Casino operation provides millions of dollars in revenue to city of Cape Girardeau

Casino revenue has sweetened the pot for Cape Girardeau's city finances, providing millions of dollars for projects ranging from street lighting to emergency warning sirens.

Mayor Harry Rediger said, "It has added $3 million-plus a year to our community."

Isle Casino Cape Girardeau opened in late October 2012 on North Main Street and the city began receiving monthly checks in December of that year. Since that time, nearly $11.5 million in casino revenue has come into the city's coffers through May of this year, according to city officials.

The casino also paid $2 million up front to the city for the purchase of 11 acres for the gambling venture. That money helped pay for Broadway improvements, retired airport bonds, replenished emergency reserve funds and financed a part of the design work for the new wastewater plant, said city finance director John Richbourg.

But the casino checks aren't the only benefit to the city, the mayor said.

The Shawnee Park Community Demonstration Garden and Urban Orchard is seen July 20, 2015, at the Shawnee Park Center in Cape Girardeau.Fred Lynch

The riverfront development has eliminated blight and reduced crime in that area, Rediger said.

"We inherited a very good corporate resident," he said of the casino. Isle Casino has sponsored numerous community events.

"It has added between 400 and 500 jobs to the community," Rediger said.

Dog park to business park

The mayor said the city council adopted a casino policy in 2012 that spells out that the revenue won't be used for general operations and reoccurring expenses such as salaries. One reason officials gave for this decision at the time was so that if over time the casino was not successful and moved out, the loss of public funds would not cripple the city's operations.

This artist's rendering shows the proposed sculpture designed by Southeast Missouri State University professor Chris Wubbena that will to be placed in the roundabout on South Fountain Street near the River Campus.Submitted

Instead, the city has funneled the money into a range of projects, including development of a dog park and establishment of a new business park.

Through last December, the city had committed more than $3.5 million to capital improvement projects and another nearly half a million dollars to an innovation fund. The city has used casino money in the innovation fund to help pay for everything from power backup for traffic signals to software for the police department for electronic ticketing.

City manager Scott Meyer said the goal of the innovation-fund projects is to improve efficiency and effectiveness of city operations.

Through the end of last year, the city had committed more than $1 million to sewer improvements for the new business park near LaSalle Avenue. In addition, the city is using casino revenue to make $460,000 annual payments for the purchase of the business park property from Southeast Missouri State University. Through the end of last year, the city had spent $920,000 on purchase payments for the land, Richbourg said.

Funding for projects

The city also has earmarked more than $2.3 million in casino money this fiscal year toward construction of a new police station and $1 million to help pay for its new transfer station, slated to open this summer.

Another $1.4 million is budgeted to improve radio communications throughout city departments.

Without the casino money, Rediger said the city might have had to delay efforts to build a new police station.

The city has budgeted $50,000 in casino money for the city's share of the cost of a sculpture for the Fountain Street roundabout, including landscaping costs.

The city has committed $43,000 in casino dollars to update its website. The project is expected to be completed by the end of 2016.

In addition, city staff members are exploring the possibility of providing public Wi-Fi for major parks and ballfields. That project could involve $13,000 in casino money, according to a casino revenue/expenditures list provided by city staff.

The city also has stockpiled some of the casino revenue in its legacy endowment fund for future needs. At the end of this fiscal year, the city expects to have an unappropriated fund balance of more than $729,000 in its legacy fund. Revenue is set aside in the fund to build an endowment with the intent of spending only the interest generated in the account rather than the principal for years to come, according to the city's casino policy.

The city did loan more than $488,000 from the legacy fund to its solid-waste fund to pay off a promissory note, Richbourg said. That loan will be repaid to the legacy fund, he added.

Meyer, the city manager, said casino revenue has been "a blessing" for Cape Girardeau's city government.

Revenue for area towns

The casino also has benefited surrounding communities. Under the development agreement, 3 percent of the revenue is split up among Cape Girardeau County, the city of Jackson and Scott City.

Cape Girardeau County has received more than $149,000 over the last three years, while another $87,127 has gone to Jackson and more than $28,000 has been distributed to Scott City.

The county government has used its share to pay for emergency warning sirens and help fund the purchase and renovation of a building for use as a juvenile center, said Second District Associate Commissioner Charles Herbst.

The city of Jackson has yet to spend its casino money. City administrator Jim Roach said the money may be used to construct a new restroom facility in the city's main park.

"We want to do something where we can get the most bang for the buck," he said.

In Scott City, the casino dollars have been spent on purchase and installation of weather warning sirens and funding for a historical museum.

Mayor Ron Cummins said, "We get about $10,000 a year. We are very happy. We appreciate it."

Cummins added the casino money "helps out a small community like ours."

The casino pays a 10 percent adjusted gross receipts tax and $1 of every $2 admission fee to the "docking city" as spelled out by state law.

