UPDATE: The city of Davenport is proposing a plan to purchase Rhythm City Casino.
Davenport Mayor Gluba says, "If the city purchases the Rhythm City Casino, gaming revenue from our residents, our tourists and our visitors will no longer flow out of our community to places like Las Vegas, Chicago and New Jersey. Rather, this money will all stay here in Davenport to benefit the people of our area."
The cost to purchase Rhythm City Casino is $46 million and the city expects the cost to be paid for with future gaming revenue. City officials are making it very clear that "property taxes will not be used to buy out the casino."
The city expects to issue 20 year bonds for the purchase. With the city's current credit rating, the full purchase cost is expected to be repaid at a cost of $3.5 million a year for 20 years.
Decisions and approvals by the city council, the RDA, the Iowa Racing and Gaming Commission and the Isle of Capri Board are necessary to move toward the city's goal of insuring that every dollar of gaming profit stays in the community. A final purchase agreement for the casino must be negotiated and agreed between the City and IOC (the Isle of Capri Casinos, Inc).
Negotiations with IOC began in late September, after negotiations with a national gaming company brought to the city by MSEG concluded. After review, it became clear to the city it could minimize risk and retain gaming profits in the community by purchasing Rhythm City Casino itself.
The purchase includes the boat and all of the slot machines, and under the current proposed terms the city plans to retain the employment of Rhythm city employees.
The purchase will be on the Finance Committee agenda for Wednesday and the city council will vote on October 24th. That's the first of many steps.
Buyout Fact Sheet
City of Dubuque Gaming Summary Chart
Buyout Q & A
EARLIER STORY: The city of Davenport plans to purchase the Rhythm City Casino for $46 million.
Alderman Bill Boom tells TV-6 the city would continue to operate the riverboat at its current location until a land-based casino could open. Boom says, "There's no sense in tipping it over just yet." He says city leaders want to keep the casino workers employed and eventually move them to a new location.
The final sale still requires approval by the Davenport City Council and the Isle of Capri.
City leaders will announce the plan during a news conference at 8AM Tuesday. KWQC will be at that meeting. Look for more details here and during your noon news.
