Loading...
HomeMy WebLinkAboutRES.2560.09-22-2010BILL NO. 10-124 RESOLUTION NO,,�—'W A RESOLUTION APPROVING THE GAMING PLAN FOR THE CITY OF CAPE GIRARDEAU AND AUTHORIZING SUBMISSION THEREOF TO THE MISSOURI GAMING COMMISSION WHEREAS, the Missouri Gaming Commission ("MGC") announced that it will accept applications from interested parties for the development of a riverboat gaming facility and related facilities and potentially prioritize an application for investigation and evaluation by the MGC for licensure utilizing the only available Class B gaming license in Missouri; and WHEREAS, in order to enhance the Downtown Business District and encourage economic growth and job creation, on or about April 20, 2010 the City delivered to the MGC a letter of interest supporting the construction of a riverboat gaming facility and related facilities in Cape Girardeau; and WHEREAS, on or about April 29, 2010, Isle of Capri Casinos, Inc. ("IOC") delivered to the MGC a letter of interest expressing interest in development of a gaming facility; and WHEREAS, on July 8, 2010 the Council of the City held a public meeting during which interested parties, including IOC, presented conceptual plans for a riverboat gaming facility and related facilities to be located within Cape Girardeau on land near the Downtown Business District; and WHEREAS, at its August 26, 2010 meeting, the City Council adopted Resolution 2553 conditionally designating a wholly-owned subsidiary of IOC, IOC -Cape Girardeau, LLC (the "Developer"), as the "preferred developer" and the site proposed by the Developer as the "preferred site" for location of a gaming facility within the City; and WHEREAS, at its September 20, 2010 meeting, the City Council adopted Ordinance 4156 authorizing the City Manager to execute a Development Agreement between the City of Cape Girardeau and the Developer for a riverboat gaming facility and related development in the City; and WHEREAS, the Developer has submitted its application for a Class B gaming license to the MGC seeking authorization to construct and operate a riverboat gaming facility in the City, and pursuant to 11 CSR 45-4.040, within 30 days of such submission the City is required to submit to the MGC a plan providing certain input from the "home dock" city or county; and WHEREAS, the City Plan for Gaming in the City of Cape Girardeau (the "City Plan"), attached hereto as Attachment 1 and incorporated by reference, has been prepared to fulfill the requirements of 11 CSR 45-4.040 and the City desires to submit the City Plan to the MGC; NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF CAPE GIRARDEAU, MISSOURI, AS FOLLOWS: Article 1. Approval of City Gaming Plan. The City Plan for Gaming in the City of Cape Girardeau, substantially in the form attached hereto as Attachment 1 and incorporated by reference, is hereby approved as the City's plan required under 11 CSR 4-040. Article 2. Submission to MGC. The Mayor and City Manager, or their designees are authorized to submit the City Gaming Plan to the MGC on or before September 30, 2010 and is further authorized to orally present the City Plan for gaming in the City of Cape Girardeau to the MGC if such oral presentation is determined to be in the best interests of the City and if the MGC grants permission for the City to orally present this City Plan. Article 3. Effective Date. This Resolution shall be effective upon passage and approval. « SSED AND ADOPTED THIS `''DAY OF SEPTEMBER, 2010. 0 Y� AT le �) Conrad, City 2 arry E. diger, ayor ATTACHMENT I CITY PLAN FOR GAMING IN THE CITY OF CAPE GIRARDEAU City of Cape Gi City Plan: Missouri Gaming Commission Required Submissions Contents 4 Introduction 5 Executive Summary A -F 6 Expanded Response A -F 15 Exhibit A Resolution of Preferred Status 17 Exhibit B Project Site 19 Exhibit C Authorizing Ordinance Development Agreement 47 Exhibit D Isle of Capri Casinos/ Gaming Market Advisors Market Assessment Executive Summary 49 Exhibit E Isle of Capri Casinos / Gaming Market Advisors Tax Impact Analysis Executive Summary "There is one site under consideration that makes economic sense. Isle of Capri... in Cape Girardeau" St. Louis Business Journal Editorial, September 17, 2010 4 C e it eau & Isle of Capri In accordance with Missouri gaming regulations (1 1 CSR 45-4.040) the City of Cape Girardeau (the "City") submits its City Plan in support of the development of a riverboat gaming operation in the City by its preferred designated casino developer, IOC -Cape Girardeau LLC ("IOC"). The City's plan supports the development of a riverboat gaming operation by IOC that will include a two-story building on a levee -protected, shovel -ready site of approximately 120,000 square feet with a gaming floor of approximately 40,000 square feet to initially include approximately 1,000 slots and 28 tables. In addition, the operation will include five food and beverage venues, a conference and entertainment multi -use space that can accommodate approximately 750 people, approximately 1,000 parking spaces and a building pad for a possible future hotel. Following is the City's response to each element of the City Plan described in 11 CSR 45-4.040. • ,,SSOUrW1 5 The information listed here is expanded in greater detail in the following pages and exhibits. (A) Recommended number of licenses The City of Cape Girardeau recommends that the Missouri Gaming Commission award the one available license. (B) Recommended