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Q Casino Project Progress ArticleCopyrighted June 20, 2023 City of Dubuque Consent Items # 012. City Council Meeting ITEM TITLE: Q Casino Project Progress Article SUMMARY: City Manager providing a copy of a Dubuque 365ink Magazine article about the Q Casino's project progress. SUGGESTED Suggested Disposition: Receive and File DISPOSITION: ATTACHMENTS: Description Type Bryce Parks Article in 365ink Supporting Documentation COVER STORY 3W BIG CHANGES ARE HAPPENING AT Q CASINO Five whol Underway By Bryce Parks hile the summer is about to seriously heat up outdoors at Q Casino for another amazing MidWe- stOne Back Waters Stage concert series, things are by no means status quo inside the casino. In fact, not since they added the casino to the racetrack has so much change been on the table for the city - owned resort and casino. And while the word "resort" has been in the name for a bit, the changes coming over the next few years will make that moniker one that truly fits the bill. Get ready for a Q Casino like you've never seen before. It's no small feat to reinvent yourself without closing your doors. It's a big mix of imagination, inspiration, investment, and maybe most importantly, buy -in from those who love going to the casino already to keep doing so during the whole process. And while you'll definitely see Phases to a enewQCa sino things happening along the way, the goal is to keep the level of fun, excitement, and service exactly where it is while behind the scenes (and a few temporary walls), they're working at a fevered pace to get it all ready on schedule. It's like seeing a duck gliding gracefully across a pond while underwater they're kicking like crazy to get where they're going. And in this case, along the way, this duck is turning into a swan. To know where you're going, you have to have a vision. And under the leader- ship of CEO Alex Dixon, Q Casino and DRA Staff have a re -invigorated and expanded partnership with the City of Dubuque, the vision for not just the casino, but the entire Schmitt Island is progress- ing simultaneously. As the anchor tenant of Schmidt Island, Q Casino is parallel pathing their $75+ million renovation and expansion plans with the city on enhancements across Schmitt Island. 365ink got to sit down with Stacy Kansky, Chief Commercial Officer for Q Casino and the DRA as well as Brian Rakestraw, their Chief Operating and Financial Officer, to break down the five phases of this project and try to give you an insight on what's coming, when, and what that means for you. "Let's take a step back," invites Stacy Kansky. "It's been over 15 years since we've invested any significant dol- lars into the property. So our goal is to come out with more amenities and an elevated product for our guests, whether they're the locals within the commu- nity or visitors from nearby regions"So when talking about Q Casino specifically, the organization is look- ing at a five -phase approach. "We're in phase one right now, which is creating our temporary casino space," explains Kansky. "Phase two will be reno- vation of our main casino space, which is on the lower level with the Q Showroom. Phase three development will focus on a family center zone, which is right now the upper casino and temporary casino space, and also includes the Sportsbook, Sports Bar, banquet space, and party rooms. "Phase four will be inclusive of a new eight -story hotel with a rooftop restaurant that will have some of the best views in all of Dubuque overlooking the mighty Missis- sippi and the amazing bluffs. And in phase five, we will come back and focus on the exterior, the building facades, landscaping, and surface area parking, all of which is expected to be complete during 2025." Let's break it down a bit more. In phase one, currently, the entire grandstand area overlooking the former Greyhound racetrack is under construction to become a temporary casino space lead- ing to the rest of the upstairs area which currently houses additional gaming. "Until we're ready to start phase two," explains Brian Rakestraw,"Stacy and her team are going to utilize that space for any type of special events or banquets during these summer months. We're looking at starting phase two, which would be the complete redesign and an elevated look of the new casino which will eventually occupy the lower portion of the facil- ity when you enter and turn right plus a renovated Q Showroom in late Q3 or early Q4 of 2023. First, we must go through a lot more design approval processes. We already have financing approvals as well as approvals from the gaming side. We just have steps we must go through." The temporary casino is going to be a very inviting space and, in many ways, a fresh feel as we await yet an even better final product. "We're really inviting people to go on this journey with us," says Kansky. "There's no secret. We're not hiding it. We're excited about it and want every- one to help embrace it and support it:" 22 365INKMAGAZINE MAY25-JUNE7,2023 ISSUE#435 DUBUQUE365.COM COVER STORY TAKE A PEEK AT CONSTRUCTION BEHIND THE WALL She continues, "The vision has been a progress in the making. I think a lot of it is based on demand from within the community and opportunities that we seek to offer both the locals and visi- tors. We've been working collaboratively with not only the city but hearing from the community at large and then bring- ing in some different agency partners to help bring the vision to fruition." "When we started this process," adds Brian, "we hired consultants in our industry who came in and looked at our property, the competition, and the market to see exactly what we were lacking. Then they made recommendations and did feasibil- ity studies that said if we build 'this; 'this' is the expectation of what we can get. So everything we're doing is based on those feasibility models because we had to make sure that it flows properly with a return on investment. Once we received that, we talked with our board and our community, and