FIFA scandal prompts call for super-agency to fight corruption
As we heard on Tuesday, Switzerland hosts dozens of sports governing bodies and due to a loophole they’re currently excluded from Swiss anti-corruption legislation. WRS’s Conor Lennon spoke to Jean-Patrick Villeneuve, gambling expert at the Graduate School of Public Administration in Lausanne, who believes a new super-agency is needed to fight modern corruption:
Friday, October 29, 2010
CityCenter $8.5 Billion Debt
MGM, Dubai World Refinancing $1.8 Billion CityCenter Bank Loan
MGM Resorts International and Dubai World, owners of the CityCenter development on the Las Vegas Strip, are seeking to refinance the property’s $1.8 billion loan to extend maturities.
MGM Resorts, the biggest casino operator on the Strip, would like to own all of CityCenter eventually, Chief Executive Officer Jim Murren said today in an interview. No buyout talks have been held with Dubai World, but the partnership has a five- year agreement that gives MGM the right to purchase the other’s half if it’s sold, Murren said.
CityCenter, the $8.5 billion joint venture that opened in Las Vegas in December after skirting potential bankruptcy, includes hotels, condominiums, the Aria casino and Crystals mall. MGM Resorts said this month CityCenter’s cash flow turned positive in the third quarter, after losing money for the first six months. In August, the joint venture’s equity value was written down to $2.65 billion.
“I certainly would like to own it long term,” Murren said in the interview in New York. “CityCenter and Aria specifically are already showing the signs that it’s going to emerge as one of the profit leaders in the market.”
MGM and other casino companies including Harrah’s Entertainment Inc. and Boyd Gaming Corp. are tapping public markets and refinancing debt as a record slump in Las Vegas eases and casino bonds rally.
New Loans
The partners are “in the market now” to replace CityCenter’s loan with new financing that matures in five to eight years, Murren said. The refinancing will be completed before the end of March, because CityCenter will “most likely” not be compliance with covenants on the existing debt after that, he said.
The new financing will probably consist of a first-lien loan and a second-lien piece, Murren said. Bank of America Corp. is the lead bank for the existing facility.
“We’re going to put together a capital structure that’s much more long term, and more in keeping with a project like that,” Murren said in an interview with Bloomberg TV. It “takes that uncertainty off the table and puts CityCenter in a very solid capital structure going forward.” Parts of the interview will be broadcast tomorrow morning at 7:45 a.m. in New York on “Inside Track” with Deirdre Bolton.
MGM Debt
MGM Resorts this month raised $511 million by selling equity and issued $500 million bonds to repay some of its almost $13 billion in debt. Investors are betting on a Las Vegas recovery after Strip gambling revenue jumped 21 percent in August.
The Las Vegas-based company will use the proceeds and some cash to repay $1.2 billion to banks “as early as next week,” Murren said. MGM Resorts has extended the rest of the senior credit facility, $3.6 billion, to 2014 from its original October 2011 maturity.
MGM Resorts addressed solvency concerns in May 2009 after refinancing debt when it sold more than $1 billion in common stock and $1.5 billion in senior secured notes as part of a recapitalization. The company has subsequently tapped capital markets when investor demand for junk debt and casino stocks has rallied, including a $1 billion convertible note sale in April.
MGM Resorts International and Dubai World, owners of the CityCenter development on the Las Vegas Strip, are seeking to refinance the property’s $1.8 billion loan to extend maturities.
MGM Resorts, the biggest casino operator on the Strip, would like to own all of CityCenter eventually, Chief Executive Officer Jim Murren said today in an interview. No buyout talks have been held with Dubai World, but the partnership has a five- year agreement that gives MGM the right to purchase the other’s half if it’s sold, Murren said.
CityCenter, the $8.5 billion joint venture that opened in Las Vegas in December after skirting potential bankruptcy, includes hotels, condominiums, the Aria casino and Crystals mall. MGM Resorts said this month CityCenter’s cash flow turned positive in the third quarter, after losing money for the first six months. In August, the joint venture’s equity value was written down to $2.65 billion.
“I certainly would like to own it long term,” Murren said in the interview in New York. “CityCenter and Aria specifically are already showing the signs that it’s going to emerge as one of the profit leaders in the market.”
MGM and other casino companies including Harrah’s Entertainment Inc. and Boyd Gaming Corp. are tapping public markets and refinancing debt as a record slump in Las Vegas eases and casino bonds rally.
New Loans
The partners are “in the market now” to replace CityCenter’s loan with new financing that matures in five to eight years, Murren said. The refinancing will be completed before the end of March, because CityCenter will “most likely” not be compliance with covenants on the existing debt after that, he said.
The new financing will probably consist of a first-lien loan and a second-lien piece, Murren said. Bank of America Corp. is the lead bank for the existing facility.
“We’re going to put together a capital structure that’s much more long term, and more in keeping with a project like that,” Murren said in an interview with Bloomberg TV. It “takes that uncertainty off the table and puts CityCenter in a very solid capital structure going forward.” Parts of the interview will be broadcast tomorrow morning at 7:45 a.m. in New York on “Inside Track” with Deirdre Bolton.
MGM Debt
MGM Resorts this month raised $511 million by selling equity and issued $500 million bonds to repay some of its almost $13 billion in debt. Investors are betting on a Las Vegas recovery after Strip gambling revenue jumped 21 percent in August.
The Las Vegas-based company will use the proceeds and some cash to repay $1.2 billion to banks “as early as next week,” Murren said. MGM Resorts has extended the rest of the senior credit facility, $3.6 billion, to 2014 from its original October 2011 maturity.
MGM Resorts addressed solvency concerns in May 2009 after refinancing debt when it sold more than $1 billion in common stock and $1.5 billion in senior secured notes as part of a recapitalization. The company has subsequently tapped capital markets when investor demand for junk debt and casino stocks has rallied, including a $1 billion convertible note sale in April.
Fall River Shortchanges Residents
Beacon Hill politicians misstated the threat of a Tribal Casino, ignoring 2 SCOTUS decisions to suit their purposes and cram through flawed 'casino' legislation, while Fall River officials have betrayed the residents and taxpayers of a beautiful City that possesses great potential.
Fall River City Officials have danced around a land sale, ignoring legal opinion from the IG, failing to ensure additional revenues to protect citizens against the increased costs and impacts of predatory gambling.
The land sale hands wealthy investors prime commercial land for $100,000 per acre.
Instead, the Mayor chose to reward wealthy Malaysian investors with a tax free, low cost venture for a profitable Slot Barn deal.
On the right side of the Fall River Herald News article, you will find the injunction issued by Judge Richard T. Moses, the Ten Taxpayers Complaint, the RDA response and the Purchase & Sales Memo.
They are worth reading both for what they contain and what the DON'T contain.
Nowhere is there consideration of monies Fall River will receive from the Tribe, in lieu of taxes. This is a business deal for the City's future, not a charity.
At the very least, the City should reasonably expect a percentage of slots participation, worth at least $20-$30 million per year to cover additional costs.
Can we blame the failure of leaders, including the Mayor, to conduct public discussions that consider the increased costs to the City solely on ignorance?
When the City is bankrupt by increased public safety costs caused solely by this "Something for Nothing Scheme," residents will bear the burden.
Can we blame the Fall River Herald News for its failure to ask the right questions?
Foxwoods has defaulted.
Mohegan Sun laid off 350 employees, "redeployed" 120, reduced their workforce by 900, closed restaurants, froze upper management salaries.
Twin Rivers is in bankruptcy.
Casinos around the country are filing bankruptcy. Tribal Casinos have simply stopped making payments.
How is this sensible economic development for Fall River?
Who is protecting Fall River residents while wealthy foreign investors are rewarded?
This could be your town.
Navajo Facing Criminal Charges
Navajo lawmakers turn to prayer amid investigation
WINDOW ROCK, Ariz. -- At least 77 current delegates to the 88-member Navajo Nation Tribal Council are charged with offenses including theft and fraud in the use of tribal funds. So when the lawmakers convened the last day of their fall session with customary prayer, the ritual quickly deepened into a quest for protection and purification.
Delegate Willie Tracey dipped an eagle feather in water and sprinkled it on the other lawmakers, who patted the drops on themselves in a gesture of absolution. One by one, they lined up and sipped more ceremonial water from a small wooden cup in the council chambers where colorful murals depict the tribe's history.
"Some will say that behavior of leaders needs to be corrected. People will see things like this have gone too far on our people and it need not be," said council Delegate Thomas Walker of the broad allegations. But he also held out this caveat, "(Some) people will perceive this as political persecution."
The lawmakers have faced heavy scrutiny since it was revealed last week that the majority of them have been charged in tribal court with any of five offenses - conspiracy, theft, abuse of office, forgery and fraud - in an investigation of how they spent discretionary funds intended for Navajos in need. The allegations say the money was used by some lawmakers on the nation's largest and deeply-impoverished Indian reservation to benefit themselves and their families.
The Tribal Council debates and makes decisions inside its historic, hogan-shaped chambers. Here, the council voted to give itself $31 million in discretionary funding during fiscal years 2005-2009, according to the tribe's budget office. Another $2.1 million was already budgeted.
The more than 270 criminal complaints released Wednesday in Window Rock charge lawmakers and two others with illegally taking nearly $1.9 million, according to court officials and a list published by the Navajo Times newspaper.
In some years, each delegate received several thousand dollars to distribute. Tribal policy prohibits lawmakers from engaging in conflicts of interest, particularly nepotism, in doling out the money.
This money is at the root of the charges against the tribal legislators, and they unwittingly initiated the investigation themselves.
