HomeMy WebLinkAboutCouncil.Minutes.02-14-1994.Special 409
Proceedings of the City Council, City of Cape Girardeau, Mo.
Special S@SSIOt1 February 14 i 9 94
SLL.13703
SPECIAL SESSION - FEBRUARY 7, 1994
Council convened in special session on Monday, February 14, 1994, at 5:00 p.m. with
Mayor Francis E. Rhodes presiding and Council Members Melvin Gateley, Melvin
Kasten, David Limbaugh, Al Spradling III, and Mary Wulfers present. Doug Richards
was absent.
Pursuant to Section 7.08(a) of the City Charter, Council canvassed the returns and
declared the results of the February 8, 1993, primary election for city council candidates
in wards 2 and 6 upon Mr. Gateley's motion, Dr. Kasten's second, and the following
vote: Ayes, Gateley, Kasten, Limbaugh, Rhodes, Spradling, Wulfers. Nays, none.
The agenda was adopted as distributed to the council upon Mr. Gateley's motion, Dr.
Kasten's second, and the following vote: Ayes, Gateley, Kasten, Limbaugh, Rhodes,
Spradling, Wulfers. Nays, none.
J. Ronald Fischer, City Manager, thanked the representatives of Boyd Gaming
Corporation and Lady Luck Gaming Corporation for being present at the meeting to
answer questions of the city council and city staff. He distributed to each company a list
of questions and staxed that a written response to all questions must be received in the
office of the City Manager by Friday, February 18, 1994, at 3:00 p.m. A copy of the
list of questions is attached hereto and made a part of these minutes (Exhibit A). After
the answers are reviewed by the City Council and city staff, a Memorandum of
Agreement will be prepared for each company. It is the intent of the city that this
Memorandum of Agreement be in place prior to the City Council making a decision on
a specific riverboat gaming company.
Question 1.E: Both Lady Luck and Boyd inquired as to whether this relates directly to
what was in their respective proposals or whether this includes information to be
submitted in addition to the proposals. After discussion, Mr. Gateley made a motion,
seconded by Mayor Rhodes, to direct each company to stay within the parameters of the
proposals. After further discussion among the council, Mr. Gateley withdrew his
motion.
Question 1.G: Lady Luck inquired as to whether this refened to regularly scheduled
flights or charter flights. Mr. Doug Leslie, Assistant City Manager, responded it
included either.
Question 1.H: Boyd inquired what the phrase "what year" referred to. Mr. I.eslie
responded it relates to infrastructure improvements necessary in future years.
Question 1.I: Boyd inquired whether it was the policy of the city that the company
would be required to comply with the traffic study when it is completed. Mr. Fischer
responded that this relates more to an impact study on traffic flow. Lady Luck inquired
if this question was asking whether the company is willing to fund improvements prior
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Proceedings of the City Council, City of Cape Girardeau, Mo.
Special S@SSIOn Februarv 14 19 94
SLL.13703
to the traffic study being completed. Mr. Fischer stated that each company should clarify —
this in their written response.
Question 1.N: Lady Luck asked the city to clarify the statement "interest of any kind."
Mr. Mark Grimm, special counsel to the city, responded that this includes interests other
than those that occur in the ordinary course of business. Boyd asked if this would
include other entities that are developing a portion of the project that are not controlled
by the entity submitting the proposal. Mr. Grimm stated it would include entities other
than the one submitting the proposal.
Mr. Grimm explained that it is the intent of the city to enter into a memorandum of
agreement with each party prior to the selection process so all the key points in the
development agreement will be agreed upon prior to selection of one company. A draft
of the memorandum of agreement will be prepared from the respective proposals and
responses to these questions. The drafts will be reviewed by the City Council and then
forwarded to each company for their review. Preparation of the memorandum of
agreement and development agreement will include negotiations with both companies.
Question 1.D: Boyd questioned whether the bond/letter of credit will be due on the
project as submitted in the proposals or if it should cover any additions made by either
company. In addition, Boyd questioned when the bond is due to the city. Mr. Grimm
explained that the bond should be on the entire project as submitted, including any
additions, and that it will be due prior to the commencement of construction of the
project. Discussion followed on the issue of bonding.
