The Iowa Racing and Gaming Commission said it will conduct a market survey about gambling conditions in the state, triggered by the nonprofit Cedar River Alliance for Gaming’s plans to file an application for a new casino license. In April 2014, the IRGC voted 4-1 to deny a license to the Cedar Rapids Development Group for its proposed casino project in Cedar Rapids. The IRGC previously had approved a gambling license for a casino in Jefferson County. The last market study was done prior to that. Ohorilko said the new study would help the IRGC decide if they would or would not approve a new request for a license in Cedar Rapids.
The Cedar River Alliance for Gaming is proposing a $30-$40 million “boutique” casino in downtown Cedar Rapids, under the Wild Rose Casino brand. Wild Rose operates casinos in Emmettsburg, Clinton and Jefferson. Developers said the smaller casino would have less impact on existing ones. Tom Timmons, president and chief operating officer at Wild Rose, said Cedar River Alliance for Gaming plans to apply for a license in January. Ohrilko said the new statewide study would begin in mid-February. “The way this would work with applications being due on February 13th, by the time the vendors are selected to do a market analysis, they’ll be able to look at the scope of any potential applications. If it’s a small project or a different type of project, that information will be known and the vendors be able to consider that when doing their market analysis,” he said.
Cedar River Alliance for Gaming President Dick Meisterling said, “The Cedar Rapids community will benefit enormously from a successful gaming project. I am thrilled to join this new board, reinvigorate enthusiasm for gaming in our community and contribute to Cedar Rapids in a positive way through charitable giving.” He said the new casino would generate $42 million annually in revenue and under Iowa law at least 3 percent would be directed to local charities.
One potential hitch is the city’s memorandum of agreement with Cedar Rapids Development Group, headed by Steve Gray, stating the city would not support any other casino projects. That group had proposed a $174 million development, Cedar Crossing, with a casino, hotel, restaurants and other amenities, and led a multimillion-dollar referendum campaign to allow gaming in Linn County. That is the proposal the IRGC rejected in 2014.
Cedar Rapids officials have said they will honor that agreement. The development group has not made any move to revoke the agreement or submit another casino proposal. Timmons said he does not expect the city to break the memorandum. He added a resolution of support from Cedar Rapids would be helpful for the Wild Rose casino proposal, but it is not required for a license. IRGC officials concurred, adding it would be unusual to not have the city’s support and could factor into the licensing decision.
Cedar Rapids Mayor Ron Corbett said, “They really don’t need the city’s support for anything. They have the land tied up and the developer.” He said the city remains committed to the agreement with the Cedar Rapids Development Group, but added Cedar Rapids is not “hostile” to the new proposal.
Corbett said he hopes the Wild Rose group would provide the 100 Cedar Rapids Development Group investors, who put in about $10 million, an equity stake or some kind of settlement offer if the new casino goes through.
