By Jodie Hoogendoorn
New Century Press

The people who built Iowa’s first destination resort want to recreate their success in Lyon County. Kehl Management, owners of Riverside Casino & Golf Resort in Washington County near Iowa City, have expressed an interest in building a $90 million facility as close to the Iowa-South Dakota-Minnesota border as possible.

As a result of a change in Iowa law, a casino can be built within 1,000 feet of a 100-year river floodplain site, which is where Riverside Casino is situated.

Owned by Kehl Management and Iowa residents, the Riverside Casino & Golf Resort is situated along the Iowa River. The 375-acre resort consists of a 201-room hotel and spa, an 18-hole golf course, five-room event center with seating for 1,00 and a concert stage, several adjacent food services, and 58,000 square feet of gaming space.

Kehl Management would like to bring a similar destination resort to Lyon County, but on a smaller scale. The Lyon County Board of Supervisors has learned the details, timeline and benefits of such a project.

Interestingly enough it was a February trip to the World Ag Expo in California by Lyon County Economic Development director Glenn Anderson that planted the seed for this project. Larry Merek of Riverside, then secretary of the Iowa Soybean Association board of directors and a current member of the Washington County Riverboat Foundation, wondered why Lyon County hadn’t pursued a resort/casino.

The benefits of a resort hotel and casino include 400 jobs, property tax revenues estimated at over $1 million annually and an increase in sales taxes. There is also the very real potential to increase tourism here, retrieve some of the 40 percent leakage monies spent outside the county by county residents, and the hope of luring out of state residents to spend their money here.

The county could implement a hotel/motel tax which would also add to its coffers.

Because of Iowa Gaming Commission regulations, casinos are required to buy Lyon County and Iowa products and services plus return a portion of their revenues to the county and state.

A non-profit county foundation, probably comprised of a representative from each of the eight communities and the five supervisor districts, would apply for and hold the gaming license. This organization would also receive a negotiated percentage of the gaming wins (the state minimum is 3 percent.)

Those funds would then be distributed to projects within the county, similar to the grants which have been awarded by the Community Foundation of Lyon County the past three years.

“This resort could potentially be the largest employer in Lyon County,” said Anderson. “Hiring preference would be given to county residents. Even if South Dakota people are hired, they still have to pay Iowa income taxes. That might encourage them to live here.”

However, before construction can begin, employees hired and funding flows, a referendum on the idea of a casino must be considered by county voters. Petitions calling for such an election will be collected within the next couple months in hopes of conducting the referendum in August.

If a simple majority approves the plan, the county foundation would apply for a gaming license in September.

“This is a train we can get on,” Anderson said of the economic opportunity. “If we miss it, it will never come through again because the gaming commission will probably close down the number of licenses it issues.

“However, this is a train which will pick up speed and provide great opportunities for all of us,” he said.

Riverside Casino/Resort
Riverside Casino & Golf Resort opened in August 2006. After making more than $7.6 million in its first month the casino presented a check for $291,380 to the Washington County Riverboat Commission, the county’s share of the profits.

By August 2007, the Washington County foundation had distributed or promised to distribute over $5.2 million - $243,000 to community schools, $455,000 to local fire departments, $407,000 to cities within the county, and over $4.4 million to other county and community projects.