DEVELOPER ELABORATES ON PROFITS

The Boyd Group, a gaming and resort company, will strive for a 10 percent return on its investment of a proposed riverboat casino project in downtown Cape Girardeau, says Charles L. Ruthe, president of the Las Vegas-based company.

"If we come into the area, we have the potential to make a profit of about $4 million our first year," said Ruthe, whose firm has proposed a $37.5 million riverboat casino project along the Mississippi River.

"The $4 million net profit is the amount of money we will take out of the area."

Dr. Richard Martin, a local physician and member of Citizens Against Riverboat Gambling, claimed earlier in the week that The Boyd Group projections show a profit to the company of $35 million to $36 million, which he says would "go back to Las Vegas."

"Dr. Martin has taken our figures but is not taking expenses into consideration," said Ruthe Tuesday. "We have projected about $45 million in revenues the first year. The only expenses Martin looked at is the $9 million, which will go to state and city. That leaves $36 million."

Out of that amount, we have to pay the salaries of 800 people, noted Ruthe. "We have to pay for supplies, like food and beverage, we have interest costs, we have the normal cost of business operations, and we have taxes," he said.

"No matter what business you have, you have expenses before reaching the bottom line," added Ruthe.

The Boyd Group won't know until June 8 if they can carry out its riverboat plans, which call for a $13.5 million riverboat, $6 million in gaming equipment and a $15 million land-based development that includes food service areas, retail space, a walkway over the river wall, 800-space parking garage and a 900-space parking lot. The overall development will provide 800 jobs.

"None of these 800 jobs are part-time jobs, and none are minimum wage jobs," said Ruthe.

Cape Girardeau voters will go to the polls June 8 to cast their ballots on the riverboat casino project.

The Boyd Group has purchased some land and has options on other property in the development area.

"If the June 8 vote is positive for us, we'll gladly discuss our land purchases and options," said Ruthe.