Cedar Rapids Council approves casino development agreement

CEDAR RAPIDS — The Cedar Rapids City Council approved an agreement Tuesday that lays out terms for development of a 110,000-square-foot casino in the northwest quadrant of the city, so long as the developer receives a gaming license from the Iowa Racing and Gaming Commission.

State lawmakers in 2022 passed a two-year moratorium on new gaming licenses. Twice before that — in 2014 and 2017 — attempts to obtain a Linn County gaming license failed.

When the moratorium expired earlier this year and the commission opened applications, Cedar Rapids Development Group LLC, the proposed developers of Cedar Crossing Casino & Entertainment Center, applied for a license.

California-based Peninsula Pacific Entertainment is the proposed casino operator.

The commission commissioned a market study to assess how a Linn County casino would impact Iowa’s gaming industry. The study is due Dec. 30. The commission has said it will vote on the Cedar Rapids gaming license application at its Feb. 6 meeting.

The $275 million development would include 700 slot machines and 22 table games, plus a group of restaurants, bars, a 1,500-seat entertainment venue, an arts and cultural center and a STEM lab for families. The plans call for about 1,100 parking spaces on the property.

In the agreement approved by the council, the property for the casino — which is located at the old Cooper’s Mill site and is currently owned by the city — would be sold to the developer at its “fair market value as determined by an appraisal.”

The developer would be required to incorporate flood mitigation measures, host at least two public open house meetings about the project, and the city council must approve the design.

The agreement also requires the developer to conduct a traffic study.

The project must have a minimum investment of $150 million, and construction must be complete within 24 months of starting to comply with the requirements of the development agreement.

The agreement outlines requirements for monthly community betterment payments to the city, which would be used to assist with initiatives and projects that support the growth of city amenities. That fund would be in addition to taxes paid to the city.

Of the nine council members, only Ashley Vanorny voted against the agreement. She expressed concerns that smoking would be allowed in the building near the location of a children's science center.

Vanorny also said she disliked the location and the design of the building.

“It looks like a big box store to me,” she said.

As part of its proposal, Peninsula Pacific Entertainment and the Linn County Gaming Association have previously committed to distributing 8 percent of net adjusted gross revenue to nonprofit organizations, or about $6.3 million annually — more than twice the state-mandated minimum.

Mayor Tiffany O'Donnell referenced that commitment in her comments about supporting the project at Tuesday’s meeting, saying that 8 percent return to local nonprofits would be a “game-changer” for the organizations.

If the Cedar Rapids project receives a gaming license, the city’s development agreement calls for the sale of the property to close within 180 days of the license being issued.