Kehl moves forward with Davenport casino plans

DAVENPORT, Iowa | Kehl Management CEO Dan Kehl met with Davenport economic development staff Wednesday, a day after entering into an exclusive option agreement for Rhythm City as the eastern Iowa city moves toward a land-based casino.

Kehl is the owner of the Grand Falls Casino River, which opened in 2011 in rural Lyon County, just across the South Dakota border, and the Riverside Casino and Golf Resort, located just south of Iowa City.

The Isle of Capri announced the non-transferable option agreement with Kehl late Tuesday, giving the company until Sept. 15 to exercise it. An extension to Oct. 15 is possible. Kehl and the Isle have agreed to a purchase price of $51 million.

Kehl said Wednesday that a final asset purchase agreement could be executed by January's Iowa Racing and Gaming Commission meeting.

"This is a positive step in moving Davenport forward, and we are pleased to see this transaction progressing toward the next phase of negotiations," said Jill Alexander, director of corporate communications for the Isle of Capri.

On Wednesday, Kehl and his management team met with Davenport economic development staff and Aldermen Gene Meeker, At-large, and Mike Matson, 8th Ward, in a meeting both sides called positive.

"I was encouraged after the meeting," Kehl said. "I think the city wants to see a great casino development, and our goals are aligned to make Davenport the leading gaming facility in the Quad-Cities."

Kehl still must complete an agreement with the Riverboat Development Authority and negotiate a development agreement with the city. The company plans to build a $110 million casino along the Interstate 80 corridor. Kehl has said he would like to be as close to the Brady Street interchange as possible.

RDA president Mary Ellen Chamberlin said an agreement with Kehl is near completion with only a few points remaining. Davenport Mayor Bill Gluba said he is glad to see forward movement on the purchase, adding that the city's goal continues to be to maximize the value of the license for the city.

Last month, the RDA selected Kehl to purchase the Rhythm City and develop a land-based casino in Davenport. Kehl had said the purchase process would move quickly and noted an option agreement almost was complete.

The purchase still must go in front of the Iowa Racing and Gaming Commission. Kehl would submit an asset purchase application that requires information on financing, corporate structure, officers, ancillary agreements and other necessary information, said gaming commission administrator Brian Ohorilko. Once the application is received, it is placed on a commission agenda.

The timeline depends on the complexity of the application and the number of individuals or entities that may need to undergo a Division of Criminal Investigation background check, Ohorilko said. The commission process typically takes place over two meetings.

As casino operators in Iowa, Kehl and his senior staff already have had background checks completed by the DCI.

Kehl Management opened its Riverside Casino & Golf Resort near Iowa City.

Reported by:  Sioux City Journal