President casino’s move is delayed

Thursday, Jan. 27, 2000 | 9:50 a.m.

The casino's long-planned northward move has been held up again due to time spent reworking a cost-sharing deal with the city of St. Louis after and earlier version fell through, James Zweifel, executive vice president of President Casinos Inc., said Wednesday. The final agreement was signed earlier this month.

But Zweifel expected it would be late summer or fall before the Admiral riverboat, which houses the President casino, would leave its berth on the Mississippi River just below the Gateway Arch.

Under the plan, President and the city are splitting the $7 million price of moving the downtown boat from just south of the Eads Bridge to north of the King Bridge.

President and city officials hope that the shift to the Laclede's Landing entertainment district will help the Admiral's bottom line - and boost city tax and fee revenues from the casino.

They also say there would be fewer flood-related shutdowns and less chance of being hit by a barge because the casino's new entrance will be on higher ground and further from the Mississippi River navigation channel.

President had scheduled the move for last winter after the Board of Aldermen's approval of the original deal. It was then put off until this winter after the Corps of Engineers took longer than expected to approve the move. Then financing negotiations dragged on.

Associate City Counselor Eugene Hanses said the final deal has President putting up $4 million of the $7 million cost of the move and the construction of an entrance plaza. The city Port Authority is using Admiral taxes and fees to pay its share - $600,000 up front and $600,000 in annual payments over eight years on a $2.4 million loan from Mercantile Bank.

If the casino fails, the city has a year to pay off the principal before the bank can foreclose and take over the boat's wharf lease.

Construction on the entrance plaza began last summer, but Zweifel said President didn't want to order supplies for much of the work until the final agreement was signed.

He said there's not enough lead time now to make the move next month or in March - which had been the latest target date because of favorable low water levels. The next time such conditions are expected are in late summer or fall.

Zweifel's comments came after a meeting of the Missouri Gaming Commission. At the meeting, he restated President's opposition to the commission's granting of an additional casino license in metropolitan St. Louis.

He said a new facility, especially in south St. Louis County, could have a "potentially devastating impact" on the Admiral. He said 44 percent of his boat's customers are from south St. Louis County or south St. Louis city.

Also testifying against a casino in south St. Louis County was Denny Hettenhausen, organizer of a group called Rally Against Gambling Expansion, and a representative of the School Sisters of Notre Dame in Lemay.

Hettenhausen said the sisters are among 47 churches and religious groups taking part in a 40-day prayer vigil against proposals for a casino either in Lemay or near the Jefferson Barracks Bridge. Among participants are Catholic, Lutheran, Baptist, United Methodist, United Church of Christ, Presbyterian and Nazarene congregations.

She said opponents fear that a casino will hurt "the spiritual welfare of our community," put chronic gamblers in severe financial straits and result in less spending at area businesses. Supporters have said a casino will bring an infusion of jobs and tax money into the area.