Waukegan Talk

Must be some high fiving going on downtown!

Waukegan finalist for casino license

November 14, 2008
BY DAN MORAN <!-- e --><a href="mailto:dmoran@scn1.com">dmoran@scn1.com</a><!-- e -->

Waukegan will again face Des Plaines and Rosemont in the final push for a casino after the Illinois Gaming Board selected its finalists Friday for the state's 10th casino license.

"It's almost like turning back the clock to 2004," said Director of Governmental Services Ray Vukovich after he and Mayor Richard Hyde returned from the board's announcement in Chicago. In March of that year, a $520 million bid by Waukegan and Harrah's Entertainment Inc. finished third behind Rosemont and Des Plaines, in that order.

But Vukovich said he likes Waukegan's chances in 2008 as the city and its new gaming partner, Waukegan Gaming LLC, prepare to present the details of their $225 million bid before the board on Nov. 25.

"This region doesn't have gaming at all, (and) I go back to the original intent of the gaming act, which was for communities in need," said Vukovich, adding that a final decision is expected "by the end of the year.

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Stay off the roads tonite - our city fathers will be driving drunker than normal

Rosemont, Des Plaines, Waukegan casino finalists
By Rob Olmstead | Daily Herald Staff


Infuriating the South suburbs and good government advocates, the Illinois Gaming Board picked as finalists for the state's 10th casino license three proposals that all hail from the North or Northwest suburbs - including Rosemont, which previously lost the license under a cloud of suspicion.

"The South suburbs got screwed again," said a furious Burt Odelson, attorney for Country Club Hills, the site of one of the losing proposals.

The decision was contested even among board members, as two members went out of their way to say they disagreed with the other three and would have selected Country Club Hills as a finalist.

Making the final cut out of seven applicants were Trilliant Gaming Ill. LLC, with its Rosemont proposal; Midwest Gaming with its Des Plaines proposal; and Waukegan Gaming LLC with its Waukegan proposal.

Jay Stewart of the Better Government Association said the board's decision belied any pretense that the state is in the casino business for the purported reason of economic development of poor communities.

"I think what this indicates - is it's about how much money the state (government) can make. All this pretense has been stripped away," Stewart said.

Many observers were shocked that Rosemont made the cut when the town's last casino, Emerald Casino, failed even to open after Illinois Gaming Board members revoked its license because it discovered hidden Emerald investors who it said were tied to the mob.

At the time the license was mired in revocation proceedings, Illinois Attorney General Lisa Madigan even said it appeared there were mob ties to the town and the late mayor, Don Stephens. Stephens went to his grave denying any such association.

Madigan's office said Friday the attorney general "remains concerned about Rosemont as a location for the 10th casino license" and called for close investigative scrutiny of all three bidding companies and locations.

"While the Attorney General appreciates the need for the 10th casino license to be put to work for the people of the state, she insists that any decision to award this license must be focused on the integrity of the location and operator," said spokeswoman Robyn Ziegler in a prepared statement. "... As the IGB scrutinizes the bids, the Attorney General expects that they will, in the most transparent way possible, fully explain to the public how they are addressing those concerns, including Rosemont's past conduct in the Emerald casino matter."

In what may have been a veiled reference to Rosemont's past, board attorney Mike Fries made a pointed statement before the three winners were announced.

"No one should assume that by naming three finalists, the board has tacitly approved any applicant," Fries said.

But the statement also came immediately after Fries listed the criteria the board considered in narrowing the field. The first factor he listed was "character (and) ... integrity of the applicant."

Another criteria was the amount of each company's opening bid, and Trilliant's bid at $435 million was nearly double that of Waukegan's $225 million. Midwest Gaming clocked in at $100 million, but company officials have said other revenue provisions made that bid actually higher.

Des Plaines Mayor Tony Arredia agreed. He said the Midwest Gaming proposal wasn't an "apples to apples" comparison with the others and that the company's success in opening two casinos in the past three years and winning a license to open another in Pennsylvania last year will give it an edge.

