Cedar Rapids casino developer wants to acquire city-owned land for resort
The Cedar Rapids Development Group (CRDG), the backer of the stalled casino resort project Cedar Crossing, will make a recommendation to the Cedar Rapids City Council next month on why they are The first city to own property should acquire land west of the city center.
The CRDG is made up of local businessmen who believe building a casino in the city will bring economic growth to Iowa City. City officials expressed support when the project was last unveiled in 2022, but a year ago this month, the Iowa Legislature and Gov. Kim Reynolds (R) passed a two-year moratorium on new casino licenses After planning, development work stopped. The suspension prevents the Iowa Racing and Gaming Commission from issuing new commercial gaming licenses until July 1, 2024.
For years, Cedar Rapids officials have accused the state Gaming Control Board of seeming to overlook the city for the sake of casinos.In 2014 and 2017, efforts to obtain casino licenses failed as state officials sided with the state's 19 riverboats, claiming the market was oversaturated.
The two-year moratorium signed by Reynolds comes in response to the opening of new casinos in Nebraska and further claims by Iowa gambling interests that the Cedar Rapids casino will harm their operations.
City Parking Space
During the Cedar Rapids City Council meeting on July 11, CRDG representatives will appear before the City Council to explain why the city should enter into an option purchase agreement on approximately 25 acres of land currently owned by the Cedar Rapids City Council. The property is located between Avenues F and I northwest and First and Fifth streets northwest.
In the proposed agreement, CRDG would pay the city $165,000 to enter into the agreement and would have the right to purchase the property at fair market value.
The purchase option agreement will run until December 31, 2025. If the Iowa Racing and Gaming Commission is considering building a casino in Cedar Rapids but has not yet approved the project, the CRDG contract would allow for a one-time extension to Dec. 31, 2026, subject to a $55,000 payment to the city additional costs.
Peninsula Pacific Entertainment (P2E) is CRDG’s gaming partner. Jonathan Swain, president of the California-based gaming company, told The Gazette the company just wanted a chance to explain to the state why such a commitment was justified.
I'm always optimistic about the committee and the Legislature," Swain said. "All we're asking for is the opportunity to present our case to both boards and make this opportunity a reality in Cedar Rapids. "
PGA Tour star Zach Johnson, who grew up in Cedar Rapids, is part of the 2022 Casino Promotion. One of the city's most recognizable and celebrated names, Johnson was involved in Zach Johnson's sports book and bar initiative called "The Clubhouse."
Casino Details
The purchase option agreement submitted to the Cedar Rapids City Council would require a minimum investment of $150 million for any casino project.
Single-story facilities must be at least 125,000 square feet and casinos must be at least 45,000 square feet. An additional 12,000 square feet will be dedicated to restaurants, with more than 1,500 parking spaces.
The developers also agreed to allocate 2.25% of the casino's gross gaming revenue to a local fund to support economic development, affordable housing, trails and infrastructure in Cedar Rapids.
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Source: www.casino.org