Mr. Don Dickerson, counsel for Boyd, stated that it is up to the Missouri Gaming
Commission to determine which company will get a license for this site, and until a
license is granted, there is nothing to perform.
Mayor Rhodes inquired as to whether these developments would fall in the enterprise
zone and be eligible for state benefits. Mr. Fischer stated that city staff will look into
this issue.
Mr. Spradling asked Lady Luck the following two questions and requested they include '
answers to both in their written response:
1. The Missouri Dry Dock facility does not exist as it is depicted on the pictures
supplied by Lady Luck. There are barges located from just north of the Dry
Dock property south to the city wastewater treatment plan, including barges in
front of their proposed development. How does Lady Luck intend to deal with
and accommodate the Missouri Dry Dock facility without impacting their
business?
2. There is a gas depot which has an unloading site on the river at the south end of
their proposed development. Will that be removed, or how will that be dealt
with?
411
Proceedings of the City Council, City of Cape Girardeau, Mo.
Special S@SSIOtI February 14 1 g 94
SLL.13703
Mayor Rhodes asked both companies the following three questions and requested they
include answers in their written response:
1. Have you contacted the Corps of Engineers as to whether they approve this
project?
2. If the project site is rejected by the Corps of Engineers, please state an alternate
location for the development.
3. Are you involved with Gold River Company:?
Mayor Rhodes read a letter from a group of riverboat pilots who were concerned with
placement of a boat at the Boyd site. A copy of the letter was distributed to both Boyd
and Lady Luck.
There being no further business, the Council adjourned upon Mr. Gateley's motion, Dr.
Kasten's second, and the following vote: Ayes, Gateley, Kasten, Limbaugh, Rhodes,
Spradling, Wulfers. Nays, none.
�
Francis E. Rhodes, Mayor
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Gayle . Conrad, Deputy City Clerk
412
Proceedings of the City Council, City of Cape Girardeau, Mo.
Session 19
SL�.13703
THIS PAGE INTENTIONALLY LEFT BLANK.
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� � � Exhibit A �'A�`� "''`��
� 413
� KSI�IIOR�►NDUI�i
TO: Boyd Gaming Corparatian and Lady Luck Corporation
FROM: City of Cape Girax�deau
DATE: February 14, 1994
sUBJ�CT: I�.ems to Discuss With Riverbaat Campani�s
Monday, February 14, 1994
5:00 Study Sess�on with City Council __
1. Items for Both Proposals:
A. Does your p2an call for any temporary facilities or
pre-project completipn startup? The boat can not start
operations ur�tii ad�quate infrastiructure is in place tp
support the devel�pmenti, includinq parking �and
utilities. :
B. Do you agree to pay the casts of independent p�an
review and inspection services duxing development?
C. Do you agree to pay the costs of all proposa� revi.ew
expenses, if selectecl?
o. Please further explain your proposed time frame and
what as�urances (bonds, lett�rs of credit, escrow
agreements) you would provide in meeting all of the
devel.opment propasal. Who will secure this� Will you
be willing to have th�s entire amount held until all of
your pro�eCt is camplete?
E. Please further explain your proposed funding to the
Park Foundation and other arganizatians 1n C�pe
Girardeau fo� �nl�tS.�l and annual contributions.
F. po you have plans ta directly assist the Cape Girardeau
School District through contributions to the s�Y�ool
foundation? Yf so, to what degree and fox what time
period?
G. Whati is your proposed us� for the Cape Girardeau
Municipal Airport facil.ity? Tour �ircraft with 30
passengers or mare wi�.l x'equire �ire and rescue
services resulting in facility and staff�.ng costs.
will you provide assi.�tance for this?
x. City discretiflna�y f�nc�s in t�� way of percent�ge
'' al�.acatian� af �d justed gross r�ceipts t�*ith stated
minimums or st�;�ecf calculations were listed in the
rc�u�st �ax praposal�. Yau chas� not to Complete this
sect�on of �xhi�it A, please elaborate. Wiil this be
adc�res,��;� �r� �.he cxe�,relapiment aq�eetn2nt? If so, what
year?
