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.

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