It's only four weeks before a group planning to bring a $107 million gambling facility and golf course to Riverside gets to roll the dice before state regulators.
They won't know until May if their proposal comes up snake eyes -- in craps, that's bad -- but March 22-23 will be an important show-and-tell for the proposed Riverside Casino and Golf Resort and nine other applicants hoping to be licensed.
One by one, they'll make their pitch to the Iowa Racing and Gaming Commission and then wait two months to find out if it was convincing enough.
At stake: money and jobs.
Some Washington County residents can see it in their mind.
"I drive by there, and I look over and cannot believe there will be one so close by," Riverside resident Marj Schnoebelen said. "There's a lot of people looking for employment and looking forward to the whole thing. It's like a dream come true for our county with this many jobs and this golf course."
If a license is approved, the land near Riverside and banks of the Iowa River will be transformed into a land-based casino, or moored barge, that pays homage to the days when riverboats ruled the Mississippi.
In the meantime, economic development experts, residents and civic leaders continue debating the pros and cons of gambling and how it could change the future of Washington County, its neighbors and the entire state.
A destination resort
The drive along Highway 218 stands to get more interesting if non-profit Washington Riverboat Foundation and the operating company, Washington County Casino and Resort LLC, get a gaming license.
Fort Madison-based Catfish Bend Casino and Dan Kehl, the groups behind the proposed casino, aim to bring one of their largest casino resort projects to Riverside, just two miles from the intersection of highways 218 and 22.
The highlight of the casino and resort would be an 18-hole golf course designed by Rees Jones, one of the premier golf course designers in the world. Jones, son of Robert Trent Jones Sr., has designed more than 100 courses, redesigned seven U.S. Open venues, five PGA courses, three Ryder Cup sites and one Walker Cup site.
Compared to other gaming applications, the one from Catfish Bend will be built in a more rural setting and in one of the smaller counties in the state, said Joe Massa, general manager for Catfish Bend. Just 14 miles from Iowa City, the proposed resort would take up about 235 acres, he said.
The proposal would become one of the largest facilities in the state, comparable to Prairie Meadows Racetrack and Casino, which spans about 233 acres, Catfish Bend says.
"We're looking at truly a destination resort and the highlight of that is the golf course," Massa said. "I don't know of any casino in Iowa that operates a golf course in conjunction with their casino. This will be the largest project that they have an involvement with."
The casino facility will include a 200-room hotel with meeting rooms, a 1,200-seat entertainment center and a casino/food service area with 24-hour diner, buffet and steakhouse.
The facility's exterior will replicate Iowa commercial riverfronts, and the interior will attempt to replicate the "splendor of the grandest days of riverboat passenger vessels," according to the license application. The casino will have 32 gaming tables and 1,100 slot machines.
"There are other casino applications in the state that have incorporated other additional attractions besides a casino, like a water park," said Ed Raber, president of the Washington Economic Development Group.
"To me personally, those are somehow mixing little kids' activities with a casino, and I think Catfish Bend Casino wants to have a really upscale golf course. That's the sort of thing you want mixed in relation with the casino," Raber said.
The target market
The goal is to develop a major attraction for the area and to provide opportunities for other businesses to develop, Massa said.
Chosen for its closeness to Highway 218, Riverside provides a location with access to the casino's primary target market -- Iowa City and Coralville.
Catfish Bend predicts its golf course will create a major draw for tourism, and the entertainment center will attract similar acts to what's offered in Iowa City and Cedar Rapids, but not the big headline entertainers that fill football stadiums.Massa said peak activity at the resort could coincide with major events at the University of Iowa, such as Hawkeye football games, he said.
"We felt this particular location is appropriate for an upscale resort complex, and that's what we're planning," Massa said.
Chuck Swanson, executive director for Hancher Auditorium, said Catfish Bend's proposed 1,200-seat entertainment complex poses no direct threat to the University of Iowa's ability to attract quality entertainment because the two entities cater to different markets. Hancher Auditorium has 2,533 seats and is highly regarded as a quality university venue."There might be some crossover in terms of audience, but I think our mission is totally different. I really feel like they would not be in direct competition with us ... I feel we fill a different niche than they do," Swanson said.
The proximity of the proposed project to Iowa City has some gambling opponents wondering whether the project could cause problems for college students. But Massa said that poses no serious challenge to potential security staff. Dealing with underage or intoxicated people is something casinos do on a daily basis, he said.
"This is an adult recreation facility," Massa said. "There won't be anything that encourages minors to come."