_ . �=Fr�i _>c�:� �.U.;�� ����- ;�r��z i;, stu�?xr ar�c� ��co�rEm�r.ac�
i�,,��1��j�.���r{�te�� c�_ ;_.�;c= �������c �tu�y�
Y Exhibit A
414
J. The Police Department recommends th�t a fire and rescue
baa� be made avai�lable to serve the riverbo&t while
underway. Will you prov�de this equ�pment?
IC. The Police Dep�rtment xecommends screening riverboat
patrons through a metal detector for firearm detection.
Do you plan �his scxeeninq as part df your security
pragram?
L. Wi.3.l. you fund impact studies on water and sewer Pacilities
and fund recommendations resulting from both studies?
M. I�i�t aI1 political contributions made or contribu�tions �-
made to any busines� entity or charitable organizat�on in
Cape Gix'arc�eau county.
N. Name any individual or business entity having; ox to the
develop�r's knowledqe, is 2ike�y to have, an -interest of
any kind in the developer ar the proposed ganiing -
operation. .
�. Does the developer des�x'e the Develapment Agre�ment to
provide for an excl.usive arrangement (i..�. the City would
_ agree not to �dopt a resolution in support of any other
gaming operation. )
P. Please respond to the questians raised by the attached
Mitt�st�rial A1liance Zetter of February 1�1 .
2 . Quest�ons Specific �o the Lady Luck Prdposal
A. Absent a traffic stuQy, some obvious_ street �mprovements
will need to be included ta service your propasal . ons of
these will be the extension of �,orimier Street and
construction of the intersection connecting it to the
downtown area north. wili you cover the cost of this
north extensian and improvementr tp Aquams� , Giboney and
Wi�liam fram sprigg to Aquamsi?
T-
B. What is yaur plan for clearinq bl.�ghted ar�as tQ the w�st
of your proposed development? -
C. What wil� be yaur �nterim access plan be�ore and dur�ng
construction of the new bx�c�ge route anc� bridge?
D. Some Street improvements ma.y be required to handle this
interim period. Are you willing to Finance these ;
Xmpravements, even though they may npt rel.ate to youx
permanent plan?
E. The locatian of the competing propdsal would resulti in
substantial tax revenues going to the downtown business
dis�rict for im�arovem�nts. what would you otfer tnis area
in lieu of the�e tax benefits?
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ii�Y �I�I=i�,i�t� Ef:l� �C�r' ����S�L'lc3"'iS�
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Exhibit A
MQ�ORANUYri�+I 415
TO: Boyd Gaming corporation and Lady Luck Corporation
FROM: City aP Cape Girardeau
DA�E: February 14, 1994
SUBJECT: Items �o Discuss With Riverbaat Companies
Manday, FG'bXuaxY 14, 1994
5:00 StudX Session with City Council
1. Xtems for Botri Propasals: �
A. Does your plan call for any temporary facilities or
pr�-project campletion startup? The bnat can not start
operations until adequate infrastructure xs i�l pl�ce to
support the development, including parking �r�d
utilities. - � � -
B. Do you agree to pay the casts of independent pl�n
review and inspection services dU�'�ng development?
C. Da you agre� to pay the cdsts of all proposal revi.ew
expenses, if selected?
D. Please further explain your p�oposed time frame and
what assurances (bonds, lette�rs of credit, escrow
agreements) you would provxde �n meeting all of the
deve�opment pr4posal. Who will secure this? Wil]. you
be willing to have this entire amount held unti�. all of
your praject is complete? -
E. Please furthe� explain your proposed fundinq to the
Park Foundation and othex organizations in Cape
Gi-�a�deau fax initia� and annual contributions.
F. bo you have plans to directly assist the Cape Girardeau
School pistrict thraugh contributians to the sc�iool
taundation? Z� so, to what degree and �or wh�t: t�me
period? �
G. What is your proposed use for the Cape Girardeau
Mu»f.Cipal AiY'port faCility? Tour aircraft with 30
passengers or mare will require �ix� and resaue
services resulting in faci �ity and staffing costs.
