Casi-NO! What Is Cedar Rapids To Do Now?

The Iowa Racing and Gaming Commission (IRGC) rejected a proposed $174 million Cedar Rapids casino Thursday, saying it would hurt existing casinos.

Supporters of the Cedar Crossing Casino development have said it would give an economic boost to Cedar Rapids and the region. They also argued it would be a catalyst for development in an area ravaged by a 2008 flood, create jobs and generate millions for tax revenue and charities.

But representatives of casinos in Riverside, Dubuque, Meskwaki, and Waterloo fought the plan, saying it would take business away from them.

The five-member commission voted 4 to 1 against the new casino during a meeting in Council Bluffs, with more than 300 people attending, including the mayor and members of the Cedar Rapids council. There is no process to appeal the decision.

Mayor Corbett visibly upset over 4-1 vote 
against granting a new license 

The Cedar Rapids council was in visible shock and disappointment, though personally, I struggle to understand how and why. The criteria charged to the IRGC was simple, is there again to be had to the state. Not the city, not even the county, the impact for the state, and the vast majority study and evidence presented to the commission stated that most of the gain to the City of Cedar Rapids would come at the expense of surrounding, in state, casinos who have their own microcosms of economic well being to support.

It was a selfish venture for the City of Cedar Rapids, a point that was glaringly obvious when hearing Mayor Ron Corbett talk about the impact to other casinos after the latest studies showed the impact of existing casinos.

"The reality is the casinos in Eastern Iowa have taken a lot of money out of Cedar Rapids over the last five to seven years, and no one is talking about cannibalization in the reverse," Corbett said. "They’ve been cannibalizing the revenue out of Cedar Rapids and Linn County since they’ve been opened." -Mayor Corbett 2/26/2014

That is not the voice of someone who has the greater region's interest first and foremost, I do not fault the Mayor for wanting Cedar Rapids to have a larger slice of the proverbial pie, but an honest admission that a new casino would not dramatically increase the total pie size was the mission from the discussion. Indiscriminate openings of casinos is exactly the point of the IRGC, for better or worse, and trying to say that the commission failed to have the states best interest at heart is a dishonest argument.

Now that I have that mini-rant off my chest, the big question is, what is next for the City of Cedar Rapids. Specifically, what to do with these now vacant lots purchased by the city after the 2008 Flood on the North West side of downtown. The question has already been posed to members of the council in the wake of the IRGC decision not to grant a gaming license.

From the Cedar Rapids Gazette interviews;

---Council member Monica Vernon said the dust was still settling Friday, and she said the city still needed to determine if the casino idea “was completely over.”

Council member Pat Shey, said he could envision legislation that would permit a new casino with the stipulation that it be required to share revenue with an existing casino that suffers a loss of business because of the new competition.

Council Member Poe said, “At this point, it’s hard to drive down there because we had the vision of the casino with a parking ramp almost ingrained in our mind, It’s very difficult to imagine what else can be there.”---

In short, the City has little intention on putting up a 'For Sale' sign unless they can have their say in the development of that area. A voice that, given the City has been gearing a larger part of City Hall staff and resources towards developmental services, the council appears eager to exercise.

Last minute lobbying in Council Bluffs on the eve of the vote

Going forward, let the same people who are criticizing the role of the IRGC for being a barrier against free enterprise for an industry that is deliberately regulated for the benefit of the greater community not stand in the way of anyone who has a legitimate business plan in that area. The city was a breath away from giving that land away for all but free for promises of supporting the west flood protection. Now that we have this wade of cash for said protection, any fair market offer for a parcel of land needs a fair consideration. The council has been very active in imprinting their vision into the landscape of downtown Cedar Rapids that if they continue to dictate the specifics of too many projects then they will have proven themselves to be no better then the IRGC, only that their reach would encompass all industry, not just the highly regulated gambling industry.

Hopefully, the irony of being upset with the IRGC, being the body that undercut the City's plans of developing that land in a particular way is not lost when they forbid people from purchasing up individual parcels from this now vacant land because the plan does not conform to the vision that the council has for that part of the City. Hopefully, a valid business opportunity is not nixed because of a far-fetched hope that a bustling gambling district is not "completely over". And, hopefully, the events of last week are not the scapegoat in the event that this grand rebuilding plan does not go according to, well, plan.