Isle of Capri files suit against city of Kimmswick

David Scott

Wednesday, Dec. 6, 2000 | 4:55 a.m.

ST. LOUIS - Isle of Capri Casinos has filed suit against the Mississippi River town of Kimmswick, seeking relief from the city's efforts to prevent the company from building a nearby riverboat casino and hotel.

In the suit filed Tuesday in Jefferson County Circuit Court, the Biloxi, Miss.-based company asked the court to bar Kimmswick from condemning or annexing the planned casino site. The suit charges that the city's efforts are not intended to serve the public good, as required by state law.

Kimmswick Mayor Brian Selsor said he had yet to receive a copy of the suit, but he believes it is without merit.

"We have done substantial work on the annexation and condemnation," he said. "We don't want a casino boat, and we have never been covert about that."

Kimmswick's Board of Alderman voted in August to annex the 45-acre site, north of the Jefferson County town and about 25 miles south of St. Louis, hoping to then condemn the site and turn it into a public park.

"They have not moved ahead on anything," said Allan Solomon, Isle of Capri's executive vice president and general counsel. "There is a cloud on the development of property and we want that cleared up."

Despite the vocal opposition of most of Kimmswick's 133 residents, the Missouri Gaming Commission granted Isle of Capri tentative approval in July to build and operate a $100 million gambling boat complex that includes a hotel, parking garage and three restaurants.

In its suit, Isle of Capri says Kimmswick can't annex the site because the city of Arnold has already started to annex the property and because it fails to meet extensive state criteria required for annexation.

Solomon said the company hasn't decided if it will support Arnold's effort, which began in the past 30 days. The property is currently part of unincorporated Jefferson County.

A circuit judge in the county would have to approve any annexation effort.

The suit also says Kimmswick can't condemn the land because the act isn't demanded by public necessity and the town lacks the financial ability to purchase it if a court allows the condemnation.

The suit says if Kimmswick is successful in either effort, it would be difficult, if not impossible, for the casino project to proceed. The casino company is joined in the suit by Kimmswick Properties Inc., a local firm that owns the property.

Kimmswick Properties rejected an earlier offer from city to buy the land.

Selsor said the city has publically acknowledged that it does not have the money to buy the parcel if it is condemned. He said officials are seeking a benefactor to help cover costs.

Residents of Kimmswick fear the casino will hurt the 40 shops and restaurants that cater to tourists and occupy original buildings from the town's founding in 1859.

They were stunned when the gaming commission voted to approve the Isle of Capri project, because residents in the nearby St. Louis County community of Lemay rallied behind a project by Ameristar Casino.

The commission said they rejected Ameristar's proposal to protect the struggling President Casino in downtown St. Louis.

Isle of Capri operates 14 casinos in six states, including one in Kansas City and another under construction in Boonville.