we started deciding what we're going to build. But there's science behind it." "It's been a real compilation of efforts to get us where we are," agrees Stacy. "It was very strategic, very well thought out, and well planned. We want to do this smart and capitalize on the learnings that we've had over the years. It's a very different time, a very different climate and environment. And right now, we're in a very heavy design mode. It's been a very iterative process. But it's look- ing amazing, and we're super excited to be able to deliver a better product and a greater guest experience for anyone that comes to the property." Don't look for the main casino space to close too soon. Both levels of gaming will remain open throughout the entire summer as they host the massive Back Waters Stage Summer concert series. In the fall, they will move all the gaming from the lower casino floor to the newly renovated space upstairs, remove the temporary wall next to the Sports Bar and upper gaming floor, and that will become the focus of gaming action for 6 to 8 months while the lower casino floor is completely renovated for the future. "When we say we are renovating the casino," emphasizes Kansky, "I mean from top to bottom, it is going to be touched. You'll have a brand-new cen- ter bar that's relocated from where it is now so right when you walk in, it's going to have that wow factor. Every- thing was designed very strategically with a certain flow to create the vibe and energy we want for the property." "All gaming is going to go into that one big space," explains Rakestraw. "We are going to slightly reduce the num- ber of slot machines we have, and we're going to try to provide the most popular games that our consumers want. The Showroom will get a facelift, but it will remain in the same location, and it will still be an intimate venue. We are looking at updating key elements in that space: the bars, the flooring, the walls. We'll try to make it a little more soundproof, but overall, it will be an elevated experience." Entertainment in the showroom will continue through the summer, but once renovation on the lower gam- ing floor begins, the casino won't have any live shows for a period of time. "That's probably the only downside," acknowledges Rakestraw. "But it's worth it as we build something for the future" It's exciting, but it's also a lot of detail. Sometimes talking about restroom ameni- ties and what type of paper towels you're going to have and where the dividers are going can be mundane. But it's so important for the total experience. "I think it's those little details and touches that really make the difference," says Kansky. "And people do notice that so we're really trying to do every- thing with the consumer lens in mind:' Look at how much the gaming industry changed following COVID, from enter- tainment to the end of buffets. There always has to be an eye on evolution. "The team is thinking ahead... even if something can't happen in its current five phases, let's set ourselves up for future phases" says Kansky." We don't know what we don't know. But there are some things that we can antici- pate that we're trying to plan for." Once that new, permanent gaming space is completed, they will then move not just the gaming from the tempo- rary gaming space upstairs but also all of the gaming that was always up there to its new home on the lower level. At this point, phase three begins, and the upper space undergoes renovation to become the Family Entertainment Center area. Sportsbook and Q Sports Bar are going to be moving to where the Farm- house Restaurant currently is on the other side of the room. A big reason for this is that it puts it all closer to the main kitchen. We assume this means the already -tasty Sports Bar menu can then evolve with more diverse offerings and easier -to - provide service to the customer from the convenient location. Yes, Sportsbook and Q Sports Bar will still be incredible places to watch games and dine while wager- ing on your favorite teams and more. In the recently renovated grandstand area, permanent ban- quet spaces will be created. A big part of this whole phase three effort is about welcoming families and young adults inside Q Casino. Until now, this has not been possible. "That's what we're really excited about," shares Stacy. "The current DUBUOUE365.COM ISSUE#435 MAY25-JUNE7.2023 365INKMAGAZINE 23 COVER STORY 3W structure can't cater very well to those under 21 which eliminates a lot of our audience and opportunities. In the future, when you enter through the main casino entrance, you'll have the option to go right, which will be over 21 gaming. Or if you go left, you'll enter the all ages area inclusive of the high -end arcades and games, Sportsbook and Sports Bar, banquet space and party rooms:' Brian adds, "There will be arcade games that cater to adults and kids. We'll have duckpin bowling and hatchet throw- ing. The whole upper space will become non -gaming but completely open to all ages. That part will be non-smoking too because it won't be part of gam- ing. As we talk about family entertain- ment, I think it's important to realize that we are designing and theming this for young adults as well as older adults, but welcome kids as well. Young adults can come in to have a cold beer and play the games because as our society evolves, some of the younger guests don't play the slot machines, but they do like playing some of those video game options." If you're going to approach the entire Schmitt Island re -visioning with a goal of bringing families down, you don't want to be the one amenity on the island that they can't take part in it. Phase three addresses that and more for Q Casino. Phase four brings another new hotel to be built between the existing casino and the Hilton Garden Inn. Q Casino already owns the Hilton as well as Houlihan's Restaurant. You might think this hotel won't fit in between those buildings, but as you look at the extension of the casino towards the Hilton Garden Inn, a stretch of that is simply