Vote No Group Criticizes Prospective Linn County Casino Investors for Projected Nonprofit Donations

On Monday, the people behind a new potential Linn County Casino released a new list of investors for the project.

But with this release came a new round of criticisms from the from the organization that opposes the Linn County Casino, this time upbraiding the casino backers for not promising to pay more to non profits in the area.

KCRG reports:

Spokesperson Todd Henderson criticizes casino developers for only agreeing to give 3% of gaming revenue to non-profits; the lowest amount possible.

“It shows that the gray investment group is going to give back the absolute bare minimum to Linn County and that’s a losing answer to Linn County voters,” said Just Say No spokesperson Todd Henderson.

But investor Drew Skogman says that’s not the whole picture. He says investors are paying more upfront than other Iowa casinos. Take the Riverside Casino. Skogman says they bought a $10 million gaming license. It’ll cost the ‘Vote Yes’ group $20 million. And Riverside asked for $37 million in TIFF dollars. ‘Vote Yes’ doesn’t plan to ask for any tax breaks. Plus, the casino investors already support area charities.

The coalition against the casino continues to charge that the Linn County casino is a power grab by wealthy investors who do not want to benefit the area. Whereas supporters argue the casino will benefit local tourism and infrastructure costs in Linn County.

The struggle over the vote has led both sides to launch advertising campaigns to influence the public on the upcoming vote.

Tribal leaders of Meskwaki Bingo and Casino in Tama have joined other Eastern Iowa casinos in fretting about plans for a new casino venture in Linn County.

A statement from the Sac and Fox Tribe a few weeks ago said a Linn County casino would cannibalize revenue from the Meskwaki Casino, which is about an hour from Cedar Rapids, cause unemployment in Tama County to "skyrocket" and lead to local business closures.

"The truth is – this group of wealthy investors led by Steve Gray is willing to do and say whatever it takes to make money and they are expecting the people of Cedar Rapids to blindly follow their lead," the statement said.

Leaders of Riverside Casino and Isle Casino Hotel Waterloo, which are each within an hour's drive of Cedar Rapids, have also said a Linn County casino could have negative effects.

Supporters, which include several public officials and economic development groups in Linn County, say the casino proposal by 22 investors would add jobs, tourism dollars and help the area which is still battling back from the 2008 flood.

A portion of casino revenue is distributed through grants to community projects in the host county.

Linn County Supervisors set March 5 as the date for a special election on a casino, after a successful petition drive to put it to a public vote. Even if voters approve, Iowa Racing and Gaming Commission would still have to grant a license.