State Gaming Commission votes to investigate Davis company for license

Friday, March 21, 1997 | 11:59 a.m.

Today's vote allowed Davis Gaming Boonville Inc. to advance another step toward building a $55 million to $75 million riverboat complex on Boonville's ragged and flood-prone section near the Missouri River.

Three of the five commissioners supported Davis' application. One abstained and one was absent.

Davis, of Beverly Hills, Calif., has a personal fortune estimated at $2.20 billion. This is his first venture into casino gambling.

"We do have the wherewithal," said Mike Colleran, president of the Davis Cos. of Los Angeles, commenting on the fortune that ranked Davis No. 43 on Forbes magazine's list of the 400 richest Americans.

"We're excited about it," Colleran told reporters following the commission's telephone conference meeting.

He said if the commission approves Davis' application - a process that could take eight months to one year - the Boonville boat could open in the first quarter of 1998.

"It's a great opportunity. It's going to service the whole central part of the state," Colleran said, promising "a first-class project."

Davis Gaming wants to build a casino with 35,000 square feet of gaming space - 1,200 slot machines and 1,400 gaming positions - and a land-based development that measures 20,000 square feet.

The Davis package includes an immediate $1.5 million payment to the city of Boonville - money the city receives even if the company doesn't eventually land a riverboat license.

City Manager Steve Goehl said the windfall will be spent on infrastructure improvements, including improving traffic flows to the riverboat site through downtown Boonville.

"It's an exciting time for Boonville. We have worked a long time toward the goal of revitalizing our riverfront," Goehl said.

Davis edged Five Trails Casino Co., which sought to build a $30 million complex on the river's north bank in Howard County. The Davis complex would be on the south bank at Boonville, in Cooper County.

Five Trails is owned by Bill Grace, who already operates the St. Jo Frontier Casino in St. Joseph. His proposal included 41,000 square feet of casino space - 850 slot machines and 1,010 gaming positions. It also would have had 49,000 square feet of land development, including a restaurant, 40-room hotel, and offices.

Grace had no comment to reporters after the commission meeting.

The Davis package includes buying about 40 residential or commercial properties near the proposed riverboat site. Colleran said property owners have made deals to sell. The company has also offered to pay for relocating a scrap yard along the river although no agreement has been reached.

The commission previously held hearings on the two dueling applications to install the first gambling boat between the Kansas City and St. Louis area markets.

The Gaming Commission, concerned about market saturation in the Kansas City and St. Louis areas, has decided to allow just one riverboat in the central Missouri market.

Tom Irwin, the commission's executive director, said the licensing process includes extensive background checks on all principals in Davis Gaming Boonville, including the billionaire himself.

That could take some time, he said, because "Mr. Davis has a lot of holdings. He has got some money."

But that wealth also figured heavily in the commission decision. Its staff had recommended Davis because of his "financial depth," which has included ownership of sprawling commercial developments, a movie studio and golf resorts.