Should Cedar Rapids officials strike deals with casino developers on city-owned facilities?
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Cedar Rapids mayor Ron Corbett said this week that the proposed Linn County casino would not come with its own hotel or arena, and as a result, the casino investors will depend on the city’s existing facilities to provide that support for the casino.
“Using these existing city-owned assets versus building or duplicating them is a benefit to the taxpayers,” Corbett said.
The city and the casino group, the mayor said, will immediately get to work on a development agreement — if voters approve casino gaming in Linn County on March 5 — because much of the land on which a casino is proposed to go is now owned by the city, which obtained it in the city’s federally funded, flood-recovery buyout program. Corbett said he envisioned the development agreement to require the casino to commit to keeping a certain number of the rooms in the 270-bed DoubleTree filled.
“And actually, I can see a scenario where the casino group purchases the hotel five years from now,” he said.
The mayor said, too, that a city-casino agreement likely would ask the casino to underwrite a certain number of concerts a year at the U.S. Cellular Center arena or the city’s new riverfront amphitheater. With the casino’s financial support, the city then could attract bigger acts to its entertainment venues and still be able to offer reasonably priced tickets, the mayor said.
Is it appropriate for Cedar Rapids city officials to propose agreements with casino owners regarding the city’s new hotel venture or other city-owned facilities?
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Earl Butz got fired for what I’m thinking.
On the surface, it sounds like it might be a good idea. As always, the devil is in the details.
The good news, the casino land buy will be used to pay back the fed. What a concept! The bad news, how is the city going to strong arm the investors into filling the hotel? Sounds like someone might be nervous about getting into the hotel business. If this stipulation is put in a contract maybe it would be a good idea to get the casino up and running before our mayor approaches investors with hat in hand. Stay tuned.
One would think that the city would wait until the Casino vote is held and the Iowa Gaming commission has made their ruling before casting all their marbles into the magic vanishing money pit.
Kinda late with bringing up that question. You cannot tell me that there hasn’t been secret meetings, e-mails, phone conversations and under the table offers going on since before the casino idea was released to the public. Would be fun to know all the promises made to the casino group IF they win. I had a YES person tell me that WHEN they win, the gambling commission has been “greased” (his word) so they are not worried about getting a license.
I agree with that! Corruption runs rampant in America and gets worse by the minute!
Casino dreams are bottom feeding for any community. What’s next—-legalized prostitution…??
Probably not “legalized” prostitution; but possibly “officially ignored”. I think that you’d see the elimination of the much-publicized stings that sporadically take place, in a conscious attempt to improve the image of CR as a destination for hospitality services/adult entertainment. Alcohol enforcement may also be dialed back a couple of notches in whatever sector of the city informally becomes the “hotel/casino fun zone”.
On the upside, the poliice presence in said fun zone will probably be increased in order to prevent the city’s criminal element (yes, there is one) from cashing in on the influx of semi-inebriated, older gamblers and giving the area an unsafe reputation.
OK, I’ll bite….
Why not?
Perhaps a for-profit prison ?
(There’s plenty of potential “customers” considering the US has the highest incarceration rate of any nation in the World. )
Yes Legalized Prostitution is next!!
People say it will bring more jobs. No it will cost jobs of businesses that will lose out to the casino . Crime will increase , Why not build a nice family friendly indoor water park. A indoor rain-forest , something that will bring families in town plus it will bring jobs also. Casinos only brings money in two the fat cats.
Crime is running Rampant in Riverside! Its way outta control and cant be stopped!!!!!!!!!!!!!!! That argument holds no water! Crime in CR is already bad! A casino wont increase the crime in this town!
crimes are not rampant in riverside because all the gamblers there are imported from elsewhere, while in cedar rapids they wont be imported so will get all the affects of gambling.
Can you cite any credible sources for your claims that “it will cost jobs” and “crime will increase”?
Casinos don’t create crime. Welfare does.
Seriously, David? That’s what you came up with? Sounds like something Glenn Beck would say, and idiots would believe.
Care to cite *credible* sources to back that up, or is it just more teaderp hooey?
Direct from the mouth of Governor Branstad: “Once you get into the gambling business and you are dependent on that revenue to fund the operations of state government you are hooked. And I don’t think the state of Iowa wants that addiction.” [February 16, 1984 CSPAN Interview File 112 19:57 – 20:07]
A large group of Cedar Rapids’ Casino Investors now fill Governor Branstad’s campaign coffers with cash. Iowa voters and the Governor have really short memories. The Governor’s own words about gambling have faded away. Now Iowa voters line up like sheep to obediently empty their pockets to pay the huge Casino tax to the Feds, the State, County, City, and provide a nice healthy share of their hard earned pay for a few Casino investors. The House always wins, and the State takes a huge cut. A Casino is not economic development, it just re-circulates citizen’s hard earned pay to government and a handful of investors. A casino drains the economy of the productive capacity of that cash.
Just like bugs flying into the fire…. -A casino puts up the glitz and lights, and gamblers go blindly right into the fire. So how many gambling damaged lives are okay for Steve Gray, Mc Cleod and crew to make a buck or to provide State and Local Government with huge tax revenue? For every dollar drained into a casino, the public pay out $2 in social costs. 44% of casino cash goes to Feds and State straight off the top… as long as politicians are in on the take, they give their blessing to Casinos. Gambling is a voluntary tax and the dysfunctional Government grows ever larger from the Gambling Game. As investment expert Warren Buffet states; Casinos are a tax on the ignorant. Buffet also says that any government that uses gambling to tax their own citizens is despicable. The Investors win, Government takes a piece of the action, and everyone else are big time losers in the Casino Economy.
