In a strategic move that has heightened local rivalry, Peoria city officials are aggressively lobbying for Boyd Gaming to relocate its Par-A-Dice Hotel Casino from East Peoria to a new land-based facility within their jurisdiction. This initiative is part of a broader effort to draw significant economic activity and tourism to the Illinois city.

The proposal, which came to light following a Freedom of Information Act request filed with the city of Peoria, has not gone unnoticed by East Peoria officials, according to 25 News Now. The revelation of these negotiations has notably irked East Peoria Mayor John Kahl, who expressed his displeasure in a correspondence with Peoria Mayor Rita Ali. In his message dated July 22, Kahl voiced disappointment over Peoria’s actions to entice the casino to relocate, marking a clear strain in inter-city relations.

Historical Context and Contractual Agreements

The roots of this casino controversy date back to 1991 when Peoria and East Peoria reached an accord concerning gambling operations. Initially, Peoria hosted riverboat gambling as a temporary measure, paving the way for a permanent facility in East Peoria. Crucially, the agreement stipulated a shared arrangement concerning gambling tax revenue, while designating all land-based casino operations to Peoria. This historical pact has now become a focal point of the current dispute.

In 2019, Illinois’ legislative adjustments facilitated the establishment of land-based casinos, reinforcing the provisions of the 1991 agreement through new state laws. These developments have emboldened Peoria officials, who in recent meetings with Boyd Gaming, emphasized the profitability and tourist draw of a land-based casino in Peoria over the existing riverboat model in East Peoria.

Peoria’s Proposal and East Peoria’s Response

According to sources, during a March 2020 meeting, Peoria representatives presented Boyd Gaming with various incentives for relocation, highlighting the potential for greater financial success. Subsequent to this meeting, Peoria outlined specific economic incentives in a July 9 letter, proposing tax increment financing among other financial benefits to facilitate the casino’s move.

Despite these overtures, Boyd Gaming has remained non-committal, leaving the proposal under consideration without a definitive response. Meanwhile, East Peoria‘s Mayor Kahl has openly criticized Peoria’s approach, fearing potential economic and communal impacts on his city. He argues that Peoria’s aggressive recruitment of the casino disregards the spirit of cooperation that has long existed between the two cities.

The Path Forward

As tensions simmer between the neighboring cities, the future of the Par-A-Dice casino hangs in balance. Peoria officials remain hopeful, citing the 1991 agreement as a foundational document that supports their case. They believe a land-based operation in Peoria not only aligns with historical agreements but also promises substantial economic benefits for the city and its residents.

The situation remains fluid, with both cities vying for what they see as a fair resolution that respects past agreements while adapting to the evolving economic landscape. As discussions continue, the outcome of this inter-city casino saga will likely have lasting implications for the regional economy and the dynamics of municipal cooperation in central Illinois.