As part of the development agreement, the casino also puts 0.3 percent of its gambling revenue into a special riverfront fund for downtown improvements. The city matches that amount with some of its casino revenue. Seventy percent of the city's match goes to capital improvements. The other 30 percent goes toward the operation of the Old Town Cape revitalization organization.

In all, the special fund has generated more than $639,000 since it was established with more than $319,000 coming from the city's match.

Marla Mills, executive director of Old Town Cape, said the casino revenue has aided downtown redevelopment efforts.

"It has created a little bit more secure funding," she said.

Redevelopment plans were already in place before the casino arrived, she said.

"It really hasn't changed the plans. It has accelerated them in some ways."

John Mehner, president and CEO of the Cape Girardeau Area Chamber of Commerce, said the casino has greatly benefited the community.

"Obviously, they have been a strong corporate sponsor," he said.

The casino's event center also has provided "another tremendous venue" for the area, Mehner said.

Isle Casino has become a major player in the local economy, anchoring the downtown on the north end, he said.

mbliss@semissourian.com

(573) 388-3641

Pertinent address:

401 Independence Street, Cape Girardeau, Mo.

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Casino revenue projects

City of Cape Girardeau three-year spending plan through 2015 for casino revenue

Capital Projects: $3.5 million

• Police station space study, $94,889, completed
• Demolition of Convention & Visitors Bureau (CVB) building, $84,562, completed
• Construction of downtown parking lot at old CVB location, $48,997
• Community garden at Shawnee Park, committed $28,332 to the project, have $21,668 remaining, ongoing project
• Accelerated tree planting, $13,324 out of $25,000 budgeted, spent to date, ongoing project
• Broadway Prescription parking lot, $32,578, completed, part of Broadway improvements project
• Last Call tavern parking lot, $69,450, completed, part of Broadway improvements project
• Middle Street parking lot, $152,067, completed, part of Broadway improvements
• River Heritage Museum parking lot, $59,999, completed
• Hopper Road lighting improvements, $4,313, completed
• Main Street lighting improvements, $342,250, completed
• Development of dog park, $43,352, completed
• Arena Park fencing, $45,018, completed
• Fort D roof improvements, $16,232 spent for architectural design/cost estimates, no final decision yet on proceeding with project
• Walking trail lighting/widening from North Kingshighway to East Rodney Drive, $100,000 earmarked, widening scheduled for this summer
• Sidewalk connection on Kingsway Drive to LaCroix Trail, $148,356, project not yet closed out
• Greater Cape Girardeau Business Park sewer project, $1.1 million, completed
• LaCroix Trail outdoor fitness equipment, $47,722, completed at site near tennis courts
• Shawnee Park playground equipment and landscaping, $54,047, completed
• Cape Youth Tackle League scoreboards and bleachers, $16,138, completed
• Emergency warning sirens, $128,406, completed
• Greater Cape Girardeau Business Park purchase payments, $960,000, ongoing payment of $460,000 annually
• Greater Cape Girardeau Business Park utility improvements, $58,460, completed, holding remaining $191,540 for future infrastructure and/or grading
• Cape Girardeau County Transit Authority, $20,000 budgeted for equipment
• Fountain Street sculpture, $50,000 budgeted for cityÂ’s share of joint project with Southeast Missouri State University, includes creation and installation of sculpture and landscaping
• Contingency for capital projects, $40,615

Innovation Fund: $480,306

• Tablet/printer for fire inspector, $4,360, completed
• Leadership training, $49,938, completed
• Traffic signal power backup, $57,532, completed
• Electronic ticketing software, $149,566, project in final phases of testing, $434 balance being held until project completed
• Police Connect crime mapping software, $1,235, completed
• Traffic management software, $45,000, completed
• Large format printer, $12,577, completed
• Parks Department registration software, $45,245, holding another $14,755 for software/hardware for card readers
• Mobile computer terminals for fire department, $15,337, another $42,663 remaining in budget for ongoing project
• Computer software for nuisance-abatement vehicles, completed
• Color plotter for development services, $4,389, completed
• Energy manager system for Public Works, $12,668, completed
• Records management software, $10,713, completed
• Energy manager system for Osage Centre, $14,500 budgeted, project under review
• Wi-Fi for park facilities, $13,000 budgeted, researching implementation
• Major upgrades to radio communications, $10,407 committed, another $289,594 is earmarked for ongoing project
• Website upgrade, $43,000, project scheduled to be completed by end of 2016
• Contingency, $37,149

Riverfront Fund: $319,755, cityÂ’s share of 50-50 match with casino providing an equal amount

Adjacent Community Fund: $264,394

• Cape Girardeau County government, allocated $149,143
• City of Jackson, allocated $87,128
• Scott City, allocated $28,123

Source: City of Cape Girardeau