THE JOURNAL & TOPICS NEWSPAPERS | WEDNESDAY, MAY 7, 2008
Rosemont's Grand Casino Plan
Mayor Stephens Continues To Lobby For Gaming In Theater
By TODD WESSELL
Journal & Topics Editor
At a time when the state of Illinois remains mired in seemingly unending financial problems and a dysfunctional state legislature and governor stumble and bumble to craft a solution, persistent Rosemont officials continue to assert that the answer lies right on their front door step.
With a year having past since cancer claimed the life of longtime Rosemont Mayor Don Stephens, his son and successor, Brad, has ratcheted up efforts in recent weeks to land a state-owned casino in the village of 4,200. Possessing some of the characteristics of his late father such as a buoyant personality, the younger Stephens also clings to the hope his father had of Rosemont serving as the location of a new gaming operation. Only now, things are much different than they were just a few years ago. Despite many short-circuited efforts and a lot of rhetoric, lawmakers have been unable to put a significant dent in the state's terrible financial mess. All the while infrastructure throughout Illinois such as aging roads, bridges, school buildings and public transportation deteriorate. While everyone in Springfield agrees that a comprehensive "capital bill" to the tune of around $25 billion is desperately needed to pay for these improvements, nothing yet has been accomplished.
In early March, Gov. Blagojevich announced that former U.S. House speaker and ex-congressman from northern Illinois Dennis Hastert, and former congressman and Southern Illinois President Glenn Poshard have agreed to co-chair the newly-created Illinois Works Coalition. Its purpose is to bring together experts in Illinois from business, labor and the political arena to forge a statewide infrastructure plan.
Mayor Stephens is wasting no time, having met recently with state leaders in Springfield including Hastert. Stephens said the solution to the state's economic plague is not rocket science. In fact, he believes, if Republican and Democratic legislators take a look at his plan, much needed revenue could be flowing into the state treasury within 90 days.
Several months ago, Stephens proposed that the state allow Illinois' 10th casino license to operate in Rosemont in the Rosemont Theater. For less than $200 million, the fairly new building could be purchased and extensively renovated for use as a casino with 2,000 positions such as slot machines and blackjack tables. Three months after state regulatory approval, the casino could be up and running, contends Stephens, and generating huge amounts of revenue because state law says that gaming tax money flows into state coffers on a daily basis.
In recent weeks, Stephens and supporters have worked to sweeten the pie by updating their estimate that a casino in Rosemont would earn an estimated $726 million in annual adjusted gross revenue, all of which would flow into the state treasury. As the host community, Rosemont's take would total approximately $36 million per year along with another $2.5 million in local Admissions tax.
"The Village of Rosemont is willing to contribute back the local share and ask that consideration be given to suburban Cook County communities, regional transportation issues in the O'Hare corridor, and the local convention and tourism industry," according to information used by Stephens in his meetings with state leaders. By giving away its $30-plus million local share, which over time will likely grow, the state could use that money to finance a minimum $6 billion bond issue to pay for many of the capital needs. The state has said that billions more can come through leasing portions of the State Lottery.
Stephens predicted that the theater building's lobby area could easily accommodate 1,000 gaming positions on a temporary basis. A smaller part of the gaming area could be located in the building's mezzanine. That would allow time to further develop the interior of the casino to expand gaming into what is now the theater's main stage area and an expanded upper level. The $200 million or less pricetag would consist of the state paying $75 million for the building, $42 million for a six-level 2,100-car parking deck located immediately to the south of the new casino, and less than $60 million for building renovation, gaming equipment and contingencies. The final price for the building would be determined by independent property appraisals ordered by the village and state. A final value would be negotiated somewhere in the middle, said Stephens.
As for running the new casino, Rosemont has suggested that a company specializing in managing such an operation be hired by the state. One of the existing Illinois operation licensees could be hired, Stephens said, which would allow the state Gaming Board the "ability to quickly select an already approved operator to run the facility." Another idea suggested by Stephens is for the state to create a new authority for public ownership of a casino in Rosemont. Membership could include "state gaming board members, appointees of each of the state constitutional officers and others interested in maintaining the quality and integrity of gaming in Illinois."
Should the state agree to hire a management company to run the casino Stephens said in his opinion the selectee could provide the funding to get the operation up and running and amortize that investment over the life of the management agreement.
Brad Stephens, like his father stated, says the attraction of a casino in Rosemont is not so much the host tax revenue that would be generated for the village, but the millions of new customers it will bring in to book hotel rooms, visit restaurants, attend functions at the Allstate Arena, and shows at the Donald E. Stephens Convention Center. The primary customer base, they claim, will be out of state visitors such as conventioneers and travelers at O'Hare Airport on lengthy or overnight layovers. Currently, there are more than 6,000 hotel rooms in Rosemont and several 5-star restaurants. Not only would a casino attract more customers but a mountain of new tax revenue for the village.
Meanwhile, Stephens continues to move forward with plans to develop a new entertainment district that would be valued in the hundreds of millions of dollars. Plans call for a total of 772,000 sq. ft. of "entertainment/retail" space that would include new restaurants, shops, bars, possibly a bowling alley and other venues. Property south of the new 18-screen Muvico Theater along the Tri-State Tollway is earmarked for this major development. Village officials have met with East Coast company Cordish about developing this valuable real estate. Other developers have also made inquiries.
In addition, work is progressing at a brisk pace on a new high-rise Intercontinental Hotel on River Road about two blocks south of the Rosemont Theater. A new restaurant is proposed on land between the Intercontinental and potential casino site. And on space west of the Intercontinental, plans were recently revealed to construct approximately 200,000 sq. ft. of office space as well as a new hotel.
Still other plans include construction of an Aloft Hotel near Balmoral Avenue, and a new 12,000 sq. ft. Rosemont Museum south of the proposed 2,000-car parking garage. The museum could become the site of the village's extensive Hummel Museum now located inside the convention cernter. Moving it would open up much needed space in the center.
Another factor that many predict will materialize in the state's future casino picture involves Chicago. Stephens said he plans to ask Mayor Daley for his support of the 10th casino license in Rosemont and in exchange, he will support Chicago's desire for a casino.
As for Rosemont, another benefit for the people of the community, said Stephens, is that more revenue would be available to finance additional recreational facilities, home improvement grants and more job opportunities.