It was something Elgin city officials had been eagerly awaiting for more than a year: downtown streets alive with activity, filled with lines of cars and clusters of pedestrians.
It happened Thursday night as the Grand Victoria riverboat casino made its maiden voyage on the Fox River.
A mix of local VIPs and the general public converged on the casino’s brightly lit pavilion to board one of a pair of evening cruises, getting first crack to gamble at the state’s largest riverboat casino and the closest one to Chicago.
For the northwest suburb’s civic and business leaders, it was the realization of nearly 14 months of promise and planning that began Aug. 25, 1993, when Elgin was awarded the state’s 10th, and perhaps final, riverboat casino license.
“There’s a spirit of optimism in our community,” said Elgin Mayor George Van De Voorde as he waited for the inaugural 6:30 p.m. cruise. “Something is finally really happening.”
The developers of the $100 million project-Chicago-based Hyatt Development Corp. and Gold Strike Resorts of Nevada-are projecting at least $200 million in revenues each year.
For the city of Elgin, that could result in at least $13 million in annual tax revenues, a hefty sum for a city of 80,000 with a current operating budget of about $35 million.
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But whether the riverboat’s promise translates into reality, and revenue for Elgin-which suffers from aging buildings and streets, vacant storefronts and a 10 percent unemployment rate-remains to be seen.
Even city leaders are guarded: “There’s no quick fix here,” said Van De Voorde. “I think you can overstate the value of this to any community, just as you can overstate the negatives.”
One lingering question in Elgin, as it has been in the two other Chicago-area cities with riverboats, is how much spinoff business the riverboat will create for local businesses.
The experience of other riverboat communities, notably Aurora and Joliet, indicates that most patrons get in their car and go home after a two-hour gambling cruise. In fact, some business owners there say they’ve suffered because they can’t compete with the boat features.
Both cities have received sizable tax receipts from the riverboats-Aurora $8.5 million and Joliet $20 million in fiscal 1994-and have plowed much of that money into capital improvements, such as street repairs and building renovations.
With the sprucing up of the downtowns, some of the vacant stores in those cities have been filled. But business operators still complain that most gamblers don’t stray too far from the dockside.
And some critics of the Elgin project say that there are some strong negatives-that the riverboat could extract some heavy social costs, such as increased traffic, crime and addictive gambling.
Chris Anderson, director of the Illinois Council on Compulsive Gambling, says that judging from the number of calls to his group and Gamblers Anonymous, addictive gambling is on the rise since riverboat casinos began cruising on Illinois waterways.
“We’re averaging 250 calls a month, as compared to 25 before the boats opened,” Anderson said. “We have numerous people coming in who have never had a problem gambling before, but because of the proximity of the boats, they get hooked.”
Riverboat licensees statewide, including the developers of the Elgin project, have committed $5,000 a year each to the council for the treatment of addictive gambling.
As for crime, city officials say they’re not expecting an increase. But just in case, developers have donated money to hire six additional police officers who will patrol neighborhoods near the complex.
But any doomsday predictions for now have been overshadowed by the potential economic benefits to the city. Elgin leaders say they will see a substantial economic impact from the Grand Victoria in terms of jobs, tax revenue and a revitalization of the downtown retail district.
The boat and entertainment pavilion will employ 1,200 to 1,400 people. All but a handful are from Elgin and surrounding communities in the Chicago area, said Peter Simon, a partner at Gold Strike Resorts.
“I think it’s great. I’ve got two young kids to support and a husband who doesn’t have a job,” said Wendy Montavon, 22, of South Elgin. Montavon got a job on the Grand Victoria servicing slot machines for $8 an hour.
The second benefit will come in the form of capital improvements that the city will be able to make using the tax revenues.
The most significant project, which was done before Thursday’s launch, was the reopening of Grove Avenue to traffic. The street was closed off and turned into a pedestrian mall in 1974, then fell on hard times. City leaders hope opening the street to traffic traveling to the riverboat will attract shoppers.
Some people boarding the first night’s cruises said they thought the improvements would help.
“This will help Elgin. It’ll clean up the neighborhood,” said William Tucker, 53, of South Elgin.
The work on Grove Avenue is one example of how the city is heeding the advice of experts and earmarking most of the tax revenue-about 70 percent-for capital improvements rather than for operating expenses. The city will build a new police station, fix roads and donate to neighborhood groups, Van De Voorde said.
In the heart of downtown, the old Crocker Theater-a nostalgic landmark for older Elgin residents-is going to be redeveloped into an entertainment club featuring live performances, said owner Al Griffith. The theater has been vacant since the 1970s.
Half a dozen other Grove Avenue storefronts have been leased in the last three months, said Paul Maring, owner of Keystone Realty, a commercial real estate firm in Elgin. An import jewelry store, a coffeehouse and a bridal shop are among the new tenants, he said.
But some business owners say they’re maintaining modest expectations about the impact for them of millions of people coming into the city to gamble.
“I don’t think the majority of gamblers do much besides gamble and leave,” said Cliff Heverly, who sells coins, stamps and baseball cards from a storefront business on Grove Avenue. He says he’s not counting on a rise in sales from the riverboat traffic.
The developers, who will operate a free trolley through the city, say they’ll do what they can to help market Elgin, but ultimately, it’s up to the local business community to attract diners and shoppers.
“Some communities have been disappointed and say people use the boats and then leave,” said Nicholas Pritzker, president of Hyatt Development Corp. “We’re hoping this will be a success story. The city is very geared toward trying to promote business.”
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Sister Helen Patrick joined two fellow Dominican nuns from St. Edward High School in Elgin at the slot machines Thursday night. She said she was curious to see the riverboat, and she is optimistic about what it means for the city.
“I came to look around and see the sights,” she said. “I hope this gives some new life to Elgin. It’s ironic to say gambling brings new life. You just hope people will be reasonable.”
Lance Lagoni, 47, said that at the very least the riverboat has provided a pyschological boost for Elgin.
“I haven’t seen this many people in Elgin excited in a long time,” he said. “It’s a real lift to the spirits of the town.”