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From Junk to Gambling

February 18, 1997
By: R. Scott Macintosh
State Capital Bureau

JEFFERSON CITY - Gene Beach had the opportunity Tuesday to explain to the Senate Local Government and Economic Development Committee why his Boonville salvage yard should not be consumed by a riverboat casino.

Beach spoke as the primary supporter of a bill sponsored by Sen. Ken Jacob, D-Columbia, which would prohibit government seizure of private property for riverboat gambling.

Davis Gaming has targeted Boonville as a future location for a possible riverboat casino. To get the land it needs, the eminent domain powers of a local governmental body have been used to condemn land for development. Some 45 property owners and six businesses have been approached by the company which is trying to build on their land.

"I just don't feel that a private company can come in and take my business away from me and put in another private business to make money," said Beach. "I don't have the right to go out and do the same thing."

Jacob's bill is designed to support the property rights of people like Beach. Jacob contends that the casinos are straining the power of eminent domain because they are a private company under the guise of a public entity.

"It's private dollars used against the citizens for a private purpose," said Jacob. "I can't think of a worse public policy than allowing a private person to take another citizens property for a non-public purpose."

Davis Gaming has gained the power over eminent domain by working with the City of Booneville to create a redevelopment authority called Davis Gaming Booneville Inc.

The authority's board, all of whose members are affiliated with the casino, has the power to negotiate with the citizens who own the land.

If a landowner is unwilling to sell, however, the power of eminent domain allows the board to condemn the land.

"They really haven't tried to negotiate fairly with me," said Beach. "They offered me less money than what I paid for the property."

Boonville City Administrator, Steve Goehl, has said that Davis Gaming has offered to relocate Beach's business or to purchase it. Goehl claims that 43 of the 45 property owners have agreed to Davis' offers. Only options are being taken now by the redevelopment authority, no purchases have been made.

Casinos are attractive to riverfront towns for the redevelopment potential they offer. As in the case of Boonville, Davis Gaming has offered to rebuild the riverside area to include a park area, facilities and an amphitheater.

"This (eminent domain) is a good economic tool available by statute," said Goehl. "It's been established to redevelop blighted areas. It is an effective economic development tool. And it attracts investors and creates jobs for the city."

Although Boonville is the only city where eminent domain is currently being employed by casinos, it has been proposed for the Laclede Landing casino in St. Louis.