Despite two-year moratorium, developers unveil plans for Cedar Rapids casino complex

$250 million project would be sited at former Cooper’s Mill location in northwest Cedar Rapids

A rendering of the proposed Cedar Crossing casino project
A rendering of the proposed Cedar Crossing casino project. CREDIT PENINSULA PACIFIC ENTERTAINMENT

While acknowledging the likelihood that a two-year moratorium on new casino licenses will be enacted, developers and supporters have unveiled their plans for Cedar Crossing, a proposed $250 million, 160,000-square-foot casino, entertainment and cultural arts complex to be built at the former Cooper’s Mill site along First Street NW, just across the Cedar River from the Quaker Oats plant.

As proposed, Cedar Crossing would incorporate Iowa’s 20th state-licensed casino, as well as bars, restaurants featuring celebrity chefs, and a 1,500-seat entertainment venue. Flood control measures will now be incorporated into the design, developers said.

The Cedar Rapids Development Group (CRDG), a group of nearly 100 local investors, Peninsula Pacific Entertainment (P2E), a national gaming operator and developer, and the Linn County Gaming Association (LCGA), a local nonprofit association, would jointly apply to the Iowa Racing and Gaming Commission (IRGC) for a license for the new facility.

However, in a late-session decision, the Iowa Legislature approved a two-year moratorium on consideration of new casino license applications, a move that local casino supporters say is designed to target Linn County’s casino efforts. Assuming the moratorium is signed by Iowa Gov. Kim Reynolds, despite a plea from Cedar Rapids Mayor Tiffany O’Donnell to veto the measure, it would be effective as of June 1, meaning the IRGC could not consider a Cedar Rapids license application until June 2024.

Casino interests say they’re undeterred by the two-year moratorium.

“We know the time is now for Cedar Crossing,” Peninsula Pacific Entertainment (P2E) president Jonathan Swain said in a statement. “Linn County residents want gaming, and we’re the ones who will bring it to them. Linn County has been patient. The moratorium only changes when we can break ground – it does not change our commitment to building the world-class destination that we have promised and is worthy of their expectations.”

The organizations were initially set to announce Cedar Crossing development plans after the IRGC had signaled it would share a timeline for accepting applications for a Linn County gaming license, but the moratorium changed those plans. The IRGC will meet at the Wild Rose Casino in Emmetsburg Thursday, and while a “Linn County application discussion” is on the commission’s agenda, it’s not clear what that discussion will now entail.

In November, voters approved a referendum that permanently authorizes gaming in Linn County, paving the way for a new Cedar Rapids casino application. The IRGC has twice rejected casino proposals for Linn County, in 2014 and 2017, after commissioners largely sided with opponents who argued the state’s gaming market was saturated and a new Linn County casino would “cannibalize” revenue from existing state-licensed casinos.

More details, statements on Cedar Crossing development

In a statement, Cedar Rapids Mayor Tiffany O’Donnell said she fully supports the casino plans. “Cedar Crossing is going to be a cornerstone of revitalization efforts in Cedar Rapids,” said Ms. O’Donnell, a longtime casino proponent. “This team has set the vision and has been leading the charge longer than anyone else – they live here and know our community, and they have been thoughtful in their approach to build the partnerships they need to build a world-class gaming and entertainment destination. Cedar Rapidians deserve that.”

Linn County Board of Supervisors Chairman Ben Rogers has also submitted a letter supporting Cedar Crossing and its developers.

“For the last 10 years, we have backed this team and its commitment to bring this facility to Linn County,” Mr. Rogers said. “We will maintain our commitment to supporting them in the future.”

If granted a license, Cedar Crossing anticipates it will be able to give 8% in annual net gaming revenue – the highest in the state – to fund local nonprofits. Iowa law mandates that regulated licensed casinos set aside a minimum percentage of revenue to fund nonprofit organizations. The COVID-19 pandemic and derecho have put more financial stress on local nonprofits, and LCGA president Anne Parmley said contributions from a casino will provide a much-needed source of funding to assist Linn County in managing future needs.

“From the beginning, we’ve said a Linn County casino will help our communities be more vibrant places to live,” Ms. Parmley said. “We believe we can do more and be more – and the $5 to $7 million dollars in annual net gaming revenue that we can commit to funding local nonprofits is our way to show our commitment to lifting Linn County as a better place to live, work and visit.”

The project would also provide new construction work for Cedar Rapids trades professionals, and in October 2021, the Cedar Crossing team signed a memorandum of understanding (MOU) with Cedar Rapids/Iowa City Building and Construction Trades Council President Mike Sadler. The MOU outlined the intention for CRDG to enter a project labor agreement once plans are finalized, contingent in part on receiving a gaming license from the IRGC.

“For a decade, this is the team that has promised to bring a gaming facility to Cedar Rapids,” Sadler said. “We’re all in with Cedar Crossing, and local unions know it will be the best casino that can be brought here – and we’re proud that it will be constructed by local tradesmen and tradeswomen.”

The venue will also include The Clubhouse by Zach Johnson, a venue still in development that will be tied to Cedar Rapids native and longtime professional golfer Zach Johnson. It’s expected to include a sportsbook and a taproom arcade.

“It will be a great place to watch the game with friends, have a fantastic meal and even play some games of your own,” Mr. Johnson said of the clubhouse venue. “But most importantly, I am proud to be part of a project that will mean so much to the community through job creation, the revitalization of the downtown area and for its commitments to the not-for-profit organizations in Cedar Rapids.”

A map showing the location of the proposed Cedar Crossing casino development on the site of the former Cooper’s Mill restaurant and hotel. CREDIT PENINSULA PACIFIC ENTERTAINMENT