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Thursday, March 24, 2011

In Ohio: Penn National whines for taxpayer handout

The Gambling Industry spent buckets of cash in Ohio, convincing voters to approve the folly of Predatory Gambling as Salvation for all ills.

From: Casino Opposition
After Ohio voters said NO to casino gambling 4 times, $50 million was spent to persuade them otherwise. Who would think their money was wasted?

This bears watching for the lessons to be learned.

Penn National was part of a $50 million campaign in this state to persuade voters to approve the casino.


Sometimes, Greed and Lies know no bounds!


Kasich cancels check to casino
Transportation bill rider prevents Penn National from getting $2.5 million
By Joe Hallett
THE COLUMBUS DISPATCH

The Kasich administration has blocked Penn National Gaming from getting about $2.5 million from the state that it was counting on to help clean up the site of the West Side casino it plans to open late in 2012.

A two-year, $7 billion state transportation budget sent to Gov. John Kasich yesterday thwarts Penn National's attempt to use Clean Ohio money in cleaning up the site of the former Delphi auto-parts plant near W. Broad Street and I-270.

An amendment prohibiting the Ohio Department of Development or other entities from using state assistance for casinos, or other gambling sites such as racetracks, was included in the transportation budget approved by the Senate on Tuesday and ratified by the House yesterday.

Rob Nichols, spokesman for Gov. John Kasich, said the administration requested the amendment because it thinks casinos have sufficient resources and don't need help from the state's taxpayers.

"The administration believes that the casinos do not need any additional development incentives in order to build these facilities," Nichols said.

The decision to deny the funds, he said, was not coordinated with the city of Columbus, which is involved in lawsuits with Penn National.

In January, the Franklin County commissioners voted to apply for $2.5million in state Clean Ohio funding for the 114-acre Delphi site, where Penn National is to build a 300,000-square-foot Hollywood Casino.

Dan Williamson, spokesman for Mayor Michael B. Coleman, said the city supported the application and he expressed surprise that the Kasich administration had moved to deny the money to Penn National.

"We support those funds, and we continue to support those funds for the Hollywood Casino," Williamson said.

The city agreed to back the Clean Ohio funding after Ohio voters in May 2010 moved the Columbus casino site out of the Arena District.

So far, Penn National has spent about $16 million cleaning up the Delphi site and about $ 4million on the Arena District site it owns and is seeking to sell.

"We've spent close to $20 million remediating two brownfield sites on our own dime," said Eric Shippers, senior vice president for Penn National.

Since Clean Ohio money cannot be spent on sites that already have been cleaned up, Shippers said, the transportation bill's denial of the money to the firm "may be sort of a moot question at this time."

Columbus has been involved in a stalemate with Penn National over annexation of the casino site. The city has refused to provide sewer and water services to the site unless it is annexed. The company has balked at annexation unless the city agrees to breaks on taxes and utility rates and other financial help.

While denying Penn National money it expected to receive, the transportation budget does provide about $5.5 million for the Ohio Casino Control Commission. Chairwoman Jo Ann Davidson told the six other commission members yesterday that the money should be available by April 1.

Davidson said about $250,000 would be available for the commission to begin hiring a staff, leasing office space and paying the members' $60,000-a-year salaries. Money for the commission, which will govern the state's four new casinos, had to be put in the transportation budget when it was discovered that no funds were available because of a legal oversight.

The commission will draw money as needed and pay it back to the state once its primary funding sources - casino license-application fees and an allocation of 3percent of the tax on gross casino revenue - start to flow.

Davidson said the commission hopes to hire an executive director within two months.

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