applicants The City of Cape Girardeau recommends that the Missouri Gaming Commission award the gaming license to IOC -Cape Girardeau LLC. (C) Community economic development, impact and affirmative action plans The City of Cape Girardeau is well-prepared to maximize the casino's economic benefit for both the City and State and is firmly committed to presenting opportunity to minority, women and locally owned business enterprises. (D) Proposed revenue sharing with other communities The City of Cape Girardeau is committed to revenue sharing with Cape Girardeau County and contiguous cities Scott City and Jackson. (E) Any other information the city deems necessary The City of Cape Girardeau and IOC -Cape Girardeau LLC have negotiated certain terms that will fund the City's economic development initiatives. The full Development Agreement is attached (Exhibit C) but also summarized on page 8 of this document. (F) Any other information the commission may request As of September 27, the MGC has made no inquiries, but the City's staff is available at the convenience of the Missouri Gaming Commission to provide any information needed to complete this very important process. r 6 Cabe Girardeau & Isle of Cac)ri (A) Recommended number of licenses The City of Cape Girardeau recommends that the Missouri Gaming Commission award the one available license. (B) Recommended applicants The City of Cape Girardeau recommends that the Missouri Gaming Commission award the gaming license to IOC -Cape Girardeau LLC. On August 26, the Cape Girardeau City Council passed a resolution (Exhibit A) designating IOC as the "preferred developer." Of the five original developers, IOC has subsequently become the only applicant for the City, and they have also been very open, transparent and cooperative throughout this process. Not only has IOC proven to be the best fit for Cape Girardeau, we believe IOC is also the best fit for the State because of the City's unique geographic and strategic position. Proposed Facility Image: IOC Artist Rendering I Rif" ! Historlt { M t aullding 1 14 - - - - MaTEN ln rSIt tea!! '�`'—��J�1G�l�L! , .. CAPE GIRARDEAU '0 Ri ger Big Send StraStra.t PAVILION Ersr ig SaScation 2 y i a Cuoe Girardeaau & Isle o r1 C) Community economic development, impact and affirmative action plans Economic Development IOC's casino development in Cape Girardeau is a $125 million project that will create more than 450 jobs at the casino and almost as many jobs during construction. The City of Cape Girardeau, armed with the recently updated Comprehensive and Downtown Strategic Plans, an active chamber of commerce and tourism bureau, and strong community and business support, is ready to maximize the economic benefit to the City and State. Comprehensive Plan Chicago INpIANA I L I, IN O IS Indianapolis * (- Columbia Kansas City • rn r St. Louis~ Evansville Louisville M I S S U U R I a►sandal t+ gin} Springfield "�"i Cape t Girardeau � K E N T U C K Y Pepla►Bluii • /Wadu�ah�� � h a 0 Nashville ARKANSAS 1LNNLSSEE ♦ Mernuhfs Lillie Rock �! rho � t•?o lAPit I IN YII f': Adopted January 22, 2008, the L--1 Comprehensive Plan identifies focus Jf areas across the City, including the downtown area adjacent to the Casino site and the corridors connecting major highways to that area, and sets specific action items for each. Our new zoning and development codes city-wide will promote and sustain economic development opportunities. Downtown Strategic Plan The Downtown Strategic Plan, a major component of the Comprehensive Plan, was developed using State-sponsored DREAM Initiative resources. The City was among the inaugural cities selected and the first to adopt the resulting strategy for downtown economic development. The City's development agreement with IOC will spread benefits across the city but will have substantial impact on the City's downtown revitalization efforts. 8 CONTINUED economic & affirmative action plans Recruiting an anchor facility to the downtown area is among the main objectives of the Downtown Strategic Plan. An IOC casino, with its projected one million visitors per year, will provide ample traffic to support new and growing downtown facilities, events and businesses. In addition, the City's Development Agreement with IOC provides a stable funding source for capital funding and Old Town Cape, the City's downtown revitalization nonprofit entity. The combination of funding and visitors will propel the City's revitalization efforts making downtown Cape Girardeau a flagship for what proper planning, cooperation and execution can do for Missouri's towns. Any outside influences would spark small adjustments to our plans, and a casino is no exception. More importantly, the Comprehensive and Downtown Strategic Plans are in-place providing a stable foundation on which to build this project. The location and proposal already fit our vision; we were never looking for a casino developer to change our community. In our partnership with IOC, we have found a downtown anchor and community partner that will enhance our position as the regional hub between St. Louis and Memphis. The City of Cape Girardeau's economic development plans, including more information about Missouri's DREAM Initiative, are available in -full online at www.cityofcapegirardeau.org. Tasino site four blocks north Riverfront District Development Plan This illustrates ideas from the Downtown Strategic Plan, which will be updated to