Hollywood casino aurora

Aurora took a step into its future this week.

The groundbreaking for the $360 million Hollywood Casino-Aurora resort was the first step toward what local and state officials, as well as casino representatives, believe will be a prosperous public-private partnership.

“We are here today because we decided to bet on ourselves,” said Aurora Mayor Richard Irvin. “Others are believing in Aurora because we believed in ourselves.”

The event Wednesday at the site along Farnsworth Avenue and Bilter Road, across the street from Chicago Premium Outlets mall and near the Interstate 88 interchange, was as much a celebration of the years of work and cooperation that began as far back as 2019.

While Wednesday marked the unofficial start of the resort’s construction, the first steps took place some four years ago, when city officials convinced officials from Penn Entertainment Inc., Hollywood Casino’s parent company, to look at expanding in Aurora.

Local officials feared Penn Entertainment might pull out of Illinois altogether as its revenues at its casinos in both downtown Aurora and Joliet dwindled. At its high point, the Aurora casino contributed about $15 million a year in gaming taxes to the city; that has dipped to just below $6 million in recent years.

But to convince Penn, Aurora had to convince state officials to change state law to allow casinos in Illinois to abandon their longstanding locations along riverfronts.

That’s where Aurora’s representatives in the General Assembly came in, working to change the state law to allow land-based casinos.

“The collaboration has been amazing,” said Todd George, who oversees operations for Penn Entertainment. “Working through the pandemic and other things. We have four projects going on right now, and I’m as excited about this one as much as any of them.”

The cooperation was evident at the event, attended by a bevy of local officials, including eight Aurora City Council members; a number of city staff members; area legislators such as state Sen. Linda Holmes, D-Aurora, and state Reps. Stephanie Kifowit, D-Oswego, Barbara Hernandez, D-Aurora, and Matt Hanson, D-Batavia; Illinois Gaming Board officials; and a number of local business and labor leaders.

Holmes talked of how supporting the casino’s effort was important at the state level, because it’s “healthy for Illinois’ economy as well as Aurora’s.”

“It’s important to be good corporate neighbors, and since the beginning, Penn has been one of the best corporate neighbors a city can have,” Holmes said.

Through its foundation, Penn Entertainment has helped such groups as the Aurora Veterans Advisory Committee, the Quad County Urban League, the Northern Illinois Food Bank, the Marie Wilkinson Food Pantry, the Holy Angels Food Pantry and Hesed House, officials said.

It also has contributed to numerous organizations indirectly, through grants from the city of Aurora funded by gaming tax money. This past year, the city doled out more than $1 million in Quality of Life grants to organizations supporting youth, seniors, education and other social services.

The casino resort, when finished in an estimated two years, will feature what Greg Moore, Hollywood Casino vice president and general manager, called a “best-in-class facility,” with 1,200 gaming positions, about 220 hotel rooms, a retail sportsbook, an outdoor entertainment area, full-service spa, many bars and restaurants and about a 12,000-square-foot event center with meeting areas. The site will include about 1,700 parking spaces.

The company expects to create 700 construction jobs during the course of the project, and 700 permanent jobs at the new facility, about twice the number of people currently employed at the downtown Aurora casino.

With facilities such as Pheasant Run in St. Charles now gone, the resort is expected to bring in the kinds of events those venues once hosted, such as regional events, seminars and meetings, as well as taking advantage of the about eight million people who visit Chicago Premium Outlets mall during a year.

“This will be a competitive, regional destination,” said George.

The city and Penn Entertainment entered into a development agreement about a year ago for the property, which included donating three properties the city assembled at Farnsworth and Bilter, including two motels it purchased for about $7 million.

The city also turned over options it had to buy adjacent properties – the former Alama Ballroom, Gaslight Manor and a chapel – which the casino has since purchased.

City officials also expect to pass $50 million in general obligation bonds to help front-fund the casino, to be paid back by the increase in property taxes on the casino property. That money would be collected through a tax increment financing district proposed to be established on the property.

The Joint Review Board at a meeting in early November recommended establishing the tax increment financing district to facilitate the casino project.

Some residents st the meeting argued against the creation of the TIF district, saying it is not needed for Penn Entertainment to build the casino.

The City Council has yet to approve the TIF district – it will hold a public hearing for it at the Dec. 12 City Council meeting and vote on establishing the TIF district sometime after that. City Council members also still have to approve the bond issue.

According to the redevelopment agreement, Penn Entertainment will make the bond issue payments if the TIF district fails to generate enough money to do so.

[email protected]