Deal calls for casino to pay $2.4 million for improvements, other costs

The development deal between city officials and the company that hopes to bring a casino to downtown Cape Girardeau calls for the casino to pay more than $2.4 million in up-front money to pay for amenities for Broadway, visitor signs and other improvements and costs.

The deal has been signed by Isle of Capri LLC, and the Cape Girardeau City Council is expected to vote on it at its 7 p.m. meeting Tuesday at city hall, 401 Independence St.

"The development deal is the culmination of a lot of work on the behalf of the city as well as Isle of Capri," said company communications director Jill Haynes. "It reflects our ultimate goal, which is to help revitalize downtown Cape Girardeau and the Broadway corridor."

The deal requires the city to vacate its right of way and convey city-owned property on the project site, which is planned for North Main Street near Mill Street on the site of the old Florsheim Shoe Factory.

In exchange for the roughly 11 acres, Isle of Capri has agreed to pay the city $2 million upon transfer of the property. City manager Scott Meyer said that $1 million of that money would go toward amenities on Broadway, including historic lighting, trees and benches.

Transportation Trust Fund 4 has a reworking of Broadway, Meyer said, but money couldn't be found for amenities like those.

"So in our discussions, it seemed like that would be a good project to have included in the development deal," he said.

The other $1 million would go for another project yet to be determined in the downtown area, Meyer said. The city is expected to announce that project within the next 30 days.

As part of the development deal, the casino also agreed to pay $150,000 to compensate for costs the city incurred when it hired special attorneys to help negotiate the deals as well as prepare a report for the Missouri Gaming Commission, which is due by Oct. 1.

Isle of Capri also will pay 0.3 percent of its monthly gross in gaming revenue to be held in a special fund, which will be called the Riverfront Fund. The money will used specifically for improvements to the downtown business district area and require a matching amount by the city.

But an initial payment of $250,000 will be made, according to the agreement, to be used for city visitor signs and banners and requires no city match. The signs will direct visitors to tourist destinations and community facilities.

Each year, the 0.3 percent in revenue is expected to generate about $200,000 to $250,000 for the city to use on improvement projects, Meyer said. How that is used is at the city's discretion, Meyer said, except that it must be used in the downtown district.

The deal also requires Isle of Capri to pay to construct both the private and public improvements, including a realignment of Main Street and the installation of required utilities, Meyer said.

"I think we've worked hard to come up with something that met our goals and is fair to the city," Meyer said.

Mayor Harry Rediger agreed.

"I think it's a fair agreement for all," he said. "We will be able to fund a considerable number of downtown projects. This will also free up money on the annual revenue side for projects throughout the city."

The issue will be on the ballot Nov. 2. If voters approve the measure, the Missouri Gaming Commission still has applications to consider in four other communities for the single casino license available in the state.

smoyers@semissourian.com

388-3642

Pertinent address:

401 Independence St., Cape Girardeau, MO

North Main Street, Cape Girardeau, MO