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Des Moines airport rejects $225 million casino and hotel proposal

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The Des Moines International Airport board has rejected a $225 million proposal to build a casino and hotel on the airport's grounds.

Reggie Sinha, a local entrepreneur and consultant, proposed building a 350-room hotel connected to the airport by a skywalk that would feature a dancing fountain, a rock garden, a restaurant and wedding and banquet facilities. The plan also called for a casino, to be operated by Wild Rose Casino & Resort, which has three gaming facilities in Iowa.

Highview Development Group, the organization behind the plan, said the complex would create 1,000 full-time jobs and help generate the $194 million in additional funds the airport needs to build a planned new terminal.

Des Moines airport rejects $225 million casino and hotel proposal

Planned in response to rapidly growing traffic at Iowa's largest airport, the terminal is estimated to cost $500 million and would be paid for through a mix of passenger fees, federal and state money and airport revenue. 

Though the Airport Authority Board continues to seek the additional funds to carry out the terminal project, it said no to the hotel and casino proposal in a meeting Tuesday. 

At issue is a 16-year-old agreement between Des Moines, Polk County and Prairie Meadows Casino and Hotel that requires elected officials to reject any proposed new casino in the city or county in exchange for a share of gaming revenue from the Altoona casino.

The city receives about $6 million in gaming revenue annually from the county-owned Prairie Meadows. 

"I don't see a path to a licensed casino facility on our grounds," said airport board member Mark Feldmann. "I don't see why we'd dedicate the effort ... in face of what is really just a very remote possibility."

It appears the proposal is dead unless Wild Rose wants to approach Des Moines and Polk County officials directly, Sinha said. A spokesperson from Wild Rose said later Tuesday the project is "completely driven by Reggie."

"And if it goes beyond this, it's because Reggie will drive it," said Jamie Buelt, spokesperson. 

Prairie Meadows has been the lone legal gambling house in the Des Moines metro since it opened as a horse track in 1989. It added slot machines in 1995, table gaming in 2004 and sports gambling in 2019.

Sinha said a casino is an essential component to making the proposed airport project viable. 

"Building just a hotel would be woefully inadequate," he said. 

Des Moines airport rejects $225 million casino and hotel proposal

At the meeting Tuesday, Sinha argued the airport board had the authority to supersede the city's agreement because the Des Moines City Council appointed its members to make decisions about what happens at the airport.

He also pointed to state law, which authorizes airport authorities to enter into lease agreements at aviation facilities. 

"Morally, ethically and legally, you will be on sound ground to make this decision today," Sinha said. 

But the airport board's attorney, Jim Wainwright, disagreed, saying that the board is subject to the city's policies. Feldmann added that a "truly robust proposal" would include support from the city and county. 

The airport board members said they would be open to future negotiations with Highview Development Group if it works with Des Moines, Polk County and Prairie Meadows to loosen the 2004 agreement for sharing gaming revenue. 

Des Moines City Manager Scott Sanders applauded the airport board's decision. "The city of Des Moines has a commitment to Prairie Meadows and Polk County to oppose any casino expansion that is not affiliated with or approved by those two entities," he said. 

Highview Development Group had the only response to a request for proposals from the airport board to develop vacant land along Fleur Drive on the south side of the complex. 

Sinha said the hotel and casino would have taken a full three years to build. In addition to approval from airport authority, it would need to gain approval from the Iowa Racing and Gaming Commission, a process that could first include a public referendum. 

Wild Rose tried to crack the Des Moines casino market in Norwalk in 2013, but voters rejected the $145 million proposal.

Kim Norvell covers growth and development for the Register. Reach her at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or 515-284-8259. Follow her on Twitter @KimNorvellDMR.

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Read more https://www.desmoinesregister.com/story/money/business/development/2020/02/11/des-moines-airport-rejects-225-million-casino-and-hotel-proposal/4712446002/

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