The Iowa Racing and Gaming Commission held a public hearing last week regarding granting a gaming license to Cedar Rapids. Just like 2014, when the IRGC considered and rejected a Cedar Rapids license, the proposal faced strong opposition.
Dan Kehl, chief executive of Elite Casino Resorts, operators of nearby Riverside Casino & Golf Resort in Riverside, Rhythm City Casino in Davenport and Grand Falls Casino & Golf Resort in Larchwood, said, “Nothing has changed in this market and we urge you not to grant Cedar Rapids a license.” He said “drastic” cuts would have to be made at Riverside if another license were granted.
Casino officials from Tama, Waterloo and the Quad Cities also spoke against a license. They said the market is saturated, the number of gamblers is decreasing and existing casinos would be destabilized.
But people involved in a possible Cedar Rapids casino emphasized the benefits to the commissioners during visits to the sites of the three proposed casinos. Wild Rose Entertainment, led by Chairman and Founder Gerald Kirke, proposed a $40-$55 million boutique casino, Wild Rose Cedar Rapids. Brent Stevens of Peninsula Pacific and Steve Gray of the Cedar Rapids Development Group proposed the $105-$118 million Cedar Crossing Central, in a skydeck connecting the DoubleTree Hotel and U.S. Cellular Center. Peninsula Pacific and Cedar Rapids Development also proposed the $165-$187 million Cedar Crossing on the River, nearly identical to the project the gaming commission rejected 4-1 in 2014, based on projections it would cannibalize other casinos.
Jonathan Swain, who is involved in the two Cedar Crossing proposals, said although Iowa’s gaming industry is flat, new investment plus complementary entertainment will grow the industry and attract new people. “This is an opportunity for growth in the state,” Swain said. “We respect the commission’s process and decision-making authority. Cedar Crossing will continue to pursue a gaming license for the benefit of the Cedar Rapids community, and believe we will ultimately prevail.”
The city of Cedar Rapids has a memorandum of understanding with Cedar Crossing backers to exclusively support their efforts for a casino; it’s valid through 2029. The gambling referendum that approved a Linn County casino license will expire in 2021. the Cedar Rapids City Council and Linn County Board of Supervisors, as well as numerous community organizations back Cedar Crossing’s proposals. “We’re here to create economic development,” Cedar Crossing investor Steve Gray said earlier.
Wild Rose’s application states, “Our boutique casino doesn’t seek to compete with these existing urban amenities. To the contrary, we intend to enhance the experience of downtown guests and visitors.” Former Cedar Crossing investor Dick Meisterling, chairman of Cedar River Alliance for Gaming, the nonprofit license holder for Wild Rose, noted the benefits Wild Rose would provide to surrounding businesses. His colleague Barbara Hames-Bryant said Wild Rose would contribute 5 percent of adjusted gross revenue to local nonprofits, or about $2.5 million per year. “We have people from all different walks of life. We understand all the needs of Linn County and which organizations are neediest and who can spend most efficiently to help the most people.”
Most local residents approved of the casino for its economic and entertainment benefits. Several public officials in communities where Wild Rose operates, including Clinton and Jefferson, praised the company. “You don’t need to look any further (than Wild Rose) to find an honest, established operator,” said Les Shields, vice president of Clinton County Development Association.
Previously, Cedar Rapids mayor and GOP gubernatorial candidate, Ron Corbett said, “I don’t see it happening. Nothing has changed. It’s hard to see why we’d get a different result. I think it has less than a 50 percent chance of happening. The criteria the commission looks at hasn’t changed since three years ago. There’s no new blood on the commission. There’s the same five members. The only thing that has changed is the state’s financial situation is worse today than three years ago.”
Gaming Commissioner Jeff Lamberti said site visits are an important part of the decision-making process. He added opposition from public officials in Cedar Rapids and Linn County to the Wild Rose proposal “does matter,” but it’s not a deal-breaker. “When we see a flat industry, it makes our jobs harder. We don’t want to see it stagnate,” he said.
Dan Long, a pastor with Jesus is the Way Church in Cedar Rapids, was among a handful of local residents opposed to any casino. “It’s a sin. Every preacher in town ought to be out here today,” he said.
The commission will announce its decision in November.