Likewise, Waukegan partner Ed Duffy said he doesn't think that Rosemont's presence in the final three will mean his company needs to significantly jack up its bid.

"I don't think so," said Duffy, declining to speculate on whether the board picked Rosemont merely as a stalking horse to drive up Des Plaines' and Waukegan's bids.

"I hope this board considered we've given Rosemont two chances and they've failed," said state Sen. Terry Link, a Waukegan Democrat. He argues Waukegan is the best pick because it would not take gamblers away from Elgin's Grand Victoria Casino, whereas Des Plaines and Rosemont would.

Bob Stephenson, a lawyer for Rosemont, said it's no mystery why the town was picked: It's simply the best location and has the largest revenue-sharing agreement with 70 different economically disadvantaged towns.

"Financially it's the best proposal and best location," Stephenson said.

Waukegan Mayor Richard H. Hyde said the revenue sharing agreement of his town, which sorely needs more revenue, with six other towns would benefit a net population of 1 million people and goes a long way toward satisfying the criteria of helping distressed areas.

But Odelson said if board members wanted to help the poor, the South suburbs were the obvious pick.

Board member Eugene Winkler seemed to agree. In a statement after the vote, he said the South suburbs have been the primary location of poor, public housing residents displaced from Chicago.

"The South suburbs have a real need for what a casino can do," Winkler said, who was joined in voting for Country Club Hills by board member Joe Moore Jr.

Odelson said a South suburban location would have been the only location that could have stemmed the bleeding of Illinois dollars into Indiana casinos.

But Waukegan has a similar argument: that it's location will capture those North suburban gamblers who trek into Wisconsin to gamble at Native American establishments.

The three finalists will give a public presentation on their proposals on Nov. 25 before the gaming board.

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Hmmm....doing some googling about this subject. Here's a video. We might find out before the end of this year. hock:

Showing their hands
HIGH-STAKES RACE | Firms unveil plans as battle for state's last casino license heats up


November 26, 2008

BY CHRIS FUSCO Staff Reporter/cfusco@suntimes.com

The company headed by a Las Vegas-tested veteran is offering a staggering $435 million for the state's last-available casino license, but organized-crime questions about its location -- Rosemont -- might linger.

There's an alternative casino site just up the road in Des Plaines, but its owners have offered only $200 million for the license so far.
» Click to enlarge image
The three finalists for the dormant license unveiled plans before the Illinois Gaming Board on Tuesday.
(Courtesy)



And then there's the clout-heavy firm that wants to put a casino in Waukegan. Its opening bid is $225 million. But can it really build a casino for the seemingly low amount it says it can?

These are among the many questions that became apparent Tuesday as the three finalists for the dormant license unveiled plans before the Illinois Gaming Board. The board's five members hope to pick a winner before the end of the year -- after the firms have had an opportunity to increase their bids.

So will it be Rosemont, Des Plaines or Waukegan?

Here's a snapshot of the casino proposals for those suburbs. Developers of all three say they could be up and running within 18 months.
MIDWEST GAMING, DES PLAINES

HEADED BY: Chicago real estate magnate Neil Bluhm

OPENING BID:$200 million

PROS: Restaurants and two hotels to flank casino. Study commissioned by Bluhm shows his casino would boost state gaming taxes the most.

CONS: Bid calls for $100 million to flow immediately, and another $100 million to come over the next 10 years. That might not fly with the Gaming Board, because state government is in financial crisis.

TRILLIANT GAMING, ROSEMONT

HEADED BY: Former MGM Mirage President Alex Yemenidjian

OPENING BID:$435 million

PROS: Near O'Hare Airport, Rosemont's convention center and several hotels. State tax revenues in first five years to top $1 billion, owners say.

CONS: State attorney general in 2004 raised questions about mob links in Rosemont. Yemenidjian said Tuesday that "all of the concerns are related to other times and other people, and none of those conditions exist today." Also, existing casinos worry Rosemont might steal patrons.