A year ago, the council asked the tribe's attorney general to hire a special prosecutor to look into allegations that the tribal president, Joe Shirley Jr., had acted illegally and unethically in dealing with a satellite Internet company and a separate manufacturing business operating on the reservation.
The attorney general obliged, but then shocked council members by expanding the probe to include their use of the discretionary funds.
While special prosecutors have investigated a tribal chairman and past presidents, this is the first time an inquiry has targeted the council.
The special prosecutor law was enacted in response to the political turmoil involving former president Peter MacDonald, who survived a presidential primary even after the council suspended him from office in the face of corruption charges in 1989.
The complaints contend that lawmakers make too much money, an estimated $65,000 a year, to qualify for discretionary funds for themselves or their families. Guidelines say the funding should properly go to elderly Navajos on fixed incomes, college students, organizations in need or Navajos in emergency situations.
Many homes on the vast 27,000 square-mile reservation that extends into New Mexico, Utah and Arizona are without electricity and running water. Mobile phone service is spotty, and the unemployment rate hovers around 50 percent.
Tribal leaders often impress upon Navajos that they have an obligation to help family and neighbors who are in need, whether it be driving them to the polls, gathering firewood for winter, hauling water or delivering food.
Outside the council chambers last week, Delegate Ernest Yazzie defended the use of discretionary funds, saying, "It's our own people doing for their own people. What's wrong? At least us, we help the people."
Some say the charges filed by special prosecutor Alan Balaran in the latest probe are nothing but a ploy to defeat lawmakers seeking re-election on Nov. 2. More than half of the 48 candidates hoping for a seat on a reduced 24-member Tribal Council - the result of an election last year aimed at reforming the government - are incumbents.
"Nobody has imposed a deadline on him (Balaran), he's not trying to beat some statute of limitations," said David Jordan, an attorney representing one of the defendants. "There's only one date coming up that can possibly be the reason for the rush, and that's the election."
Balaran, a Washington lawyer who formerly investigated the destruction of documents in a multibillion lawsuit on behalf of American Indians who claimed the government mismanaged trust funds, declined to comment.
In the complaints, Balaran alleges that lawmakers lied on official documents to assert a hardship or emergency and other lawmakers "mysteriously" overlooked that point in issuing sometimes dozens of checks to their council colleagues and immediate family.
Joe Sandoval, a tribal member who was observing last week's final council session, said he doesn't see much action from the council in trying to restore balance, harmony and respect - the goal of many traditional prayers.
"What the council has done in the past has caught up with them," said Sandoval, of Whitehorse Lake, N.M., "and now it's firing back with all the fun with the money."
Elouise Brown, a Navajo environmental activist, said any lawmaker who can justify the payments outlined in the complaints should do so. She said she still supports tribal presidential candidate Ben Shelly, who faces charges of conspiracy, fraud and theft, because the former lawmaker was forthcoming about the charges and has explained his use of the money.
"That's the whole reason I believe in him - that what he's telling is the truth," Brown said.
According to the Navajo Times, the lawmakers are accused of individually taking from $650 to $279,175. Other charges reach beyond the council to more than three dozen non-lawmakers, said Samson Cowboy, director of public safety for the tribe.
Duane "Chili" Yazzie, a former elected official who has benefited from discretionary funds, said tribal officials often face intense pressure to give money to constituents. There's a lot of good intent, he says, but few checks and balances mean "there's bound to be abuse."
WINDOW ROCK, Ariz. -- At least 77 current delegates to the 88-member Navajo Nation Tribal Council are charged with offenses including theft and fraud in the use of tribal funds. So when the lawmakers convened the last day of their fall session with customary prayer, the ritual quickly deepened into a quest for protection and purification.
Delegate Willie Tracey dipped an eagle feather in water and sprinkled it on the other lawmakers, who patted the drops on themselves in a gesture of absolution. One by one, they lined up and sipped more ceremonial water from a small wooden cup in the council chambers where colorful murals depict the tribe's history.
"Some will say that behavior of leaders needs to be corrected. People will see things like this have gone too far on our people and it need not be," said council Delegate Thomas Walker of the broad allegations. But he also held out this caveat, "(Some) people will perceive this as political persecution."
The lawmakers have faced heavy scrutiny since it was revealed last week that the majority of them have been charged in tribal court with any of five offenses - conspiracy, theft, abuse of office, forgery and fraud - in an investigation of how they spent discretionary funds intended for Navajos in need. The allegations say the money was used by some lawmakers on the nation's largest and deeply-impoverished Indian reservation to benefit themselves and their families.
The Tribal Council debates and makes decisions inside its historic, hogan-shaped chambers. Here, the council voted to give itself $31 million in discretionary funding during fiscal years 2005-2009, according to the tribe's budget office. Another $2.1 million was already budgeted.
The more than 270 criminal complaints released Wednesday in Window Rock charge lawmakers and two others with illegally taking nearly $1.9 million, according to court officials and a list published by the Navajo Times newspaper.
In some years, each delegate received several thousand dollars to distribute. Tribal policy prohibits lawmakers from engaging in conflicts of interest, particularly nepotism, in doling out the money.
This money is at the root of the charges against the tribal legislators, and they unwittingly initiated the investigation themselves.
A year ago, the council asked the tribe's attorney general to hire a special prosecutor to look into allegations that the tribal president, Joe Shirley Jr., had acted illegally and unethically in dealing with a satellite Internet company and a separate manufacturing business operating on the reservation.
The attorney general obliged, but then shocked council members by expanding the probe to include their use of the discretionary funds.
While special prosecutors have investigated a tribal chairman and past presidents, this is the first time an inquiry has targeted the council.
The special prosecutor law was enacted in response to the political turmoil involving former president Peter MacDonald, who survived a presidential primary even after the council suspended him from office in the face of corruption charges in 1989.
The complaints contend that lawmakers make too much money, an estimated $65,000 a year, to qualify for discretionary funds for themselves or their families. Guidelines say the funding should properly go to elderly Navajos on fixed incomes, college students, organizations in need or Navajos in emergency situations.
Many homes on the vast 27,000 square-mile reservation that extends into New Mexico, Utah and Arizona are without electricity and running water. Mobile phone service is spotty, and the unemployment rate hovers around 50 percent.
Tribal leaders often impress upon Navajos that they have an obligation to help family and neighbors who are in need, whether it be driving them to the polls, gathering firewood for winter, hauling water or delivering food.
Outside the council chambers last week, Delegate Ernest Yazzie defended the use of discretionary funds, saying, "It's our own people doing for their own people. What's wrong? At least us, we help the people."
Some say the charges filed by special prosecutor Alan Balaran in the latest probe are nothing but a ploy to defeat lawmakers seeking re-election on Nov. 2. More than half of the 48 candidates hoping for a seat on a reduced 24-member Tribal Council - the result of an election last year aimed at reforming the government - are incumbents.
"Nobody has imposed a deadline on him (Balaran), he's not trying to beat some statute of limitations," said David Jordan, an attorney representing one of the defendants. "There's only one date coming up that can possibly be the reason for the rush, and that's the election."
Balaran, a Washington lawyer who formerly investigated the destruction of documents in a multibillion lawsuit on behalf of American Indians who claimed the government mismanaged trust funds, declined to comment.
In the complaints, Balaran alleges that lawmakers lied on official documents to assert a hardship or emergency and other lawmakers "mysteriously" overlooked that point in issuing sometimes dozens of checks to their council colleagues and immediate family.
Joe Sandoval, a tribal member who was observing last week's final council session, said he doesn't see much action from the council in trying to restore balance, harmony and respect - the goal of many traditional prayers.
"What the council has done in the past has caught up with them," said Sandoval, of Whitehorse Lake, N.M., "and now it's firing back with all the fun with the money."
Elouise Brown, a Navajo environmental activist, said any lawmaker who can justify the payments outlined in the complaints should do so. She said she still supports tribal presidential candidate Ben Shelly, who faces charges of conspiracy, fraud and theft, because the former lawmaker was forthcoming about the charges and has explained his use of the money.
"That's the whole reason I believe in him - that what he's telling is the truth," Brown said.
According to the Navajo Times, the lawmakers are accused of individually taking from $650 to $279,175. Other charges reach beyond the council to more than three dozen non-lawmakers, said Samson Cowboy, director of public safety for the tribe.
Duane "Chili" Yazzie, a former elected official who has benefited from discretionary funds, said tribal officials often face intense pressure to give money to constituents. There's a lot of good intent, he says, but few checks and balances mean "there's bound to be abuse."
Fighting over scraps
Lawyer: Municipalities near agreement on Presque Isle Downs revenue split
By ROBB FREDERICK
Lawyers for Erie County Gaming Revenue Authority, Summit Township and four other municipalities are close to a settlement that could restructure the way grant money from gambling at Presque Isle Downs & Casino is apportioned, negotiators said in court this week.
The agreement would free up $7.4 million in grant money -- funding that was left over after the Gaming Revenue Authority rejected grant applications by townships and volunteer fire departments.
That money needs to be apportioned, said Erie County Judge Michael E. Dunlavey, who met with the negotiators Wednesday.
"We need to get over this hump," Dunlavey said. "The costs, and the delays, already are having an impact."
The Gaming Revenue Authority rejected 26 grant applications earlier this year and in 2009. The lead plaintiff is the Summit Township Industrial and Economic Development Authority. It and the groups that requested the money -- the Perry Hi-Way Hose Co., EmergyCare Inc., the McKean Hose Co. and McKean, Greene and Waterford townships -- appealed, forcing a "de novo" hearing before Dunlavey on Wednesday.
