The Gary City Council and Spectacle Entertainment LLC have finalized a local development agreement that dictates the city’s financial take from casino gaming operations and economic development benefits.
Spectacle officials hope to open a land-based $300 million Hard Rock Casino off Burr Street, south of Interstate 80-94 by the end of 2020.
The city council unanimously ratified the pact during Tuesday’s meeting with little discussion.
“There wasn’t much in it for us, but it checks off another box,” said John Keeler, Spectacle vice president and general counsel.
The pact calls for the city to receive 3% percent of the casino’s adjusted gross receipts, not to fall below a minimum of $6.15 million annually. The city will also receive 3% of the proceeds from sports betting, done via a mobile betting site.
Because of Gary’s financial crisis, Spectacle agreed to provide $5 million in advance money. The timing of the payment is based on the company’s agreement with its lenders. In exchange, Spectacle will receive a monthly credit of not less than $83,333 from the city.
Keeler said Wednesday Spectacle should have its financing wrapped up in the next two or three weeks. The Indiana Gaming Commission will have to approve the financing and the contract with a mobile sports betting firm.
Keeler said he’s still reluctant to offer a groundbreaking date. “We hope to do it this year. We’re working on bids for fencing and preliminary site work and continue to do environmental studies.”
He hoped by mid-November grading at the 30-acre site along 29th Avenue would begin.
“There’s still a sense of urgency,” Keeler said.
In August, Spectacle CEO Rod Radcliff said it planned a speedy timeline after the Illinois legislature approved five casinos for Chicago.
Bids for casinos in Chicago’s south suburbs have recently been received for Lynwood, Homewood-East Hazelcrest and Matteson. A Homewood-East Hazelcrest casino would be less than 15 miles from the Gary casino development.
Meanwhile, Spectacle continues to operate two Majestic Star gaming boats in Buffington Harbor.
Carole Carlson is a freelance reporter for the Post-Tribune.
![Gary Fire Department Deputy Chief Mark Terry recalled responding to the call July 29 of an 18-year-old Illinois teen drowning at Miller Beach. Rayan Mohammed, 18, of Bartlett, Illinois, died after swimming out in Miller Beach near Lakeshore Drive and Sullivan Street, where high north winds created dangerous rip currents. When the call came in, at around 2:40 p.m., Terry said he was at a search and rescue class in Valparaiso. He recalled arriving at Miller Beach at about the same time the dive units arrived, which was about 45 minutes after the call came in. Terry said crews operate […]](https://www.chicagotribune.com/wp-content/uploads/2024/05/PTB-L-GARY-SUMMER-PREP-0510-10.jpg?w=525 "Gary Fire Department Deputy Chief Mark Terry recalled responding to the call July 29 of an 18-year-old Illinois teen drowning at Miller Beach. Rayan Mohammed, 18, of Bartlett, Illinois, died after swimming out in Miller Beach near Lakeshore Drive and Sullivan Street, where high north winds created dangerous rip currents. When the call came in, at around 2:40 p.m., Terry said he was at a search and rescue class in Valparaiso. He recalled arriving at Miller Beach at about the same time the dive units arrived, which was about 45 minutes after the call came in. Terry said crews operate […]")
