Posted on: September 19, 2024, 08:50h.
Last updated on: September 19, 2024, 08:50h.
The would-be developers behind a casino pitch for Iowa’s Cedar Rapids revealed updated details of the project’s scope this week.
California-based Peninsula Pacific Entertainment (P2E) is partnered with the Cedar Rapids Development Group and Linn County Gaming Association on a $275 million development that would feature a casino floor with approximately 700 slot machines, 22 live dealer table games, and a sportsbook. The 160,000-square-foot entertainment facility would additionally include a 1,500-seat concert venue, more than 1,100 parking spaces, and several restaurants and bars.
Jonathan Swain, president of P2E, revealed during a media presentation of the updated Cedar Crossing Casino that the development remains committed to working with PGA Tour golfer Zach Johnson, an Iowa native who won the 2007 Masters and 2015 Open Championship.
Johnson’s name would appear on one of the casino’s restaurants — Zach Johnson’s Clubhouse. The sports-themed eatery would feature steaks, chops, and craft cocktails.
Johnson’s popularity among the golfing world lessened following his dismal captaining of the 2023 U.S. Ryder Cup Team in which he selected friends over possibly more qualified players as his captain’s picks. Team U.S.A. lost by five points to Team Europe.
Johnson’s reputation took a further hit at the 2024 Masters after he seemingly yelled profanities at members of the gallery who cheered after he made a triple bogey six on the par-3 12th.
Casino Impact
The Iowa Racing and Gaming Commission (IRGC) is considering the Cedar Rapids casino plan once again after a two-year legislative-ordered moratorium expired in June. The IRGC rejected the Cedar Crossing Casino submission in 2014 and 2017 due to market saturation concerns.
Swain said at this week’s media event that Linn and Johnson counties have 40K more residents today than they did in 2017. With casinos opening in Nebraska and the Chicago suburbs, Swain opined that Iowa should expand its gaming offerings to retain gaming money from flowing into those jurisdictions.
An IRGC-commissioned feasibility study concluded that a casino in Cedar Rapids would attract 1.1 million visitors annually, mostly from Iowa, and generate over $80 million a year in new state tax revenue. Some of that tax benefit — an estimated $27.8 million — would be offset by cannibalizing gaming revenue from other casinos in Iowa. The net tax benefit would be over $52 million.
The development consortium wants to place the casino on the former Cooper’s Mill hotel and restaurant site. The casino wouldn’t include on-site lodging but would instead partner with nearby hotels. Cooper’s Mill was demolished in 2017 and the property has sat vacant since.
Cedar Crossing will be a compelling reason to stay and build lives and futures here for the northwest side of the Cedar River,” said Cedar Rapids Mayor Tiffany O’Donnell. “It will serve as an anchor for much-needed redevelopment, leading life into an area that has long awaited its renaissance.”
The IRGC is expected to review the Cedar Crossing Casino presentation during its Oct. 3 meeting and formally vote on the project on Feb. 6, 2025.
STEM Lab
In order to sweeten the deal, P2E has pledged to contribute 8% of the casino’s gross revenue to its charitable Linn County Gaming Association arm. That’s far higher than the state’s requirement that 3% of each casino’s gaming income go to nonprofits.
P2E has also included a STEM (Science, Technology, Engineering, and Mathematics) lab and an arts and cultural center in its latest blueprint. Those facilities would be separated from the casino with their own entrances.
The STEM lab and cultural arts center would feature rotating exhibits and be open to students. The facilities would be operated in partnership with the National Geographic Society.