The townships and their legal allies hope to change the way the Gaming Revenue Authority distributes part of the local share of casino slots revenue.
That money, which amounts to $11 million to $12 million annually, is now divided into two buckets, one called "restricted" and one called "unrestricted."
Erie County government administers the unrestricted funds. Much of that has already has been allocated to help pay for the Erie International Airport's $80.5 million runway extension, the $42 million renovation of Tullio Arena, and to support the library system.
"Restricted" funds, according to Pennsylvania gaming law, are intended to be used for casino-related projects in the host community and in contiguous municipalities, as well as the host county. That funding so far has paid for road and sewer improvements in the communities, and for ambulances and other emergency equipment.
The 10 lawyers in Dunlavey's courtroom Wednesday were wrestling over leftovers -- the so-called "uncommitted" funds that remain in the authority's "restricted" account, which now amounts to about $7.4 million.
But the proposed settlement would also change how the restricted funds are handled in the future.
"We're just trying to develop ongoing, consistent support," said Evan Adair, an attorney for Millcreek Township. "Right now, we don't see any binding promise that people can count on."
The agreement now being negotiated would do that.
If accepted -- Erie County Council and the supervisors in each affected municipality would have to sign off on the plan -- the county and municipalities would agree not to seek restricted funding. In return, they would split 25 percent of the money in the fund. At current funding levels, that would mean splitting $1.5 million six ways, or about $250,000 to each party annually.
The Gaming Revenue Authority would distribute the remaining $4.5 million among regional assets, economic development projects and other efforts.
The fire departments and EmergyCare no longer would apply to the authority for money. Instead, they would work with the supervisors of their respective municipalities.
There's a catch: The Gaming Revenue Authority would have to agree to apportion no more than 40 percent of the remaining funding to "regional assets," such as the Erie Art Museum and the U.S. Brig Niagara, for five years.
The authority had resisted that request. Its solicitor, Tom Talarico, said the 40-percent rule would undercut the authority's role in determining how uncommitted funding is distributed.
"This would in essence rob ECGRA and its members of their discretion," Talarico said Wednesday.
The municipalities, meanwhile, would be guaranteed a fixed percentage of the money in the "restricted" fund.
"That would provide certainty for all the parties," said Dan Pastore, an attorney for the Summit Township Industrial & Economic Development Authority, and the primary author of the plan.
Under the new plan, officials in Summit Township and the other four townships could expect consistent funding levels from year to year, and could budget accordingly, Pastore said.
"We essentially know what that amount will be every year," Pastore said. "That eliminates a lot of the uncertainty in this process."
Pastore would not discuss the plan in any additional detail when contacted at his office Wednesday afternoon.
The promise of consistent year-to-year funding is itself something of a gamble, said Dunlavey, who wondered in court Wednesday how the development of additional casinos might affect business at Presque Isle Downs.
"We're all assuming that the goose that laid the golden egg is going to continue to lay golden eggs," Dunlavey said.
By ROBB FREDERICK
Lawyers for Erie County Gaming Revenue Authority, Summit Township and four other municipalities are close to a settlement that could restructure the way grant money from gambling at Presque Isle Downs & Casino is apportioned, negotiators said in court this week.
The agreement would free up $7.4 million in grant money -- funding that was left over after the Gaming Revenue Authority rejected grant applications by townships and volunteer fire departments.
That money needs to be apportioned, said Erie County Judge Michael E. Dunlavey, who met with the negotiators Wednesday.
"We need to get over this hump," Dunlavey said. "The costs, and the delays, already are having an impact."
The Gaming Revenue Authority rejected 26 grant applications earlier this year and in 2009. The lead plaintiff is the Summit Township Industrial and Economic Development Authority. It and the groups that requested the money -- the Perry Hi-Way Hose Co., EmergyCare Inc., the McKean Hose Co. and McKean, Greene and Waterford townships -- appealed, forcing a "de novo" hearing before Dunlavey on Wednesday.
The townships and their legal allies hope to change the way the Gaming Revenue Authority distributes part of the local share of casino slots revenue.
That money, which amounts to $11 million to $12 million annually, is now divided into two buckets, one called "restricted" and one called "unrestricted."
Erie County government administers the unrestricted funds. Much of that has already has been allocated to help pay for the Erie International Airport's $80.5 million runway extension, the $42 million renovation of Tullio Arena, and to support the library system.
"Restricted" funds, according to Pennsylvania gaming law, are intended to be used for casino-related projects in the host community and in contiguous municipalities, as well as the host county. That funding so far has paid for road and sewer improvements in the communities, and for ambulances and other emergency equipment.
The 10 lawyers in Dunlavey's courtroom Wednesday were wrestling over leftovers -- the so-called "uncommitted" funds that remain in the authority's "restricted" account, which now amounts to about $7.4 million.
But the proposed settlement would also change how the restricted funds are handled in the future.
"We're just trying to develop ongoing, consistent support," said Evan Adair, an attorney for Millcreek Township. "Right now, we don't see any binding promise that people can count on."
The agreement now being negotiated would do that.
If accepted -- Erie County Council and the supervisors in each affected municipality would have to sign off on the plan -- the county and municipalities would agree not to seek restricted funding. In return, they would split 25 percent of the money in the fund. At current funding levels, that would mean splitting $1.5 million six ways, or about $250,000 to each party annually.
The Gaming Revenue Authority would distribute the remaining $4.5 million among regional assets, economic development projects and other efforts.
The fire departments and EmergyCare no longer would apply to the authority for money. Instead, they would work with the supervisors of their respective municipalities.
There's a catch: The Gaming Revenue Authority would have to agree to apportion no more than 40 percent of the remaining funding to "regional assets," such as the Erie Art Museum and the U.S. Brig Niagara, for five years.
The authority had resisted that request. Its solicitor, Tom Talarico, said the 40-percent rule would undercut the authority's role in determining how uncommitted funding is distributed.
"This would in essence rob ECGRA and its members of their discretion," Talarico said Wednesday.
The municipalities, meanwhile, would be guaranteed a fixed percentage of the money in the "restricted" fund.
"That would provide certainty for all the parties," said Dan Pastore, an attorney for the Summit Township Industrial & Economic Development Authority, and the primary author of the plan.
Under the new plan, officials in Summit Township and the other four townships could expect consistent funding levels from year to year, and could budget accordingly, Pastore said.
"We essentially know what that amount will be every year," Pastore said. "That eliminates a lot of the uncertainty in this process."
Pastore would not discuss the plan in any additional detail when contacted at his office Wednesday afternoon.
The promise of consistent year-to-year funding is itself something of a gamble, said Dunlavey, who wondered in court Wednesday how the development of additional casinos might affect business at Presque Isle Downs.
"We're all assuming that the goose that laid the golden egg is going to continue to lay golden eggs," Dunlavey said.
If Casinos Pave the Streets With Gold, What Happened to Atlantic City?
When "Casinos" were legalized in Atlantic City, prosperity, economic development and progress were promised. Those false promises evaporated into crime, poverty and a community crumbling under the glitter of casino lights and wealthy investors.
Layoffs diminish Atlantic City police presence, leaving officers "answering 911 calls," Deputy Police Chief Ernest Jubilee says
ATLANTIC CITY — Members of the Chelsea Neighborhood Association expressed concerns about safety at Thursday night’s meeting, as Deputy Police Chief Ernest Jubilee made his first public appearance after becoming head of the force.
Jubilee told about 20 people gathered at Our Lady Star of the Sea School that he is working with the mayor, city administration and the police officers’ union to bring back the 60 officers who were laid off this year due to budget constraints.
At the beginning of this year, there were 364 officers on the Atlantic City police force, and now there are 286, Jubilee said in his 25-minute presentation. The reduction includes 26 officers who retired and were not replaced.
“We had a handle on crime in the city. We were addressing quality of life issues,” Jubilee said. “Today we find ourselves answering 911 calls.”
While officers are still responding quickly to emergencies, there are not enough detectives to investigate crimes, Jubilee said. The Prosecutor’s Office helped by sending six detectives to work in Atlantic City.
The resort is at a crossroads, as Gov. Chris Christie plans state oversight of the city, and safety is one of his prime goals, Jubilee said.
Dr. Howard Barsky, who lives in the Ocean Club, said there have several recent muggings in his complex.
“There’s not enough of a police presence to deter crime,” Barsky said.
Jubilee agreed that is an issue, but said a $3.5 million grant from the Casino Reinvestment Development Authority will provide technology that will improve efficiency for the officers still on duty. For, example, each patrol car will be equipped with a global-positioning device, so dispatchers and supervisors will know the location of every patrol car in the city and officers can respond to calls more quickly.
Association President Brian Thomas said he saw news reports that the Atlantic City crime rate is going up, and that the criminals are bolder because there are fewer officers on the street. People are getting shot, and perpetrators never seem to be arrested.
“It’s happening here, it’s happening in Pleasantville. People are afraid to leave their houses,” Thomas said.
But Jubilee said the city is generally safe.
“If you look at the crime rate based on our residents, it’s pretty bad,” Jubilee said.
But Atlantic City gets about 32 million visitors a year, and half of all casino employees come into the city to work, he said. The police are concentrating their efforts on the areas of town where past experience indicates crimes are most likely to occur.
“The city is in dire straits because of the budget, but I’m confident we’ll get our officers back,” Jubilee said.
An announcement about bringing back at least some of the laid-off officers may be forthcoming in the next few days, Jubilee said.
