At Phila. slots hearing, a parting on the river - Donald Trump said two casinos there would be a crowd. Don't bet on it, countered Foxwoods
HARRISBURG -- Can Philadelphia's riverfront handle two
casinos?
Donald Trump says it would be a traffic nightmare.
"If two facilities go on the waterfront, that is going
to be, in my opinion, devastation," he said at a hearing
before the Pennsylvania Gaming Control Board yesterday.
Trump has his own reason for that opinion: His partnership,
Keystone Redevelopment Partners, is the only one of five
applicants for two city licenses that would not put a casino
on the Delaware River.
His project, called TrumpStreet, would be in North Philadelphia.
Trump's competitors, needless to say, disagree with his
analysis.
Two casinos on the Delaware "will anchor redevelopment
and spur economic activity," said Gary Armentrout,
a Foxwoods executive who also appeared yesterday during
the board's second day of hearings. His firm wants to operate
on Columbus Boulevard in South Philadelphia.
Armentrout added that Foxwoods would pay for road improvements
that would alleviate traffic.
The city's Gaming Advisory Task Force has recommended one
casino on the river and one in the area where Trump would
locate. Others have advocated putting both on the river
to fuel development there.
Armentrout said Foxwoods would be a logical choice for
a riverfront license because it was away from other proposed
locations to the north.
TrumpStreet representatives said having one casino near
Philadelphia's wealthy western suburbs and one on the river
would generate more than $50 million annually in state tax
revenue than a combination of two casinos on the river.
Trump's Keystone Redevelopment Partners include former
76ers owner Pat Croce and Brian P. Tierney, The Inquirer's
publisher and chief executive officer of Philadelphia Media
Holdings.
Foxwoods and Trump also presented commitments to pay for
community benefits that their rivals -- the Riverwalk, SugarHouse
and Pinnacle Casinos -- have yet to duplicate.
Foxwoods said 42 percent of its profit would go to charitable
causes.
That is the proportion of the project controlled by Comcast-Spectacor
chairman Ed Snider and two family foundations, one controlled
by the family of developer Ron Rubin and the other by Melissa
Silver, who is the daughter of Camden entrepreneur Lewis
Katz. Their share of the proceeds must be devoted to nonprofit
organizations, according to the partnership contract.
The structure is not an elaborate tax shelter for its creators,
representatives said.
"There's no personal economic benefit to any of these
three families," said A.J. Agarwal, trustee for the
Silver Family Foundation.
Foxwoods, the corporate arm of the Mashantucket Pequot
Tribal Nation, touted the success of its casino in Uncasville,
Conn. The Foxwoods Philadelphia Casino would not be distracted
by any property in Atlantic City, company officials said.
It does not have a casino in New Jersey, and its Connecticut
facility is not considered a competitor for Pennsylvania
gamblers, they said.
Trump executives argued that the city location would attract
area residents or travelers in town for other reasons, while
Atlantic City draws vacationers.
Trump has signed an agreement with a variety of neighborhood
and business groups that promises $2.5 million upfront to
a community foundation that would then receive $1 million
a year for youth recreation, sidewalk improvements, and
senior-citizen programs.
It would also direct $1.5 million annually to school improvements
and scholarships, and promises 75 percent of the casino's
jobs to local residents.
"These are good enough reasons for us, the residents
of Tioga, to strongly support the Trump proposal,"
said Verna Tyner, treasurer of Tioga United, one of the
signatories.
Trump's agreement has split the neighborhood. The Multi-Community
Alliance, which includes the neighborhood organizations
surrounding the TrumpStreet project in East Falls and Nicetown,
was not a party to the agreement.
The alliance's spokesman, Irv Ackelsberg, said he was "shaken"
that TrumpStreet could present the image of a supportive
community.
"That's not the community," he said. "They
got what they wanted -- they got to put out that image that
they're going to bring prosperity to a neighborhood, but
it has no relationship with reality."
The final Philadelphia applicant, Pinnacle Entertainment,
is scheduled for a hearing today.
Up for Scrutiny
The five applicants for two Philadelphia slots casino licenses
appear before the state Gaming Control Board this week.
Yesterday's session, the second of three hearings, featured
the applicants below. A decision is expected in December.
Foxwoods Casino Philadelphia
Developer and operator: Philadelphia Entertainment &
Development Partners L.P.; Foxwoods Development L.L.C.
Notable investors: Music industry impresario Quincy Jones,
Comcast-Spectacor chairman Ed Snider, 76ers president Billy
King, former Phillie Garry Maddox, developer Ronald Rubin's
Rubin Family Trust.
Location: Columbus Boulevard north of Home Depot and Target;
30 acres.
Cost: $410 million
Jobs:950
City tax revenue: $14.5 million
State tax revenue: $185.6 million
Estimated annual gross gambling revenue: $365 million
Annual visitors: 5.8 million
Description: By November 2008, there would be 3,000 slot
machines, restaurants, shops, a 2,000-seat entertainment
venue, and a 4,200-car garage.
TrumpStreet
Developer or partnership: Keystone Redevelopment Partners
L.L.C.
Casino operator:Trump Entertainment Resorts
Notable investors: Donald Trump; Brian P. Tierney, publisher
of The Inquirer and chief executive officer of Philadelphia
Media Holdings; Chickie's & Pete's restaurant owner
Pete Ciarrocchi; members of the R&B group Boyz II Men.
Location: The former Budd plant site, West Roberts Avenue
and Fox Street, Nicetown/East Falls; 30 acres.
Cost: $300 million
Jobs: 905
City tax revenue: $35.73 million
State tax revenue: $196.3 million
Annual gross gambling revenue: $369 million
Annual visitors: 5.8 million
Description: It is projected to open with 3,000 slot machines
and 70,000 square feet of retail, dining and entertainment
space.
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