Cedar Rapids Development Group Gives First Look at $165 Million Cedar Crossing Casino

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Media Release

September 3, 2013 — Cedar Rapids, Iowa — The Cedar Rapids Development Group and Linn County Gaming Association have submitted an Application for a Gambling Structure to the Iowa Racing and Gaming Commission.  The proposed development is called Cedar Crossing Casino and it presents an opportunity to build a $165 million project in Downtown Cedar Rapids. The application is the next step in the process of making the urban/downtown casino a reality.

“The casino project and its Development Agreement are critical to Cedar Rapids and our community’s future,” Ron Corbett, Mayor of Cedar Rapids said. “Our community is united behind the proposed downtown casino. We’ve made great progress since the floods of 2008. However, we still have a long way to go and this casino project is a catalyst for our ongoing recovery which will add to our property tax base, create jobs and will be a critical piece for west side flood protection.”

“The proposed casino design not only fits the environment, it is capitalizes on what makes our location the best one for Linn County, with awesome views of the Cedar River and our downtown skyline as its backdrop,” Steve Gray, Cedar Rapids Development Group said. “The vision we started with about a year ago has grown to offer the amenities necessary to help reshape our downtown. This is not just about a casino; it’s about our community’s collective determination to make the right decisions for the right reasons.”

“We couldn’t be more encouraged about all that a casino gaming license would bring,” Leah Rodenberg, board member and secretary/treasurer of Linn County Gaming Association, the proposed casino’s qualified sponsoring organization, said. The non-profit group stands to become the casino’s co-licensee if the casino license is awarded. “From the beginning, state leadership wanted to be certain that casino operators provided the largest possible impact throughout the state. Our revenue share from gaming at the proposed casino would continue this commitment by providing millions of dollars to distribute to non-profits each year.”

The casino development will include a variety of dining options; a buffet, a steakhouse, and a deli, plus a retail store and banquet facilities. “The proposed development is precisely what we need not only to improve quality of life for residents but also attract more visitors—especially regional and national convention travel to Cedar Rapids,” Marilee Fowler, executive director of the Cedar Rapids Area Convention & Visitors Bureau said. “This project is aligned with everything that Cedar Rapids area has to offer. By providing quality entertainment downtown, 365 days a year within minutes of 3,000 hotel rooms and within walking distance to the new US Cellular Center, our state’s second largest city would be well poised in Regional and National Convention competitive bids.” 

While the Cedar Crossing Casino vision has grown to offer amenities which will help reshape Downtown Cedar Rapids, studies released with the application show its positive economic impact would benefit the entire region and the state. The $165 million development includes the casino projected costs at $139 million plus $25.3 additional for the public parking structure. Two studies regarding the development’s economic impact were submitted by Cedar Rapids Development Group and Linn County Gaming Association with the casino’s application to Iowa Racing and Gaming Commission.

One study conducted by TMG Consulting titled “Casino Gaming Market Assessment” finds that gross gaming revenue share (gaming taxes and fees) paid to Linn County Gaming Association, state and local government agencies would add up to nearly $100 million in Cedar Crossing Casino’s first five years of operation.  “The casino development would help relieve tax payer burden here and across the state,” Brent Oleson, Linn County Commissioner and Linn County Gaming Association board member said. “You would be hard-pressed to find another development that could generate so much positive impact.”

Cedar Crossing Casino is forecast to create more than 450 jobs. Also, 125 short-term construction jobs can be anticipated during the construction phase of the Cedar Rapids development. The majority of the new jobs created at the casino require no casino experience. Cedar Crossing Casino would hire and provide training for new hires. Other jobs would be created based on purchases the casino makes directly, casino visitor spending and the payroll new casino jobs provide.

According to Strategic Economics’ Study dated January 2013, Cedar Crossing Casino project will provide an estimated $78 million of economic impact each year. With $48 million coming directly from Cedar Crossing Casino and an additional nearly $30.5 million of impact coming from business and consumer spending related to the new development. In addition, construction of Cedar Crossing Casino will produce an economic impact of more than $70 million; $49 million directly and 24.7 from business and consumer spending related to Cedar Crossing Casino’s construction.

All of this is good news for a region hit so hard by the floods of 2008. “The proposed casino development will be a catalyst for even more reinvestment by private businesses that are not accounted for in these studies,” Mayor Corbett said. “The project and its economic impact are significant.  The impact put forward by these studies is merely the tip of the iceberg for what this development means to our local economy.”

Casino project renderings will be on public display at Cedar Rapids City Hall beginning Wednesday, September 4 through October 1, 2013. The Iowa Racing and Gaming Commission is expected to consider the application over the next several months and render a decision in spring 2014.