Wi12 you provide assistance for this?
H. City �iiscretionary funds ir� the way a� percentaqe
al�acations of adjuste� gross receipts with �tatec9
minimums ar stated calcul�tians �:er� listed in the
req��est �ar pro��sals. Yc�u c�ose not to completE this
sectidn af exhfbi� �J �,le�se eia�oratA. Wil.1 this be
�ddres�ec� in the de��p]�opinerst �c�reem�r,�? If so, what
�'�A2"?
� . �al�? �QU �Ut2c� �!^iL �'L-e�-i��.G sss�<"7� nIi!` :C��'G�)IItT;iE.'l'IC�tt��.:f
?;r��,r�t'v��:=ui1�� �` �4;c� tt'��fi�� �tt�ia},�
� � Exhibit A
J. The Police Department zecommends tiha�l� fire and rescue
boat be made avai2able to serve the riverboat while
underway. Will you provide this equipment?
K. �he Police Department recommends screening riverboat
pat�ons through a metal detector �or �ir�arm detection.
�o you pian this screan�ng as part a� your security
�roqram?
L. will you �und impact studies an water and sewex
facilities ahd fund recommend�t�ons resulting from both
studies?
M. List all political contriDutions made or contributions
made to any business entity or charitable organization
in Cape G�rardeau County.
N. Name any individual or business entitiy having; or to
the developer's knowledge, is likely to have,i,an _ _
interest of any kind in the deve�aper ar the� proposed
gaming operation. -
O. poes the developer desire the pevelopment Agreement to�
provide for �n exclusive arrangement (i .e. the City
would aqree not to adopt a resdlution in support o� any
othe� gaming operat�on. )
P. Please respand to the questions raised by the attached
Ministerial Alliance lett�r of February i4.
2. Questions Specific to the Boyd Proposal
A. The tra��ic study has not been completed for serving
your Pacility, but some streets will obviausly have �o
b� impraved. Some of these streets include W��li�m
from Sprigg Street east to Water; Broadway from Perry
Avenue to Clark Street; North Main from Broadwey to
connect with Bend Road ta the n�rth, including
realignment; and Independ�nce frnm water to
Kinqshighway, including traf�ic signal replacem�nt and
synchronizatzan. Aiso, the praposed Lorim�er s�reet
connection from the new br�dge �outie to William will �e
an important access to your developmen�. Will you pay
for these fmprovements even thaugh they may be outside
your immediate develapment? Will you also be w�llinq
to finance the building of s�dewalks and ins�allation
of street iigr�ts?
�
B. What is your plan for utilizat�on vf the shoe factory
lot for parking, including p��ns tp hard surface that
l�t?
C. What is yaur planr�ed access �o the r�ver side of the
flood a*a21? Specifica?ly, da you plan to use the
�zb3����Y �a}e fo� an� &CCeSS purpos�s:
� � Exhibit A 417
p. Do you plari additional fac�lities such as a hotel? If
so, these plans will need to be taken into
cons�deration in the infxastructure Xmprovements,
particularly sewer and water lines.
E. Why is the Walker Tract exCluded from the development?
What is the proposed hotel site7
F. The development site proposed will elimi�ate a major
fueling point for rive� pleasure boats. Will you
provide f�ci��ties at Honkex's or other conveni�nt site
to accommodate this?
G. Do you plan to provide sprink3exs for your boat and -
land side deve�opment?
H. One of the drawings shows �ellevue connected to Main.
Y� tihis proposed? _
� . Do you have an alternate dacking site planned--i�- your
proposed site is not approved by the Corps of Engineers
and/or Coast Guard? _
�. Address the interference of th� pedestrian walkway with
Union Electric's power �ines.
x. wi11 your p�rking and transportation be made avail�b�e
free to the public and sha�ed with th� Downtown?
