The Cedar Rapids City Council has approved an option-to-purchase agreement as Peninsula Pacific Entertainment (P2E) plans to build a gaming, live performance and cultural arts complex called Cedar Crossing in Iowa.
Plans for P2E to build Cedar Crossing are contingent upon obtaining a gaming license from the Iowa Racing and Gaming Commission (IRGC), which P2E will pursue once a license moratorium is expected to expire in June 2024.
Under the terms of the deal, P2E will pay $165,000 for the option to purchase the property through December 31, 2025.
The option could extend to December 31, 2026 for the cost of $55,000, if the IRGC is actively considering a license at that time.
The land purchase option includes a development agreement mandating that P2E purchase the land at a fair market value, have a minimum assessment agreement and pay associated property taxes.
P2E has committed to allocate 8% of net gaming revenue from the casino’s operations, which is more than double the state requirement.
Under the agreement, the city will establish a Community Betterment Fund to support economic development, affordable housing, infrastructure and more. P2E will make monthly payments to this fund starting one year after the facility opens.
Furthermore, the company will create jobs, employing over 300 employees at its facility alone.
Lin County Gaming Association Board President Anne Parmley said, “Cedar Rapids has an increasingly competitive market for non-profit dollars. As other funding streams have left the community, we need a way to replace them to financially support the necessary work of our community’s nonprofits.
“Cedar Crossing is the perfect solution to fill that gap and ensure Cedar Rapids remains a great place to live, work and visit.”
