Developers signing up to buy land for casino in 2 areas of Cape

Developers hoping to win Cape Girardeau's endorsement to build a casino are busy making deals for properties along North Main Street and immediately south of Highway 74 near the Bill Emerson Memorial Bridge.

Along North Main Street, it's no secret that David Knight, owner of Ole Hickory Pits, and Jim Riley, owner of Red Letter Communications, are signing up enough ground for a major development. When a casino license became available, agents representing Knight and Riley began actively approaching more property owners to secure their land.

The identity of the investors hoping to gain control of property south of Highway 74 hasn't been revealed publicly. But several homeowners have already sold out and some major property owners who could be reached said they, too, have been contacted about selling.

Terry Wright, who owns 1.29 acres of open land at 446 Willow St. across from Ranney Park, said he has been approached about selling his property but made no deal. He would not reveal who is seeking to buy the land.

The names of the casino companies hoping to do business in Cape Girardeau will become known during a special Cape Girardeau City Council meeting at 6 p.m. Thursday in the Osage Community Centre. So far, two companies have asked to make presentations, city manager Scott Meyer said, but he would not name them. Each development group will be given an hour, with 30 to 45 minutes to explain their plans and the remainder for questions from council members, he said.

Knight and Riley will be there, but Knight on Tuesday would not say which casino company they have enlisted as a partner in the effort.

"I think the people of Cape Girardeau will be delighted with our presentation and it will answer a lot of questions that many people have had and they will get a firsthand look at what is proposed for Cape Girardeau," Knight said. "What we would like to do on Thursday night is to introduce, to the prettiest girl at the dance, Prince Charming."

Two companies, Unbridled Entertainment and St. Louis Capital Partners LLC, have said they want to put a casino here. Neither currently operates in Missouri. A spokesman for Unbridled Entertainment said in May that of the five locations seeking a casino license, Cape Girardeau is "the prettiest girl at the dance." A study by Ameristar Casinos Inc. projected that a casino in Cape Girardeau would have the biggest positive impact on state revenue without hurting business at other casinos.

Every casino in Missouri must be within 1,000 feet of either the Mississippi or Missouri rivers. That limits the options for developers.

Knight and Riley, in their own names and through businesses they own, have acquired several parcels outright, including 5.1 acres on the east side of North Main Street between Mill Street and Mason Street. Since May, agents have been signing up property owners on contingency contracts that will buy their lots outright if a casino is awarded or provide modest compensation if the land isn't needed.

David and Lillie Kilburn said they agreed in May to sell their home at 710 N. Spanish St. if it is needed for a casino. If it is not, they said, they will receive a modest payment for reserving their home for Knight and Riley.

Charles Youngerman, the Kilburns' son-in-law who lives in a home built by Habitat for Humanity at 803 N. Spanish St., said he's waiting for the right offer. "I'm not going to sell it cheap," he said. "It is just five months old."

But property owners who don't sell have been told they will be isolated, Youngerman said. "They said they will put a fence around you if you don't sign and sell," he said.

Most of the families living in the modest homes along Spanish Street have agreed to sell, David Kilburn said.

South of Highway 74, the biggest single property owners, Robert Erlbacher and his sister, Elizabeth Dombrowski, own more than 46 acres adjoining the river that is home to the Missouri Dry Dock. "At this time, we have had no contact with any gambling operation in any way nor do we expect any contact in any way," he said.

Other major property owners -- including Ranney Park Development LLC, owner of 5.37 acres, William Sides, owner of Sides Steel Supply and Metal Recycling, with 7.65 acres, and Standley Batch Systems Inc., with 6.03 acres -- did not return calls seeking comment.

But for one family, the offers mean a chance to sell property that otherwise would be difficult to unload.

"I signed a contract and everything is a big secret," said Milo Rains, who said he traded his home at 760 Giboney Ave. for another house. He would not reveal the buyer, the location of his new home or the value of the property he received.

Three other properties along Giboney Avenue owned by his relatives have also been sold or traded, Rains said. During negotiations, he said, he was told the property would either be redeveloped as a casino or as a minor league baseball stadium.

Rains is happy with the deal. "I've been down here all my life and I couldn't get out," he said. "They just said you can't stand in the way of progress."

The city owns numerous parcels in the areas targeted for casino development. Some is parkland, such as Ranney Park or Fort D, while others are properties obtained through condemnation or other means.

The city has provided companies showing interest a list of the properties it owns that would be in the zone where casinos are allowed, Meyer said. It has received no offers, he added.

"Some of them have said, 'Would you be willing to entertain such a thought?' but we would have to see what all is involved," Meyer said. "We haven't had any serious discussions about it."

rkeller@semissourian.com

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Pertinent addresses:

1 Mill St., Cape Girardeau, MO

700 Giboney Ave., Cape Girardeau, MO