CARUTHERSVILLE HOPES FOR ECONOMIC BOOST

CARUTHERSVILLE -- The "City of Caruthersville" riverboat will be the first floating gambling riverboat on the Mississippi River between St. Louis and New Orleans.

Casino Aztar, which is investing more than $40 million in its Mississippi River casino riverboat operation here, has started construction on its land-based pavilion and expects to make its first official gambling expedition in late April or early May.

"Our boat is about ready," said Fritz Johnson, vice president of Aztar Corp. and general manager of the Caruthersville operation.

The boat, named "City of Caruthersville," is being outfitted at Jeffersonville, Ind.

The riverboat, which can hold about 600 visitors, will have 500 slot machines, 24 blackjack tables, two roulette wheels and two crap tables.

Aztar's casino riverboat won't be the only gambling riverboat between St. Louis and New Orleans, but it will be the only floating casino.

The 11 operating casinos in Tunica County in Mississippi, about 30 miles south of Memphis, Tenn., are land-based. Three casinos at Vicksburg, Miss., and one at Natchez, Miss., also are land-based.

Mike Facenda of the Aztar marketing department said groundwork for the land-based development is under way. One of the streets leading to the site recently was completed.

"There's a lot of optimism and excitement here," Facenda said. "The city and its people are receiving us very well."

Caruthersville Mayor Rick Davis is looking forward to the new project.

"The Aztar operation will be an economic shot in the arm," said Davis, who works for Union Electric and was elected mayor in April. "We are looking at a number of improvements for the city, which will strengthen our economic base and enhance tourist trade."

Caruthersville received $2.5 million up front from Aztar for development of water, sewer and streets in connection with the gambling casino project.

Also, Aztar has guaranteed the city $1 million in annual revenue.

"Hopefully it will be much more," Davis said. "We'll receive $1 for each passenger who boards the casino riverboat, and a percentage of the company's win totals."

With from 840,000 to 1.2 million visitors expected each year, Davis said the city could get up to $2 million a year.

That is equivalent to half or three-fourths of the city's annual budget, Davis said.

"We'll utilize some of the funds for economic development," he said. "We need that employment. We've lost more than 500 jobs this year."

Caruthersville, county seat of Pemiscot County, lost 460 jobs with the closing of Brown Shoe Co. March 31. Since then, two more smaller companies have closed -- Tipton Box, with 60 workers, and R. T. Friction Co., which employed 40.

Unemployment has soared in Pemiscot County, which includes Caruthersville and Hayti.

October totals show Pemiscot County as one of three counties in the state with double-figure unemployment at 12.2. This is a marked improvement over August's 16 percent.

The Aztar operations are expected to employ 600 to 700 people, which has sparked optimism among many of the town's residents.

Davis said a number of people are "fixing up their homes in Caruthersville," and that several downtown merchants are remodeling and installing new storefronts.

"Aztar is making some funds available for low-interest loans to merchants for face-lift projects," he said.

The Aztar land-based complex at Caruthersville will consist of a two-level, 40,000-square-foot pavilion, which will house boarding facilities for the riverboat, food and beverage facilities, and the Aztar corporate offices. The building also will include parking for 1,000 vehicles and a dock for the riverboat.

It also will include a 40-seat delicatessen and a 250-seat restaurant. Facenda said a sports bar and lounge will be in the building.

A number of other floating casinos have been announced along the Mississippi River between St. Louis and Caruthersville, all anticipating mid- to late-1995 openings.

Boyd Gaming Corp., which will invest more than $50 million in a gambling operation at Cape Girardeau, hopes to start construction in early 1995, with a winter opening. Lady Luck is planning a three-phase, $63.5 million operation at Scott City, and anticipates a mid-summer start.