Officials from Davenport, the Riverboat Development Authority and the Isle of Capri plan to update the Iowa Racing and Gaming Commission Thursday on the city's proposed purchase of Rhythm City Casino.
City officials plan to pay $46 million to acquire Rhythm City Casino from Isle of Capri and move it to an undetermined location. But the IRGC must approval the sale.
The IRGC meets at 8:30 a.m. Thursday in Johnston, Iowa. Mary Ellen Chamberlain, director of the RDA which holds the state gambling license for Rhythm City, said she thinks meeting with the IRGC is an important step towards a land-based city-owned casino in Davenport.
"One, they (IRGC) would expect the RDA to be there if the development is moving forward," she said.
"What I cannot say is the (RDA) board has totally approved the project at this point," she said."However, I will be there for any questions and answers. We're (RDA) still waiting to get a little more information."
The city and the Isle have arrived at a nonbinding term sheet for the city's purchase of the casino. City officials see it as a first step to opening a land-based casino in Davenport and removing the existing Rhythm City Casino from the riverfront.
An August 2010 report by Cummings Associates on gaming revenue projections said Davenport and Bettendorf casinos were under performing. In it, Will Cummings blamed the performance on the "old-style riverboats" he said weren't as attractive and customer-friendly as land-based facilities.
He noted the new Jumer's Casino, opened in December 2008 at the intersection of Interstate 280 and U.S. 92,"leapfrogged"the Davenport and Bettendorf boats.
On Monday, IRGC chairman Jeff Lamberti said it will look at issues such as the quality and certainty of financing of Davenport's proposal. He said a city-run casino "would be a significant precedent."
Davenport city administrator Craig Malin has said the purchase would be funded with future gaming revenue, not property taxes.He estimated financing for 20-year obligation bonds would cost $3.5 million a year over 20 years.
Ms. Chamberlain said the RDA uses its share of casino revenues to issue about $2 million annually in grants to community organizations and projects.The RDA plans to meet Wednesday to distribute roughly $900,000 for its fall cycle.
"We were getting a little more than $3 million in our heyday," Ms. Chamberlain said. "That was (in 1991) when we were the only boat around."
Mr. Malin has said a land-based city-owned casino could nearly double the amount available for RDA grants.
The casino posted $8.26 million in operating income and $10.48 million in adjusted earnings in fiscal year 2012.
Ms. Chamberlain said the IRGC usually grants casino licenses the first Thursday in March. If the proposed Rhythm City buyout is completed, the transaction could close as early as mid-2013 with a land-based casino opening by 2015, according city officials.
Today is Monday, April 21, the 111th day of 2014. There are 254 days left in the year.
1864 -- 150 years ago: The female sex seems to have gone crazy on the subject of dry goods. When high prices keep them from increasing their wardrobes, they turn to stealing. Yard goods, hats, shoes and other items are being picked up and carried home. 1889 -- 125 years ago: Members of Everts Commandery No. 18, Knights Templar, under Commander H.C. Cleaveland, marched from the Masonic Temple to Trinity Episcopal Church for their annual Easter services. 1914 -- 100 years ago: Nate Hultgren pitched the Augustana College baseball team to a 10-3 victory over Carthage, striking out 11 men and allowing only four hits. 1939 -- 75 years ago: Marvel Leonhardi, a Rock Island High School senior, was the winner of an essay contest on advertising sponsored by The Argus and Advertising Age, a national advertising publication. 1964 -- 50 years ago: The Augustana College band drew a crowd of 1,200 people for its annual home concert in Centennial Hall. The size of the crowd was indicative of the fact the band is rapidly approaching the stature of the Augustana Choir. 1989 -- 25 years ago: A benefit to raise money for extracurricular activities in the Rock Island Milan School District will be April 27 at the Quad City Downs harness race track. People buying $17.50 tickets to the second annual "Night at the Quad City Downs" will be entitled to an evening of harness racing and dinner.