SCOTT CITY WILL DECIDE GAMBLING ISSUE

SCOTT CITY -- If the Southeast Missouri Regional Port is to have a floating casino, it likely will be the result of action taken by Scott City voters.

At its meeting Monday night, the Scott City Council will consider whether to submit the local option for riverboat gambling to voters April 5.

In November, Scott County voters defeated the measure soundly, and Presiding Commissioner Durward Dover said this week he and the other commissioners still maintain that the only way they would favor another election is if it were requested through a petition.

"I think needing signatures is the general feeling of the three commissioners," said Dover.

He said the port authority board has not requested the county commission to place it on the ballot again. "We haven't had any formal discussion on it, just a little conversation," said Dover.

Since the county clerk needs to certify issues for the April 5 ballot no later than Tuesday, it is unlikely another Scott County gambling election will be held this spring. That shifts the focus to Scott City, where voters in both city precincts approved the issue in the November countywide vote.

Early last fall the port authority signed a lease option with Casino Magic to make a first-year $30-million investment at the port with a riverboat gambling operation. The lease was contingent upon voters in Scott County approving the local option.

As a safeguard in case a second election was needed, the option expires April 30. That means for the port authority to have any chance of signing a lease agreement with Casino Magic soon, voters in Scott City would have to approve the local option. In addition, since the port authority is not in a city, Scott City would have to annex the portion of the port where the boat would be.

Meanwhile, the relationship between several port board members and Scott City Mayor Larry Forhan has been strained recently. Port officials complain that Forhan wants all the tax money that would be generated from a boat to go to Scott City, and is not being cooperative on issues like annexation.

Forhan denies he has not been cooperative, but does insist that Scott City should receive the projected tax revenues of nearly $2 million from a boarding fee and tax on gambling proceeds. Forhan has not committed to Casino Magic as the boat operator; he wants to hear proposals from other companies.

At a closed meeting Monday between the city council and several port commissioners, an effort was made to resolve some of the differences.

Dan Overbey, executive director of the port authority, said Monday's meeting was "cordial and informative for all of us. There was a discussion of the whole topic and various alternatives, but we did not settle on anything in particular."

Overbey said one of the key issues discussed was a possible friendly annexation of a portion of the port by Scott City.

Even if Scott City approves riverboat gambling, it cannot get a boat without annexation since its city limits are about two miles from the Mississippi River.

Doug Whitehead, Missouri project coordinator for Casino Magic, said this week his company still has an interest in having a boat in Southeast Missouri but has other pressing matters now.

A joint development proposal with Caesar's Palace and Casino Magic was chosen by the city of St. Louis last week for a boat at Laclede's Landing. The package has to be approved by the city's board of aldermen and several other details need to be ironed out.

Also, a Jan. 25 ruling by the Missouri Supreme Court that found parts of the state's riverboat gambling law unconstitutional has further clouded the issue. State legislators are trying to get a constitutional amendment on the ballot in April to deal with the court ruling, and enabling legislation will also need to be passed if the amendment is approved.

"This whole election throws a wrench into everything right now," said Whitehead. "At this time our company is concentrating on three priorities: the constitutional amendment, enabling legislation, and St. Louis, Mo. Those are three huge hurdles."

Once those priorities are addressed, Whitehead said Casino Magic will have the time to take a look at the port authority again.

"We desire to have two licenses in this state. It would be advantageous to our company to do promotions jointly," said Whitehead. "If they pass the local option, we will be interested."

But Whitehead said the company may also look at other sites in Southeast Missouri.

Last November's election was funded almost entirely by the company. Whitehead said Casino Magic would likely play no role in an April election in Scott City because of the three priorities.

But there are people willing to step forward and get involved in a citywide campaign. Shirley Young, president of the Scott City Chamber of Commerce and a former mayor, said she is willing to be active in another campaign. Young was treasurer of Scott County Citizens for Economic Development in the last campaign.

Young said: "We have kept the committee open and a lot of people have called me. I feel like there is a lot of interest. I am willing to work and have some people who are willing to work if something comes up."

Young said her primary focus is economic development, and riverboat gambling will provide a lot of jobs and spinoff benefits to the area. "I think it is a good opportunity for our area," said Young.