A south suburban casino is tentatively set to open in a month, pending final state approval, according to Homewood Mayor Rich Hofeld.
Hofeld said he was told by Wind Creek Hospitality officials that Nov. 11 is the planned open, but is contingent on final approval from the Illinois Gaming Board.
“We are eagerly awaiting,” Hofeld said.
Wind Creek Chicago Southland is southwest of the interchange of Interstate 80 and Halsted Street, with the 75,000-square-foot casino on property within East Hazel Crest and parking garages on adjacent land in Homewood.
In December 2021, Wind Creek won preliminary approval from the state to build and operate the casino, part of state legislation expanding casino gambling in Illinois.
Wind Creek is a subsidiary of PCI Gaming Authority Inc., which manages 10 casinos and other gambling properties on behalf of the Alabama-based Poarch Band of Creek Indians.
“It will be a showplace,” Hofeld said. “It’s beyond what I expected.”
Wind Creek previously estimated the casino would be ready for customers by late summer or early fall of 2023, but delays and higher costs for materials pushed back that opening.
To adapt, changes in design were implemented, such as reducing the height of the hotel to 16 floors from the original 21, but with the same number of rooms, 252.
Wind Creek said last November an opening of sometime from July to September of this year was feasible. Redevelopment agreements the company has with East Hazel Crest and Homewood, however, showed completion taking place sometime in the October-December quarter.
Wind Creek representatives did not respond to a message seeking an update on the casino opening.
Hofeld said that he and other Homewood officials toured the property about a month ago.
“I was absolutely amazed,” Hofeld said Thursday. “I didn’t expect it to be as beautiful as it is. It takes your breath away.”
He said the hotel won’t open for guests until early next year, and amenities include a steakhouse on the top floor, with views of downtown Chicago.
Construction got underway in September 2022, and Hofeld said that during his visit, “there were still 400 tradespeople at work,” putting finishing touches in place.
Wind Creek said the casino will feature 1,350 slot machines and 56 table games. The casino will have a 13,000-square-foot buffet area and 10,000-square-foot entertainment area, according to plans.
Once finished, officials estimate the project will create about 800 permanent jobs.
“These are good-paying jobs, and they’re being created here,” Hofeld said.
A budget of the project, attached to the communities’ redevelopment agreements, puts the total project at $529 million, including land acquisition, construction and sizable license fees Wind Creek will pay to the state to operate the casino.
The property at one point was home to two hotels. A Sheraton, later on Homewood Hotel, was on the Homewood side and a Super 8 in East Hazel Crest, both of which were demolished.
East Hazel Crest and Homewood will share in gambling revenue the casino produces, but some of the money will also be parceled out to 42 other south suburban communities, under state legislation that made the south suburban casino possible. Homewood’s budget anticipates some of the revenue will be used to increase the police force.
Homewood and East Hazel Crest also supported resolutions to the Cook County Board that would grant a property tax break for the casino.
Not uncommon for projects in the south suburbs, the Class 8 designation would reduce the property tax assessment level for the property to 10% of fair market value, or the same assessment level for residential properties.
Commercial properties are assessed at 25% of market value.
That 10% rate would stay in place for 10 years, then increase to 15% of market value in the 11th year, 20% in the 12th year then to 25% after that. The Class 8 designation can be renewed.
The property tax reduction would not kick in until the casino is operating and on the tax rolls.
East Hazel Crest and Homewood also have tax increment financing districts in place, where increases in property tax revenue can be used to pay for public improvements.
A budget presented by Wind Creek as part of redevelopment agreements with both communities proposes reimbursement for costs such as land acquisition and site improvements.
That money would be paid out as property tax revenue from the development increases and would take place over about 20 years. The TIF doesn’t commit either community to reimburse those costs from their general revenue funds.
Wind Creek’s budget, for TIF reimbursement, cites $25 million for land acquisition and roughly $27 million for site improvements, such as utility lines and street improvements, all of which would be reimbursable under the redevelopment agreement.
The budget indicates the cost of building the casino will be $90 million, with none of that expense reimbursable from TIF money, and $74 million for the hotel and $23.7 million for the entertainment venue.
The budget also includes $75 million in license fees for the casino, including payments to the state of $48.3 million for slot machines and $11.7 million for table games.
For casinos opening in Illinois, state gaming laws require an upfront payment of $15 million, plus $30,000 for each gaming position for casinos in Cook County, including the south suburban casino.
mnolan@southtownstar.com
