USD 110M casino and hotel project will create "maximum benefits" for the state

Dan Kehl breaks ground on Davenport land-based casino

2015-06-08
Reading time 2:39 min
Looking forward to the potential of a 40-acre patch of dirt in northeast Davenport, Dan Kehl took a moment Thursday to look back. He gave kudos to his father, the late Robert Kehl, who was granted the nation's first riverboat gambling license and opened the Casino Belle in Dubuque in 1991.

"The real credit goes to Bob Kehl," his son said.

Then ground was officially broken at Interstates 80 and 74 for the new land-based Rhythm City Casino that is expected to open a year from now. The dirt was already flying Thursday, as the sound of earth moving equipment at work nearly drowned out podium speeches.

Crews had been at work paving Elmore Avenue for weeks. On Thursday, a narrow strip of road led from just north of Walmart all the way to the casino site.

"I hope we're done on time, in part, so we can start giving back," Kehl said.

Davenport Mayor Bill Gluba touted a potential economic impact of $250 million as a "record amount" for the Quad-Cities.

"We got the job done," Gluba said. "It's a great day in Davenport."

As of Thursday, 75 percent of the construction contracts have been awarded, Rhythm City Casino general manager Mo Hyder said, adding he was proud to say that 90 percent of those went to Iowa vendors and contractors.

"We've been waiting for this day a long time," Hyder said. "It's a critical development for us. It will bring people into the community."

Hyder considered it a "coincidence" the groundbreaking fell on the same day the Iowa Racing and Gaming Commission approved a final request to convert Rhythm City's operation from a riverboat to a land-based casino. The commission also approved contracts to build the project, Hyder said.

"There's no reason that wouldn't have happened," Hyder said.

Alderman Gene Meeker, at large, marveled at the amount of activity already under way.

"This is the very exciting moment we've been waiting on for years," Meeker said.

Some aldermen say they are looking forward to competing with Isle of Capri's land-based casino that broke ground in Bettendorf last month.

"They still have their old location," Alderman Bill Edmond, 2nd Ward, said. "I'll take our location over theirs any day of the week."
"Considering what's going on in the gaming industry of the Quad-Cities it's time we got to get our toe in the water and get back some of that market share," Alderman Bill Boom, 3rd Ward, said.

Alderman Jeff Justin, 8th Ward, is not wishing Davenport's neighbor to the east any ill will.

"I think both can grow and succeed," Justin said. "Together they'll create even more of a destination."

Land-based casinos have proven successful, according to Mary Ellen Chamberlin, the retired president of the Riverboat Development Authority.

"Everywhere land-based casinos have seen a big increase in attendance and revenue," she said.

For Chamberlin, who served 25 years as president of the RDA, the casino is a long time coming.

"After three or four failed projects, I'm thrilled to be here today," she said.
City leaders say they have no hard feelings over their failed attempt at casino ownership.

"It was not a mistake," Meeker said. "It was an option. That's all behind us."

Randy Rathje, the RDA's new president, said Kehl's project is "significantly more" than just a casino, calling it a "trigger" for economic development.

Some gave a shout out to David Mills and his Mills Chevrolet car dealership that is scheduled to break ground Friday at the Elmore Avenue and Veterans Memorial Parkway intersection.

Meeker said Costco representatives have visited the area and the membership-only warehouse club is also eyeing a spot near the future intersection.

"Let's just say they know the area, but there is no commitment on their part," Meeker said.

Adjacent to the casino, developer Rodney Blackwell wants to build a $73.8 million indoor/outdoor sports tournament complex with connected hotels and restaurants on a 25-acre footprint.

The city is trying for an Iowa Economic Development Authority grant to help pay for Blackwell's project.

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