This week, three new casinos proposals are planned to be considered by the City Council in Cedar Rapids in Iowa. According to some documents released last week, two of these proposals feature one new plan which referred to Cedar Crossing Central. The latter is set to replace the parking facility of the Five Seasons Ramp, together with a proposal which was announced under the name Cedar Crossing on the River.
The proposal was initially turned down in 2014 after the results of an investigation held at the time showed that adding a new gambling hub in Linn County was likely to have a negative impact on the casinos located nearby and on competition. Now, both proposals are associated with the Cedar Rapids Development Group. According to some media reports, Cedar Rapids and Riverside are located within less than 40 minutes from one another.
As for the new casinos plans, a project for building a $40-million exclusive casino has been presented by Wild Rose Entertainment. The third proposal came as part of a retail development plan. Currently, Wild Rose Entertainment is owner and operator of the casinos in three cities across the state of Iowa – Clinton, Jefferson and Emmetsburg.
The company has been focused on expanding its reach, so it has been now looking to build a new casino venue. The casino is planned to be situated on a total of 25,000 square feet, and is to feature between 600 and 700 slots machines and 20 gaming tables as part of the planned development of Cedar Rapids.
The first investors of the project from Cedar Rapids Development Group are focused on getting a City Council approval of for all three memorandums of understanding (MoU). Here are all three MoUs:
- MoU for Cedar Crossing on the river
It features plans for making a redevelopment of city-owned land, with the redevelopment being estimated to $165 million. In case that the plan gets the approval of the City Council, it is expected to accountfor revenues of more than $142 million over the first five years.
According to some reports, Linn County and Cedar Rapids are to intended to receive approximately $9 million. On the other hand, more than $17 million are to be headed to local charitable causes. The state of Iowa, of course, will get the major part of the revenue, estimated to a bit over $116 million.
- MoU for Cedar Crossing Central
If the city agrees to the second plan, a redevelopment of the Five Seasons Ramp parking facility estimated to $105 million.
In case that it is successful, Linn County and Cedar Rapids would get a revenue of $4.5 million. Charitable organisations would be granted with more than $11.6 million, while the state of Iowa would get massive revenues of about $93 million.
- Third Agreement
It is expected to lead to extension of the understandings by 10 years, until October 9th, 2029. What is more, further $75,000 would be paid by Cedar Rapids Development Group for each year of the agreement.
The deadline for filing the consideration of an eventual gambling licence in Linn Country is set on February 13th, and the official proposals are expected to take place soon after that. Late in 2016, the Iowa Racing and Gaming Commission voted the consideration, allowing the interested parties to prepare a request for proposal. It the Commission decides, it could grant at least one operating licence or reject all three proposals.
- Author
Daniel Williams
