Council approves agreements for sale of President Casino

Friday, Sept. 29, 2000 | 9:03 a.m.

"We're here to let everyone know that we want our jobs and we want this to go through," Jennifer Hill said before the vote Thursday. She is an auditor at the casino and has worked there for four years.

The package includes agreements that set city docking and boarding fees. It also includes leases for the boat landing and parking lots used by casino patrons. All told, they bring the city about $1.5 million per year.

The approval also means Davenport will continue to have a casino. Lack of approval would have held up a $58.2 million deal by Isle of Capri to buy the assets of The President from The Connelly Group, its current owner. That would have blocked plans to take over the enterprise and bring in a bigger, more modern boat.

Mark Lohman, the vice president and general manager of The President, told aldermen last week that Davenport faced a period of time without a gaming boat unless the agreements were approved in time to get the new vessel up the Mississippi River by Dec. 1.

The 76-year-old President faces mandatory dry docking by March 1. That means it has to travel to New Orleans, where it will be pulled from the water for inspection and repairs.

The Connelly Group does not have the money to bring it back, Davenport attorney Lorraine May said last week. She was hired by the city and the Riverboat Development Authority to negotiate with Capri.

Without completion of the sale, new owners would not be able to meet the Dec. 1 deadline to bring a newer, larger boat now in Bossier City, La., up the river before winter weather closes some locks.

High water in the spring would make river passage impossible, Lohman said.

"Now, Isle of Capri can move forward with the closing and take over operation," he said. "They can make plans to bring the new boat here and convert it to its new theme and have it ready for March."

Two issues held up approval of the package. One was a lawsuit filed by The Connelly Group against Davenport last year over payment of property taxes on land leased from the city. The other was how much new owners would contribute to construction of a new parking ramp it eventually hopes to lease.

In a letter to the city, Connelly Group attorney R. Richard Bittner promised to put the disputed amount of property taxes in an escrow account while the company contests the sum Davenport says it is owed. The city says that sum is $145,824, risen to about $163,000 with penalties and interest.