Iowa counties schedule votes on floating casinos

David Pitt

Tuesday, June 17, 2003 | 9:20 a.m.

EMMETSBURG, Iowa -- Dreams of riverboat casinos and a quick infusion of gambling money into the local economy are swirling in the heads of economic developers in at least five northern Iowa counties.

Three counties -- Palo Alto, Dickinson and Worth -- already have set referendums in June and July. There's only been discussion in nearby Cerro Gordo and Franklin counties.

The fever grew after lawmakers briefly mentioned months ago that the desperate financial condition of the state could be alleviated by additional riverboat gambling licenses.

"We need more people, more jobs," said Steve Heldt, a car salesman who is working to promote a riverboat casino in Emmetsburg, along Five Island Lake. "We need something else here. The state of Iowa has said a casino is a viable economic development tourist attraction and we need the jobs that will bring people to the area."

Developers say the area is ripe for development, with open land surrounding the natural lake, named for the five small grassy islands in it. Children tiptoe off the public beach just a block from Emmetsburg's central business district, built right up to the water's edge.

Opponents, mostly members of the local clergy, believe gambling will sully the town's tranquil image and corrupt its residents.

Emmetsburg City Planner Tom Alger looks at the success of Lakeside Casino Resort in Osceola, another town that put a casino on a lake.

The city gets about $1.1 million in annual revenue, Clarke County gets about $270,000 and the county economic development group gets $812,000.

"How can we not take a look at the economic impact of that -- and the 540 jobs, mostly full-time with benefits?" he said.

One of Emmetsburg's selling points is that it is 130 miles from the nearest casino, he said.

"We're dead center of the dead zone," Emmetsburg City Planner Tom Alger said.

The Iowa Racing and Gaming Commission, which oversees gambling in Iowa, imposed a moratorium on new licenses in 1998 to slow the growth of the gambling industry. The first of 10 riverboat casinos began operation in 1991, three Indian casinos opened in 1992 and racetrack casinos were approved in 1994.

Current commissioners -- three Democrats and two Republicans -- have not said whether they would favor lifting the moratorium.

Steve Chapman, a Des Moines businessman, said he wants to see hard data before he decides.

"Until I look at the study I have no feelings," he said. "I want to see the facts."

Wes Ehrecke, president of the Iowa Gaming Association, a casino trade group, said the state also stands to benefit financially from a new casino.

"It could be a win-win situation if the right application is brought forward," he said.

There is some squabbling among the handful of northern Iowa counties dreaming of casino dollars. Residents in the Lake Okoboji area, for example, worry about the impact on their tourism industry if the casino goes somewhere else.

Alger cites Emmetsburg's proximity to Lake Okoboji as a plus.

"It would enhance the entire area's tourism draw," he said.

Bill Shafer, a businessman in the Lake Okoboji area, said a boat in Emmetsburg would draw business away from such towns as Arnolds Park, Spirit Lake and West Okoboji.

In Arnolds Park, he said, the population grows to 100,000 during the brief summer months, then drops to 6,000 in the fall and winter.

"For 80 to 90 percent of the year, we're on a shoestring," he said. "We can't afford to have any of the tourism business and jobs go."

Joann Stockdale, owner of Northern Iowa Die Casting in Lake Park, said the Okoboji area doesn't need a casino as an economic development tool.

"We are vibrant, growing and doing well. We don't need it here -- we're doing so well on our own."

She also argues that the area is a family attraction, while a casino is an adult-oriented enterprise.

Michael Mahaffey, chairman of the Iowa Racing and Gaming Commission, said the moratorium on new casinos could be lifted at the July 17 meeting -- after the three scheduled referendums have been held.

"I remain skeptical, but as only one member of the commission I have to try to be objective about that," Mahaffey, a Republican, said.

"If people think this is the pot of gold at the end of the rainbow, I guess that's mainly what I'm skeptical about. But that's my personal feelings and you know we have to get beyond that sometimes," he said.

Jack Ketterer, full-time administrator for the commission, said state law contains no mandatory cap on the number of riverboats or racetracks.