Saturday, March 22, 1997 | 11:59 a.m.
The commission agreed by the slimmest possible majority on Friday to start an investigation of Davis' bid, a key step toward building a one- or two-casino complex costing perhaps $75 million on the Missouri River at Boonville.
In voting to advance the application by Davis, who holds gambling licenses but has never owned a casino, the commission bypassed a competing bid by Bill Grace, owner of a gambling boat in St. Joseph.
Grace, who declined comment on the vote, had proposed docking a boat across the river from Boonville in Howard County.
Both applicants had promised a variety of incentives, including large up-front payments to local governments. But the Gaming Commission said it was impressed by Davis' "financial depth."
An oil, real estate and investment tycoon, Davis' personal wealth is estimated at $2.20 billion, qualifying him as No. 43 on Forbes' list of the 400 richest Americans. "We do have the wherewithal," said Mike Colleran, president of Davis Cos.
'Having deep pockets is important, not only to be able to finance the project initially, but in startup, when it may take two or three years for the casino to hit its stride," said Larry Pearson, publisher of the trade journal Passenger Vessel News. "It would definitely give the Gaming Commission some comfort."
Scrutinizing the Davis holdings and doing background checks on principals of his company could take up to one year, said Tom Irwin, the commission's executive director.
Boonville, its riverfront ragged and described as an eyesore since massive flooding in 1993 and 1995, immediately gets a $1.5 million check from Davis - even if he fails to eventually win a gambling license.
"It's an exciting time for Boonville. We have worked a long time toward the goal of revitalizing our riverfront," said Steve Goehl, city administrator in Boonville.
He said the $1.5 million windfall will be used for infrastructure needs, including improving traffic flows through downtown to the proposed riverboat site.
Missouri has licensed 11 riverboat gambling operations, mostly in the Kansas City and St. Louis areas, plus Caruthersville on the Mississippi River.
The commission decided to select just one applicant from central Missouri because of the estimated market size, Irwin said.
Colleran estimated that between 1 million and 2 million visitors would come each year to a boat in Boonville, population about 7,000.
He pledged to make the Boonville boat "a first-class project."
Davis wants to build a casino with 35,000 square feet of gaming space - 1,200 slot machines and 1,400 gaming positions - and a land-based development that measures 20,000 square feet.
"It's a great opportunity. It's going to service the whole central part of the state," Colleran said.
The commission accepted its staff's recommendation to move ahead with the Davis application.
Commissioners Bob Wolfson, Jenice Prather and Robert Clayton Sr. voted favorably. Commissioner William Quinn abstained and Commissioner Avis Tucker did not participate in the conference call meeting.
Pearson, the trade journal publisher, said Boonville's location midway between Kansas City and St. Louis on busy Interstate 70 would be a plus. He compared the prospective Boonville boat to a successful casino in Vicksburg, Miss., situated near an interstate highway.
"That operation in Mississippi isn't rich in population, but its location on an interstate gives it a leg up on attracting all sorts of people, from affluent vacationers to truck drivers," Pearson said.
The Davis package includes buying about 40 residential or commercial properties near the proposed 30-acre riverboat site. Colleran said property owners have made deals to sell.
The company has also offered to pay for relocating a scrap yard along the river, although no agreement has been reached.
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