The Peoria City Council voted on Monday to dismiss a proposed settlement with Boyd Gaming, the operator of the Par-A-Dice Hotel Casino, enabling the city to challenge a planned $160 million renovation of the casino located in nearby East Peoria.
This decision took place after an extended special meeting, resulting in a 5-5 deadlock, with one member not present, effectively rejecting the proposal. The settlement would have allotted Peoria 2.25% of the estimated adjusted gross revenue from the redeveloped casino, which amounts to roughly $1.8 million annually.
“I support pursuing this matter further,” expressed city council member John Kelly, opposing the settlement. Mayor Rita Ali, who backed the deal, voiced her disappointment regarding the result. “I can’t help but express my disappointment,” she stated, as reported by WCBU. “This was a unique opportunity for us.”
The suggested payment would have been in addition to the existing distribution of gaming revenues, which is divided equally between Peoria and East Peoria under a 1991 intergovernmental agreement. This agreement also stipulates that any land-based casino in the area must be established in Peoria, which has sparked significant disagreement.
Boyd Gaming, the owner of the Par-A-Dice, has introduced what they refer to as a riverboat modernization project. This initiative aims to replace the current riverboat casino with a newly constructed facility situated on a 1,000-gallon artificial water basin filled with Illinois River water, rather than being directly afloat on the river.
“I hope we can reach a consensus that a riverboat indeed floats on a river, which is irrefutable,” remarked council member Tim Riggenbach, who also voted against the settlement.
Riggenbach was joined by Kelly, Zach Oyler, Kiran Velpula, and Alex Carmona in their opposition to the agreement. Council member Denis Cyr was absent from the session. Riggenbach contended that Boyd inherited the responsibilities of the 1991 agreement with the acquisition of the casino.
“Boyd is the second proprietor of the Par-A-Dice; let’s not forget that. They took over after the intergovernmental agreement was established. If they were unaware of the associated covenants, that responsibility lies with them, not us,” he stated. “I find it astonishing that this issue is such a source of conflict.”
Boyd presented its redevelopment strategy during a December meeting with the Illinois Gaming Board. The council’s vote occurred prior to a scheduled gaming board meeting on Thursday, where a decision regarding the proposal might be announced.
City Attorney Patrich Hayes indicated that the city is facing considerable uncertainty. “We’ve made it clear, after numerous discussions with the gaming board’s administrator, that there’s a significant risk the board might endorse Boyd’s proposal,” he noted.
Hayes cautioned that a legal challenge could extend three to four years and could cost millions of dollars if escalated to the Illinois Supreme Court. “It’s quite possible for the City of Peoria to effectively contest this proposal. However, such an outcome wouldn’t necessitate any redevelopment actions from Boyd or the Par-A-Dice,” he clarified.
Proponents of the settlement argued that avoiding extensive litigation would have been financially advantageous for the city. Council member Mike Vespa remarked, “If we can avoid incurring substantial legal fees and waiting for years to initiate casino construction, whether here or there, I’m inclined to accept it.”
Carmona expressed that rejecting the settlement could pave the way for more favorable terms. “I believe it’s crucial for us to take a stand and secure more from this deal than what we currently have,” he asserted.
Ali emphasized that even a favorable court ruling would not assure a casino for Peoria. “It merely indicates that we were correct,” she explained. “For me, that’s not a victory.”