Isle of Capri Casinos, Inc. told shareholders today (6/19) it has signed an option agreement to sell its Davenport Rhythm City Casino for $51 million, subject to the new owner – Kehl Development-Scott County, LLC – obtaining "applicable gaming licenses and approvals and other customary closing conditions."
The Isle – owner of four Iowa casinos including the Bettendorf Isle of Capri Casino – reported in its filing with the U.S. Securities and Exchange Commission (SEC) that Kehl Development Corporation has until September 15 to exercise the option to buy the riverboat casino. The exercise period can be extended until October 15, or can be extended or terminated early by mutual agreement "upon occurrence of certain other circumstances."
The full agreement was not part of the 8K filing with the SEC, but the company said it would be part of the 10K quarterly report for the period ending July 28. CLICK HERE to download the 8K filing outlining terms of the option agreement.
Kehl's development group of Dubuque owns the Riverside Casino and Golf Resort near Iowa City and the Grand Falls Casino Resort in Larchwood, Iowa. It recently was tabbed by the Riverboat Development Authority (RDA) – the non-profit license-holder for the Rhythm City Casino – as its choice to develop a new Davenport gambling operation near Interstate 80. That development has been estimated at $110 million and would achieve what Davenport city officials have long wanted – a competitor to the Isle in the Iowa Quad Cities market and one who would invest in a new gambling facility.
Kehl Development Corporation President Dan Kehl told the RDA earlier this month the proposed interstate casino would have 1,000 slot machines, a 95-room hotel, plus restaurants and meeting facilities.
In addition to obtaining the license from the RDA, the developer also will need to receive approval from the Iowa Racing and Gaming Commission.
