A $150 million development agreement for the proposed Cedar Crossing Casino has been approved by the Cedar Rapids City Council. The deal, which was approved on December 17, reaffirms a collaboration with Peninsula Pacific Entertainment’s (P23) Cedar Rapids Development Group (CRDG). The Iowa Racing and Gaming Commission’s decision on a Linn County gaming license, which is anticipated on February 6, 2025, will determine the project’s future.
Economic Impact and Community Benefits
Located on city-owned land that was damaged during the 2008 flood, the casino would occupy 110,000 square feet, including a 39,000-square-foot gaming floor. The plans also feature dining options, event spaces, and a cultural center, as well as 1,100 parking spaces. Flood mitigation measures will be incorporated to meet deed restrictions, ensuring the casino is built with long-term resilience in mind.
As part of the agreement, the developer has committed to paying monthly Community Betterment Payments, equivalent to 2.25% of the casino’s adjusted net gaming win, in addition to state-mandated taxes. In a move that goes beyond the state requirements, Cedar Crossing also plans to allocate 8% of its adjusted gross revenues—around $6.3 million—to local nonprofits, helping to further strengthen the community.
While the project promises potential economic growth, some council members have expressed skepticism. Councilmember Ashley Vanorny criticized the design, describing the casino as “just a big box store” and questioning its ability to revitalize downtown. On the other hand, Councilmember Scott Olson noted the positive impact the casino could have on the city’s west side, saying, “People are going to gamble, whether we like it or not. Should we gain from that? I think we should.”
Councilmember Dale Todd emphasized that no other development plans had been proposed for the site, making the casino a viable option, even if it may not be a “savior” for the city. Tyler Olson pointed to the strong community support, adding, “Minus the gambling, we would all be very excited about this in the community.”
Cedar Rapids Mayor Tiffany O’Donnell, a long-time advocate for a casino in the area, praised the project’s strategic location downtown, calling it a critical factor in her support. She added, “I support this casino because of where it is … If we have ideas to make it even better, I encourage that conversation.”
The proposal, however, faces opposition from other Iowa casinos concerned about potential revenue losses. If approved, construction could begin soon, with the casino expected to open within two years.
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