BOYD TO DIVEST OF CAPE PROPERTIES; GAMBLING

After a four-year flirtation with gambling in Cape Girardeau, Boyd Gaming Corp. has taken steps that almost assure the company won't establish a riverboat gambling operation here.

Boyd is selling the properties it acquired over the past three years in downtown Cape Girardeau.

A total of 10 parcels will be offered for sale, said Ivan L. Irvin of Century 21 Key Realty, which will handle the sales. Irvin handled most of the purchases for the Las Vegas-based gambling company over the past few years.

Boyd and the city of Cape Girardeau last year signed a contract to allow Boyd to establish a riverboat gambling operation along the Mississippi River in downtown Cape Girardeau. The $52 million project called for a riverboat, docking facilities, parking garages and restaurants.

But the five-year contract could expire before the Missouri Gaming Commission opts to consider another casino site for Southeast Missouri.

Boyd officials closed its downtown office here in February. At that time Maunty C. Collins, senior vice president and director of Boyd's central-region operations, said the company had not given up on Cape Girardeau, but was at standstill on the proposed operation. Boyd officials said an apparent moratorium on new gambling licenses in Missouri forced Boyd to reassess Cape Girardeau.

Boyd officials earlier this month decided to sell its properties in Cape Girardeau.

The Missouri Gaming Commission still has sort of a moratorium on issuing any new licenses on the Mississippi River south of St. Louis.

"It could be another five years before the commission considers any new casino operations in the state," said Rob Stillwell in the Las Vegas office of Boyd Corp.

A recent report by the Missouri Riverboat Gaming Association reveals that 14 of Missouri's casinos are losing money.

The state has 11 casino sites scattered from St. Joseph to Caruthersville and Kansas City to St. Louis. Only one of the operations -- Harrah's at North Kansas City -- is operating at a profit.

Another license for a casino will be added at Boonville, but no prospects are in sight for any other location.

Boyd Gaming recently notified the city of its intentions to sell the properties. The contract with the city has more than three years to run.

If the gaming commission approves a casino for Cape Girardeau, Boyd still has an option under the contract.

Boyd paid the city $250,000 upon entering the contract with the city. Other terms of the contract were not to become effective unless a casino license is granted.

"Boyd has certainly lived up to everything in the development contract," said Cape Girardeau Mayor Al Spradling III.

"They would have 90 days to notify the city of their intentions," said Spradling. "They could go forward with the contract, or end it."

In the case of the latter, the city could look into contracting with another developer.

Spradling dispelled speculation that the Boyd decision would effect the Lorimier Street approaches to the new Bill Emerson Memorial Bridge. "Decisions on bridge approaches were made long before the gambling issue in Missouri," said Spradling. "The Lorimier Street bridge approaches will remain intact."

Boyd initiated its quest for a Cape Girardeau gambling operation in January 1993, when the company announced a proposal for a $38.5 million development for the downtown area. That was almost two months after Missouri voters approve riverboat gambling.

The Boyd project was delayed when city voters turned down riverboat gambling in April 1993. It wasn't until seven months later, in November 1993, that voters approved a casino riverboat project during a second election. In January 1994, Lady Luck Gaming Corp. tossed its hat in the Cape Girardeau ring. But two months later the city selected Boyd to develop a $52.1 million facility in downtown Cape Girardeau.

After the Boyd Group had been selected as developer, it started acquiring property along the river floodwall, from Broadway to and including the old shoe factory building property. The company owns the bulk of that property.

The company also owns a couple of parcels on the west side of Main Street, including the former Job Service building, and two buildings on North Spanish north of Broadway.

Boyd only recently relinquished options on the Buckner-Ragsdale building on the southeast corner of Broadway and Main, along with options on the parking lot on the northeast corner at Broadway and Water.

The Boyd group owns the property at the northeast corner of Broadway, site of a former Sinclair service station.

BOYD GAMING'S CAPE GIRARDEAU PRESENCE

-- November 1992: Missouri voters approve riverboat gambling.

-- January 1993: Boyd Gaming Corp. of Las Vegas announces plan for $37.5 million riverboat gambling operation in downtown Cape Girardeau.

-- June 1993: Cape Girardeau voters reject riverboat gambling for city by 53-to-47 percent vote. Caruthersville voters approve riverboat gambling by 67-to-33 percent margin.

-- November 1993: In another vote, Cape Girardeau voters approve riverboat gambling by 425 votes. Boyd Gaming makes new proposal to City Council for downtown development.

-- January 1994: Lady Luck proposes $58.2 million riverboat project for Cape Girardeau. Boyd's proposal is now at $52.1 million.

-- February 1994: Boyd Gaming opens temporary office at 118 Themis.

-- March 1994: Cape Girardeau City Council selects Boyd Gaming for development contract.

-- January 1995: Missouri Gaming Commission conducts market study on riverboat gambling. Twenty-five companies have applied for permits. Commission wants to avoid oversaturation.

-- April 1995: Lady Luck remains committed to Scott City as a riverboat site, with $66 million proposal.

-- April 1995: Aztar's riverboat casino opens at Caruthersville.

-- February 1996: Another gaming corporation expresses interest in Cape Girardeau but submits no proposal.

-- March 1996: Cape Girardeau City Council approves gambling agreement with Boyd. Boyd officials present check of $250,000 to the city after the vote.

-- February 1997: Boyd closes office at 118 Themis. Reassesses project here.

-- September 1997: No further action by Missouri Gaming Commission on new casinos for Southeast Missouri. Boyd to start selling its downtown Cape Girardeau properties.