Davenport aldermen received an upbeat update on the city’s $46 million purchase of the Rhythm City casino that also was partly aimed at the Riverboat Development Authority.
City administrator Craig Malin’s update mentioned several times that the city has proposed increasing the RDA’s share of the adjusted gross revenue from 4 percent to 4.5 percent once the casino goes land-based, then to 5 percent after
50 percent of the bond debt has been retired.
The estimated revenue to the RDA would grow from $2.1 million annually to
$3.8 million, Malin said.
The city is waiting for the
RDA to vote on an operating agreement and has responded to a number of questions submitted by board members. The RDA board meets Friday, but chairman Gary Mohr has said that voting on an agreement before seeing development proposals due Dec. 20, would be premature.
Malin told the board that negotiations to complete a likely 100-plus page purchase agreement is ongoing, with attorneys, accountants and bond counsel involved. The city intends to issue municipal bonds to fund the purchase.
“The process we intiated last month is going quite well,” Malin said.
City representatives have also met with various members of the Iowa Racing and Gaming Commission, Malin said.
He didn’t field any questions after the update.
The city has also approached Russell Construction, Davenport, to provide construction estimates for land-based casinos located downtown and along the interstate corridor.
Interviews of possible developers are scheduled for Jan. 3 and 4, Malin told the council, while no meeting has yet been scheduled for the Davenport Community Improvement Corporation, which will oversee operation of the casino. The city administrator blamed the holidays for making it difficult to schedule a meeting.