The sale of the Rhythm City casino got a 10-day extension Tuesday as Davenport's City Council considers terms on lease transfers from the riverboat's owner to purchaser Scott County Casino LLC.
Scott County Casino and Isle of Capri agreed on the extension Tuesday to extend the deadline for executiing a $51 million sale option agreement for the Rhythm City. Tuesday was the last-day of the 120-day exclusivity period for executing the option agreement.
The city council agenda will be amended to include approval of the lease transfers that will provide the city with a one-time payment of $380,000 from the Isle of Capri. The lease transfers are also contingent on an executed development agreement with Scott County Casino.
Dan Kehl, CEO of Scott County Casino, said discussions with the city are what needs to be completed. The Davenport City Council meets Oct. 23, two days before the 10-day deadline expires. The city has approved a development agreement with Scott County Casino, but the company hasn't signed it.
At last week's Iowa Racing and Gaming Commission meeting, Chairman Jeff Lamberti expressed hopes that the issues between the city and Riverboat Development Authority could be settled by the end of the month. The IRGC meets in Johnston on Nov. 21, where Kehl hopes to present an executed option agreement and plans for a land-based casino.
"We are trying to keep the IRGC’s directive to get this wrapped up by the end of the month," Kehl said. "I think we’ve made great progress in the last five days."
The Development agreement approved by the city council last month included terms that changed when the Riverboat Development Authority approved the operating agreement with Scott County Casino. The RDA agreement knocked the city's proposed 4 percent of the adjusted net revenue to 1.75 percent while the RDA would get 6.4 percent of revenue.
Kehl plans to build a $110-million casino and hotel in north Davenport near Interstate 80.