Tour of Iowa casino sites ends

David Pitt

Friday, April 8, 2005 | 9:35 a.m.

WATERLOO, Iowa -- Three of the state's five gambling commissioners started their second day of visiting proposed casino sites Thursday with a downtown tour in a horse-drawn trolley.

Two of the commissioners opted for a bus tour to avoid the chilly spring winds.

Commissioners are visiting all 10 proposed casino sites in seven cities before deciding how many new licenses will be granted. Their decision will be announced May 4.

Winners of the new licenses will be announced May 11.

Waterloo has three competing proposals. The first would put a hotel and casino on the Cedar River. Supporters said the downtown site would revitalize an economically depressed area.

"The thing about downtown Waterloo is there's room for improvement. There's room for development and expansion," said Gary Hoyer, project manager for the Cedar Landing Hotel and Casino.

The second stop was at a dog track that closed in 1996. A second group of Waterloo residents want to build a casino on the property and possibly reopen greyhound racing again. A major investor is the Meskwaki tribe.

Supporters said the existence of the 64-acre racetrack would make it easier to get a casino started.

"This infrastructure is one of the key elements that makes us a head of the game," said Wally Mochal, project manager. "We're ready to serve the state of Iowa, our community and Black Hawk County."

At the third stop, commissioners were greeted by more than 300 people in grass skirts and colorful Hawaiian costumes. The proposed Isle of Capri Casino and Hotel would be built next to the Lost Island water park.

Commissioners were offered Hawaiian flower leis and seated in wicker chairs beneath a large tent where supporters detailed their project.

"We plan to create a full service tropical paradise destination," said Nancy Donovan, who will manage the proposed casino.

In Riverside, about 80 people greeted the commissioners to a tent set up at the base of a grain bin on the farm where an 18-hole golf course and casino would be located.

Dan Kehl, who would be the casino's chief executive, said local people have already bought shares in the project totaling more than $23.8 million. The goal was to raise $17 million locally.

The last stop on the tour was Ottumwa, where about 300 people met the commissioners with applause.

Supporters said a casino fits in well with plans to improve the business district along the Des Moines River, which runs through the city's downtown area.

Ottumwa has already received approval for a $7.5 million grant from Vision Iowa to help build a $20 million civic center, which would be located next to the proposed casino overlooking the river.

"We need to do whatever we can to make our small towns sustainable," said Mary Kay Henderson, who lives in nearby Albia and works for a nonprofit affiliate of the Ottumwa Regional Health Center. She said the casino would help make Ottumwa a destination center for a large area of southern Iowa.

The tour took the commissioners on a trek of more than 600 miles.

"I'm looking forward to going home and getting off the bus," said Commissioner Mike Mahaffey, a Montezuma attorney.

He said he would likely take some time this weekend to begin considering all that he has seen during the two-day tour.

Commissioner Joyce Jarding, of Farley, said she'll consider the level of Iowans who invest in the projects and whether the money stays in the state.

"It makes me really proud and happy to be from Iowa to see this kind of commitment from Iowans who want to improve our state," she said.

Commission Chairwoman Diane Hamilton said in some ways the tours make the decision of choosing who will get licenses more difficult.

"All of these are great projects. There are different components that make them different and special and I think the decision is going to be even tougher than what we anticipated," she said as she boarded the bus to return to Des Moines Thursday afternoon.

Commissioner Gerald Bair said he will consider the jobs created, the economic development potential and other criteria.

On April 21-22, commissioners will hear results of background investigations into the people involved in casino proposals.

"We want to make sure all the people involved are credible," Bair said. "The last thing we need in the industry is unscrupulous people."