WAUKEGAN GAMING, WAUKEGAN

HEADED BY: Politically connected businessmen Richard Stein, Edward Duffy, Charles Bidwill and others

OPENING BID:$225 million

PROS: Casino and hotel would be cornerstone of plan to redevelop the struggling north suburb. Location is farthest from existing casinos.

CONS: A Gaming Board member questioned whether $200 million construction cost is realistic. Bid might not be high enough.

Players for casino license show hands



BY DEANNA BELLANDI
Associated Press Writer | Wednesday, November 26, 2008 | No comments posted.

CHICAGO | The three players in the high-stakes competition for Illinois' unused 10th casino license showed their hands Tuesday, laying out key details of plans to build a new gambling destination in either Des Plaines, Rosemont or Waukegan.

Executives from three gaming companies publicly presented their bids at an Illinois Gaming Board meeting, promising to deliver loads of much-needed tax revenue for the state, money-sharing arrangements that would benefit other communities and jobs to put people to work.

The Gaming Board has said a winning bidder will be chosen by the end of the year for the casino license that is back in play after languishing in legal limbo for years.

The three finalists are Trilliant Gaming for Rosemont, Waukegan Gaming and Midwest Gaming & Entertainment for Des Plaines.

Trilliant's bid is the highest with an upfront licensing fee of $435 million, followed by Waukegan Gaming at $225 million and Midwest Gaming at $100 million.

Rosemont worked hard to put distance between itself and the gaming company that's looking to build a casino in the village, a Chicago suburb near O'Hare International Airport that has spent years trying to lure one amid allegations of possible mob ties.

The village intends to pass ordinances prohibiting Rosemont employees from working for Trilliant Gaming, the village mayor and board members won't be able to gamble there, and vendors who do business with Rosemont can't do business with the casino, Mayor Bradley Stephens said.

"Transparency, complete transparency," said Stephens, who became mayor after his father, Mayor Donald Stephens, died last year.

Back in 2004 when Rosemont angled for the state's 10th casino, Attorney General Lisa Madigan questioned whether the suburb and Donald Stephens had ties to organized crime, something the late mayor denied.

Emerald Casino Inc. and then Isle of Capri Casino Inc. wanted to open a casino in Rosemont but legal and administrative disputes kept it from ever being built and the state Gaming Board rebid the license.

Trilliant CEO Alex Yemenidjian said his company had done deep due diligence in advance of what he hopes will be a new casino in Rosemont.

"All of the concerns related to other times and other people and none of those conditions exist today," Yemenidjian said.

As part of the deal, Rosemont also is relinquishing all of its gaming taxes and admissions fees and most of that money will be redistributed to 70 Cook County municipalities, said Trilliant spokesman Laurent Pernot.

Gaming Board member the Rev. Eugene Winkler said he was bothered by the revenue-sharing agreement because it didn't include some needy communities.

Trilliant inherited the agreement with 70 communities that Rosemont entered into more than a dozen years ago, Yemenidjian said.

Midwest Gaming & Entertainment, which wants to bring a casino to the Chicago suburb of Des Plaines, was asked about why its bid was so much lower than Rosemont's.

"We can't understand how they came up with their bid," said Neil Bluhm, Midwest's chairman.

Compared to Trilliant's upfront licensing fee of $435 million, Midwest has offered $100 million and, it was disclosed on Tuesday, another proposed $100 million that would be payable over time at about $10 million per year. But those payments could be spread out or put on hold until revenues improved if state law was changed to raise the casino tax rate or if lawmakers created more competition by authorizing more casinos, said Midwest CEO Greg Carlin.

"We are your least risky bet," Bluhm said.

Waukegan Mayor Richard Hyde made a heartfelt plea for a casino in his northern Illinois city that sits near the Wisconsin state line, saying it would help revitalize a town that has seen other good-paying jobs disappear and speed up redevelopment of its downtown lakefront.

"Imagine what 1,200 casino jobs with good wages and health care benefits would mean for these neighborhoods," he said.

