(Editor's note: Danny A. Holmes, general manager of the Radisson Quad City Plaza Hotel, sent the following letter to Davenport city officials on Tuesday, June 5.)
I sincerely hope all points of view will be considered as negotiations for lease of the RiverCenter by Isle of Capri Casinos move forward at what appears to be a surprisingly rapid pace. Please be advised that Radisson Quad City Plaza and John Q. Hammons Hotels strongly object to this proposal for a number of reasons, including but not limited to the following:
• Mr. Hammons built the Radisson Quad City Plaza hotel with limited banquet space with the understanding the RiverCenter space would always be available to the hotel for attracting and catering conventions, meetings, trade shows, etc. He promised the people of Davenport a first-class hotel, and he has delivered. Davenport's Radisson hotel won Radisson Hotels & Resorts' highest awards for guest service again this year, and was included by Lodging Magazine in its list of the 250 top-performing hotels in the nation.
• Radisson is a convention hotel, and without a convention center is no longer in the convention business. Radisson Quad City Plaza was built in 1995 to support the RiverCenter when the Blackhawk Hotel could not do so alone. Now, 12 years later, the Radisson hotel is struggling to make do without the availability of Blackhawk rooms, so necessary to attract 300-400-room conventions, and apparently is now facing the real possibility of losing the use of the RiverCenter as well. Loss of the RiverCenter in addition to loss of the Blackhawk will severely hinder Radisson Quad City Plaza's ability to remain successful in conducting its business, and may impact redevelopment of the Blackhawk Hotel as well.
• Without the RiverCenter, downtown Davenport will for all intents and purposes be out of the convention business entirely, the business that provides considerable revenues to downtown restaurants, bars, and retail businesses, and that often drives hotel rooms and other incremental revenues to the outlying hotels and restaurants as well. If the conversion of convention space to casino space is about saving a $600,000 subsidy, it will be an extremely high price to pay for the loss of tens of millions of dollars of economic impact provided by convention attendees visiting our community each year. Per Quad Cities Convention & Visitors Bureau economic-multiplier guidelines, the recent Iowa Pool Players Tournament individually provided nearly $2 million of economic impact in the form of lodging, parking, food and beverage, and shopping revenues throughout our community, and the total economic impact of the RiverCenter was over $20 million last year.
• If the RiverCenter is converted for use as a casino, we'll no longer be seeing the annual Boat Show, Car Show, Festival of Trees, Women's Health & Lifestyle Fair, Pool Players Tournament, Deere Achieving Excellence Dinners, and many other events that contribute to the welfare of downtown businesses and the cultural and entertainment well-being of our community. Alternate trade-show space north of Third Street, even if completed, will at best be less convenient for convention attendees who stay at our hotel. The RiverCenter and Radisson hotel are both concerned about the legal ramifications of canceling signed contracts currently in effect that extend well into the future. The knowledge that conversion to casino space is even being considered is already providing some amount of nervousness to conventions and other events presently booked or considering booking, and may well discourage future conventions and meetings from booking even if the casino talks fall through.
• It is extremely difficult to comprehend the city's apparent preoccupation with keeping the casino in the downtown area. The casino does not contribute to the growth or well-being of downtown businesses, as it prefers to keep its guests south of River Drive and within the confines of the casino. If based in the RiverCenter, even with a new hotel nearby, Isle of Capri is not likely to earnestly participate in attracting conventions and trade shows unless it believes their attendees will also remain within the casino during most of their stay. The loss of $20 million of cash infusion to our community by visitors from outside our community just isn't worth the additional taxes that may be generated from the same local residents who support the casino now. Downtown businesses including the Radisson hotel should not be driven out of business or substantially impacted financially for the benefit of a casino that does not need to occupy the RiverCenter facility or necessarily remain in the downtown area.
• Alternate locations are available for relocation of the casino - e.g., near the interstate highway system as initially mentioned, or beneath a new Blackhawk hotel encompassing that entire city block. We suggest the city unburden itself of Credit Island and simply give it to the casino ... with no tax deferments or cash assistance from the city. Any part of the island could be flood-proofed in the same manner as the ballpark. Its golf course and other attractions could be rebuilt and improved. The casino could build as many hotel rooms and as much parking space as necessary, and in the process create a destination resort not unlike, and very possibly more attractive than, the Riverside casino that is currently sapping its revenues.
We realize that taxation consequences regarding the casino are undoubtedly a concern, as is the pending application for Vision Iowa monies, the continued use of Self-Supporting Municipal Improvement District tax dollars, and continuing redevelopment of the riverfront ... but surely the city council and city staff can put together a program to reflect a favorable financial position for the city in any alternate casino location ultimately agreed upon. We are very concerned about what is currently being decided about the RiverCenter without benefit of public knowledge or public input, possibly to the detriment of all downtown businesses, and we strongly urge you and the entire city council to take ample time to freely and openly hear what the citizens and businesses of Davenport, Scott County, and all the Quad Cities have to say before any decisions are made in this matter. Thank you.
