6 vie for Cedar Rapids casino market study

ALTOONA - Firms from New Jersey, Las Vegas, Iowa and Minneapolis are vying for the contract to conduct a market impact study for a Cedar Rapids casino.

In its first meeting since three applications were submitted on Feb. 13 for a gambling license in Linn County, the Iowa Racing and Gaming Commission on Tuesday will hear presentations about the market study applicants.

'This is an opportunity for vendors to introduce themselves to the commission, provide experiences or reasons why they should be selected,” said Brian Ohorilko, administrator of the Iowa Racing and Gaming Commission.

Vendor presentations is the seventh item on the meeting agenda, which is scheduled to begin at 8:30 a.m. at the Meadows Event Center, Skinner A, in the Prairie Meadows Racetracks and Casino, 1 Prairie Meadows Racetrack and Casino in Altoona.

The commission likely won't award a contract - or possibly multiple contracts - for the market study on Tuesday, Ohorilko said. That is likely to occur during the Iowa Racing and Gaming Commission's April 13 meeting, during which commission members also are likely to set a process for considering the casino license, he said.

A decision on whether to grant a casino license in Linn County may come in November, Ohorilko said.

Two groups have submitted three total applications for a casino.

Los Angeles-based Peninsula Pacific and Cedar Rapids Development Group have proposed the $165 million Cedar Crossing on the River along First Avenue on the west side of the Cedar River - a proposal virtually identical to the one rejected 4-1 by the gambling association in April 2014.

The same group has proposed the $105 million Cedar Crossing Central replacing the Five Seasons Parking Ramp with a skydeck to the DoubleTree Hotel and U.S. Cellular Center.

Wild Rose Entertainment, which is partnering with Cedar Rapids developers Steve Emerson and Hunter Parks, has proposed the $42 million Wild Rose Cedar Rapids 'boutique” casino next to the Skogman building and across the street from the DoubleTree.

The three casino proposals could be briefly introduced on Tuesday, but it is unlikely they'll get any significant discussion, Ohorilko said.

Also on the agenda are license renewals for 17 gambling operations, including three other Wild Rose casinos - those in Clinton, Emmetsburg and Jefferson - and Riverside Casino & Golf Resort.

The applicants for the market study are:

- White Sand Gaming, Atlantic City, N.J. - Founded in 2001, White Sand provides casino and resort management, and consulting services for gaming corporations, regulatory agencies, tribal governments, lotteries, racetracks and resort hotels. Saverio R. Scheri III is president and chief executive of the firm, which has its headquarters in Las Vegas.

- Union Gaming, Las Vegas - Founded in 2009, Union Gaming is described as a 'boutique investment bank and advisory firm focused exclusively on the global gaming industry ... including land-based casinos, lottery, online, and pari-mutuel wagering.” Rich Baldwin is managing director and head of Union Gaming Analytics.

- Strategic Economic Group, West Des Moines - A firm of analysts, planners and creative researchers focused on public and private sector projects, including an economic impact study of the Dakota Access Pipeline. Incorporated in 2000, the firm is registered to Harvey Siegelman, economist and president.

- Marquette Advisors, Minneapolis - The real estate consulting firm conducts market studies, feasibility analyses, appraisals, and debt and equity advisory services for the public and private, with specialization in hospitality and gaming. Louis W. Frillman is president.

- Annex Analytics, Cedar Rapids - Founded in 2016, Annex specializes in analysis of transactional data, customer service data, online activity data, social network activity data, competitive intelligence, market studies and marketing plan development, among its services. Peggy Stover is president and Jim Thebeau is chief operating officer.

- Spectrum Gaming Group, Linwood, N.J. - Spectrum has specialized in 'economics, regulation and policy of legalized gambling worldwide” since 1993, according to its website. Frederic Gushin, who also founded the company, and Michael Pollock are managing directors.

Union Gaming and Marquette previously conducted the statewide analysis with a focus on Linn and Jefferson counties for the commission in 2014.

Those studies predicted 73 percent to 81 percent of Cedar Rapids casino revenues would come by cannibalizing existing revenue from neighboring casinos, particularly Riverside Casino & Golf Resort in Washington County. The studies were influential in the commission denying a casino license for Cedar Rapids, and meanwhile the panel voted 3-2 to approve a license for Wild Rose Jefferson in June 2014,

The commission spent $150,000 combined for the Union and Marquette studies. The commission will pay for the 2017 study or studies out of its regulatory fees, which total $6.2 million a year.

The market study is due by Oct. 1 and will be presented to the commission at its October meeting, which has not yet been scheduled.

l Comments: (319) 339-3177; brian.morelli@thegazette.com