Work on new Des Plaines casino may begin in March

Des Plaines city leaders contemplating lay offs and budget cuts for next year see a glimmer of hope for future revenues with the city's casino developer announcing this week that construction could begin next spring.

The casino is targeted for roughly 21 acres fronting the Tri-State Tollway at the northwest corner of Devon Avenue and River Road. The total project cost is $1 billion, which includes two hotels and retail.

Representatives of Midwest Gaming & Entertainment told the Illinois Gaming Board this week they anticipate breaking ground as early as March. With an aggressive construction timeline, the casino could open about 16 months later in late summer/early fall 2011.

Midwest Gaming & Entertainment last year won the state's 10th and final casino license, which had been bogged down for years in legal and administrative disputes.

Des Plaines was chosen over Rosemont and Waukegan to receive the license, with one factor being that neither its reputation nor that of the developer were tainted.

The gaming board's investigation into the finances, connections and dealings of the Chicago-based developer should be nearing the end. It involves background checks of existing and potential managers and key players with Midwest Gaming and the future casino.

"We're still waiting for them to find us suitable and we don't know when that's going to come," said Tim Drehkoff, a vice president for Midwest Games & Entertainment. "It could come at any time, as soon as the end of this year."

City officials can already hear the "caching" of slot machines.

"I think it's great news for the city of Des Plaines," Mayor Marty Moylan said. "Everywhere we go, people are asking (about) the timeline for the casino. We would look forward to receiving our revenues."

Moylan said the city council will have to come up with a strategy for how casino revenues should be spent.

"My suggestion is always: infrastructure, flooding, pay down our debt," he added.

Initial estimates showed Des Plaines receiving about $25 million a year from the casino. Of that though, $10 million a year must go to the state as part of the deal that landed the license and 40 percent of the remainder will go to economically depressed towns in Cook County.

And revenue expectations for the casino have dropped with the economic downturn.

The city is not privy to new revenue estimates and Drehkoff wouldn't divulge them. He did say, though that the state's new video gambling law should not hurt the casino.

"We did our due diligence on the video lottery terminal legislation and do not believe it will have a significant impact," he said.

The developer must still submit designs for the city's review and approval. They may be available in November.

The initial plan for the casino include 50,000 square feet of gaming space, restaurants, two hotels and 1,700 parking spaces in a garage. More restaurants, additional hotel space and retail shops are planned in later phases of development.