Casino development deal to come before FD City Council
Local backers won’t say muchBy BILL SHEA, Messenger staff writer
A Nov. 9 deadline is looming for the people that want to bring a casino to Fort Dodge.
That's when the Heart of Iowa Foundation and Webster County Gaming LLC must submit their application for a casino license to state regulators.
Because several communities are expected to compete for a limited number of licenses that may be granted by the Iowa Racing and Gaming Commission, local casino backers aren't saying much about their proposal.
''We have to protect our project until the deadline,'' said Steve Daniel, a spokesman for Webster County Gaming LLC.
Part of that group's plan calls for an agreement with the Fort Dodge city government that deals with finances and city services.
That agreement will be discussed by the City Council during a meeting that will begin at 6 p.m. Monday in the Municipal Building, 819 First Ave. S.
Under the terms of the agreement, the city government would exclusively support the two entities' bid for a casino license. No other groups are known to be pursuing a license in the county.
In return, the casino group will pay the city a portion of the casino's earnings if a license is awarded. The group will pay the city 1.25 percent of adjusted gross casino revenues or $550,000 annually, according to the proposed agreement.
Daniel declined to say where the casino would be located, but that site is apparently outside the city limits. The proposed agreement calls for the site to be annexed into the city limits.
Under the terms of the deal, the city will provide water and sewer service to the casino site. To pay for those utilities, a new tax increment finance district will be established. In tax increment financing, increased property tax revenue from a designated area is set aside to pay for improvements in that area.
In the case of the casino site, that increased property tax revenue would pay off the debt incurred to install the water and sewer lines.
The council is scheduled to act on the agreement on Oct. 26.
The current effort is the second attempt in recent years to bring a casino to Fort Dodge. In 2005, the state commission declined to issue a license for the proposed Mineral City Hotel and Casino in downtown Fort Dodge.
The Heart of Iowa Foundation is the nonprofit entity that would hold a any casino license awarded to the Fort Dodge area. State law requires that such licenses be held by nonprofit groups, Webster County Gaming LLC is the business that would run the casino.
Contact Bill Shea at (515) 573-2141 or bshea@messengernews.net
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Fairplay
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10-20-09 12:03 AM
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Sioux City on I-29; Prairie Meadows on I-80; Riverside on Hwy #218; Northwood on I-35; Terrible's on I-35; Council Bluffs on I-29...see a pattern at all?
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boatassembler
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10-19-09 11:52 PM
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Rumor has it they are considering building it out at the intersection of 169 and new 20. But I don't see how they think that will bring people IN town. Can someone explain this to me?
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TAXEDENOUGH
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10-19-09 10:34 PM
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Where is this proposed casino sight going to be located? I don't want to be located in the area were this is going because I don't need more taxes added to my tax bill.(new tax increment finance district) If this Webster County Gaming LLC (BIG MONEY BOYS) want sewer and water let them borrow the money from a bank like working people have to instead of trying to bleed more money out of the taxpayers. The current city staff leaders bleed us enough.
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Samiam
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10-19-09 6:08 PM
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Gambling revenues from Prairie Meadows Race Track and Casino in Altoona pay for about $5.6 million in community development and betterment grants the county gives each year. hmmm we was pretty cheap huh fyi they loose money on the racing
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PGTB35
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10-19-09 7:06 AM
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At only 36 million dollars you can kiss this casino good-bye. It sounded like the commission was more interested in Casinos/Resorts, and 36 mil gross put's it in the extreme low end of facilities.
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boatassembler
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10-18-09 9:48 PM
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For those that haven't processed the numbers like 4strings said I'll do the math. If 1.5% is 550,000 dollars that means their projected adjusted groos income will be 36 MILLION dollars. And Ft Dodge settled for $550,000? Like I said before. Our city council members are idiots if they vote for this. Watch their vote very carefully.The vote will tell the idiots from the smart.
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boatassembler
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10-18-09 9:38 PM
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That plus my eyesight is terrible! LOL
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wakeup
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10-18-09 8:44 PM
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that is ok we all know you have fat fingers from your last comment.
