Polk County supervisors are set to consider a new lease for Prairie Meadows Racetrack and Casino that could enable the county-owned property to undertake its largest renovation since opening 37 years ago.
The proposed lease would run for 15 years, with two possible five-year extensions, giving Prairie Meadows up to 25 years of tenure, the Des Moines Register reported. Previous leases expired after eight years, limiting the racino’s financing options for major projects.
Officials have not finalised the renovation budget, but the project could cost up to $300 million.
“We’re trying to look into the future and build something that this community will be proud of for the next 30 years,” CEO Brian Ohorilko told the Des Moines Register.
The project is still in the planning phase. Ohorilko and the casino’s board are evaluating upgrades to gaming, accommodation, entertainment, and dining, with a focus on investments expected to have the biggest impact.
“If we’re going to do this, we’re going to do it right,” Ohorilko said.
Prairie Meadows opened with live racing in 1989 and is the only nonprofit casino and live horse racing track in the US. The venue has generated significant income for Polk County, with both the county and Prairie Meadows using part of wagering proceeds to provide grants to organisations across central Iowa.
The casino has posted record revenues in recent years, with the first six months of the year marking its strongest performance on record. However, Iowa’s gambling market has become increasingly competitive as more casinos compete for revenue.
The renovation plans come as Iowa’s 20th state-regulated casino, Cedar Crossing Casino and Entertainment Center, is expected to open in November. The $275 million Cedar Rapids development will feature 700 slot machines, 22 table games, a 1,500-seat entertainment venue, restaurants, an Arts and Culture Center and a STEM lab.
Cedar Crossing would be Iowa’s most expensive casino development. The next-largest project was Riverside Casino & Golf Resort near Iowa City, which cost about $140 million when it opened in 2006.
Prairie Meadows is currently Iowa’s largest and most profitable casino, with 1,176 slot machines, 39 table games and live racing from May through September. It also offers sports betting, while its hotel and events centre are frequently booked on weekends.
Ohorilko said improved gaming, amenities, and entertainment could help Prairie Meadows attract more revenue from Iowans visiting the metro area. The racino expects to have a clearer view of the renovation’s design, cost and financing by the end of the year.
Prairie Meadows Board President Chris Costa said the board and county are aligned on the project, with the main challenge being how quickly the renovation can move forward. “We’re all rowing in the same direction,” he said. “The only real roadblock is how quickly we can get this done.”
Polk County Supervisors Chair Matt McCoy said the new lease would provide a better deal for taxpayers while supporting Prairie Meadows’ growth as a central Iowa attraction.
The lease, approved by the Prairie Meadows board on Aug. 27, will also provide the county with a more reliable income stream. Prairie Meadows would be responsible for major maintenance issues and higher property taxes under the agreement.
Under the proposed terms, Prairie Meadows will pay Polk County $24.12 million annually for the first five years, $25.57 million for years six through 10 and $27.1 million for years 11 through 15. The terms could be adjusted in the event of a prolonged economic downturn or changes to state gaming taxes.
McCoy said the county’s grant-making from wagering proceeds is expected to continue at the same level, with the possibility of increased grants in future years as other county debt is paid off.