Paying for slot machines at the Prairie Meadows racetrack in
Altoona would be cheaper if notes are issued by Polk County rather
than a nonprofit entity that holdthe
gambling license for the machines
according to a report by an
investment banking firm.
If Polk Country sells $15 milli of
tax-exempt notes to finance
installation of the slot machinesissuance
costs would total about $545,000, according to the report drafted b
Dougherty, Dawkins, Strand & Bigew
Inc.
But issuance costs would rise t
$4.2 million if the Racing
Association of Central Iowa, thelder of
the gambling license, issues the
notes, the report said.
Larry Millang, chief financial
officer for the county, said thatssuance
and interest rate costs would be
higher for the association becausit
would be required to issue taxabl
notes.
But the need to issue notes cou
be eliminated if the county decid
to lease the machines, Millang sa.
The slot machines, which are
expected to generate about $22 miion of
annual revenues, are expected to
installed by January 1995, he sai
Dougherty Dawkins was one of
several firms asked by the countyo
study how to finance the installaon
of the machines. Other reports ar
expected to be submitted to the
county soon, Millang said.
In May, Polk County residents
voted to allow slot machines at t
Prairie Meadows racetrack, giving the county another source of revee
to pay off $38.8 million of gener
obligation bonds that refinanced
revenue bonds sold in 1984 to bui the
track. The racetrack experienced
financial problems that led to it
bankruptcy in 1991.