an enclosed hallway to connect the two venues. When you take that out, suddenly you have plenty of room for an entire venue to go into that space. "it will be a seamless elevation, so when you come from Hilton Garden Inn, you go into the new hotel tower, and then that will connect straight to the family entertainment center," explains Rakestraw. "There'll be a separate drop off also for each hotel. And then we will have, in my mind, the best restaurant with the perfect ambiance in town. We flew a drone up during the day and at night. The views of downtown with the city lights are going to be unbelievable." The hotel will be seven stories of guest rooms with the eighth floor being the rooftop restaurant. Stacy adds, "Again, we're design- ing everything very strategi- cally with opportunities for private parties, and two terraces so that we can cater to different user groups." Finally, phase five ties it all together and puts a bow on it, so to speak. In the decades of existence, the once "dog track" then became a track and casino. Then a hotel and restaurant were added. A branding change brought new colors. And through it all, traf- fic and parking had to evolve to serve these new facilities as best they could. "Right now our parking, because of the Island and settling is kind of like a roller coaster," admits Brian. "We want to level it off, redo the parking lot and walk paths for people to get into our property safely and efficiently. Then it's just the exterior updates to pull it all together with consistency. The goal is that once we build another hotel in there, then we will redo the facade so it looks like one big resort rather than having piecemealed it together." Stacy concurs, "The idea is when you're standing in the parking lot look- ing out, it's a more cohesive com- plex with that wow moment created upon arrival of the new hotel:' You'll note that I didn't talk about the new outdoor amphitheater in any of those five phases. That is because, techni- cally, that is a city project. But you bet your rock and roll that it's happening. While the City of Dubuque is leading the way on the amphitheater, Brian notes that the DRA is stepping up to support that effort, consulting and preparing the space for the project. The expectation is that the casino will then operate the amphitheater once it is finished, and that will become the new home of the casino's massive, annual Back Waters Stage concert series. Look for that stage to be located more in the back area where the racetrack is now. The concerts will be coming out of the parking lot. "When Alex Dixon and Stacy joined Q Casino and I gave them the tour," explains Rakestraw. "I've always thought, and they agreed that when they built this racetrack, the most beautiful views of the river are where the kennels were placed. To have the amphitheater back here, located where it's adjacent to the back parking lot for easy parking, but also to have these beautiful views, is optimal. And we have connectivity from our resort right to the amphitheater." That project does not correlate to the casino's phases. The city council just adopted the first phase of going out and doing the RFP for the project, and they have a timeline associated with it where the amphitheater would be completed in May of 2026. But the concerts could potentially move to this new grass -covered home before then. "I think it depends because part of this project is that we will go out there first, as our support is in -kind, and we'll spend the money to demolish the ken- nels and level it out early on. If there's the capability that we can host the concerts on the grass out back, we may try it with temporary staging like in the parking lot. The goal is to keep moving forward and set a high standard for entertainment." The City and DRA officials previ- ously announced plans for enhancement projects on the island. Several projects are beginning to move forward from the plans developed. A $3 million State of Iowa Destination Iowa grant is a part of a $15.44 million project that includes an outdoor amphitheater, site amenities, and festival grounds being built where the greyhound racing track currently stand. The project's vision is to create the island as a gateway to entertainment and the Mississippi River. A second project in the works is a trail connection from the 16'h Street bridge on the island to the Veter- ans Memorial Plaza creating a continuous trail connection across Kerper to Dyers- ville. This trail connection is targeted for completion by Veterans Day 2023. The Dubuque Ice Arena is undergoing $6 mil- lion in repairs and improvements including settlement remediation completed last fall with additional projects in the arena happening through 2023. The non-profit Schmitt Island Development Corporation now manages the Ice Arena and looks to expand on management of Chaplain Schmitt Island amenities into the future. A RAISE grant was received by the City of Dubuque. This planning and design grant focuses on the 1411 Street railroad overpass bridge, 16'hStreet, Elm Steet and Kerper Boulevard corridors. This will enhance access to the entire Island across the Peosta Channel bridge for vehicle, pedestrian, and bike access. The DRA partnered with in this grant by donat- ing a $750,000 match to the grant. "I think the Schmitt Island enhance- ments are a much longer -term plan that'll come in phases as we identify different projects that we can undertake, says Kansky. "It's all about connectiv- ity across the island, improving access to the water, and enjoying Dubuque's unique attributes all year round. One-third of DRA funds raised annu- ally are now directed to Schmitt Island development projects. For example, it's helping the City of Dubuque fund the new amphitheater. "Which is why keeping the casino open (through the renovation), keep- ing the volume of traffic and the money spent is so important, continues Kan - sky. "The better we do, the more we can give back to the community." ■ 24 3651NK MAGAZINE MAY 25-JUNE 7, 2023 ISSUE #435 DUBUOUE365.GOM