Layoffs diminish Atlantic City police presence, leaving officers "answering 911 calls," Deputy Police Chief Ernest Jubilee says
ATLANTIC CITY — Members of the Chelsea Neighborhood Association expressed concerns about safety at Thursday night’s meeting, as Deputy Police Chief Ernest Jubilee made his first public appearance after becoming head of the force.
Jubilee told about 20 people gathered at Our Lady Star of the Sea School that he is working with the mayor, city administration and the police officers’ union to bring back the 60 officers who were laid off this year due to budget constraints.
At the beginning of this year, there were 364 officers on the Atlantic City police force, and now there are 286, Jubilee said in his 25-minute presentation. The reduction includes 26 officers who retired and were not replaced.
“We had a handle on crime in the city. We were addressing quality of life issues,” Jubilee said. “Today we find ourselves answering 911 calls.”
While officers are still responding quickly to emergencies, there are not enough detectives to investigate crimes, Jubilee said. The Prosecutor’s Office helped by sending six detectives to work in Atlantic City.
The resort is at a crossroads, as Gov. Chris Christie plans state oversight of the city, and safety is one of his prime goals, Jubilee said.
Dr. Howard Barsky, who lives in the Ocean Club, said there have several recent muggings in his complex.
“There’s not enough of a police presence to deter crime,” Barsky said.
Jubilee agreed that is an issue, but said a $3.5 million grant from the Casino Reinvestment Development Authority will provide technology that will improve efficiency for the officers still on duty. For, example, each patrol car will be equipped with a global-positioning device, so dispatchers and supervisors will know the location of every patrol car in the city and officers can respond to calls more quickly.
Association President Brian Thomas said he saw news reports that the Atlantic City crime rate is going up, and that the criminals are bolder because there are fewer officers on the street. People are getting shot, and perpetrators never seem to be arrested.
“It’s happening here, it’s happening in Pleasantville. People are afraid to leave their houses,” Thomas said.
But Jubilee said the city is generally safe.
“If you look at the crime rate based on our residents, it’s pretty bad,” Jubilee said.
But Atlantic City gets about 32 million visitors a year, and half of all casino employees come into the city to work, he said. The police are concentrating their efforts on the areas of town where past experience indicates crimes are most likely to occur.
“The city is in dire straits because of the budget, but I’m confident we’ll get our officers back,” Jubilee said.
An announcement about bringing back at least some of the laid-off officers may be forthcoming in the next few days, Jubilee said.
Alabama: Crime and Corruption
Prosecutor: Wire taps for 2 Alabama casino owners
By PHILLIP RAWLS
A federal prosecutor revealed Thursday that investigators tapped the phone calls of two casino owners and a casino lobbyist before issuing indictments in Alabama's gambling probe.
Justice Department prosecutor Peter Ainsworth said in a court hearing that investigators recorded thousands of phone calls involving VictoryLand owner Milton McGregor, Country Crossing developer Ronnie Gilley and that casino's lobbyist Jarrod Massey.
Those three and eight others were arrested Oct. 4, accused of buying and selling votes on pro-gambling legislation. The indictment recounted phone conversations between some of them, but it did not reveal publicly which parties' phones were tapped. The first public disclosure came Thursday.
Prosecutors have given defense attorneys tape recordings of 3,000 intercepted calls they say are pertinent to the bribery and conspiracy charges against the defendants. A federal judge will hold a hearing Wednesday on whether prosecutors must turn over several thousand more.
Ainsworth said more than 1,000 of the calls were between defendants and their attorneys or their spouses, and 7,800 were not pertinent to the investigation.
"It might have been a conversation about a golf game or Saturday's football game," he said.
In addition to the tapes of 3,000 phone calls, defense attorneys said they have received more than 100,000 pages of documents from prosecutors. Turning over that information is required of prosecutors so defense attorneys can prepare for a trial scheduled April 4.
The federal investigation coincided with Gov. Bob Riley's gambling task force working to shut down all non-Indian casinos in Alabama. McGregor's VictoryLand in Shorter and Gilley's Country Crossing in Dothan closed their electronic bingo casinos to prevent raids by Riley's task force.
By PHILLIP RAWLS
A federal prosecutor revealed Thursday that investigators tapped the phone calls of two casino owners and a casino lobbyist before issuing indictments in Alabama's gambling probe.
Justice Department prosecutor Peter Ainsworth said in a court hearing that investigators recorded thousands of phone calls involving VictoryLand owner Milton McGregor, Country Crossing developer Ronnie Gilley and that casino's lobbyist Jarrod Massey.
Those three and eight others were arrested Oct. 4, accused of buying and selling votes on pro-gambling legislation. The indictment recounted phone conversations between some of them, but it did not reveal publicly which parties' phones were tapped. The first public disclosure came Thursday.
Prosecutors have given defense attorneys tape recordings of 3,000 intercepted calls they say are pertinent to the bribery and conspiracy charges against the defendants. A federal judge will hold a hearing Wednesday on whether prosecutors must turn over several thousand more.
Ainsworth said more than 1,000 of the calls were between defendants and their attorneys or their spouses, and 7,800 were not pertinent to the investigation.
"It might have been a conversation about a golf game or Saturday's football game," he said.
In addition to the tapes of 3,000 phone calls, defense attorneys said they have received more than 100,000 pages of documents from prosecutors. Turning over that information is required of prosecutors so defense attorneys can prepare for a trial scheduled April 4.
The federal investigation coincided with Gov. Bob Riley's gambling task force working to shut down all non-Indian casinos in Alabama. McGregor's VictoryLand in Shorter and Gilley's Country Crossing in Dothan closed their electronic bingo casinos to prevent raids by Riley's task force.
The Holyoke Gettysburg Connection
The Casino Vulture salivating to suck discretionary income from the poorest community in the Commonwealth, Holyoke, has steadfastly embraced Gettysburg.
This is never for altruistic reasons, but enriching the already wealthy. That's why they target the poorest among us.
The Pennsylvania Gaming Control Board will hold hearings Nov. 16 and 17 in Harrisburg on the four applications for the state’s last Category 3 license to operate a casino at a resort hotel.
According to the board the purpose is “to hear directly from the applicants on their eligibility…, suitability to gain licensure, and why their project is better than the other applicants.”
Applicants will be questioned “about their character, operational and financial suitability, diversity plans, community impact, plans for the prevention of compulsive gaming and other issues.”
The applicants are:
Mason-Dixon Resorts LP, to be located at the Eisenhower Hotel, Conference Center and Resort in Cumberland Township, Adams County;
Woodlands Fayette LLC, to be located at the Nemacolin Woodlands Resort, Wharton Township, Fayette County;
Penn Harris Gaming LP, to be located at the Holiday Inn Harrisburg West, Hampden Township, Cumberland County (next to Adams County); and
Bushkill Group Inc., to be located at the Fernwood Hotel and Resort, Middle Smithfield Township, Monroe County.
More information is at www.pgcb.state.pa.us. The last day for people to send their opinions to the board was Oct. 31.
- - -
Gov. Ed Rendell made news during a call-in show on the Pennsylvania Cable Network Sept. 16 when he opposed the Gettysburg casino.
Caller Dan Siderio, a longtime opponent of casinos in Gettysburg, reminded Rendell that the governor had opposed the 2006 proposed casino because it was too close to a historic site. He asked the governor’s position on the current proposal for a casino at the Eisenhower Hotel & Conference Center on Emmitsburg Road.
Rendell replied: “Well, I’m still opposed to it. David LeVan, who is the main proponent of this, is a good friend of mine and was a big contributor to my campaign, and I love David. But I just think that it’s the wrong place for a casino.”
Rendell noted that he does not have a vote on the matter. Oct. 31 was the last day for people to give their views to the Pennsylvania Gaming Control Board that will issue the gaming license.
A video of Rendell’s remarks and the congratulatory letter he received from the coalition of preservation groups that oppose the casino can be viewed at the Civil War Preservation Trust site, www.civilwar.org.
- - -
Ed Bearss led a Sept. 21 press conference at the State Capitol to announce formation of Veterans for Gettysburg, a group opposed to the casino, of which Bearss is co-chairman. They released a letter to the Gaming Control Board from veterans (posted at www.ipetitions.com/petition/veteransforgettysburg).
Bearss said, “When I answered the call to serve my country in World War II, I felt a kinship with all those soldiers who had come before me. I believe I am duty-bound to honor the legacy of their service.”
Appearing with Bearss were American Legion Executive Director Peter Gaytan and Vietnam Veterans Memorial Fund President Jan Scruggs. Gaytan said, “We need to be sensitive to the fact that this is a hallowed ground resting place for our brothers-in-arms and protect it from such inappropriate development.”
A month earlier when national commander Clarence E. Hill condemned the casino local Legion members were furious, their commander saying they weren’t consulted, they were neutral and Hill didn’t know what he was talking about.
- - -
Fox News ran an admittedly unscientific poll in August when it covered the casino debate, including the American Legion commander’s statement and the preservation coalition’s economic impact report. The results of 2,690 votes was 195, or 7.25 percent, supporting the casino and 2,495 opposed.
- - -
Two casino opponents looked at economics and infrastructure.
Keith Miller, a Connecticut member of No Casino Gettysburg, who has represented the group in debates and at a meeting with the governor, noted the long history of greed in Gettysburg, going back to the trolley line through Devil’s Den and including the National Tower to other developments.
“The proposed casino will extract more for state gambling taxes and investor profits than it leaves in low skill, low wage, high turnover jobs,” he said. “The investors get rich, the community gets poorer, and the nation’s past is polluted.”
