By: Phil Luciano
Peoria city officials are trying to convince Boyd Gaming to abandon their Par-A-Dice Hotel Casino in East Peoria and build a land-based operation in Peoria.
That effort, confirmed by WMBD Radio via a Freedom of Information Act request filed with the city of Peoria, has triggered the irritation and concern of East Peoria Mayor John Kahl.
In a July 22 email to Peoria Mayor Rita Ali, Kahl stated, “(I) am most disappointed to learn that you and your (fellow officials) in Peoria are doing your best to force a business organization to relocate from a neighboring community to yours.”
Kahl and Ali declined to comment for this story. Boyd Gaming, based in Las Vegas, did not return WMBD Radio’s requests for comments.
However, sources have told WMBD Radio that Boyd – which has met with Peoria officials twice over the past four years to hear relocation pitches – is reviewing a July proposal from the city of Peoria. That document suggests multiple economic-incentive possibilities, including tax-revenue sharing with Boyd.
The proposal does not include any new revenue sharing with East Peoria. Further, East Peoria has not been included with any conversations – via email or face-to-face – between Peoria and Boyd.
In 1991, Peoria and East Peoria struck an agreement regarding gambling. At the time, Peoria’s then-Mayor Jim Maloof pushed hard against the then-new concept of riverboat gambling while East Peoria invited the opportunity. In the compromise agreement, Peoria would host riverboat gambling for two years until a riverboat landing would be built in East Peoria.
Key to the agreement: the two cities would split 50-50 a tax levied on Par-A-Dice gambling – or, about $3 million each a year. However, East Peoria gets 100 percent of other associated taxes, such as real-estate and sales taxes.
Another vital element of the agreement: “All land-based casino operations shall be in Peoria.” The state allows just one casino license for the Peoria area.
In 2019, the General Assembly adopted laws and regulations to allow land-based casinos in Illinois, including a brief proviso sponsored by Republican Ryan Spain and Democrat Jehan Gordon-Booth, representatives whose districts include Peoria but not East Peoria. Their legislation echoed the 1991 agreement, stating that the Peoria area will have one casino license, with either a riverboat in East Peoria or a land-based casino in Peoria.
(Photo of the Par-A-Dice Casino entrance in East Peoria. Courtesy of Phil Luciano.)
Neither Spain nor Gordon-Booth returned WMBD Radio’s requests for comment. Sources say their legislation aimed to strengthen the 1991 agreement by adding the weight of state law behind it.
In the wake of that legislation, in 2020 the city of Peoria requested – and was granted – a meeting with Boyd at its Vegas headquarters. According to sources, Peoria officials reminded Boyd of the original agreement and suggested the company consider building a land-based operation in Peoria. Those officials told Boyd that a land-based operation would draw more tourists and visitors and thus be more profitable.
Sources say Boyd simply took in that information with little comment. But thereafter, the notion of a Par-A-Dice relocation languished.
In March of this year, though, the move-to-Peoria camp felt emboldened.
That month marked a regular meeting of the Illinois Gaming Board, which regulates casino licenses. At the meeting, Boyd and Par-A-Dice officials made a matter-of-course appearance to make a typical request for a four-year license extension. They made presentations that highlighted the casino’s operations and community involvement. The board, with little discussion, granted the four-year license extension.
However, that approval was predicated on Boyd returning within two years with “a new casino facility development plan.” Boyd agreed. No details of the scope of that plan were discussed at that meeting.
But one brief meeting comment apparently caught the ear of Peoria City Manager Patrick Urich. Board Administrator Marcus Fruchter offhandedly stated that after changes per the development plan due in 2026, the casino would no longer have to consider any Coast Guard regulations.
“The implication,” Urich wrote in a letter to Boyd soon thereafter, “is that Par-A-Dice will be shifting to land-based operations.”
In that letter, Urich requested that Boyd officials come to Peoria to “revisit land-based opportunities for Par-A-Dice operations in Peoria.” In May, Boyd officials did come to Peoria, where officials again reminded Boyd of the 1991 agreement and offered several ideas regarding incentives for relocation.
Sources say Boyd requested Peoria put any proposals in writing. In a letter dated July 9, Urich suggested and detailed economic incentives that could help with construction and other costs of casino relocation, including tax increment financing, an urban enterprise zone and a business development district. It also suggested sharing tax revenue – “a portion of the hotel tax, restaurant tax and amusement tax” – with Boyd.
Even under a relocation to Peoria, East Peoria still would split gaming-tax revenue 50-50 with Peoria. But East Peoria would not get a penny from the other, associated taxes, all of which would go to Peoria.
In addition to that added tax revenue, Peoria could also benefit by the expectation that a land-based casino and hotel would drive development around it. None of the FOIA-obtained emails mentions a possible location for a land-based casino in Peoria.
(Photo of the Par-A-Dice Casino Boat located on the Illinois River. Courtesy of Phil Luciano.)
In that the East Peoria operation encompasses about 25 acres, Peoria would have a hard time finding needed space in or around Downtown. Thus, sources say, the new site likely would be someplace with more available space.
Boyd has not replied to Peoria about those written suggestions, sources say. City Hall believes Boyd is continuing to evaluate those ideas.
Meantime in East Peoria, Mayor Kahl fired off July emails to Peoria Mayor Ali expressing his “disappointment” in Peoria’s attempt to sway Boyd into relocating – especially with no input from East Peoria. He also suggested Peoria’s overtures could rattle Boyd and hurt the “harmonious relations” therefore enjoyed between Peoria, East Peoria and Boyd.
In reply, Ali defended Peoria’s maneuvers, saying, “We are not trying to force relocation.” Still, she added, “As we (in Peoria) came to believe that Boyd gaming may be interested in expanding to include a land-based casino, we wanted to make sure they understood that our signed agreement (between Peoria and East Peoria) is honored.”
Further, she stated, “We do object to an expansion to include a land-based casino in East Peoria. … It violates a trust.”
Reached Friday, Urich declined to comment at length. But he did say, “From Peoria’s perspective, we think that the 1991 agreement should be honored. … We think land-based gaming should be in Peoria.”
Phil Luciano spoke with Peoria City Manager Patrick Urich about the matter:
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