GAMBLING COMPANIES ASKED TO CLARIFY BIDS

Some Cape Girardeau officials and representatives of Lady Luck Gaming are concerned that the city is unjustly opening up the proposal process.

Representatives from Boyd Gaming and Lady Luck met Monday with city officials to further clarify their proposals for a riverboat casino complex in the city.

But after viewing a list of questions regarding the proposals, Lawrence Tombari, Lady Luck's vice president of development, said the city is running the risk of skewing the process.

"I'm concerned that the questions are so broad that the competitor might add things to the extent that the extra time has allowed them to view our proposal and adjust theirs to get the city's endorsement," he said.

But City Attorney Warren Wells said the request for proposal (RFP) process is unlike a typical bid-letting for city goods or services.

"You've asked both sides to make proposals, and if the city wants to, they can ask for additional proposals," Wells said.

But Barry Thalden, one of the developers of the $58 million Lady Luck proposal, disagreed. "It's very unfair to ask two companies to make entire proposals public and then to allow the other company to make changes to reflect parts of the other side's proposal," he said.

Councilman Melvin Gateley made a motion to restrict the companies to their initial proposals. Mayor Gene Rhodes supported Gateley's motion to stick with the parameters laid out in the RFP document drafted by the city.

But Wells said that document was drafted in a way that enables the city to ask the gaming companies to add to their proposals.

Gateley withdrew the motion after Councilman Mary Wulfers objected. She said that before the RFP was sent to prospective companies, the council agreed to open the door for "further negotiations" once proposal were submitted.

Councilman Al Spradling III assured Tombari that the additional questions posed Monday wouldn't deviate significantly from the initial RFP. Specifically, Spradling said the companies wouldn't be allowed to change the site of their complex.

"Our intent is to make a decision based on the RFP and the answers to these questions," Spradling said.

After the meeting, Tombari said he was satisfied with Spradling's assurance that the process wouldn't be turned into a full-scale "bidding war."

But Charles Ruthe, president of the Boyd Group, said it's common for cities to ask gaming companies to sweeten proposals to secure the city's recommendation.

Robert Boughner, Boyd's chief operating officer, said the request for proposals is a very different process from a typical bid letting for city goods or services.

"They're not buying a fire truck," Boughner said. "The city's not going to own it, so the door is open to offer whatever we want."

After the meeting, Spradling emphasized that the RFP is a "flexible document. The more amenities we're able to obtain for the city, the better off we are."

Both companies were asked the same 16 questions regarding their proposals, including a request by the Cape Girardeau Ministerial Alliance. Boyd Gaming was asked an additional 11 questions, and Lady Luck another seven questions.

The answers to the questions will be submitted in writing to City Manager J. Ronald Fischer by 3 p.m. Friday.

The city then will include with the initial RFP a "memorandum of agreement" regarding the additional items.

At Monday's meeting, the council emphasized that both groups would have to provide assurances such as bonds, letters of credit or escrow agreements to guarantee their project.

"One of the common themes we hear from everybody is that we guarantee that these projects are done, and that nobody is putting in a boat, making their money and floating away," said Spradling.

Representatives from both companies said they had no problem with providing such financial assurances.