Isle officials provided the commission with a brief update of the situation, however, no additional details regarding the purchase agreement nor a timeline were discussed at the meeting. Representatives also declined to reveal a purchase price and said MSEG and Isle of Capri have been negotiating under a confidentiality agreement. Isle of Capri also told the Gaming Commission they have complied with every request and suggestion submitted by Davenport authorities and added that at this point, they are simply waiting to hear from MSEG.
“Those negotiations are ongoing. We are cooperating with MSEG and all the material that they’ve asked for. We will continue to do that.” said Isle of Capri’s representative, Michael Fries.
Isle of Capri, which also owns and operates properties in Biloxi, Lake Charles, Vicksburg, Kansas City & Bettendorf, and casino developer MSEG entered into an exclusive 60-day period to do due diligence and negotiate toward a purchase agreement of the Davenport riverboat. The exclusivity agreement to negotiate with MSEG ran out on August 2nd.
In November, 2010, the Davenport City Council, which wants to move the Rhythm City Casino off the riverfront, approved a development agreement with MSEG that requires a $75 million investment. The project includes a bigger, land-based casino featuring a 4,300-seat indoor arena, a 30,000-square-foot casino, as well as an hotel tower with at least 75 rooms and other improvements.