Kehl Has Casino Land, Proposes Development Agreement With City - News and Weather For The Quad Cities -

Kehl Has Casino Land, Proposes Development Agreement With City

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Kehl Development has an option to buy 100 acres in north Davenport to build a new casino.

They are three adjoining parcels of land located in the area of Veterans Memorial Parkway and Eastern Avenue,not far from the I-80 brady street corridor.

With a potential location in place, Kehl has submitted a development agreement to the city.

The proposed development agreement follows pretty closely to the one the city negotiated with the former casino developer, MSEG in 2010.

There are some key differences:

It will be a bigger project, $100 million versus $75 million.

The city will receive a larger slice of the gambling proceeds, 2.75 percent of adjusted gaming revenues after four years.

There's also a proposal to form a new committee to help determine how to build out the entire area.

City leaders and Kehl, say it's a good starting point.

"It's very beneficial to us because we don't have to start dotting any I's or crossing and T's, it was a good start," says Davenport Alderman At-Large Gene Meeker.

He says starting with a document similar to an agreement the council has seen before lets it start at a point other than square one. Although he says the whole council still needs a chance to digest it.

"None of us have really had an opportunity to discuss it amongst ourselves or separately."

Meeker says there will be some points the city will want to negotiate. He didn't want to speculate on those, but Dan Kehl knows there will be some give and take.

"Obviously the council is going to be getting feedback from other constituents and they're going to try to relay those and put those into the document and address the concerns of the community," says Kehl.

Kehl says he has until mid-October before he has to exercise his purchase options. Giving the council time to propose a counter offer. Alderman Bill Boom says the amount of money the city will get is not as much as once hoped.

"I've looked at the number, it doesn't appear that its going to get us much more than we were getting before, I guess that's a disappointment," says Boom.

With three months to go though, all sides agree there is time to work out the kinks.

"It's an opening point for discussion, I wouldn't consider anything in there to be a sacred cow," says Meeker.

The city council has scheduled a work session with Kehl during the first week of August.

The city will have about two months to work out an agreement with Kehl.

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