Cedar Rapids Casino Proposal: A Promising Benefit for Local Nonprofits
On October 10, 2024, a news conference was held at the Four Oaks administrative offices in Cedar Rapids, drawing attention to an ambitious proposal set to transform the local nonprofit landscape. The spotlight was on a proposed $275 million Cedar Crossing casino, which supporters claim could significantly bolster financial support for various Linn County nonprofit organizations.
The Casino Vision
Developed by Peninsula Pacific Entertainment, the Cedar Crossing casino aims to donate 8% of its net adjusted gross revenue to nonprofit organizations—a commitment that exceeds the state’s minimum requirement by more than double. If approved by the Iowa Racing and Gaming Commission in February, this translates to an annual contribution of approximately $6.3 million for local nonprofits. Such funding would provide much-needed financial relief to organizations that have faced increasing demands and dwindling resources in recent years.
Voices from the Community
During the press event, representatives from various nonprofit agencies voiced their support and shared how the proposed casino could address urgent financial needs. Jessica Fergesen, Senior Fund Development Director for Four Oaks, emphasized the tangible differences such funding would bring to children in crisis. “More often than anyone can imagine, children come to us in diapers and without clothing,” Fergesen stated. The organization relies on donations to supply everyday essentials, and the casino’s financial contribution would help enhance these efforts, allowing them to nurture the childhood experiences of vulnerable children through basic supplies and even birthday celebrations.
Economic Comparison: Lessons from Dubuque
John Tursi, Executive Director of the Boys & Girls Clubs of the Corridor, drew parallels between the potential impact of the Cedar Crossing casino and the transformational effect that similar establishments have had in Dubuque. “The opening of two casinos and a dog track in Dubuque changed everything for Dubuque, and quite frankly, it became a huge tourist city,” he explained. Tursi highlighted the challenges faced by nonprofits post-COVID-19, including the departure of corporate partners that historically provided financial support. As organizations struggle to adapt to these changes, the casino revenue is seen as a potential financial lifeline.
Unmet Needs and Service Gaps
Stacie Eastman, Development Director for the Eastern Iowa Health Center (EIHC), underscored the direct benefits of the casino funding for patient assistance in critical areas such as food insecurity and healthcare access. “Unfortunately, that funding [from federal grants] has not changed significantly in many years, leaving us a gap that we attempt to fill with grants, donations, and fundraising,” she explained. The revenue dedicated to nonprofits by the casino would significantly contribute to addressing these unmet needs in critical areas affecting community health.
Collaboration in Crisis
Kristin Roberts, President and CEO of the United Way of East Central Iowa, highlighted the broader implications of such fundraising efforts as the sector faces an uphill battle. Referencing a recent ALICE report revealing that 25% of working Iowans in Linn County struggle to meet basic needs, she noted, “the collaboration between our nonprofits is amazing, but even with that exclusive amount of collaboration, our nonprofits are still struggling to keep up.”
The Role of the Linn County Gaming Association
Todd Bergen, Secretary and Treasurer of the Linn County Gaming Association, expressed passion for the casino project, pointing to the critical funding needs identified throughout his career in nonprofit work. The association aims to partner with Peninsula Pacific Entertainment to oversee the distribution of casino proceeds, ensuring they provide meaningful support to local agencies.
Future Steps and Community Engagement
While enthusiasm swirls around the proposed casino, the specific methods of revenue distribution to area nonprofit organizations remain to be clarified. The Iowa Racing and Gaming Commission is presently evaluating the Cedar Rapids casino plan and plans to hold an open house on November 20, allowing community members a platform to voice their questions and concerns.
Market studies regarding the casino proposal are expected to be finalized by December 30, with a pivotal vote scheduled for February 6, 2025. The outcome of this vote will ultimately determine whether the Cedar Crossing casino can deliver on its promise to uplift and empower non-profit entities in Linn County.
Conclusion
The proposed Cedar Crossing casino in Cedar Rapids presents a beacon of hope for local nonprofits struggling to meet heightened demands amidst dwindling financial resources. With a commitment to contribute substantial funding, the casino project could redefine the landscape of support available to local organizations, fostering resilience and enabling them to serve their communities more effectively. As discussions continue, the community’s engagement and the Iowa Racing and Gaming Commission’s decisions will play a crucial role in shaping the future of nonprofit funding in the region.
