PROMOS DECIDES AGAINST PORT SITE

A Memphis-based gaming company has decided not to locate a riverboat at the Southeast Missouri Regional Port Authority facility near Scott City.

"We are pursuing a lot of other projects in other markets at the moment," explained Beth Rooks, Promus' manager of communications.

Promus is developing a huge casino in New Orleans expected to cost half a billion dollars, and others in Vicksburg, Miss., Shreveport, La., and North Kansas City.

Promus, which operates Harrah's Casino Hotels along with Embassy Suites, Hampton Inns and Homewood Suites, had been discussing a $30 million project with port officials.

"We went in and did some market research studies," Rooks said. "There were no active negotiations as far as signing of a deal. We did talk to some people there about it."

"... Basically, we were evaluating the area," she said.

The proposal discussed with the port called for the gaming company to enter into a five-year lease. The casino was projected to have an annual payroll of $14-15 million and employ about 700 people.

Mysie Keene of Jackson, chairman of the port's nine-member board of commissioners, said Promus notified the board of the decision last week.

"It was their decision and that was it," said Keene. "They came to us and we worked with them as we do any prospective tenant that comes to us. They told us they decided the market wasn't big enough here."

Keene said she was not disappointed, but noted: "I regret the fact we could have had 700 jobs. That is disappointing. Certainly the money the port would have gained from this. It would have been helpful in development of the port. But we have a lot more prospective tenants. We're moving ahead."

Riverboat gambling was approved by Missouri voters last November. The law requires voters in a city or county to approve a local option before a gambling boat can be docked within its boundaries.

Although the port authority is located in both Cape Girardeau and Scott counties, the boat was to have been docked in Scott County.

At the request of the port authority, the Scott County Commission placed the riverboat gambling issue on the November ballot.

Keene said she assumed the issue will remain on the ballot but stressed that the decision is up to the county commission.

Presiding Commissioner Durward Dover said Monday night that the commission will be talking with the port board right away.

Said Dover: "For the time being it is on the ballot. No decision has been made to take it off or leave it on. But it will probably be left on the ballot."

When the commission was asked to call the vote, Dover said, Promus had agreed to pay the $16,000-$18,000 cost of the special election. He is unsure whether the company is still willing to pay for the election.

"That's another thing that's up in the air," he said.

Rooks said she didn't know first-hand what Promus' market research revealed about docking a floating casino at the port.

John Oliver Jr., a Cape Girardeau attorney who has been representing Promus locally, said the recent flood apparently played a role in the company's decision as well.

"(Because of) engineering problems and other engineering reasons and other uncertainties, they just decided - at least temporarily - not to pursue this," Oliver said.

"My understanding is that it had to do with the flood and some engineering problems that they foresaw because of the flood."

Keene said she could not comment on whether the port authority had been contacted by other companies interested in locating a gambling boat at the port.

"If another company approached us, we will talk to them just like we do anybody else about locating at the port," said Keene.

"Almost every prospective tenant, no matter what their field is, requests one thing: ~`Don't mention I am talking to you,'" she added.

"Everyone involved with economic development knows you don't discuss prospective tenants."

Based on a projection that the boat could do $50 million in business per year, Scott County officials had estimated that the state and county could bank about $10 million in taxes.