His analysis shows the casino would be patronized by locals and existing visitors who will redirect their spending from existing businesses, causing job loss as people redirect their spending from prior patterns, like dinner at the Lincoln Diner, to the casino buffet and slots.
“Social costs from gambling addictions created by this local casino will be devastating for many local families and employers,” Miller warned.
Craig Caba, a former president of the Gettysburg Battlefield Preservation Association, whose officers supported the casino — he voted against — sent the state board his analysis of transportation and roads relevant to the Gettysburg and Hampden Township casino proposals.
Caba noted that the Hampden Township site “has direct and modern well-developed roads and bridges, linking all directions of the compass.”
It is easily reached by the population 70 miles away and is within 20 miles of Carlisle, Harrisburg and Hershey, a large population with a diverse and stable economy served by public transportation.
The Gettysburg site is on Old Route 15, the Emmitsburg Road, which is designated a National Heritage Area along the Journey Through Hallowed Ground National Scenic Byway that runs from Gettysburg to Charlottesville, Va.
Caba noted the road is two lanes wide with historical markers on both sides. He noted safety concerns as well as costs of road and traffic improvements and possible legal challenges.
The site does not have east-west access or a beltway connecting other highways, Caba noted, and Old Route 15 runs through Gettysburg National Military Park and the town, which has severe traffic congestion. New Route 15 is intersected by 32 roads between Gettysburg and Frederick, Md., and more to Harrisburg, all creating traffic and safety concerns.
He questioned, “How can the lack of connecting highways linking populous and prosperous areas of all Central Pennsylvania be resolved for Adams County when the infrastructure does not exist and it has rural population numbers?”
This is never for altruistic reasons, but enriching the already wealthy. That's why they target the poorest among us.
Gettysburg Casino Debate Continues;
Gaming Control Board Sets Hearings
By Kathryn Jorgensen
(November 2010 Civil War News)
Gaming Control Board Sets Hearings
By Kathryn Jorgensen
(November 2010 Civil War News)
The Pennsylvania Gaming Control Board will hold hearings Nov. 16 and 17 in Harrisburg on the four applications for the state’s last Category 3 license to operate a casino at a resort hotel.
According to the board the purpose is “to hear directly from the applicants on their eligibility…, suitability to gain licensure, and why their project is better than the other applicants.”
Applicants will be questioned “about their character, operational and financial suitability, diversity plans, community impact, plans for the prevention of compulsive gaming and other issues.”
The applicants are:
Mason-Dixon Resorts LP, to be located at the Eisenhower Hotel, Conference Center and Resort in Cumberland Township, Adams County;
Woodlands Fayette LLC, to be located at the Nemacolin Woodlands Resort, Wharton Township, Fayette County;
Penn Harris Gaming LP, to be located at the Holiday Inn Harrisburg West, Hampden Township, Cumberland County (next to Adams County); and
Bushkill Group Inc., to be located at the Fernwood Hotel and Resort, Middle Smithfield Township, Monroe County.
More information is at www.pgcb.state.pa.us. The last day for people to send their opinions to the board was Oct. 31.
- - -
Gov. Ed Rendell made news during a call-in show on the Pennsylvania Cable Network Sept. 16 when he opposed the Gettysburg casino.
Caller Dan Siderio, a longtime opponent of casinos in Gettysburg, reminded Rendell that the governor had opposed the 2006 proposed casino because it was too close to a historic site. He asked the governor’s position on the current proposal for a casino at the Eisenhower Hotel & Conference Center on Emmitsburg Road.
Rendell replied: “Well, I’m still opposed to it. David LeVan, who is the main proponent of this, is a good friend of mine and was a big contributor to my campaign, and I love David. But I just think that it’s the wrong place for a casino.”
Rendell noted that he does not have a vote on the matter. Oct. 31 was the last day for people to give their views to the Pennsylvania Gaming Control Board that will issue the gaming license.
A video of Rendell’s remarks and the congratulatory letter he received from the coalition of preservation groups that oppose the casino can be viewed at the Civil War Preservation Trust site, www.civilwar.org.
- - -
Ed Bearss led a Sept. 21 press conference at the State Capitol to announce formation of Veterans for Gettysburg, a group opposed to the casino, of which Bearss is co-chairman. They released a letter to the Gaming Control Board from veterans (posted at www.ipetitions.com/petition/veteransforgettysburg).
Bearss said, “When I answered the call to serve my country in World War II, I felt a kinship with all those soldiers who had come before me. I believe I am duty-bound to honor the legacy of their service.”
Appearing with Bearss were American Legion Executive Director Peter Gaytan and Vietnam Veterans Memorial Fund President Jan Scruggs. Gaytan said, “We need to be sensitive to the fact that this is a hallowed ground resting place for our brothers-in-arms and protect it from such inappropriate development.”
A month earlier when national commander Clarence E. Hill condemned the casino local Legion members were furious, their commander saying they weren’t consulted, they were neutral and Hill didn’t know what he was talking about.
- - -
Fox News ran an admittedly unscientific poll in August when it covered the casino debate, including the American Legion commander’s statement and the preservation coalition’s economic impact report. The results of 2,690 votes was 195, or 7.25 percent, supporting the casino and 2,495 opposed.
- - -
Two casino opponents looked at economics and infrastructure.
Keith Miller, a Connecticut member of No Casino Gettysburg, who has represented the group in debates and at a meeting with the governor, noted the long history of greed in Gettysburg, going back to the trolley line through Devil’s Den and including the National Tower to other developments.
“The proposed casino will extract more for state gambling taxes and investor profits than it leaves in low skill, low wage, high turnover jobs,” he said. “The investors get rich, the community gets poorer, and the nation’s past is polluted.”
His analysis shows the casino would be patronized by locals and existing visitors who will redirect their spending from existing businesses, causing job loss as people redirect their spending from prior patterns, like dinner at the Lincoln Diner, to the casino buffet and slots.
“Social costs from gambling addictions created by this local casino will be devastating for many local families and employers,” Miller warned.
Craig Caba, a former president of the Gettysburg Battlefield Preservation Association, whose officers supported the casino — he voted against — sent the state board his analysis of transportation and roads relevant to the Gettysburg and Hampden Township casino proposals.
Caba noted that the Hampden Township site “has direct and modern well-developed roads and bridges, linking all directions of the compass.”
It is easily reached by the population 70 miles away and is within 20 miles of Carlisle, Harrisburg and Hershey, a large population with a diverse and stable economy served by public transportation.
The Gettysburg site is on Old Route 15, the Emmitsburg Road, which is designated a National Heritage Area along the Journey Through Hallowed Ground National Scenic Byway that runs from Gettysburg to Charlottesville, Va.
Caba noted the road is two lanes wide with historical markers on both sides. He noted safety concerns as well as costs of road and traffic improvements and possible legal challenges.
The site does not have east-west access or a beltway connecting other highways, Caba noted, and Old Route 15 runs through Gettysburg National Military Park and the town, which has severe traffic congestion. New Route 15 is intersected by 32 roads between Gettysburg and Frederick, Md., and more to Harrisburg, all creating traffic and safety concerns.
He questioned, “How can the lack of connecting highways linking populous and prosperous areas of all Central Pennsylvania be resolved for Adams County when the infrastructure does not exist and it has rural population numbers?”
Thursday, October 28, 2010
Crime and Corruption Ohio Style
Lawyer wants ethics action on Bortz
Accusing Cincinnati City Councilman Chris Bortz of ignoring advice from the Ohio Ethics Commission to avoid involvement in discussions on the $128 million streetcar project, a local lawyer wants the state panel to remove Bortz from office.
In a three-page letter supported by transcripts and videotapes of recent council sessions, lawyer Tim Mara argues that Bortz's actions at those meetings demonstrate that "advice, warnings, admonitions, directives and public outcry about his conduct are ineffective" in keeping him on the sidelines in discussion over the city's streetcar project.
Bortz dismissed Mara's allegations Thursday as being without merit, adding: "I think Mr. Mara needs a hobby."
Among other things, Mara questioned Bortz's role in deciding how to proceed with hearings on using the roughly $20 million a year City Hall expects to receive from the new Downtown casino - 25 percent of which would go to the streetcar.
Mara also faulted Bortz for saying he will be first in line to oppose any initiative that could prevent casino revenue from paying for streetcar operations.
"I believe Mr. Bortz ... not only has displayed an utter disregard for Ohio ethics laws ... but a general disdain for the public he is supposed to serve," Mara wrote.
Vigorously disputing Mara's characterization of his recent actions, Bortz insisted he has not and will not take part in any discussions or votes on the streetcar.
"I've done what I promised to do - to not get involved in anything to do with the streetcar while it's in this fledgling status," Bortz added.
Mara's Oct. 25 letter to the ethics panel expands upon a complaint he filed last spring in which he argued the Bortz family's properties along the Downtown-to-Uptown route pose a conflict of interest that preclude the councilman from taking part in any streetcar debates or actions.
At a hearing in May, the ethics panel unanimously approved a draft opinion that, while not specifically naming Bortz, emphasized that a council member in his circumstances would be prohibited from "discussing, deliberating about, voting on or participating in any other way" on streetcar issues.
Bortz, while questioning the panel's opinion, pledged at the time to abide by it. "For now, I'm going to err on the side of caution."
Mara, however, contends Bortz's recent involvement in the casino revenue discussions inevitably brought him into contact with the streetcar issue.
While Bortz abstained from voting with a council majority to tentatively direct casino money to the streetcar, that alone, Mara argues, does not rule out potential conflicts, because the casino and streetcar issues are inextricably linked.
