In Iowa, the Cedar Rapids City Council recently approved an option-to-purchase agreement with Peninsula Pacific Entertainment (P2E), developer of the proposed Cedar Crossing gaming, performance and cultural arts complex.
The agreement calls for P2E to pay $165,000 for the option to purchase the property, the site of the former Cooper’s Mill restaurant, through December 31, 2025. The Iowa Racing and Gaming Commission (IRGC) still must grant a gaming a license which won’t happen until its moratorium on new gaming licenses expires in June 2024.
P2E President Jonathan Swain said, “We are pleased that the Cedar Rapids city council has taken the next step to make Cedar Crossing a reality. Cedar Crossing will be the best casino construction project that Iowa has ever seen, and it will allow us to live out our mission of service, quality and community through charitable giving among Linn County nonprofits and funding to the city of Cedar Rapids.”
The land purchase option mandates that P2E purchase the land at fair market value, have a minimum assessment agreement and pay associated property taxes. P2E could pay an additional $55,000 to extend the option to December 31, 2026, providing the IRGC is actively considering granting a license.
P2E’s nonprofit partner in the license will be the Linn County Gaming Association, which will distribute 8 percent of net gaming revenue, or about $5 million to $7 million, monthly from Cedar Crossing’s operations, more than double the state’s requirement.
In addition, P2E will contribute another 2.25 percent of net gaming revenue per month, or $2 million, to the Community Betterment Fund the city will establish to support economic development, affordable housing, trails and infrastructure, amenities or other activities.
Cedar Crossing will also construct a permanent wall near the site to protect against flooding, and provide other necessary off-site improvements. Officials said the project will provide 300 new jobs.
