Posted on: December 11, 2024, 01:12h.
Last updated on: December 11, 2024, 01:12h.
The City of Peoria is going all-in on its effort to woo Boyd Gaming and its Par-A-Dice Hotel Casino across the Illinois River.
During Peoria’s joint City Council and Town Board meeting on Tuesday, city officials voted unanimously in support of an ordinance to hire a prominent boutique investment bank focused on gaming and hospitality to help draft its bid to bring Boyd west across the river and Peoria Lake.
Peoria tapped Florida-based Innovation Capital, LLC, to provide the city with investment banking services relating to a potential land-based casino.
In order to develop a project proposal to support a land-based casino operation within the City of Peoria, City staff recommends the City retain a financial advisor to assist with the capital structure for that proposal and legal counsel with experience in Illinois Gambling Law and facility approvals with the Board,” the proposal read before the vote.
Innovation is a leading provider of investment banking services representing mid-market clients in gaming. Among its most notable contracts, the company served as the exclusive financial advisor to Bally’s Corp. in its pursuit of a $1.7 billion integrated resort casino in Chicago.
Firm Scope
With the executed agreement, Innovation will assist Peoria in trying to convince Boyd Gaming that relocating its riverboat casino in East Peoria to a new brick-and-mortar facility in Peoria is a worthy bet.
Innovation will be paid a minimum of $10K a month, though the monthly payment could be considerably higher. Managing directors at Innovation are paid $750 per hour, while directors and VP are billed at $500 an hour and associates and analysts at $200 per 60 minutes.
The contract runs for an initial six months but can be extended. Peoria City Attorney Patrick Hayes says the project could take over a year.
During the term, Innovation “will provide … on a best efforts basis advice and assistance” in trying to bring Boyd Gaming to the Illinois River’s western bank. Innovation will assist in presenting Boyd and East Peoria with a proposal, attending relevant meetings to provide input and advice, and negotiating the terms and financial structure of a possible relocation.
If Boyd decides to move west, the City of Peoria will pay Innovation a $250K transaction fee.
1991 Agreement
After Illinois lawmakers legalized riverboat gaming in 1990, Peoria and East Peoria in 1991 signed a pact to land one of the gaming concessions. The terms detailed that a riverboat would operate in East Peoria but should a change in state law come to allow land-based casinos, the facility would be in Peoria.
Illinois amended its gaming law in 2019 to allow riverboats to move inland in exchange for a $250K fee.
Par-A-Dice has seen a severe downturn in its business over the past several years. Its admissions dropped from more than 776K in 2017 to 700K in 2019 and to less than 442K last year.
Brick-and-mortar casinos allow gaming operators to include more amenities like fine dining and entertainment than riverboats can house under one roof. Peoria and Innovation will work to develop a game plan to convince Boyd that further investment in the region is warranted.
City officials in East Peoria oppose Peoria’s efforts to bring the casino west. They are expected to oppose Innovation and Peoria’s pitch.