In short, Mara says, any council discussion about the casino money is by its nature also a discussion about the streetcar, given that a share of the revenue generated by the former project will flow to the latter.
By taking part in closed-door meetings and public sessions where the casino money was discussed, Bortz violated the strict guideline handed down by the ethics commission, Mara said.
"Although separate motions were made and separate votes were taken to allow Bortz to abstain from casting a vote on the allocation for streetcars, the availability of 25 percent for streetcars was clearly dependent upon there being no push by Mr. Bortz for those funds to be allocated to other city projects," Mara said. "Mr. Bortz should have recused himself from all deliberations regarding the allocation of streetcar revenues."
Bortz's actions, Mara argued, have tainted council's streetcar decisions. "Trust can only be restored if Mr. Bortz is removed so that the citizens of Cincinnati will know that decisions are being made in their best interest and not for the personal financial gain of one of their elected officials," he wrote.
Bortz said he believes he can operate within the ethics panel's policy by limiting his involvement in casino debates to non-streetcar uses. Since the initial complaint was filed with the ethics commission more than five months ago, Bortz said he has not been informed of any action on the matter. Under the extraordinary confidentiality rules that govern commission investigations, even a ruling, whenever it comes, may not be officially publicized.
"This just comes with service in public office," Bortz said. "If you're going to advocate for things that are controversial, you run the risk of being pulled into controversy yourself."
Accusing Cincinnati City Councilman Chris Bortz of ignoring advice from the Ohio Ethics Commission to avoid involvement in discussions on the $128 million streetcar project, a local lawyer wants the state panel to remove Bortz from office.
In a three-page letter supported by transcripts and videotapes of recent council sessions, lawyer Tim Mara argues that Bortz's actions at those meetings demonstrate that "advice, warnings, admonitions, directives and public outcry about his conduct are ineffective" in keeping him on the sidelines in discussion over the city's streetcar project.
Bortz dismissed Mara's allegations Thursday as being without merit, adding: "I think Mr. Mara needs a hobby."
Among other things, Mara questioned Bortz's role in deciding how to proceed with hearings on using the roughly $20 million a year City Hall expects to receive from the new Downtown casino - 25 percent of which would go to the streetcar.
Mara also faulted Bortz for saying he will be first in line to oppose any initiative that could prevent casino revenue from paying for streetcar operations.
"I believe Mr. Bortz ... not only has displayed an utter disregard for Ohio ethics laws ... but a general disdain for the public he is supposed to serve," Mara wrote.
Vigorously disputing Mara's characterization of his recent actions, Bortz insisted he has not and will not take part in any discussions or votes on the streetcar.
"I've done what I promised to do - to not get involved in anything to do with the streetcar while it's in this fledgling status," Bortz added.
Mara's Oct. 25 letter to the ethics panel expands upon a complaint he filed last spring in which he argued the Bortz family's properties along the Downtown-to-Uptown route pose a conflict of interest that preclude the councilman from taking part in any streetcar debates or actions.
At a hearing in May, the ethics panel unanimously approved a draft opinion that, while not specifically naming Bortz, emphasized that a council member in his circumstances would be prohibited from "discussing, deliberating about, voting on or participating in any other way" on streetcar issues.
Bortz, while questioning the panel's opinion, pledged at the time to abide by it. "For now, I'm going to err on the side of caution."
Mara, however, contends Bortz's recent involvement in the casino revenue discussions inevitably brought him into contact with the streetcar issue.
While Bortz abstained from voting with a council majority to tentatively direct casino money to the streetcar, that alone, Mara argues, does not rule out potential conflicts, because the casino and streetcar issues are inextricably linked.
In short, Mara says, any council discussion about the casino money is by its nature also a discussion about the streetcar, given that a share of the revenue generated by the former project will flow to the latter.
By taking part in closed-door meetings and public sessions where the casino money was discussed, Bortz violated the strict guideline handed down by the ethics commission, Mara said.
"Although separate motions were made and separate votes were taken to allow Bortz to abstain from casting a vote on the allocation for streetcars, the availability of 25 percent for streetcars was clearly dependent upon there being no push by Mr. Bortz for those funds to be allocated to other city projects," Mara said. "Mr. Bortz should have recused himself from all deliberations regarding the allocation of streetcar revenues."
Bortz's actions, Mara argued, have tainted council's streetcar decisions. "Trust can only be restored if Mr. Bortz is removed so that the citizens of Cincinnati will know that decisions are being made in their best interest and not for the personal financial gain of one of their elected officials," he wrote.
Bortz said he believes he can operate within the ethics panel's policy by limiting his involvement in casino debates to non-streetcar uses. Since the initial complaint was filed with the ethics commission more than five months ago, Bortz said he has not been informed of any action on the matter. Under the extraordinary confidentiality rules that govern commission investigations, even a ruling, whenever it comes, may not be officially publicized.
"This just comes with service in public office," Bortz said. "If you're going to advocate for things that are controversial, you run the risk of being pulled into controversy yourself."
Atlantic City has been very painful for Pinnacle
Pinnacle says it won’t sell A.C. land dirt-cheap
By Wayne Parry
ATLANTIC CITY - Pinnacle Entertainment, whose plans for a mega-casino resort on the Atlantic City Boardwalk shriveled and died when the economy crashed, says it won't sell its land here dirt-cheap.
The Las Vegas company bought most of the nearly 20-acre site for $270 million from entities affiliated with billionaire investor Carl Icahn four years ago and later added nearby land worth another $70 million.
The company said the land's current book value is $38 million. But Pinnacle said it's content to hold out until a better deal turns up. [$340 million for a property now worth $38 million?]
"Atlantic City has been very painful for Pinnacle," the company's president and CEO Anthony Sanfilippo said on a conference call this morning.
But, he added, "We are not going to exit Atlantic City in a giveaway fashion. A lot of land was acquired. That's a pretty prime piece of real estate. We want to make sure we get the appropriate value for it."
Pinnacle imploded the Sands Casino Hotel in 2007 to make way for a beach house-themed resort in a wave of new investment that several developers proposed for the nation's second-largest gambling market - before the bottom fell out of the economy.
Of four Atlantic City projects then on the drawing board that were worth a combined $10 billion, only one proceeded, the Revel casino. It ran out of money halfway through construction; about $1 billion worth of work remains on the interior of the development, which officials consider too far along to abandon.
Since then, some New Jersey lawmakers have proposed changing state law to enable developers to build smaller casinos with as few as 200 rooms, down from the current 500-room minimum.
On the conference call, a stock analyst asked Sanfilippo whether Pinnacle might consider using its Atlantic City land for such a scaled-down casino if it could not get an acceptable price for its land here.
"Sure, it's a possibility," Sanfilippo said.
But Kerry Andersen, a Pinnacle spokeswoman, said after the call that there are no plans for Pinnacle to do anything with the land other than sell it for a decent price.
By Wayne Parry
ATLANTIC CITY - Pinnacle Entertainment, whose plans for a mega-casino resort on the Atlantic City Boardwalk shriveled and died when the economy crashed, says it won't sell its land here dirt-cheap.
The Las Vegas company bought most of the nearly 20-acre site for $270 million from entities affiliated with billionaire investor Carl Icahn four years ago and later added nearby land worth another $70 million.
The company said the land's current book value is $38 million. But Pinnacle said it's content to hold out until a better deal turns up. [$340 million for a property now worth $38 million?]
"Atlantic City has been very painful for Pinnacle," the company's president and CEO Anthony Sanfilippo said on a conference call this morning.
But, he added, "We are not going to exit Atlantic City in a giveaway fashion. A lot of land was acquired. That's a pretty prime piece of real estate. We want to make sure we get the appropriate value for it."
Pinnacle imploded the Sands Casino Hotel in 2007 to make way for a beach house-themed resort in a wave of new investment that several developers proposed for the nation's second-largest gambling market - before the bottom fell out of the economy.
Of four Atlantic City projects then on the drawing board that were worth a combined $10 billion, only one proceeded, the Revel casino. It ran out of money halfway through construction; about $1 billion worth of work remains on the interior of the development, which officials consider too far along to abandon.
Since then, some New Jersey lawmakers have proposed changing state law to enable developers to build smaller casinos with as few as 200 rooms, down from the current 500-room minimum.
On the conference call, a stock analyst asked Sanfilippo whether Pinnacle might consider using its Atlantic City land for such a scaled-down casino if it could not get an acceptable price for its land here.
"Sure, it's a possibility," Sanfilippo said.
But Kerry Andersen, a Pinnacle spokeswoman, said after the call that there are no plans for Pinnacle to do anything with the land other than sell it for a decent price.
Could you tell Beacon Hill?
State lawmakers back suit against Glendale casino
PHOENIX -- Thirteen Arizona lawmakers have hopped on board a lawsuit aimed at stopping the Tohono O'odham Nation from building a Las Vegas-style casino in Glendale.
Republican State Sen. Russell Pearce is leading the charge. He says the state has a compact with Native American tribes that specifies no more casinos in Maricopa County.
"You violate that, it opens the floodgates for casinos all over the state, potentially," Pearce said Thursday as he and a dozen other Republicans announced they have filed a motion to intervene in a federal court suit filed by the city of Glendale.
"I think it's destructive," Pearce said. "There's evidence out that shows the cost for every dollar these casinos bring in costs the taxpayers about 2.1 dollars in social costs. It's a dangerous thing."
NO KIDDING? COULD YOU TELL BEACON HILL?
He also noted the proposed casino site is across the street from a high school.
