The Cedar Rapids City Council has approved a development agreement for the proposed Cedar Crossing Casino, a $150 million project that could transform the city’s downtown if it secures a gaming license.
The agreement, approved on Dec. 17, formalizes the city’s partnership with the Cedar Rapids Development Group (CRDG), a subsidiary of Peninsula Pacific Entertainment (P23). However, the project’s future hinges on the Iowa Racing and Gaming Commission’s decision on a Linn County gaming license, expected on Feb. 6, 2025.
The casino, to be built on city-owned land previously damaged in the 2008 flood, would feature a 110,000-square-foot facility with a 39,000-square-foot gaming floor, restaurants, event spaces, and a cultural center. Plans also include 1,100 parking spaces and flood mitigation measures to satisfy deed restrictions.
Key conditions of the agreement include public open-house meetings by the developer, council approval of the casino’s design, and a traffic study.
The casino developer has committed to making monthly Community Betterment Payments to the city, equal to 2.25% of its adjusted net gaming win, in addition to state-mandated taxes. Cedar Crossing also plans to allocate 8% of its adjusted gross revenues, approximately $6.3 million, to local nonprofits, more than doubling state requirements.
Council members expressed mixed reactions to the project during discussions.
Councilmember Ashley Vanorny voiced skepticism about the casino’s potential to rejuvenate downtown and criticized its design. “This looks like a big box store to me. It’s just not a project that is going to get my support at this time,” she said.
Others were more optimistic. Councilmember Scott Olson highlighted the economic development potential on the west side of the Cedar River. “People are going to gamble, whether we like it or not. Should we gain from that? I think we should,” he said.
Councilmember Dale Todd noted that no alternative development plans had materialized for the site, calling the casino a practical option. “This is not going to be the economic savior that some people pretend it’s going to be, but I look at it as an option for people,” he said.
Councilmember Tyler Olson underscored community support for the project.
“Minus the gambling, we would all be very excited about this in the community,” he added.
Mayor Tiffany O’Donnell, a longtime advocate for a Cedar Rapids casino, emphasized the strategic downtown location. “I support this casino because of where it is … If we have ideas to make it even better, I encourage that conversation,” she said.
The proposal has faced pushback from representatives of other Iowa casinos, who fear competition could impact their revenues.
If approved, construction would begin promptly, with completion expected within 24 months.
Original article: https://www.yogonet.com/international/news/2024/12/19/89110-iowa-cedar-rapids-city-council-approves-development-agreement-for-downtown-casino-project
