Racing and Gaming Commission approves Cedar Rapids casino project in Iowa

Cedar Rapids Mayor Tiffany O’Donnell said it has been a “David versus Goliath” situation since the beginning, and “by God the story ended the same way — let’s hear it for David.”

“Linn County, Cedar Rapids deserves this,” O’Donnell said, noting her excitement of bringing the news home.

The project plans to break ground Friday. Jonathan Swain, president of Cedar Rapids Development Group said he was “shovel ready” for the project that has been 12 years in the making.

“It’ll probably take us 18-22 months to build the project… so we’re going to move very quickly,” Swain said to reporters.

The commission, meeting in Altoona, voted 4-1 to approve the gaming license for the project, with commissioner Alan Ostergren dissenting.

This was the third application made by CRDG and the Linn County Gaming Association for the project. Previous applications were denied largely because of market studies that suggested the new casino would cannibalize revenues from surrounding casinos.

Similar studies were conducted for the latest version of the project, which commissioners referenced when explaining their votes on the application.

According to figures cited by commissioner Julie Andres, the project would result in a net gain for Iowa gaming revenue between $60 million and $64 million and a state gaming tax revenue increase of approximately $10.5 million.

“ I don’t think a project that is desired by a local community … meets and even exceeds our standards for quality of design and amenities, and then provides a unique and differentiated product in the market, and provides a net gain of revenues to our state, should be denied,” Andres said.

The Cedar Crossing Casino and Entertainment Center is a $275 million development poised for northwest Cedar Rapids. In addition to its gaming machines and tables, the facility will have several restaurants, an entertainment venue, arts and culture center and a STEM lab.

Daryl Olsen, chair of the IRGC, voted to approve the license and called the project “unique.” “ If this was just another gaming facility, I’d be voting no,” Olsen said. “But this provides so much more.”

In addition to the amenities, the casino is committed to contribute 8% of net adjusted gross revenue to area nonprofits.

Rep. Sami Scheetz, D-Cedar Rapids, applauded the IRGC’s decision in a press release, calling it a “huge win.” “This decision means good-paying jobs, increased tourism, and a major boost to local businesses — not to mention millions in new revenue that will go directly to supporting Iowa nonprofits,” Sheetz said.

Opposition

Ostergren, who voted against the project, said as a lawyer, he didn’t feel the commission had “the legal authority” to issue the license because of a legal challenge brought to the commission at its previous meeting, Jan. 23, over language in a 2021 Linn County referendum about gaming.

The commission voted at the past meeting that the issue, brought forward by Riverside Casino & Golf Resort, was not something it could decide on, according to reporting from the Gazette.

“ The issue of the validity of the Linn County referendum that we discussed at length two weeks ago is still present, and that has not been resolved to my satisfaction,” Ostergren said at the Thursday meeting.

Olsen, however said commissioners had consulted with legal counsel and the majority felt they had “ the authority to move forward” with a decision.

Ostergren further said he felt the cannibalization, that is the effect the project would have on nearby gaming facilities, was too high for his liking in this case. From his number crunching, Ostergren said, with the cannibalization the actual increase from tax revenue to the state’s general fund would be “roughly twelve hundredths of a percentage point.”

Ostergren said while he might disagree with the vote of his fellow commissioners, he felt strongly the commission was acting with integrity.

“ Nobody here is making a decision based on emotion,” he said. “We’re making this decision based on what we see the facts are.”

O’Donnell applauded the commission for its hard work in deliberating the issue and taking into account all of the comments pertaining to the project.

“They took all of the worry that this would be a political decision, out of it,” O’Donnell said. “(The commission) responded to facts and not fear and I am truly grateful for the outcome.”

O’Donnell said the project has been “a mountain.”

Part of its 12-year path included waiting out a two-year casino moratorium authorized by the legislature in 2022.

The Iowa House of Representatives put forward a similar bill in January, which while not aimed directly at the Cedar Rapids project, would have blocked its approval. The bill, however, stalled in a Senate committee Tuesday.

Sen. Ken Rozenboom, R-Oskaloosa, said Senate Republicans would leave those decisions to the Racing and Gaming Commission.

Rozenboom told reporters he does not have plans to take up the bill later in the session, citing a lack of support from Senate Republicans and in the interest of getting to other pieces of legislation.

Zachary Harnden, a spokesperson for Iowans for Common Sense, a group that has organized against new casinos in the state, said the commission’s decision to approve the Cedar Rapids project was “deeply disappointing.”

“Iowa does not need more casinos,” Harnden said in a statement. “At a time when rural economies are struggling, adding another casino only puts more strain on local businesses, nonprofits, and families.”

O’Donnell said she is focused on moving forward with the project, which has a groundbreaking ceremony scheduled for Friday at 11 a.m. in Cedar Rapids. “ I’m gonna leave the state Capitol in the rear view, and I’m going to focus on Cedar Cross now,” O’Donnell said.

The commission said the project should achieve “substantial completion” by April 30, 2027.