WHAT'S UP: The Illinois Gaming Board has said it will choose a winning bidder by the end of the year for the state's unused 10th casino license that's back in play after languishing in legal limbo for years. The casino would be built in either Rosemont, Des Plaines or Waukegan.
THE PLAYERS: The three finalists are Trilliant Gaming for Rosemont, Midwest Gaming & Entertainment for Des Plaines and Waukegan Gaming.
WHERE IT STANDS: Executives from the three gaming companies publicly presented their bids Tuesday, promising to deliver loads of much-needed tax revenue for the state, money-sharing arrangements that would benefit other communities and jobs to put people to work.

Casino investors place their bets
By Joseph Ryan | Daily Herald Staff

Rosemont and Waukegan officials hoping to land a casino found themselves Tuesday explaining past associations to gambling regulators as Des Plaines officials labeled their bid the "least risky bet."

"Rosemont will not be the source of any problems for the gaming board," pledged Rosemont Mayor Bradley Stephens before the Illinois Gaming Board. "We want to be a host community that will set the standard."

Rosemont lost the license after years of legal wrangling following questions of mob influence in the bid of Emerald Casino and the suburb itself. This time, Rosemont is taking a hands-off approach, vowing to have nothing to do with the Trilliant Gaming bid led by a former MGM executive.

The declaration came during a lengthy Illinois Gaming Board hearing in which all three bidders on the state's previous license made their most detailed pitch yet to win the right to build a casino in the North or Northwest suburbs.

Negotiations are ongoing and the owner of what could be Illinois' most lucrative casino may be selected by year's end. South and West suburban bidders were struck from the list in the first round of cuts on Nov. 14.

Like Rosemont, Waukegan also found itself answering questions about investors Tuesday. Indicted political insider William Cellini was an investor in the Waukegan proposal for years. Cellini also owned another Illinois casino.

Board Chairman Aaron Jaffe asked Waukegan Gaming LLC representatives about Cellini's current involvement. Investor Ed Duffy, a former chieftain in the Illinois horse racing business, said Cellini sold his stake, measured at up to 5 percent, 18 months ago for about $35,000.

"Another gentleman bought out his interest," Duffy said.

Cellini was indicted this fall over a scheme to strong-arm kickbacks from companies seeking to invest state pension money. He pleaded not guilty and awaits trial.

Who owns the casino is only one consideration that gambling regulators must take into account. With the state facing a $2 billion budget shortfall, revenue is a key factor as well.

Each bidder claimed Tuesday that their casino would draw the most gambling dollars, and therefore the most taxes, with both Rosemont and Des Plaines officials arguing they can recapture Chicago gamblers lost to Indiana boats.

Des Plaines and Rosemont proposals vary greatly in how much each side is willing to put upfront for the license. Rosemont investors are offering $435 million, compared to Des Plaines' $100 million initial payment.

Investors on all sides are expected to modify their proposals in the coming weeks during negotiations with gambling regulators.

Waukegan officials argued their bid will draw gamblers from Wisconsin and not directly compete with existing casinos in Elgin and Aurora.

Waukegan officials also said money from their casino, backed in part by the former owner of Sportsman's racetrack in Cicero, would help revitalize an economically disadvantaged region around the struggling city.

Des Plaines investors, meanwhile, attempted Tuesday to gain an edge on Rosemont by touting their 20-acre site as a better location, given its access to Devon Avenue and Des Plaines River Road. The project will include two new hotels in the long run, meaning more new jobs than Rosemont's casino, which would be located in a developed area.

"Not only are we your best bet, but we are your least risky bet," said Neil Bluhm, a major developer, casino owner and chief investor in the Des Plaines' bid.

Gaming board officials gave little indication Tuesday of where they were leaning in their selection. One board member spoke favorably of the Waukegan proposal's focus on regional development and also expressed reservations about Rosemont's revenue sharing plan because it left some of the poorest suburbs out.

The public is invited to comment on the proposals before the Illinois Gaming Board on Dec. 8.

The decision has been put off until...?


