But long before that first race, former Iowa Cubs owner Ken Grandquist, the track's original developer, had difficulty lining up financing amid questions about whether it could make a profit.
The result: Polk County taxpayers became investors in a gambling operation, and the county became the racetrack's landlord. A citizens committee voted to support the financing plan.
But not enough fans showed up after the track's inaugural races, and betting was far under consultants' projections. Prairie Meadows filed for Chapter 11 bankruptcy Nov. In an effort to bail out the track, the Iowa Legislature approved a bill in to permit Prairie Meadows to become the first horse track in the nation to install slot machines, which were also allowed at struggling greyhound tracks in Council Bluffs and Dubuque.
Gamblers swarmed to Prairie Meadows to play the slots. But Prairie Meadows found itself engulfed in a new controversy in when the Iowa Racing and Gaming Commission threatened to revoke its state gambling license. State regulators were concerned that the landlord, Polk County, was actually operating Prairie Meadows instead of the licensee, the Racing Association of Central Iowa.
A settlement was finally reached after a two-day proceeding that resulted in a new agreement between Polk County and the racing association. Prairie Meadows became a full-fledged casino in December , when Iowa's racetracks were allowed to install table games, such as blackjack, craps and roulette. The expansion of racetrack gambling followed a lawsuit filed in challenging much higher state gambling tax rates imposed on racetrack casinos in comparison with tax rates for riverboat casinos.
The court battle reached the U. The team of Bishop, Skinner, Rasmussen, and Palmer collaborated with Polk County leaders and worked to get a bill passed in the Iowa legislature that would allow Prairie Meadows to incorporate slot machine gaming. After much hard work, the bill was approved by a single vote.
It was signed into law by Governor Terry Branstad in In May of that same year, Polk County voters also approved the referendum of adding slot machines by a 62 to 38 percent margin. With approval from the state and county, it was now time to decide how to manage Prairie Meadows.
He envisioned Prairie Meadows running as a public nonprofit, dedicated to lessening the burden of government by raising funds for charitable organizations and community improvement projects. It was quickly decided that Prairie Meadows would be managed locally and overseen by a board of directors.
Rhines had been with the company since December , according to his LinkedIn profile, and has spent more than 20 years in the hospitality and casino industry. Representatives from the Brick and Gentry law firm told the Register that they would not be providing any additional information on "ongoing confidential personnel matters.
Melody Mercado covers the eastern Des Moines metro for the Register. Reach her at mmercado registermedia. Facebook Twitter Email.
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