Casino settlement tops $14 million

KIMMSWICK, Mo. -- Isle of Capri Casinos Inc. has agreed to pay $14.3 million to settle a lawsuit stemming from a decision four years ago to scrap plans for a gambling and entertainment complex near Kimmswick.

Jefferson County officials announced the settlement Friday. The suit, filed in December 2002, alleged that company's decision to withdraw its application for the $105 million development constituted a breach of contract.

The plan called for development of 46.5 acres on the Mississippi River but was withdrawn in September 2001 amid local opposition and regulatory problems.

Allan Solomon, the executive vice president of the Isle of Capri said he didn't believe the company breached its contract when it withdrew from the project because of concerns about potential lawsuits and opposition, but that it wanted to avoid a lengthy trial set to begin next month.

"We decided that it was in the best interests of the company to affectuate a reasonable settlement," Solomon said.

At issue was a 1993 agreement between the Jefferson County Commission and Isle of Capri's predecessor, Lady Luck Kimmswick Inc. Under the terms of the contract, Lady Luck, and later Isle of Capri, had agreed to pay the county $350,000 a year.

County officials planned to invest the money in capital improvement projects, possibly including construction of a new juvenile detention center, expansion of the county jail and renovation of the county's aging and overcrowded courthouse in Hillsboro. About a third of the settlement will be used to pay legal fees.

"It's a good stocking stuffer for the citizens of Jefferson County," said Mark Mertens, the county's presiding commissioner. He took office in 2003 shortly after the suit was filed.