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boatassembler
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10-18-09 6:48 PM
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Sorry, I meant Ft Dodge
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boatassembler
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10-18-09 6:47 PM
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I still say if the city settles for $550,000 a year when others casinos are paying millions to the city they are in , our council should be all "fired". If they settle for that measley amount then Dt Dodge desereves what it gets. The council is ripe with stupidity!
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wakeup
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10-18-09 6:43 PM
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I'm sure the new casino, if we get it will have no potholes to front door.
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4strings
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10-18-09 6:25 PM
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take a moment and process these numbers people. $550,000 = roughly 1.5% of the adjusted gross revenue for the year. holy crap these people are projecting to make alot of money.
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4strings
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10-18-09 6:17 PM
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huevos- the 3% cannot include the 550,000 that goes to the city. from what I understand, 3% of total revenue must go to the non-profit that holds the license. therefore, the 550,000 would be an additional 1.5 % (estimate) that would be offered to the city.
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HUEVOSRANCHEROS
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10-18-09 6:06 PM
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¡Take back your community Fort Dodge or forever be doomed to be kicked around by people like these casino developers. As a side note, the last thing the FD area needs is more sprawl by building a bright flashing structure indicating that "white trash are near" out along the freeway. Let's see some class used in decision-making!
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HUEVOSRANCHEROS
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10-18-09 6:03 PM
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¡Amen Serpico, locals in FD need to educate themselves about what they can expect from a real city and then press the council to the fire to get true results. FD needs to be waaaaay more transparent in their dealings. Also, 4strings, I don't know if you were kidding but, when is 1.25% above and beyond 3%? The $550,000 is nothing more than a guess as to how much %1.25 will amount to. Either just say no to all casinos or get together as citizens and staunchly dictate exactly what the casino will provide back to the city-and let your imaginations wander because they DO make a lot of money and it will mostly go to some local wallets that we don't even know the identity of right now, unless you act on. I can't believe how many people there are just happy to be walked on again and again! This is as bad as the wealthy insurance companies trying to change our collective minds into being "happy" without health care.
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serpico
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10-18-09 5:17 PM
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Yes let’s all simmer down and allow ourselves to be lulled back to sleep so that misdeeds continue to go unchallenged and our community can continue to thrive as it has.
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kellibrown
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10-18-09 4:58 PM
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forget all comments and just feel happy. This city needs to make money any way it can.
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4strings
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10-18-09 4:12 PM
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PGTB35: I would bet that the 550,000 is above and beyond the 3% that they are required to give to the non-profit (Heart of Iowa Foundation)
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PGTB35
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10-18-09 3:40 PM
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I'm a pro-casino guy but I don't understand why it has to be so secretive. Ottuma's and Lyon County's proposals have been very open. Also I know that legally casino's are required to give back 3% of it's profits to the non-profit entity, so I'm not sure if that 1.25% is a part of that or if it's above the 3%.
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4strings
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10-18-09 2:10 PM
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very valid point Maryjane
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Maryjane
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10-18-09 2:06 PM
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The vote in favor of the casino was based on a deception, that the company was going to pay for a water park. When pressed, the company said they weren't going to pay for it. Without the lies, more people might have voted no.
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4strings
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10-18-09 2:05 PM
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samiam: i totally see your point of view. i just don't think that legally they are required to have a vote on "who" runs the casino. The only requirement is that a non-profit holds the license.
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serpico
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10-18-09 1:44 PM
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Thank you 4strings
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Samiam
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10-18-09 1:01 PM
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We had a vote on to allow or not allow gambling at that time, what is now on the table is WHO will be allowed to apply for that license, and they are the ones trying to cut the backdoor deal with the council and mayor to make it happen. That we haven't voted on as the council will but as the voters they represent us and our interests need to be held accountable for that vote.
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4strings
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10-18-09 12:57 PM
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And Samiam, the community did vote on this in 2003 and it passed (narrowly, mind you) so at this point I don't think they actually need to have any more public discussion even if public sentiment has changed since 2003.
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