Still, the popularity of poker tournaments on television, the craze over Texas Hold'em Poker and illegal Internet gambling has forced gambling treatment experts to become concerned with potential problems for underage and college-aged gamblers, said Frank Biagioli, executive director of the Office of Gambling Treatment and Prevention in the Iowa Department of Public Health.
"It's just one of many areas that we need to be alert of and keep a message out there that it's not all fun and games and that some of these people don't make it to the final table," Biagioli said.
Treatment centers often do not see college-aged gamblers because they don't experience the level of debt and financial problems that older gamblers do, Biagioli said. Still, they may be using loan money to pay off debts then dropping out of school, getting into credit card debt, or borrowing money from parents and passing it off as a college-related expense, he said.Another target market is the Quad Cities, home to three gambling facilities and a racetrack.
If Riverside Casino and Golf Resort is built, Catfish Bend projects it would take in about 26 percent to 32 percent of its business from existing Iowa-taxed casinos, and 33 percent of that revenue would be from casinos outside a 75-mile radius.
The casino and resort is expected to bring in between about $84.6 million and $92.3 million a year, depending on the number of gaming licenses granted to the market area. The casino and resort project is expected add between $15 million and $22.1 million of new taxable gaming revenue to state coffers.
Catfish Bend predicts that by 2006, 274,241 people from Riverside and Johnson County will be at least 21 years old and could generate about $68 million in gaming revenue.
The promise of economic wealth
Gambling revenue has become a source of economic prosperity for several city and county leaders across the state looking for additional money to counter growing demands on services.
Proponents say casinos provide employment for thousands of Iowans and generate millions of dollars in indirect economic development through the hotel and restaurant industry. The industry employs nearly 9,000 people statewide with an annual payroll of more than $229 million, according to the Iowa Gaming Association. It also pays more than $249 million in local, county and state taxes every year.
Opponents say casinos' average wages and benefits are low, and the industry replaces a town's existing restaurants and hotels. They also point to the increasing dependency on gambling treatment programs and stress on law enforcement and the judicial system.
"If I was working for economic development in Iowa City or Johnson County, I'd be livid," said Jim Hussey, a member of Communities Against Riverboat Expansion, or CARE. "You take out nearly $50 million in income out of a county every year, and that's a lot of cars, home improvement, entertainment and other purchases that won't be made."
Brad Franzwa, a member of CARE, said he is discouraged by the dependence Washington County residents and some legislators appear to have on gaming revenue. He said dollar signs are being floated in front of communities across the state.
"It seems like every time I hear the Legislature speak, they're counting on money to come out of the Racing and Gaming Commission," said Franzwa, who moved to North Liberty from Riverside when the special election on gambling was approved by Washington County voters.
"I don't have a whole lot of faith (in) the Iowa Racing and Gaming Commission when they're funded through the state. It's discouraging," he said.
The University of Northern Iowa was selected by legislators to research socioeconomic effects of gambling; the data collection phase began Nov. 29, 2004.
Economic development experts say the gaming climate of today is vastly different from the early 1990s, when Iowa became the first state to launch riverboat gambling along the Mississippi River. There are now 13 racing and gaming facilities in the state that are open 24 hours a day.With all the gambling sites and growing potential for community attractions, such as a rain forest in Coralville or improved riverfronts, legislators need to consider marketing the state better so communities don't compete with each other for tourism dollars, said Joe Taylor, president and CEO of the Quad City's Convention and Visitors Bureau.
Taylor said gambling facilities are just part of what made Scott County rank high in tourism revenue in the state.
"I think long term the state of Iowa needs to make sure it's not taking gamers from one community and moving them to another community," Taylor said. "We need to make sure we're bringing more gamers to the entire marketplace so everyone benefits. We need to look at the big picture and market Iowa as a destination so new tourist attractions all succeed."Josh Schamberger, president of the Iowa City/Coralville Convention and Visitors Bureau, said many communities already are participate in regional marketing. Even if a gaming license is granted in Washington County, he said Johnson County tourism -- No. 4 in the state -- would remain strong.
"We have a very nice tourism infrastructure that reaches a lot of individuals," Schamberger said. "The infrastructure down in Washington is not as developed as Iowa City and Coralville."In 2003, visitors spent $215 million in Johnson County compared to nearly $9.8 million in Washington County, according to Iowa Department of Economic Development. The tourism industry employs more than 3,200 people in Johnson County compared to 110 people in Washington County.
Next month's two-day meeting will be the state's most intense review of the gaming industry since the first three riverboat gambling licenses were approved in 1991.
Staff for the Iowa Racing and Gaming Commission has spent the last four months meeting with applicants and compacting the documents for easy transport for commissioners as they travel to each site April 6 and 7.
