Davenport spends $99,000 to end agreement with casino developer

Posted Online: Oct. 01, 2012, 10:17 pm
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By Stephen Elliott, selliott@qconline.com
Davenport officials said Monday that spending up to $99,000 to end its agreement with a casino development company, early, is necessary in order for the city to move forward in its quest for a new casino.

On Friday the city announced it was cutting ties to Chicago-based developer MSEG Inc., with which it entered a casino development agreement in November 2010. No casino has resulted.

The city said in a news release issued on Friday afternoon the termination allows the city to pursue other land-based casino opportunities without further delay. Terminating the MSEG agreement was a necessary step to entering into an agreement for a land-based casino with any company other than MSEG, the city said.

"Based on the recommendation and advice of our city administrator (Craig Malin), we terminated the agreement," Mayor Bill Gluba said. "There's just a lot of things going on. We want to get this done. Time is money.

"The longer things drag, quite frankly, the less everybody benefits."

Davenport's Rhythm City Casino, owned by Isle of Capri, has been for sale. MSEG had an exclusive agreement with the city through November to put together a casino deal, preferably one that would move the Davenport gambling operation off the river and into a downtown location.

Mayor Gluba said although a casino developer was not found, MSEG did fulfill its obligation of trying to bring a land-based casino to the downtown. He said the city received a lot of good data from MSEG.

"The city had a mutual agreement where we would pay (MSEG) up to $100,000 if they held up their end of the bargain," Mayor Gluba said.

In the news release, Davenport City Administrator Craig Malin said, "MSEG worked diligently to fulfill its development obligations."

In September 2011, IOC told the gaming commission it was willing to talk with casino developers interested in taking over the Davenport casino operations.



Local events heading

  Today is Thursday, July 31, the 212th day of 2014. There are 153 days left in the year.

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1889 -- 125 years ago: B. Winter has let a contract to Christ Schreiner for a two story brick building with a double store front on the south side of 3rd Avenue just west of 17th Street. The estimated cost was $4,500.
1914 -- 100 years ago: Germany sent simultaneous ultimatums to Russia and France, demanding that Russia suspend mobilization within 12 hours and demanding that France inform Germany within 18 hours. In the case of war between Germany and Russia, France would remain neutral.
1939 -- 75 years ago: Civil service offices at the post office and the Rock Island Arsenal were swamped as more than 700 youths sought 15 machinist apprenticeships at the Arsenal.
1964 -- 50 years ago: Last night, American Legion Post 246 in Moline figuratively handed over the trousers to a female ex-Marine and petticoat rule began. Olga Swanson, of Moline, was installed as the first woman commander of the post .
1989 -- 25 years ago: The Illinois Quad City Civic Center captured the excitement and interest of a convention of auditorium managers this weekend in Reno, Nev. Bill Adams, civic center authority chairman, said the 10,000-seat arena planned for downtown Moline has caught the eye of construction firms, suppliers, management teams and concession groups.

(More History)