(Developer’s rendering of new casino and hotel.)
In a unanimous vote, the Aurora city council gave final approval to a redevelopment agreement that will move Hollywood Casino from its current downtown location to a sprawling new complex to be built on city land directly across Farnsworth Avenue from the Chicago Premier Outlets mall.
During a rowdy session which saw at least two protestors removed from the chamber, the council approved the plan which calls for the city to raise $50 million in general obligation bonds for development of the new site. The bonds will be repaid from property taxes paid by the casino. Any shortfall of taxes relative to bond payments will be covered by the developers, Penn Entertainment, a publicly-traded company.
The total cost of the development is projected at $358.4 million (including the city-provided $50 million), which includes the casino, a hotel, restaurants and a parking garage.
Since being announced, opposition to the plan has centered less around the change in venue for the casino than the the city funding required, although ultimately repayment of the bonds falls to the developer via either property taxes or direct repayment. The city currently owns the land to be developed, and thus receives no property taxes currently.
Construction is projected to begin in January and is expected to take approximately 24 months to complete.
