Return to Nicholas Johnson's Iowa Rain Forest ("Earthpark") Web Site
Return
to Nicholas Johnson's Blog, FromDC2Iowa
Casino still a gamble for local economy
Editorial
Iowa City Press-Citizen
August 28, 2006
[Note: This material is copyright by the Press-Citizen, and is reproduced here as a matter of "fair use" for non-commercial, educational purposes only. Any other use may require the prior approval of the Iowa City Press-Citizen.]
Our editorial position on the casino project has been consistent: Gamb-ling facilities have proven to be at best an unstable form of economic development. We editorialized against the Iowa Legislature removing its moratorium on the construction of new gambling facilities, we counseled Washington County residents to vote against allowing such a facility to be built and we urged the State Racing and Gaming Commission to deny the project its gambling license. In each case, our advice wasn't followed.
That a casino in the Iowa City-Cedar Rapids area would succeed economically has never been in question. Our region already has a vibrant economy that attracts tourists.
Likewise, the family of the project's main developer, Dan Kehl, has a proven track record with managing gambling operations. Although this project has leveraged Kehl more than ever before, the estimates suggest that the casino and resort will attract 1.6 million customers and bring in $83 million annually.
The problem, instead, has been whether our region is prepared to handle the traffic, noise pollution, crime, gambling addiction and domestic violence that studies suggest increase in proximity to large gambling facilities.
We still believe that opening a casino is not the best option for increasing tax support and economic development in Iowa's smaller towns. When shown to be economically viable and when approved by the voters, casinos do create a lot of activity and require a lot of money to change hands. But it's important to remember the odds always are such that, at the end of the day, the house wins.
As such, the casino and resort must become a tool of further economic development rather than an end in itself. If Riverside can learn anything from Marquette -- a small town in northern Iowa, with a population roughly that of Riverside -- it's the possibility of becoming too dependent on the revenue generated by the casino.
Marquette has had a riverboat casino since 1994. Now named the Isle of Capri, the casino, in 2005, gave out $1.34 million directly to Marquette, $450,464 directly to Clayton County and $45,496 to a non-profit city and county involvement fund. But competition has increased in the last 12 years, and the casino's owners are looking at how to keep up with the 15 licensed gambling operators in the state and the four more, including the Riverside casino, that will open before the end of the year. Their two main options are to expand or to relocate.
As the Riverside casino aptly demonstrates, Iowa's regulations about gambling facilities being located over water can be met technically by simply placing 29 water "bladders," made of PVC material, under the facility. With "over water" becoming a requirement easily fudged, owners are looking to move casinos like the Isle of Capri inland -- a decision that would cut off the direct economic payoffs to river towns like Marquette.
There's no danger of Riverside casino moving in the near future. Likewise, because the Iowa Legislature has become so addicted to the revenues generated by legalized gambling, there's little chance that riverboat gambling will lose is legitimacy in the next generation. But it's up to our community leaders to make the most of this opportunity. They can't confuse the money changing hands at a casino with real, long-term investment in the community.
Likewise, it is beholden on the casino owners to become good corporate citizens of the city that hosts them as well as to the area towns and counties from which the customers will be drawn. It's in their best interest to go well beyond what the state requires in terms of paying employees and reinvesting in the community.
Now that the casino is here, we all have stake in seeing that it helps the region succeed.