accomodate 10C's casino, to develop downtown area between the proposed Casino site and the existing downtown attractions. A) Recreational Boat Dock Facility B) Sculpture C) Riverfront Promenade D) Riverfront Plaza E) Amphitheater F) Excursion Boat Dock Facility G) Visitors' Center H) Public Parking Lot 1) River Museum and Aquarium J) Service Iq Parking Garage w/ Street Level Retail L) Broadway Streetscape M) Mixed -Use Development CONTINUED economic & affirmative action plans Economic Impact Plan IOC commissioned two studies designed to identify various elements of the impact the proposed riverboat gaming operation would have on the City and in general. The Gaming Market Advisors Market Assessment Executive Summary dated July 10, 2010 and the Gaming Market Advisors Tax Impact Analysis Executive Summary dated July 10, 2010 are attached as Exhibits D and E, respectively. Full versions have already been submitted to the Missouri Gaming Commission. Affirmative Action Finally, with respect to the affirmative action policy, the City abides by and promotes state and federal law regarding equal opportunity, and additionally maintains its own affirmative policy with respect to equal opportunity pursuant to Section 2-56 of the City's Code of Ordinances. The proposed riverboat gaming facility is a large project that will give IOC the opportunity to hire and utilize minority and women -owned business enterprises as contractors and suppliers as well as the hiring of a diverse workforce within the casino operations. The City understands this is a priority for IOC and a tremendous opportunity for the City to enhance opportunities for minority and women -owned business enterprises. In addition, the IOC casino development will provide a substantial opportunity for all types of local contractors and suppliers to participate in the building, operating and maintenance of the development. 10 K•' • •'• ♦ • •• 1 1 1 14 (D) Proposed revenue sharing with other communities The City of Cape Girardeau is committed to revenue sharing with Cape Girardeau County and contiguous cities Scott City and Jackson. We plan to establish an intergovernmental organization or committee minimally including representatives from these entities and the City of Cape Girardeau. This group will recommend projects to the Cape Girardeau City Council. These projects will be restricted to capital and equipment purchases. The Council anticipates that 3% of the City's net State mandated gaming tax revenue will be used for this purpose. The IOC proposal does not involve tax abatement of any kind, and the Development Agreement expressly restates this condition. As a result, public improvement costs resulting from the IOC casino development will be incurred directly by IOC or the City, and other taxing districts will therefore not be subsidizing the project but will, through ad valorem property taxes, receive direct new unabated tax revenue. IOC's Boonville, Mo. approximate property taxes demonstrate a very conservative estimate of Cape Girardeau County's annual tax potential: $470,000 for real property tax and $140,000 for personal property tax. Perhaps the greatest revenue sharing component is the additional tax benefit to the State and schools. An Ameristar Casinos study shows the greatest net income benefit, with the least amount of canabilized gaming revenue, to the state than the other communities and applicants combined. Projected New, Incremental Tax by Location SOURCE: Ameristar's Analysis of Incremental State Revenues 5/24/10 $23.5 C e irard u & Isle rfrg% emE (E) Any other information the city deems necessary f Capri IOC and the City have negotiated certain terms that will fund the City's economic development initiatives so far. The full Development Agreement (Exhibit C) is summarized below. • The City will vacate rights-of-way and convey to IOC City - owned property in the project site. • IOC will pay the City $2 million upon transfer of the property. • IOC will pay the City a $150,000 flat amount to compensate for costs incurred through September 30, 2010, and to pay all documented designated costs incurred after September 30, 2010. • IOC will pay monthly three -tenths of one percent (0.3%) of IOC's gross gaming revenue from the casino development to the City to be held in a special fund (the "Riverfront Fund") for improvements to an expanded downtown business district area, provided the funds are matched by the City. In addition, IOC will make a one-time $250,000 payment, requiring no match, for city-wide wayfinding signage. JUL Tunes at Twilight (weekly) Photo: Old Town Cape Downtown Annual Celebration Photo: Old Town Cape Existing Streetscape Photo: Old Town Cape CONTINUED development agreement • IOC will pay up to an additional one percent (1.0%) equivalent to sales tax payments in the event a Community Improvement District is formed in the Special Business District area. • IOC will provide funds to construct both the private and public improvements, including the realignment of Main Street and installation of required utilities. • The City is NOT obligated to provide any public financing for the project, but will negotiate to consider creating a fund paid for by IOC to finance the public improvements and additional improvements the City may desire. • IOC has indicated that, through good -faith negotiations, all parcels may now already be under contract. If necessary, the City could acquire property by eminent domain