Peninsula Pacific Entertainment (P2E) and the Linn County Gaming Association (LCGA) recently announced they will jointly reapply for a gaming license with the Iowa Racing and Gaming Commission (IRGC) after the two-year state moratorium on new gaming licenses expired on June 30.
We appreciate the persistence by P2E and LCGA, but are frankly skeptical that enough has changed — including the new members to the IRGC — to warrant the granting of a new gaming license after two previous attempts.
The one thing that has changed significantly since the LCGA first tried to obtain a gaming license in 2014 is Cedar Rapids’ economic development landscape.
While we would agree that a Cedar Rapids casino would spur an economic boost to downtown, which is needed due to an office worker exodus due to the COVID-19 pandemic, it is not the end-all-be-all if it happens or doesn’t happen.
After all, Cedar Rapids has been on an economic tear over the past several years with FedEx, BAE, SubWolf, Google and the much discussed First and First project coming to fruition. These are true economic development wins with wealth creation at the forefront.
A casino is different.
We like to think of casinos more as entertainment amenities and less as economic development drivers.
Under the current casino proposal, the CRDG would pay the city an option fee of $165,000 to retain the right to purchase city-owned property between F and I avenues NW and First and Fifth streets NW. Most of that property was previously occupied by the Cooper’s Mill restaurant and Best Western Hotel before those facilities were demolished due to damages sustained in the 2008 flood, and the property was subsequently acquired by the city.
The option to purchase the property extends through Dec. 31, 2025, but if the IRGC was still actively considering a Cedar Rapids casino application at that time, the option could be extended for another year at an additional cost of $55,000, officials have said.
The city has an exclusive memorandum of understanding with the CRDG and the Linn County Gaming Association to develop a casino in Cedar Rapids. That memorandum extends through October 2029.
Under the terms of the agreement, the developer would be required to complete a 125,000-square-foot gaming facility that would incorporate restaurant space, event space and a gaming floor, no less than 1,500 parking spaces, and a minimum investment of $150 million.
There are also regional economic divides that concern us with the jobs created and maintained and investments by Riverside Casino and Golf Resort that anchor the southern end of the Corridor in Washington County.
There are a myriad of pros and cons about a new casino coming to Cedar Rapids. We aren’t getting too worked up about it and neither should you until the gaming commission changes course and grants Cedar Rapids a new license. Until that happens let’s stay focused on true economic development wins.
Related news story:
Commission to launch latest review of Linn County casino application
