One-sided non-profit agreement raises questions

Casino investors have been trying to sell us the idea that a Cedar Rapids casino is good for the community. That argument was thrown out the window over the weekend as it was revealed that Steve Gray and his investors are willing to do the bare minimum for the community. 

In the agreement that was signed between the investor group and the Linn County Gaming Association, the non-profit that was formed to hold a license in Linn County, casino backers agreed to the state-required minimum – a 3 percent contribution to the non-profit. The agreement would allow them to pay this minimum for the next 20 years.

To put this in perspective, the Isle of Capri Casino in Waterloo gives their non-profit 5.75 percent and paid the same amount to state regulators for a gaming license. Why was a similar agreement not possible here? 

Two members of the LCGA are elected officials who are supposed to be protecting the public interests. Earlier this week a letter was sent to them asking for an explanation as to why this deal was so one-sided. What concessions did they make? Who negotiated on behalf of both sides? There has been no response.

Today, in hopes of finally getting specific answers, I have submitted an open records request to Linn County Supervisor Brent Oleson and Cedar Rapids City Councilman Justin Shields. In it, I’ve asked that they turn over communication between themselves and supporters of the Linn County casino. It’s important that voters know the circumstances surrounding this unfair deal.

The fact remains that this casino is a bad deal for Linn County and you have to look no further than the lack of specifics from casino investors and city and county leaders to know that’s the case. 

Frank King

Cedar Rapids