for purposes of rights-of-way realignment. The Development Agreement does not authorize or require City condemnation of any parcel solely for economic development purposes. • The Development Agreement and all IOC obligations are subject to: (1) a vote of approval on an initiative question at the November 2, 2010 election asking the voters of the City to allow the licensing of excursion gambling boats or floating facilities in the City and (2) the MGC's awarding of the last license to IOC allowing construction and operation of a riverboat gaming facility in the City. IOC has considerable authority to terminate the agreement if any conditions to the development are not met. (F) Any other information the commission may request The MGC has made no inquiries, but the City's staff remains available at the convenience of the Missouri Gaming Commission to provide any information. Exhibits s Exhibit A i ci s 1 e r i Re"w rred BILL NO. 10-108 RESOLUTION NO. 2553 A RESOLUTION CONDITIONALLY DESIGNATING A PREFERRED DEVELOPER AND SITE FOR LOCATION OF A GAMING FACILITY WITHIN THE CITY WHEREAS, the Missouri Gaming Commission ("MGC") has announced that it will accept applications from interested parties for the development of a riverboat gaming facility and related facilities and potentially prioritize an application for investigation and evaluation by the MGC for licensure utilizing the only available Class B gaming license in Missouri as of the passage of this Resolution; and WHEREAS, as a result of the national economic downturn the City of Cape Girardeau (the "City") believes that it is critical to encourage economic development and job creation; and WHEREAS, it is important to the City of Cape Girardeau that efforts continue to enhance the downtown business district and encourage economic development and job creation in that area; and WHEREAS, in order to enhance the downtown business district and encourage economic growth and job creation, on or about April 20, 2010 the City delivered to the MGC a letter of interest supporting the construction of a riverboat gaming facility and related facilities in Cape Girardeau; and WHEREAS, the Isle of Capri Casinos, Inc. ("IOC") is a Delaware corporation that is an experienced developer and operator of riverboat and land-based gaming facilities, including three such facilities in Missouri; and WHEREAS, on or about April 29, 2010 IOC delivered to the MGC a letter of interest expressing interest in development of a gaming facility; and WHEREAS, on July 8, 2010 the Council of the City held a public meeting during which interested parties, including IOC, presented conceptual plans for a riverboat gaming facility and related facilities (the "Project") to be located within Cape Girardeau on land near the downtown business district (the "Project Site"); and WHEREAS, IOC formed a wholly-owned subsidiary, IOC -Cape Girardeau LLC, a Missouri limited liability company (the "Developer"), to undertake and develop the Project; and WHEREAS, Developer proposes to submit an application for the Project to the MGC (the "Application"); and WHEREAS, the Project, as planned, would constitute one of the largest development projects in the history of Cape Girardeau and would result in economic development, job creation and tax revenue; and 16 CQNTINUED resolution of preferred status WHEREAS, based on information gathered at the July 8, 2010 public meeting, the Project would serve the public purposes and interests of Cape Girardeau and its residents. WHEREAS, the City and Developer have been negotiating in good faith regarding a Development Agreement to provide mutual benefits and which would document certain commitments that would further the public interest in the development of the Project; BE IT RESOLVED BY THE COUNCIL OF THE CITY OF CAPE GIRARDEAU, MISSOURI, AS FOLLOWS: Article 1. Designation of Developer. The City Council designates the Developer as the preferred developer for the development of a gaming facility in Cape Girardeau. Article 2. Designation of Project Site. The City Council designates the Project Site as the preferred site for the development of a gaming facility in Cape Girardeau. Article 3. Recommendation to MGC. The City Council supports the Application of Developer and recommends that the MGC select Developer for Prioritization. Article 4. Development Agreement. The City Council authorizes City officials to continue negotiation with Developer to prepare a mutually acceptable development agreement between Developer and the City for the Project to be presented promptly to the City Council for review and a vote on approval. Article 5. Certified Copy. The City Manager shall send a certified copy of this Resolution to the MGC within three (3) business days. Article 6. Effective Date. This Resolution shall be effective upon passage and approval, provided that the designations and recommendations herein are conditioned upon execution by City and Developer of a mutually satisfactory Development Agreement as provided in Article 4 of this Resolution. This Resolution shall be null and void in the event that a majority of the voters of the City voting in the November 2, 2010 election fail to approve the question that will appear on the ballot asking the voters to allow the licensing of excursion gambling boats or floating facilities in the City. PASSED AND ADOPTED THIS 26" DAY OF AUGUST , 2010. ATTEST Gayle L. Conrad, City Clerk Harry E. Rediger, Mayor