Three separate lawsuits have been filed trying to stop the Tohono O'odham from getting reservation status for 54 acres of land it purchased years ago in the area of Westgate and the University of Phoenix Stadium, home to the Arizona Cardinals. Arizona law restricts casinos to reservation land. The 54 acres is miles from the Tohono O'odham reservation proper, which is located west of Tucson. [Casino Shopping, anyone?]
The suits were filed by the city of Glendale, the Gila River Indian Community and three individual members of the Gila River Indian Community.
Supporters of the casino in Glendale claim it is allowed under a law signed by President Reagan in 1986.
PHOENIX -- Thirteen Arizona lawmakers have hopped on board a lawsuit aimed at stopping the Tohono O'odham Nation from building a Las Vegas-style casino in Glendale.
Republican State Sen. Russell Pearce is leading the charge. He says the state has a compact with Native American tribes that specifies no more casinos in Maricopa County.
"You violate that, it opens the floodgates for casinos all over the state, potentially," Pearce said Thursday as he and a dozen other Republicans announced they have filed a motion to intervene in a federal court suit filed by the city of Glendale.
"I think it's destructive," Pearce said. "There's evidence out that shows the cost for every dollar these casinos bring in costs the taxpayers about 2.1 dollars in social costs. It's a dangerous thing."
NO KIDDING? COULD YOU TELL BEACON HILL?
He also noted the proposed casino site is across the street from a high school.
Three separate lawsuits have been filed trying to stop the Tohono O'odham from getting reservation status for 54 acres of land it purchased years ago in the area of Westgate and the University of Phoenix Stadium, home to the Arizona Cardinals. Arizona law restricts casinos to reservation land. The 54 acres is miles from the Tohono O'odham reservation proper, which is located west of Tucson. [Casino Shopping, anyone?]
The suits were filed by the city of Glendale, the Gila River Indian Community and three individual members of the Gila River Indian Community.
Supporters of the casino in Glendale claim it is allowed under a law signed by President Reagan in 1986.
Crime and Corruption Rhode Island Style
Providence Parks Department Embezzlement Kathleen M. Parsons, a former Parks Department employee, confessed to embezzling and gambling away $26,981 from Parks Department accounts. In a plea bargain with the attorney general, she was sentenced to two years’ unsupervised probation and made full restitution — which does not count as a criminal conviction under Rhode Island law.
State and federally prosecuted public corruption cases in Rhode Island
FAQ’s Federally prosecuted public corruption cases
Operation Plunder Dome Led to the downfall and imprisonment of former Providence Mayor Vincent A. Cianci Jr. and one of his top aides, Frank E. Corrente; the imprisonment of car-garage owner Richard E. Autiello, Joseph A. Pannone, chairman of the city’s tax board; Deputy Tax Assessor Rosemary Glancy and City Collector Anthony E. Annarino Jr.; and home-confinement sentences for David C. Ead, the former vice chairman of the city’s Board of Tax Assessment Review, and lawyers John A. Scungio and Angelo Mosca Jr.
Operation Dollar Bill Resulted in the imprisonment of former state Sen. John A. Celona, for selling his office for personal gain, and the former chief executive officer of Roger Williams Medical Center in Providence, Robert A. Urciuoli, for bribing Celona to promote the hospital’s political agenda at the State House. Also imprisoned as part of Operation Dollar Bill was former House Majority Leader Gerard M. Martineau, who pleaded guilty to a $911,400 corruption scheme in which he sold plastic bags to CVS and Blue Cross & Blue Shield of Rhode Island — including accepting a payment for 8 million Blue Cross bags that never existed — in return for acting favorably on legislation for the companies.
The Lincoln Park Corruption Probe Two Lincoln Park executives, Nigel Potter and Daniel Bucci, were convicted of mail fraud for scheming to pay $4 million in bribes to former House Speaker John B. Harwood. No bribes were paid, but prosecutors successfully argued that the conspiracy was intended to sway Harwood — who was never charged — to use his power to help Lincoln Park secure more video slot machines and to block a rival casino.
The North Providence Corruption Probe Three North Providence councilmen, Joseph S. Burchfield, John A. Zambarano and Raymond L. Douglas III all stand accused of accepting a $25,000 bribe from a developer to support construction of Stop & Shop supermarket. Also charged in the bribery case are former North Providence Town Solicitor Robert S. Ciresi and developer Edward Imondi of North Providence.
State prosecuted cases
Raymond T. “Chip” Hoyas Jr. The former top state Senate aide faces 54 felony charges for allegedly forging the names of Senate pages to steal about $70,000.
Sen. John A. Celona Celona, who headed the powerful Senate Corporations Committee that controlled health-care legislation, was charged by state prosecutors with using his office for personal gain in connection with private financial deals, including one with Roger Williams Medical Center. The case stemmed from a parallel state/federal investigation of State House corruption. After Celona finished serving his 2 1/2-year federal sentence, he was sent to the Adult Correctional Institutions to serve the balance of a 4-year state sentence.
Operation Deception Four Providence police officers — Detective Joseph Colanduono, Patrolman Robert Hamlin, Sgt. Stephen Gonsalves and Detective Robert M. Enright — are charged in an 89-count indictment with being involved in a high-level drug ring.
Blue Cross & Blue Shield of Rhode Island Although no criminal charges were filed, Lynch went after Blue Cross management in 2004, denouncing what he said were the insurer’s special deals for executives and high administrative expenses. In the aftermath, Blue Cross President Ronald A. Battista was terminated without cause and left the company with a $3.1-million severance package.
Beacon Mutual Insurance Co. Two former executives at Beacon, the state’s largest provider of workers’ compensation insurance, stand indicted. David R. Clark is charged with insurance fraud in connection with his work at his former employer; Joseph A. Solomon, the former CEO, is charged with stealing from the company and obtaining money under false pretenses. The charges accuse him of using company proceeds to buy diamond jewelry and having the nonprofit mutual make a $5,000 payment to cover part of the cost of an audio/video system at his home. The state indictments followed a federal probe of Solomon from which no federal charges emerged.
Lincoln Public Corruption Case Former Lincoln Town Administrator Jonathan Oster was found guilty of bribery charges; also convicted was former Lincoln Planning Board member Robert R. Picerno. Prosecutors alleged that the two set up a system to extort money from people doing business in the town. Oster committed suicide in his law office the morning after the jury’s verdict. Picerno was sentenced to 3 years in the Adult Correctional Institutions.
Rhode Island Board of Elections Fraud Case Robert Fontaine, who was the executive director of the board, pleaded no contest to three felony charges of obtaining money under false pretenses. As part of a plea deal, he was ordered to pay $12,175 in restitution; prosecutors recommended no jail time and he got suspended sentences. Fontaine was charged with filing false travel reimbursement requests, putting in for holiday/overtime pay he wasn’t entitled to and arranging to have his daughter and brother paid for time they didn’t work.
Judge Marjorie Yashar Pension Case Attorney general’s office went to court and won a case that slashed former Traffic Tribunal Judge Marjorie R. Yashar’s pension by 25 percent after she began collecting 100 percent of her salary upon retirement. She had taken unpaid leave for eight months before her 20 years of service mark, following her arrest on a domestic simple assault charge that was later dropped. She returned to court for one day in September 2005, after her 20-year anniversary, and retired the next day. Yashar claimed she’d retired only after being promised by the Supreme Court administrator J. Joseph Baxter Jr. that she’d receive a full pension.
Providence Parks Department Embezzlement Kathleen M. Parsons, a former Parks Department employee, confessed to embezzling and gambling away $26,981 from Parks Department accounts. In a plea bargain with the attorney general, she was sentenced to two years’ unsupervised probation and made full restitution — which does not count as a criminal conviction under Rhode Island law.
State and federally prosecuted public corruption cases in Rhode Island
FAQ’s Federally prosecuted public corruption cases
Operation Plunder Dome Led to the downfall and imprisonment of former Providence Mayor Vincent A. Cianci Jr. and one of his top aides, Frank E. Corrente; the imprisonment of car-garage owner Richard E. Autiello, Joseph A. Pannone, chairman of the city’s tax board; Deputy Tax Assessor Rosemary Glancy and City Collector Anthony E. Annarino Jr.; and home-confinement sentences for David C. Ead, the former vice chairman of the city’s Board of Tax Assessment Review, and lawyers John A. Scungio and Angelo Mosca Jr.
Operation Dollar Bill Resulted in the imprisonment of former state Sen. John A. Celona, for selling his office for personal gain, and the former chief executive officer of Roger Williams Medical Center in Providence, Robert A. Urciuoli, for bribing Celona to promote the hospital’s political agenda at the State House. Also imprisoned as part of Operation Dollar Bill was former House Majority Leader Gerard M. Martineau, who pleaded guilty to a $911,400 corruption scheme in which he sold plastic bags to CVS and Blue Cross & Blue Shield of Rhode Island — including accepting a payment for 8 million Blue Cross bags that never existed — in return for acting favorably on legislation for the companies.
The Lincoln Park Corruption Probe Two Lincoln Park executives, Nigel Potter and Daniel Bucci, were convicted of mail fraud for scheming to pay $4 million in bribes to former House Speaker John B. Harwood. No bribes were paid, but prosecutors successfully argued that the conspiracy was intended to sway Harwood — who was never charged — to use his power to help Lincoln Park secure more video slot machines and to block a rival casino.
The North Providence Corruption Probe Three North Providence councilmen, Joseph S. Burchfield, John A. Zambarano and Raymond L. Douglas III all stand accused of accepting a $25,000 bribe from a developer to support construction of Stop & Shop supermarket. Also charged in the bribery case are former North Providence Town Solicitor Robert S. Ciresi and developer Edward Imondi of North Providence.
