HomeMy WebLinkAbout22-232 Resolution No.22-232
RESOLUTION
AUTHORIZING CERTAIN RENT MODIFICATIONS TO THE LEASE WITH ELGIN
RIVERBOAT RESORT-RIVERBOAT CASINO FOR THE GRAND VICTORIA CASINO
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that it
hereby approves of the certain rent modifications providing for the waiver of the CPI-U increases for
FY2020 and FY2021 for the lease with Elgin Riverboat-Riverboat Casino for the Grand Victoria
Casino as set forth and summarized in the attached memorandum of December 15,2022,from City
Manager Richard G. Kozal, a copy of which is attached hereto and made a part of by reference.
s/David J. Kaptain
David J. Kaptain, Mayor
Presented: December 21, 2022
Adopted: December 21, 2022
Vote: Yeas: 9 Nays: 0
Attest:
s/Kimberly Dewis
Kimberly Dewis, City Clerk
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ELGIN
THE CITY IN THE SUBURBS- MEMORANDUM
To: Mayor and City Council Members
From: Richard G. Kozal, City Manager
Date: 21 December 2022
Re: Grand Victoria Casino Ground Lease
The city's ground lease with Caesars Entertainment, Inc. (Caesars) for the Grand Victoria Casi-
no (GVC) pavilion contemplates an annual inflationary adjustment each April that is derived
from the change in the CPI-U at the end of the previous calendar year.
When GVC's operations were closed due to the coronavirus pandemic, the city did not seek a
CPI-U increase in April 2020 or April 2021. Caesars' lease payment would have increased by
$23,459 to $1,093,644 annually in 2020. In 2022, the lease payment would have increased by
$13,979 to $1,107,623 annually. This proposal will bring Caesars' quarterly payments into
compliance with the ground lease.
The city council's waiver of the CPI-U increases for 2020 and 2021, for a total annual lease
payment waiver of $60,897, is being recommended in acknowledgment of the Grand Victoria
Casino's operations closure under Governor Pritzker's emergency orders during the coron-
avirus pandemic.
To memorialize the understanding between the city and Caesars, effective 1 April 2022, the an-
nual lease payment for Caesars is $1,186,228, resulting in quarterly payments of $296,557.
Caesars has been making quarterly payments that reflect the annual lease payment effective in
April 2019. Caesars owes the city $87,033 for the quarters reflected below. The quarterly pay-
ment due on 1 January 2023 will be$296,557.
Retroactive
Due Paid Adjustment
4/1/2022 $296,557 $267,546 $29,011
7/1/2022 296,557 267,546 29,011
10/1/2022 296,557 267,546 29,011
1/1/2023 296,557
1,186,228 87,033
The city and Caesars remain committed to collaborating on initiatives benefiting GVC and the
Elgin community.
RGK