The City of Peoria is looking to take its first official steps toward luring Boyd Gaming’s local casino from its current East Peoria riverboat to a land-based facility within the city.
The City Council on Tuesday will vote on a two-part agenda item to approve agreements with an investment banking consultant and a legal services firm for the purpose of pursuing a casino in Peoria.
“We are looking at a feasibility study, so we want to bring in a financial advisor to assist us with understanding what the investment will look like and some more of the financial aspects of it, if a casino came to the city,” said Assistant City Manager Kimberly Richardson.
“Then you have the legal aspects of just understanding the gaming law and making sure that as this progresses, that we are doing things through the Illinois Gaming Board correctly.”
The move comes after Boyd, the Nevada-based owner of the Par-A-Dice Hotel and Casino, told the Illinois Gaming Board in March that it plans to present a new casino facility project within the next two years.
“There are strong signals that Boyd Gaming is looking to expand its casino operations in this area in the near future,” Peoria Mayor Rita Ali said via text message in response to a WCBU inquiry.
“If this expansion includes plans for a land-based casino, the City of Peoria wants to be proactive in re-enforcing a long-standing agreement between Peoria and East Peoria which states that any future land-based casino shall be in Peoria.”
In addition to that intergovernmental agreement, provisions in the state’s Gambling Act call for any land-based casino in Greater Peoria to be located within Peoria’s corporate limits.
“At this time, there has been no mention by Boyd Gaming of the location of expansion; we're just preparing for the inevitable,” said Richardson. “So we're doing our due diligence and making sure that we are prepared and ready for when that plan is announced and released.”
Richardson said it’s too early in the process to speculate on where in Peoria a casino could be developed, and Ali quashed rumors of the downtown PNC Building recently purchased by the city being a possibility.
“It is doubtful that the PNC Building is a fit for a possible casino site,” Ali said in her message. “Getting a full understanding of the requirements and preferences of the casino business will help to identify potential sites.”
The items going before the council include retention of Innovation Capital, LLC., an investment banking firm that has worked in assisting with gaming ventures across the country, as well as a legal services contract with John Elias, a partner with Elias, Meginnes & Seghetti who has experience in facility approval through the Illinois Gaming Board.
The deal with Innovation calls for a $10,000 monthly retainer fee and a $250,000 transaction fee if and when a casino development agreement is approved, while Elias would be paid on an hourly fee basis. Funding for both would come from the city legal department’s budget for outside counsel.
“These matters are very complex so we find it important to bring in experts with experience in these particular discussions and/or negotiations,” said Ali.
The Par-A-Dice opened in East Peoria in 1993, three years before Boyd purchased the venue from local investors.
East Peoria Mayor John Kahl previously told WCBU that much has changed in the state’s gaming industry in the years since the intergovernmental agreement was reached, particularly with legalized slot machines and video gaming terminals operating outside of casinos.
The city of East Peoria is exploring the creation of a new tax-increment financing (TIF) District that would encompass the current casino and hotel site.
