Boyd Gaming, the owner of East Peoria’s Par-A-Dice casino, has unveiled plans for a new $160 million gambling facility on the current site. The proposed development, designed to resemble a riverboat by being built over a manmade water basin, has ignited controversy with Peoria city leaders who argue it violates a decades-old intergovernmental agreement.
Key Takeaways
- Boyd Gaming plans a $160 million casino development at the existing Par-A-Dice location in East Peoria.
- The new facility would be constructed over a manmade water basin, a design choice questioned by Peoria officials.
- Peoria city leaders contend the plan violates a 1991 intergovernmental agreement requiring land-based casinos in the region to be built in Peoria.
- The Illinois Gaming Board will revisit Boyd’s proposal in February.
A Modernized Riverboat or Land-Based Casino?
Boyd Gaming presented its "riverboat modernization" project to the Illinois Gaming Board, outlining a plan to construct a 29,000-square-foot gaming venue, complete with a ballroom, restaurants, and meeting spaces, situated above a 1,000-gallon water basin filled with water from the Illinois River. This architectural approach aims to qualify the new structure as a riverboat, circumventing state regulations that might apply to land-based casinos.
Peoria’s Objections and Intergovernmental Agreement Concerns
Peoria city officials have expressed strong opposition to Boyd Gaming’s proposal. Peoria City Council member Zach Oyler criticized the plan as "incredibly disingenuous," stating that pumping water beneath a building does not make it a riverboat. He argued that such construction is essentially land-based and violates a 1991 intergovernmental agreement between Peoria and East Peoria, which stipulated that any land-based casino in the region must be located within Peoria’s city limits.
Council member Mike Vespa echoed these sentiments, calling the decision "disappointing" and questioning the definition of a "modernized riverboat." He pointed out that the 50/50 gaming revenue split agreed upon by both cities was predicated on the understanding that land-based operations would eventually be in Peoria. Vespa believes East Peoria is now reneging on this concession, potentially costing Peoria significant revenue from sales tax, property tax, jobs, and tourism.
Legal and Financial Implications
Peoria City Manager Patrick Urich stated that the city was only recently made aware of Boyd’s plans and needs time to review them. The city has previously taken steps, including hiring a financial advisor and legal representation, to protect its interpretation of the intergovernmental agreement and pursue a land-based casino within its own borders. Oyler suggested that Peoria might pursue legal action or seek a settlement to address the "millions of dollars a year in opportunity costs" lost due to the perceived violation of the agreement.
Boyd Gaming is reportedly relying on a 2011 Illinois Gaming Board ruling that allowed a casino in Des Plaines to be considered a riverboat despite being built over a shallow water pit. However, Vespa noted that this ruling was never legally challenged and may not be binding.
Next Steps
The Illinois Gaming Board is scheduled to revisit Boyd Gaming’s proposal at its next meeting on February 5. City leaders in Peoria are awaiting this decision, with Vespa emphasizing the importance of "promises and laws" and "common sense" in the board’s deliberations.