Mr. Richards, So should we put you down as a “no”? Because you also gave some compelling reasons for the “yes” people. The fed., state & cities will get their cut regardless. We do need to be vigilant in keeping them from ruining what could benefit it’s citizens. The mayor bought into the hotel business now he needs to run it like a business. Partner with the casino and chamber in marketing but stop trying to find a different wishing well to fund the thing. There is a management team in place for the hotel so lets give them a least a hot minute.
However I am concerned about the advisory board and there conflict of interests. We want this venture to help sprout some fun inexpensive things for families and tweens, not to fund the wish lists of city government for expensive office art work and lavish ideas.
Can you cite any credible sources for the claims you make such as “For every dollar drained into a casino, the public pay out $2 in social costs” or “44% of casino cash goes to Feds and State straight off the top…”?
I somewhat agree with Warren Buffet’s claim that casinos are a “tax on the ignorant”. It needs to be pointed out that, if so, it is a tax that people voluntarily pay, just like the lottery. I don’t buy lottery tickets and I won’t be gambling at the casino, except on rare occasions. Nonetheless, I look forward to others paying this “tax” to help our community.
“Casinos are a tax on the ignorant.” Not certain that I totally agree. You don’t have to be ignorant to gamble; but it no doubt helps.
They keep avoiding the ramifications, both moral and sociological, of a casino. It’s like the gambling aspect is a minor aspect. Instead they tell us we “need” a new venue for “great entertainment in Cedar Rapids”. Poppycock! We already have those venues. (Evidently existing Cedar Rapids entertainment venues and restaurants are not good enough for the pro-casino group. ) If these self-proclaimed “philanthropists” were wanting to behave as such, they would invest in and promote the existing entertainment venues such as CSPS, The Paramount et al. This whole thing is typical of our self-absorbed city government of the past decade. Coming up with genuine solutions seems too much for them, so they let someone else come in with the promise of money to let them continue to sit back, give themselves big raises, and tell the citizens to just shut up and accept their decisions.
I also read some “Yes Casino” blurb about how the casino will be operated by a not for profit group rather than the owners? Really? And yet the not for profits in our community will receive only about 25% of the profit the investors will get in the first year alone.
The investors are going to pocket an estimated $22 million in the first year. That is the ONLY reason they are driving so hard for a casino. Quick, easy money for them. To try to snowball us into thinking it’s an exercise in philanthropy is not only disingenuous, it’s both condescending and patronizing toward the people of Cedar Rapids,
Lets just be honest.
1. the fear mongering works on some, but not most. Did any community in Iowa see a crime increase comparing pre and post casino? The answer is no.
2. the facts are clear, the lowest vote approval POST casino in any community was 74%, the highest north of 82%. Cutting throught the “what ifs” and “this could happen” it is pretty dang clear. These communities are thriving and benefitting.
How often do you get 82% of people to agree on anything in this country today? Well, Casino communities overwhelmingly, by an vast majority, approve of and value the benefits these facilities created.
I think some good intelligent people out there are just creating a false villain and not seeing the forest for the trees that are being put in front of them by false facts, fear mongering, and outside influences.
The investors are Iowans, and mostly Linn County folks through and through. They are hard working Iowans and enterpreneurs willing to risk their necks to benefit this community and its residents. They also are asking for zero tax dollars unlike other communities who borrowed from the people to build their casino while promising a higher return.
Oh, and for the record, Riverside is giving 3%, yet they spend millions ripping the Yes proposal. That is the height of irony and hypocrisy.
For those that oppose a Linn county casino. You fail to acknowledge that as adults we are responsible for our own actions. No one forces us to patronize any business. We have freedom of choice. You can go when you wish or you can choose to stay home. I agree spending money will put some into state and federal coffers, but at least I will be entertained with my contribution in a casino. I can freely choose not to contribute there, unlike the state property taxes which go up every year and are NOT voluntary! I have been paying those property taxes for nearly 40 years without any evidence those payments ever accomplished anything in my neighborhood. My street has been on the “replace list” of the city for over 7 years and it still receives only token applications of shovel ready asphalt each year? WTH?
addendum:
Yes the city make deals to entice businesses, It is normal procedure. Including land deals and limited tax incentives to get investors to build.here.
The city should not strike any deals of any kind with the casino investors.
You got to know there is under the table dealings and back door agreements. remember TruNorth. plenty of greased is passed around. I like the way they keep talking about all the money it will bring to the city and county, Hello , it isnt coming out of the sky like rain or snow, it is coming out of all the losers hands that go in and play the slots. And you can see when they brag about all that money coming, they plan on people losing a lot.
Mr Gray and associates are not doing this for fun. The profit is the end game for them, and it appears also for the city and county. No for profit business should be aided by the government with special deals like free land or quid pro quo treaties. Casinos are a way for the governments who can’t live within their budgets to advance their bloated spending agendas at the expense of addicts or folks who want the thrill at the sacrifice of their budgets. We would object if the county/city increased our taxes, this is a tax mostly on the folks who can afford it the least, and makes the “group” a lot of profit. Not a good idea! The city/county need to stay within their budgets by providing the needed services without the gold plated faucets.