LADY LUCK FILES PAPERS FOR LICENSE

SCOTT CITY -- Lady Luck took a giant step toward a Scott City riverboat casino, hotel and entertainment center Thursday.

The Las Vegas-based gambling corporation filed its application to locate its $65.3 million family-oriented development in the Diversion Channel, which empties into the Mississippi River.

"We turned in a pickup truck load of paperwork," said Michael Hlavsa, chief financial officer of Lady Luck Gaming Corp.

"This is a big step for Lady Luck in the Scott City and Southeast Missouri area," Hlavsa said. "Now, we'll go forward with our efforts for a U.S. Army Corps of Engineers permit."

Hlavsa said the company was confident it would receive the Corps permit.

There is a question as to whether a gambling boat can operate in the Diversion Channel, but the Missouri Gaming Commission will decide that matter. The description of a gaming boat dock, according to the gaming commission, defines waters eligible for a riverboat casino as waters in the beds and banks of the Mississippi or Missouri rivers, including the place where river waters are spilled.

"We feel that Diversion Channel fits that description," said Hlavsa, who added that Thursday's filing puts Lady Luck a notch ahead of other gambling casino competition in the area.

The gaming commission has already selected companies to be investigated over the next year, but "this puts us in the hopper," he said.

Boyd Gaming Corp., also headquartered in Las Vegas, which has been selected by the City of Cape Girardeau for a riverboat casino operation, recently announced a year's delay in its decision to apply for a Cape Girardeau permit.

"We are looking forward to our project in Scott City," Hlavsa said. "We'll be great for Scott City and the Cape Girardeau area. We want to move forward."

Hlavsa said Lady Luck had to file four volumes of paperwork with the gaming commission.

"Each volume measured from six to eight inches thick," he said. "But, we had to file six copies of each volumes."

That translates into 12 to 16 feet of paperwork.

Lady Luck has proposed a three-phase development contract, which has already been approved by Scott City. The proposals include a gambling boat, hotel, entertainment center, an outlet mall, an 18-hole golf course, athletic complex with tennis courts, community center and library.

The on-site parking facility would park more than 2,700 vehicles.

The company has projected it can have the gambling boat and parking areas off Nash Road near Interstate 55 completed within six months of the gaming commission's awarding a license, with the entire project to be completed within 2 1/2 to three years.

"We are thrilled that Lady Luck has formally made its Scott City gaming application," said Mayor Larry Forhan in a prepared release Thursday. "And, we're very proud that they are the first casino company to do so in the greater Cape Girardeau area."

The Scott City council has adopted a formal resolution of support for Lady Luck Scott City Inc. The development agreement has also been executed.

Lady Luck projections for the first year of operations are for about $3 million for Scott City.

That will be based on visitors to the riverboat casino and a percentage of the winnings on the boat.

Broken down in first-year expectations, $1.6 million is expected from admissions to the boat, based on $1 a visitor. Another $1.1 million revenue is expected from the 2 percent of gambling revenues. With $301,000 in property tax increases, about $128,000 in additional sales taxes based on new business and $69,000 in additional local taxes, it all adds up to about $3 million the first year.

Lady Luck earlier named three possible sites for its operation, including its preferred site on a parcel east of Rhodes Travel Center on the Diversion Channel, near Nash Road north of Scott City. Other sites are at the end of Route N east of Scott City, and at the head of the Diversion Channel.

Lady Luck has promised more than 1,100 jobs with its casino complex.

AT A GLANCE

The Missouri Gaming Commission will decide whether a gambling boat can operate in the Diversion Channel.

Lady Luck also proposes a hotel, entertainment center, outlet mall, 18-hole golf course, athletic complex with tennis courts, community center and library.

The company projects it can have the boat ready within six months of getting a license and the entire project finished in two to three years.