Some poor areas may benefit from Illinois casino proposals

Maura Kelly

Wednesday, March 3, 2004 | 9:15 a.m.

CHICAGO -- Several poor communities in Cook and Lake counties, including two towns that had their casino bids rejected, would benefit from proposals submitted by three companies vying for the state's last casino license.

Bids to build casinos in Summit and Country Club Hills, two economically depressed communities in the suburbs south of Chicago, were eliminated by the Illinois Gaming Board last week. That decision upset residents and lawmakers there who said the south suburbs would have benefited economically from a casino.

Two of the three remaining proposals, however, would offer some financial benefit to one or both of those communities, according to the proposals.

The three companies seeking to buy the 10th unused license now held by the bankrupt Emerald Casino outlined their proposals Monday to members of the Illinois Gaming Board. The board expects to choose a leading bidder on Friday.

A proposal by Isle of Capri Casinos Inc., which submitted a $351 million bid for a casino in Rosemont, would share $17 million annually with 71 communities, said Donald Storino, executive director of the West Central Municipal Conference, a nonprofit municipal group. Two of the communities are Summit and Country Club Hills.

"It spreads the most money for all communities," Storino said.

Midwest Gaming and Entertainment LLC, which submitted a $360 million bid to build a casino in Des Plaines, calls for sharing about $7.1 million annually, based on projected gaming revenues, with 10 of the most economically depressed communities in Cook County. Summit is among those selected towns.

Neil Bluhm, Midwest chairman, acknowledged the proposal to build a casino in Rosemont gives money to more communities.

"But the impact to any one city is not that great because you're spreading the money that they're giving up to 70 some-odd communities, and they're not targeting just the poorest communities. They're giving it to anybody that signs up," he said. "We think ours will have more punch."

Harrah's Entertainment Inc., which proposed a $375 million bid to build a casino in Waukegan, will share about $24 million with several north suburban Chicago towns including Waukegan, North Chicago, Zion, Beach Park, Park City and the Round Lake Schools, said Jan Jones, a Harrah's senior vice president.

Midwest Gaming and Entertainment officials say the communities they plan to share money with were part of the company's proposal long before Gaming Board members rejected plans for casinos in Chicago's south suburbs.

Midwest's plan also includes an offer to pay up to $3 million to complete construction on a new interchange on Interstate 294, which Bluhm said would allow for easier access to the casino site.