Des Plaines hopes revised casino bid meets with approval
With a decision on who will get a 10th casino license expected as early as Monday, Des Plaines officials hope that a last-minute change they made in their proposal will make it more competitive.
In the initial proposals submitted to the state Oct. 15, Midwest Gaming was offering the state $100 million for its Des Plaines proposal, compared to $435 million offered by Trilliant Gaming for a site in Rosemont and $225 million offered by Waukegan Gaming for a site in that town.
Des Plaines City Manager Jason Bajor said with Midwest Gaming's offer clearly not competitive, the city agreed to amend its revenue sharing arrangement with Midwest Gaming so that the firm could up its offer in submission of final documents on Dec. 11. The city council approved the revised agreement in a special meeting that day, only revealing terms later so that competitors couldn't get a look at them until after the bidding deadline.
The initial agreement on how to split up the city's share of gaming tax revenue called for giving the state $94 million over 11 years, with a present estimated value of $65 million. The new agreement calls for giving $300 million to the state over 30 years, with a present estimated value of $125 million.
The agreement also calls for upping the payments to disadvantaged communities to address one of the stated goals of granting casino licenses: to aid economically disadvantaged areas. Waukegan has an advantage over Des Plaines and Rosemont in that regard, one they're trying to counter by sharing casino revenue with needier towns.
Under the revised agreement, Des Plaines' annual payment to disadvantaged communities would rise 20 percent to $6.2 million, and would double again to $12.8 million when payments to the state ended after 30 years.
Des Plaines would keep $9.3 million a year for 30 years, which is $2.2 million a year less than before for the first 10 years, and $11.2 million a year less for years 12 through 30.
Despite the concessions, revenue from a casino would double what the city currently is able to spend each year on capital projects, according to the city's analysis. And inflation could increase the take over the years.