Gaming dollars rolling into CCDA coffers

Mar. 22—CLINTON — Flush with cash from an uptick in gaming revenue and fewer large-project grant requests, the Clinton County Development Association now has a decision to make — whether to spend down cash by giving more grant dollars during its upcoming distribution cycles or continue to hold back money it expects will be requested for large, but not-yet-announced, economic development projects.

CCDA President Les Shields told the board Wednesday that the Iowa Racing and Gaming Commission is recommending the CCDA spend down some of its cash this year, a recommendation that comes at a time in which the CCDA is preparing to score and distribute grant awards through its Spring 2022 grant cycle.

"The IRGC expresses a desire for us to spend more cash," Shields told the board. "Part of it was because the casino performed over expectations once they opened up again after the pandemic."

He said a discussion he had with the Wild Rose Casino and Resort comptroller early last week shows gaming revenues are not slowing.

"They are having a bang-up, banner month right now even," he said. "One of the best months since 2013, apparently."

The board currently is at the start of its 2022 Spring grant round in which it gives out grant awards for economic, civic or community projects within Clinton County. Applicants may apply for no more than $75,000 and must show a 25% match.

Thirty-four applications totaling at least $1.5 million have been received, the CCDA board was told. The deadline to submit a grant application was March 9 and applications were expected to be sent to the Screening Committee late last week. A pool of $575,000 is available for this distribution cycle. The grants are to be awarded in June.

But with the surplus of money and the IRGC's recommendation, CCDA Board member Peg Wolf wondered what the board's next steps should be to spend down cash.

"With this surplus of money that we have, I'm wondering if we should at some point, if we should consider parameters for these grant cycles that we will give out no less than such a percent and no more than such a percent of that asked for," she said. "Because you don't want to swamp the fall cycle and give out 100 percent of everything asked."

Shields understood her suggestion but said he didn't want to lock the Allocation Committee into a formula as it considers awards.

"I personally like their ability to be able to move and respond to the total package of grant applications that we receive and the range of projects and the scoring that we all give them, to have the fluidity to adjust however they see fit," he said.

"We have to maintain some flexibility," CCDA Board member David Sivright said. "In a couple years we may have internet gaming and we don't know how that will affect the brick-and-mortar facilities."

"It might go up and it might go down," Wolf said.

"We don't know; that's an unknown." Sivright said.

Wolf asked whether the time is right to allocate more than $575,000 for the spring grant cycle.

"We could amend our budget. That's a decision of the board," Shields said.

Board members agreed that if they decide to increase awards, they have to bring up the pool amounts for both the spring and fall awards to keep it fair.

"And remember the conversation we've had of these other projects that are potential, very front-burner potential," Shields said.

Over the past few months, the CCDA board has been told that a large economic development project is interested in Clinton, with the formal announcement from the Iowa Economic Development Authority first expected to be made last fall. That announcement was pushed to February and then March.

"We have the ability to be very nimble here, and move and move quickly and make things happen," Shields said. "And I 'd like to see us do that for whatever project is going to be the biggest and move this area forward in a huge way."

"We are in an enviable financial position, We can move rapidly for whatever the board decides is the project they really want to get behind," Shields said.

"First we have to know what the project is," CCDA Board member Jerome Burken said.

Clinton City At-Large Councilman Gregg Obren, a CCDA ex officio board member, said he had heard the state was going to announce the project March 18, but that the announcement was moved back again into April.

Obren said the Iowa Economic Development Authority has requirements it has to finalize so that the project can be announced publicly.

"The city of Clinton is ready, the county is ready," he said. "But it is the state that is muddying up the water a little bit because they are not signing. They are requesting more information back and forth and they have rules that they have to go by. Everybody is antsy."

Until then, the CCDA's hands are tied as far as committing a grant to the project.

"That's not our place to throw money at something when the people haven't asked for it," Shields said.

As for the Spring and Fall grant cycle pool amounts, the Finance Committee will be discussing the issue and a recommendation could be back by next month, Shields said.