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Wild Rose to Pick Up Casino Tab

21 September 2005

IOWA – As reported by the Ottumwa Courier: "Officials from Wapello County and the city of Ottumwa assured residents the bulk of the costs incurred in the attempt to bring a casino to southeast Iowa were Wild Rose Entertainment's responsibility. Documents obtained by The Courier show that's more or less the case. The Courier filed Freedom of Information Act requests with both the city and county. While response times varied - the county responded within days, the city took more than three months - the information was eventually supplied.

"Most of the costs came well before Wild Rose was signed on as casino operator. In fact, they came before Ottumwa had any assurances that gambling would expand.

"Local backers of a casino worked with organizers from several other counties to hire Signature Management Group's John Pavone as a lobbyist. That effort came before the Legislature indicated that it wanted casino gambling expanded and before the Iowa Racing and Gaming Commission said it would issue new licenses.

"Hiring Pavone cost a total of $16,943.42, split between the city and county. Ottumwa's share was $11,509.65, while Wapello County paid $5,433.77.

"…Pavone's hiring was also the vast majority of the expenditures by the county and city. That bill alone accounted for 91.3 percent of the final costs borne by the local taxpayers.

"…The bid to bring a casino to Ottumwa was not successful, but the majority of the costs were paid by Wild Rose Entertainment.

"So, just what did area taxpayers foot the bill for in addition to Pavone's hiring? The answer falls into three basic categories: Travel expenses, meals and lodging…"

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