Don't place all hopes, dreams on casino

Guest Column: Don't place all hopes, dreams on casino
By David A. Sidney
SPECIAL TO RRSTAR.COM
[Rockford Register Star]

Casinos are the buzz in the Midwest, not just Rockford. I am not a gambler but have been to communities that have casinos in their downtowns.

When you talk with officials in these communities some say that without the casino, they would not be able to leverage other economic development projects. Others say the results are mixed. And so here we are in Rockford weighing in on the next possible wave of casinos for several communities in Illinois.

It is easy to be judgmental about casinos from a moral and ethical perspective. And depending on where you fall theologically or philosophically, it can become a very polarizing debate. I’m not interested in doing that. What I am interested in is the understanding how casinos lead to economic shalom (prosperity) for communities. Boosters are touting the economic benefits of job creation, attracting more tourists, and increasing foot traffic to local stores and hotels.

The construction jobs would certainly inject another round of activity in a stagnant construction industry. The land and building would add to the property tax roll for local taxing bodies. Those who are seeking income to supplement or fully supply household income would have another option. And it would satisfy the desires of some who are seeking another form of entertainment and leisure.

The University of Illinois has equally produced reports showing the economic benefits and social costs with casinos. Both sides can easily make the case for their perspective. Richard Longworth, a senior fellow at the Chicago Council on Global Affairs recently cited in his June 8, 2011 blog post the economic benefit in taxes for the nine communities in Illinois with casinos is $84.7 million per year. The proposed casino in Chicago estimated to generate $130 million per year. He argues that a casino in Chicago (and elsewhere) might see an increase in gamblers but would likely steal customers from other communities.

What concerns me about the current climate is the treatment of a casino as key ingredient for economic solvency and flourishing. This is a traditional line of thinking that comes with all big projects.

It is only years and decades later do we have to grapple with the physical, social, and economic costs associated with big projects. A cost-benefit analysis would help us gain clarity. Such analysis helps to understand demand side – impact on local goods and services, employment, cost of labor, government services, and health care.

Casinos are destination oriented venues, no different from a convention center or sports arena. No matter how well you design them, they generally do not generate the promised “added shoppers” to the stores around them. They are like elephants – big, peak your curiosity, and slow. I am not convinced this (or most big projects) lead to healthy wealth building for the masses.

Rarely are casinos part economic development strategies for community wealth building in places like Portland, OR, Asheville, NC, and Charlotte, NC.

If I were a betting person, I would place my bets more on initiatives like Rockford City Market, EIGERlab and the aerospace economic sector for community wealth building.

These initiatives are like rabbits. They multiply entrepreneurs, businesses, cutting edge spinoff industries and human and cultural capital faster than the big elephant projects. These initiatives foster the innovative and inclusive culture necessary for a flourishing economy.

There is a place for elephant type projects but let’s not place all of our hopes, dreams and desires in them.

David A. Sidney, AICP, is principal planner at Gary W. Anderson & Associates and associate minister at Pilgrim Baptist Church