doesn’t mean that I can necessarily get their support on everything.” He said the best way to pass a ban on smoking in casinos would be to make a deal with the industry. “If there’s something they really want, maybe it can get done,” Branstad said. But he did not identify what casinos would ask for.

Iowa Gaming Association President Wes Ehrecke noted the 18 commercial casinos his organization represents provide “state-of-the-art ventilation” to minimize smoke. In addition, Ehrecke said, casinos offer smoke-free restaurants, shops and meeting spaces, and most offer smoke-free gambling areas. “States who have banned smoking in their casinos have seen revenues drop up to 30 percent. That would mean a decrease of gaming tax revenue to be allocated by the Iowa legislature of $60 million to $90 million,” Ehrecke said.

Branstad has tried unsuccessfully to change the casino smoking exemption, he said. A few years ago, he said he asked legislators change a tax law affecting casinos. “I got clobbered. The casinos beat me,” he stated.

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