. ' Exhibit A 418
� February 14, 1994
Ministerial Alliance
2601 Independence
Cape Girardeau, MO 63701
T0: The Boyd Group
Lady Luck of Cape Girardeau
. �
Greetings: �
We have appreciated the willingness of the representatives of
both the Boyd Group and Lady Luck to respond to the issues raised
by the Cape Girardeau Ministerial Alliance. As we will indicate
later in this letter , we hope that we can establish some form of
ongoing dialogue with whichever one of you becomes the vendor for
licensed gambling in Cape Girardeau. _ - •
With the March 7 selection date approaching, we wou•ld`-�'ike to
push you further on a few of the unresolved issues that most_
concern us. We feel that specific responses from you will ex�able
our city council and our citizens evaluate you better now and
avoid some of the misunderstandings that have arisen in other
cities that already have floating casinos.
The issues that we feel need to be clarified are:
Local hiring: We congratulate the Boyd Group for proposing a
figure of 70� minimum local hiring. We would ask that each of
you affirm that figure (or more) for all levels of hiring:
salaried personnel, wage earners, vendors with Cape Girardeau in
their territory, distributorships, construction contracts, and
service contracts. We also ask that you define "local" in
whatever pledqe you make. We have in mind people who currently
live in an area encompassing a 40 mile radius from Cape
Girardeau' s city limits.
We would like to encourage some form of reporting on this,
especially after the first round of hiring and the boat is in the
water as a matter of good faith in the public' s trust in yo�.
Our concern in pushing this issue is twofold: :
1. We are apprehensive about an influx of job seekers
and the potential for acerbating our tenuous housing
situation.
2. The local campaign to legalize riverboat gambling
emphasized that the issue was a jobs issue. Our
concern is for those current residents who took their
hopes for employment into the voting booth with them. f
We do not want to see them left out.
_ �
Addiction Recovery: Our focus here is on the 4 5� of gamblers
who develop addiction problems with the activity. Our local
counseling agencies are going to need additional resources in
meeting the human needs that result from problem gambling,
' Exhibit A
. , 419
2
We do not know specifically what the costs will be. We
contacted one of Cape Girardeau's counseling centers to educate
ourselves on the costs involved. The cost to the agency in
hiring a licensed professional counselor is approximately $50,000
per year for salary, benefits, office space, and other costs of
employment. A counselor will spend 1196 hours in direct service
to groups or individuals. This will work out to an average of
115 intakes per year, with each person undergoing addiction
recovery requiring of 48 hours of combined counseling and group
time, not including follow up treatment through groups like �`
Gamblers Anonymous.
We feel that it is important for you to address this issue
specifically, responding either with a percentage of profits
figure or with a written commitment to working through the City .
of Cape Girardeau or the United Way with a plan to dispense_
special grants designated specifically �for addiction recuuery--
according to needs verified by independent counseling agencies.
Sunday hours: In keeping with the spirit of our local -mall
and of most other local retail establishments, we recommend that
Sunday excursions not begin before noon.
Our purpose in raising these issues is out of a sincere
concern for the people in our community. We are willing to sit
down with you and your representatives not only now but in the
future to maintain an open dialogue regarding areas of mutual
concern and interest. Could we arrange some form of contact on a
regular basis (every six months?) with whichever one of you
continues your involvement with our city?
' Sincerely,
Ministerial Alliance representatives
Rim Ferguson, President '
Pastor, Cornerstone Assembly
Bill Burke, Secretary/Treasurer
Pastor First Church of the Nazarene
Roy Jones , Vice President
Director of Missions, Baptist Association
James G. Caughlan, Past President
Pastor, Evangelical United Church of Christ
Andrew Pratt, Board of Directors
Director Baptist Student Center
- Exhibit A
420
3
Dr. Neil Stein
Pastor, Centenary United Methodist Church
Captain Elmer Trapp
Salvation Army
Wes Wr ight
Pastor, Mount Auburn Christian Church
cc: the Aonorable Gene Rhodes, Mayor
David Limbaugh
Mary Wulfers
Melvin Gateley -
Melvin Rasten - _ . -- _
A1 Spradling III -
Doug Richards �
Mr . J. Ronald Fisher, City Manager -
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