LADY LUCK, DRAINAGE DISTRICT ENTER PACT

SCOTT CITY -- The Little River Drainage District has agreed to lease a spot to moor a Lady Luck Gaming Corp. gambling boat in the district's Diversion Channel at Scott City.

Drainage district Executive Vice President Larry Dowdy said the lease option was signed Tuesday.

"This means that Lady Luck has the right to come in and construct a project on the south bank of the Diversion Channel, provided they get all the necessary permits from the state," Dowdy said.

There remains, however, a question on whether a gambling boat can operate in the Diversion Channel. The Missouri Gaming Commission will have to decide that issue after Lady Luck submits a gambling-license application.

The project could still be more than a year away from construction. The Missouri Gaming Commission will announce next week what applications it will process during the next 12 to 18 months, and Lady Luck may not be in time for that list.

Scott City officials, however, were elated with the news of the agreement.

"We're very happy," Mayor Larry Forhan said. "The location is one of the final steps leading to Lady Luck's request to the Missouri Gaming Commission. We're anxious to see things get started here."

"We're all excited to see this agreement," Scott City Administrator John Saxon said. "It's a big step."

The U.S. Corps of Engineers has to approve the site.

"This is a mainline levee on the Mississippi River," Dowdy said. "But, we don't foresee any problems."

Lady Luck has proposed a three-phase, $65.3 million project in Scott City, which would include a gambling boat, hotel, entertainment center, an outlet mall, 18-hole golf course, athletic complex with tennis courts and a community center and library.

The company has projected it can have the gambling boat and parking areas off Nash Road near Interstate 55 completed within six months of the Missouri Gaming Commission's awarding a license. Lady Luck expects the entire project to be completed within 2 1/2 to three years.

Lady Luck has projected 750 new jobs will come with the riverboat. When the entire complex is completed, more than 1,100 new jobs are estimated.

The Scott City Council unanimously approved a $63 million riverboat gambling contract with Lady Luck Gaming Corp. in July.