Casino bids still up in the air
By Joseph Ryan | Daily Herald Staff
Published: 12/16/2008 3:50 PM


State regulators put off deciding on a suburban site for the state's 10th casino Tuesday, saying they had more to look into before making the much-anticipated selection.

Rosemont, Des Plaines and Waukegan are vying to land the state's last available casino license and they have bid hundreds of millions of dollars to land the opportunity to set up hundreds of slot machines and other games of chance.

Regulators were expected to make a decision at their Tuesday meeting in Chicago, but at the last minute they backed off. Regulators have been expected to make a selection by the end of the year as lawmakers grapple with a budget deficit exceeding $2 billion.

"There is still some due diligence they need to complete," said spokesman Gene O'Shea, who said he couldn't provide any further details or explanation.

The move comes as good-government groups and anti-gambling organizations have called on casino regulators to hold off picking a site given the arrest of Gov. Rod Blagojevich on sweeping corruption charges.

The governor appoints the board, which is supposed to be independent, and he has been accused of exerting undue influence over regulators in the past.

Rosemont, which lost the license after years of legal fighting following allegations of mob ties, put up the most for the casino, $435 million. Waukegan has bid $225 million and Des Plaines has offered $100 million upfront.

Suburban mayors in Aurora and Elgin who rely on tax money from existing casinos have urged regulators to pick Waukegan, which would compete less with the Hollywood or Grand Victoria casinos. Companies bidding on the Rosemont and Des Plaines sites argue they will attract gamblers from Chicago who now go to Indiana casinos.

Decision possible Monday on Waukegan casino

December 18, 2008
BY KENDRICK MARSHALL <!-- e --><a href="mailto:kmarshall@scn1.com">kmarshall@scn1.com</a><!-- e -->

The Illinois Gaming Board is expected to decide Monday which suburban site will grab the state's 10th casino license at a special board meeting, officials said Thursday.

Waukegan, Rosemont and Des Plaines are all vying for the license.

Waukegan Gaming LLC wants to build a 50,000-square-foot casino and hotel at Fountain Square, about a mile east of the Tri-State Tollway at routes 120, 43 and 41. Officials have bid $225 million for the project.

A board meeting was initially scheduled to be held Jan. 13, but Michael Fries, chief counsel for the board, told the News-Sun Tuesday a meeting could be possibly held before then to make a final determination.

The gaming board is expected to meet in a closed session in Chicago from 9 a.m. to 11 a.m. then commence with a public session to follow.

Des Plaines got the license.

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Quote:Des Plaines wins 10th casino license

By Rob Olmstead | Daily Herald Staff
Published: 12/22/2008 11:52 AM

The Illinois Gaming Board today awarded its 10th casino license to Des Plaines, after a more-than decadelong legal battle that kept the license dormant.

The selection gives the near Northwest suburbs their first casino. The closest other gaming site is in Elgin, and is currently the state's biggest tax-earning casino.

The city's win comes after officials sweetened their bid. In the last round of public bidding, Rosemont led in terms of dollars, with the company seeking the casino, Trilliant Gaming, offering $435 million up front. Des Plaines' casino-seeker, Midwest Gaming, offered $100 million up front, and Waukegan's bidder had offered $225.

But after those initial public bids, the horse-trading began in earnest with the gaming board behind closed doors. Des Plaines village leaders offered to forego some of their local tax dollar receipts and instead give the money to the state in an effort to land the casino.

The award comes after Rosemont was initially supposed to receive a casino back in 1995. But Illinois Gaming Board investigators derailed that project after it was found that secret Emerald Casino investors had ties to the mob. That touched off a legal battle which culminated in Emerald having its license revoked and ensuing court battles that didn't end until late 2007.

During the fight, Illinois Attorney General Lisa Madigan alleged that Rosemont and its late mayor, Don Stephens, both appeared to have links to organized crime. Stephens went to his grave in April 2007 denying the charges, but Madigan continued to express reservations about Rosemont even after the town again made the final three in this latest license auction.

So, Mayor Hyde and Senator Link...what's "Plan B" for Fountain Square?