Four groups seeking state casino licenses

DES MOINES – Just four of the five groups expected to seek a state casino license handed over their proposals to state regulators Monday.

While projects from Lyon, Tama, Webster and Wapello counties met the Monday application deadline, a group from Franklin County that had expressed interest in building a casino there did not turn in their application to the Iowa Racing and Gaming Commission.

“We had financing. That was not the issue,” said Gayle Burnett, who would have been a co-owner of the casino and hotel. She said the decision was more complex, but declined to comment further on the reason an application was not submitted. Franklin County was unsuccessful in securing a license when the commission granted licenses in 2005.

The applications are just the beginning of a months-long process before the commission makes a decision on possible new licenses.

Commission Administrator Jack Ketterer said the next milestone is January 7, the deadline for commitments for equity and financing for the projects.

He anticipates applicants will give presentations to the commission, and commissioners will visit the proposed sites this spring. In April or May, the commission likely will hold a public hearing with a final decision on licenses likely in early May.

Commissioners have said they will look at financing of the projects closely, as well as the business impact new casinos would have on the 17-state licensed casinos already in operation.

“That's kind of the challenge that they've laid out for the applicants,” Ketterer said.

Details of the proposals submitted Monday:

Tama County – The Signature Management Group of Iowa and Tama County Community Enrichment are proposing a $42 million project located along the new Highway 30 bypass between Tama and Toledo.

The facility would include 500 slots with 18 table games, a 500-seat conference center and dining facilities that include a buffet, sit-down restaurant and sports bar.

It also includes a Holiday Inn Express, an RV park with an executive clubhouse, an outdoor amphitheater, and a 90-acre all-terrain vehicle park.

The park could be used for cross-country skiing and snowmobiling as well in the winter.

“Our community's very excited, and most all of the communities in Tama County realize a state-licensed casino is going to be really good for them,” said Tama Mayor Chris Bearden.

The facility is expected to generate $40 million in its first year, with $13 million in revenues for the state the first year.

Wapello County – The proposal by River Hills Riverboat Authority and Ingenus Management and Consulting would spend nearly $71 million to develop the Rippling Waters Casino in Ottumwa. The first phase includes at least 500 slot machines, 10-12 tables, a poker room, two restaurants, a bar and hotel with 100 rooms.

It would be attached to an existing conference and convention center, which already operates a 600-seat theater and a 30,000-foot convention facility.

By the fifth year, the casino would add an additional 300 to 400 slot machines and 125 additional hotel rooms.

By then, developers expect total employment to equal more than 500 jobs.

Lyon County – The Lyon County Riverboat Foundation and Lyon County Resort & Casino LLC are proposing a $110 million resort located on the Iowa-South Dakota border.

The casino would be five miles northwest of Larchwood next to Highway 9, and include a 100-bed hotel, 1,200-seat event center, show lounge and 18-hole golf course designed by architect Rees Jones.

Other features include a 250-seat buffet, a steak and seafood restaurant and a full-service spa.

The casino would have 900 slot machines, 24 table games and 8 poker tables.

The application projects the resort in total will generate $70 million in gaming revenue each year, with $15 million in tax revenue for the state of Iowa each year.

“With this project we will not only develop a $110 million resort we can be proud of, but create over 700 good-paying jobs, fund our local nonprofit to benefit our communities and schools, and have local ownership in the project so the profits remain locally,” said Jeff Gallagher, president of the Lyon County Riverboat Foundation.

Webster County – Webster County Gaming and Heart of Iowa Foundation submitted a proposal for a $56 million casino, hotel, event center and arena.

The project would include a casino with about 800 gaming positions, three restaurants and a 60-rooom hotel. A 27,000 square-foot arena and 4,500 square-foot event center are also part of the proposal. They estimate that gaming revenue would total $48 million by the second full year of operation. An estimated $9.3 million would go to the state in gaming taxes.

The facility would be located on an 80-acre site along highway 169 to be annexed by the city of Fort Dodge.