LADY LUCK DEVELOPER STANDS BY PROJECT

The developer of the Lady Luck Gaming Corp. riverboat casino proposal for Cape Girardeau said Thursday concerns about the feasibility of the project are unwarranted.

"We've done our homework, we know what things cost for this type of project, and we stand by our numbers," said the developer, Daniel K. Bockert, senior vice president and manager of development and planning for Booker and Associates.

The $58 million Lady Luck proposal calls for a riverboat casino, hotel, golf course, miniature golf course, batting cages, museum, marina and a downtown market and festival site. The 100-acre development would be built along the riverfront from St. Vincent's Seminary south to Locust Street.

Earlier this week, Robert Boughner, chief operating officer for Boyd Gaming Corp., said he didn't think the project could be done for $58 million.

The Boyd Group is competing with Lady Luck for the city's recommendation for a gambling license. Boyd's $51 million proposal includes a riverboat, restaurant, and parking and office facilities at the intersection of Broadway and Main.

Boughner made his remarks at a news conference where four downtown business groups announced their endorsement of the Boyd proposal.

Prior to the announcement, many of the 200 or so merchants expressed doubts about the feasibility of building the Lady Luck facilities along the unprotected riverfront south of the city's floodwall. But Bockert said his company has experience with similar developments along riverfronts elsewhere.

"If Lady Luck didn't think this project in Cape Girardeau was doable, obviously they wouldn't have proposed it," he said. "Booker and Associates did a plan for the city of Alton for the Alton Belle casino, and we're about to embark on the third phase of that plan -- to build a $2 million marina."

Bockert said his company worked closely with the St. Louis District of the Corps of Engineers to develop the $25 million Alton project. That's the same regulatory body Lady Luck will deal with in Cape Girardeau.

"We have done our homework with the Corps," Bockert said. "We've met with them and are working with them on this project."

He said that before the project ultimately can be approved for development, Lady Luck will have to apply for a Corps 404 permit.

"During that process, the site will be reviewed by the Corps and others such as the Coast Guard," Bockert said. "The city will be assured that, once the Corps has reviewed the 404 permit, that the applicant will have complied with all the federal regulations from an environmental standpoint and, more importantly, a safety standpoint."

Bockert conceded that the development site in a flood plain presents challenges. But, he said, "We're confident we have the experience and expertise to address those challenges."

That permit process hinges on the city council members' decision on which of the two proposals gets their nod of approval, Bockert said.

Still, as with any city-contracted project, Lady Luck must provide guarantees that they'll do the work by an established deadline.

City Manager J. Ronald Fischer said such legal instruments as performance bonds and escrow accounts can be used to guarantee the project.

"The kind of instrument we use will have to be worked out with either of the groups," Fischer said. "Once we select a company, we're going to negotiate an agreement with them that will establish deadlines from the permit application right through to the boat's operation and land development."

Fischer said Booker and Associates is a quality company and he doesn't doubt Lady Luck's proposal could be built as proposed.

"As long as they go in there and raise it out of flood or flood-proof the structures, there are ways of doing it," he said. "Is it practical? That I can't answer. I do know Booker is a reputable engineering company."

The key for the city, Fischer said, will be to ensure that either gaming company has the financial strength and integrity to build what they've proposed.

Bockert agreed.

"Lady Luck is a reputable company," he said. "They're the company whose track record will be looked at, and they run a pretty good organization.

"The focus should be on whether they are going to deliver on what they say they're going to do," he said. I think they're committed to seeing this through."

The scope of Lady Luck's project also has been scoffed at by skeptics. Earlier this week Boughner said Boyd Group analysts didn't think Cape Girardeau would support a riverboat resort that included a golf course and hotel.

But Bockert said those additional items added to Lady Luck's proposal fit well with the company's plans for a "family-oriented" facility.

"Lady Luck's contention is that they're looking at this as a destination point," he said. "They plan on creating their own market here.

"I hate to be corny and say, `If you build it, they will come,' but I think that's they're idea."

Bockert said the amount of land-based development in Lady Luck's proposal only bolsters the company's claims that they want to operate in Cape Girardeau for a long time.

"A very serious concern to communities along the river has been what happens if there's not a major investment," he said. "If things go a little sour, what's to keep them from untying the rope and floating away?

"I think if they invest that much money in land-based development, Lady Luck's going to think long and hard before they abandon that project."