State prosecuted cases
Raymond T. “Chip” Hoyas Jr. The former top state Senate aide faces 54 felony charges for allegedly forging the names of Senate pages to steal about $70,000.
Sen. John A. Celona Celona, who headed the powerful Senate Corporations Committee that controlled health-care legislation, was charged by state prosecutors with using his office for personal gain in connection with private financial deals, including one with Roger Williams Medical Center. The case stemmed from a parallel state/federal investigation of State House corruption. After Celona finished serving his 2 1/2-year federal sentence, he was sent to the Adult Correctional Institutions to serve the balance of a 4-year state sentence.
Operation Deception Four Providence police officers — Detective Joseph Colanduono, Patrolman Robert Hamlin, Sgt. Stephen Gonsalves and Detective Robert M. Enright — are charged in an 89-count indictment with being involved in a high-level drug ring.
Blue Cross & Blue Shield of Rhode Island Although no criminal charges were filed, Lynch went after Blue Cross management in 2004, denouncing what he said were the insurer’s special deals for executives and high administrative expenses. In the aftermath, Blue Cross President Ronald A. Battista was terminated without cause and left the company with a $3.1-million severance package.
Beacon Mutual Insurance Co. Two former executives at Beacon, the state’s largest provider of workers’ compensation insurance, stand indicted. David R. Clark is charged with insurance fraud in connection with his work at his former employer; Joseph A. Solomon, the former CEO, is charged with stealing from the company and obtaining money under false pretenses. The charges accuse him of using company proceeds to buy diamond jewelry and having the nonprofit mutual make a $5,000 payment to cover part of the cost of an audio/video system at his home. The state indictments followed a federal probe of Solomon from which no federal charges emerged.
Lincoln Public Corruption Case Former Lincoln Town Administrator Jonathan Oster was found guilty of bribery charges; also convicted was former Lincoln Planning Board member Robert R. Picerno. Prosecutors alleged that the two set up a system to extort money from people doing business in the town. Oster committed suicide in his law office the morning after the jury’s verdict. Picerno was sentenced to 3 years in the Adult Correctional Institutions.
Rhode Island Board of Elections Fraud Case Robert Fontaine, who was the executive director of the board, pleaded no contest to three felony charges of obtaining money under false pretenses. As part of a plea deal, he was ordered to pay $12,175 in restitution; prosecutors recommended no jail time and he got suspended sentences. Fontaine was charged with filing false travel reimbursement requests, putting in for holiday/overtime pay he wasn’t entitled to and arranging to have his daughter and brother paid for time they didn’t work.
Judge Marjorie Yashar Pension Case Attorney general’s office went to court and won a case that slashed former Traffic Tribunal Judge Marjorie R. Yashar’s pension by 25 percent after she began collecting 100 percent of her salary upon retirement. She had taken unpaid leave for eight months before her 20 years of service mark, following her arrest on a domestic simple assault charge that was later dropped. She returned to court for one day in September 2005, after her 20-year anniversary, and retired the next day. Yashar claimed she’d retired only after being promised by the Supreme Court administrator J. Joseph Baxter Jr. that she’d receive a full pension.
Providence Parks Department Embezzlement Kathleen M. Parsons, a former Parks Department employee, confessed to embezzling and gambling away $26,981 from Parks Department accounts. In a plea bargain with the attorney general, she was sentenced to two years’ unsupervised probation and made full restitution — which does not count as a criminal conviction under Rhode Island law.
Wednesday, October 27, 2010
Self Exclusion
The Massachusetts House of Representatives barely passed the Self-Exclusion Amendment with members' desire to genuflect before the House Speaker "Racino" DeLeo.
Two of Middleboro's Reprentatives, Tom Calter and Steve Canessa both voted against the Self Exclusion Amendment and ignored requests for an explanation.
Whether we blame it on a willingness to please the Speaker or ignorance of the Industry, how did your Representative vote?
Below, is action Pennsylvania has taken for violation of the self-exclusion policy.
That part Pennsylvania may have gotten right. They just forgot about the kids being left in cars, among other things.
Two of Middleboro's Reprentatives, Tom Calter and Steve Canessa both voted against the Self Exclusion Amendment and ignored requests for an explanation.
Whether we blame it on a willingness to please the Speaker or ignorance of the Industry, how did your Representative vote?
Below, is action Pennsylvania has taken for violation of the self-exclusion policy.
That part Pennsylvania may have gotten right. They just forgot about the kids being left in cars, among other things.
Smack into the face of addiction offers a few responses of the uninformed legislators who passed Casino Legislation at midnight on the 4th of July --
"One thing that we never expected was for people to leave their kids inside their cars while they went inside to gamble," said Fred Harran, Bensalem's public safety director.
"Of all the problems we thought about that were going to happen, this is one thing that was probably inconceivable," State Rep. Gene DiGirolamo (R., Bucks) said at a noon news conference Thursday in Bensalem.
Added State Sen. Robert M. Tomlinson (R., Bucks): "We were all shocked when we first heard of these incidents."
"It's amazing to me that legislators are surprised at this stuff," said Paul Boni, a Philadelphia lawyer who has represented anti-casino groups. "You are looking smack into the face of the addiction.
"They are surprised because they haven't thought about it and haven't looked into the issue."
That was shown to be a lowball count when the Louisville (Ky.) Courier-Journal studied Indiana Gaming Commission records to reveal 37 incidents in which 72 children were left unattended at casinos in that state in 1999 and 2000.
Self-Exclusion List Violations Lead to $40,000 Fine for PA Casino
HARRISBURG, Pa., Oct. 27
The Pennsylvania Gaming Control Board today fined Mount Airy #1 LLC, operator of Mount Airy Casino Resort, $40,000 for allowing individuals on the statewide Self-Exclusion List to gain access to the gaming floor and place wagers, and for sending promotional mailings to a self-excluded individual.
The Self-Exclusion Program is administered by the PGCB and assists problem gamblers who choose to ban themselves from gambling at Pennsylvania casinos. Once a person is placed on the Self-Exclusion List, gaming facilities in the Commonwealth must refuse wagers from, and deny gaming privileges to, a self-excluded person, including issuance of a player's club membership. The casino must also remove self-excluded persons from targeted mailings and other forms of advertising or promotions. If an individual on the Self-Exclusion List enters a Pennsylvania casino, they will be subject to arrest for trespass.
The civil penalties, unanimously approved by the Board at its public meeting Wednesday in Harrisburg, were for three incidents in 2009 and one in 2010. The fine was part of a consent agreement between the Board's Office of Enforcement Counsel and the operator of the Monroe County casino.
The first incident involved an individual on the Self-Exclusion List who gamed at Mount Airy Casino Resort over the course of four days. During the four-day period from July 20-23, 2009, the self excluded individual gamed and opened a check cashing account with a Mount Airy cashier and cashed checks on five separate occasions.
The second incident involved an individual on the Self-Exclusion List who gamed at Mount Airy on September 25, 2009, and was paid a jackpot in the amount of $2,515.
The third incident involved an individual on the Self-Exclusion List who gamed at Mount Airy on July 23, 2009, September 23, 2009 and November 28.
The fourth incident involved a self-excluded individual who received six separate mailings from Mount Airy regarding promotions that were running between February 2010 and April 2010.
This is the fourth time a casino in Pennsylvania has been fined for Self-Exclusion List violations. The first two fines were levied on the Meadows Racetrack and Casino in December 2009 for $5,000 and in April 2010 for $20,000. The third fine was against Parx Casino in April 2010 for $10,000.
About the Pennsylvania Gaming Control Board
The Pennsylvania Gaming Control Board was established in 2004 with the passage of Act 71, also known as the Race Horse Development and Gaming Act. Pennsylvania's first new state agency in nearly 40 years, the Gaming Control Board is tasked to oversee all aspects of the state's casino industry. To date, with ten casinos in operation, legalized gaming in the Commonwealth has created over 13,000 new living wage jobs [Translation: Keep adding political manure and the number will keep growing. This ovestates the numbers reported elsewhere], revenue that has provided property tax reduction in each of the past three years for all homeowners, funds that have reinvigorated Pennsylvania's horse racing industry, and new revenue to local governments that has funded scores of community projects [And left children abandoned in parking lots because legislators failed to conduct their due diligence]. A wealth of information about the Gaming Control Board and Pennsylvania's gaming industry can be found at http://www.pgcb.state.pa.us/.
Bristol Community College: Exploiting Suckers
It appears that our taxes are already supporting the gambling industry's infiltration to "higher education" in Massachusetts at Bristol Community College, Fall River. What will we be asked to pay for next - high school electives on exploiting suckers versus the value of work ethic? Poker and potty-training?
This is a direct result of wrong-headed thinking by Beacon Hill leadership. Please tell your elected officials and the college's administration what you think about these classes in taxpayer supported institutions of "higher education".
This is a direct result of wrong-headed thinking by Beacon Hill leadership. Please tell your elected officials and the college's administration what you think about these classes in taxpayer supported institutions of "higher education".
Fall River Herald News: All Fluff and No Substance
One might want to believe that the purpose of a newspaper is to enlighten, inform, educate and present both sides of an issue.
It's impossible to determine if the one-sided version consistently presented by the Fall River Herald News is caused by threats, promises of future revenue, or corporate ownership dictating propaganda.
Instead, as usual the Fall River Herald succeeds is appearing like the Casino Cheerleader and offers a flawed 'poll' that fails to even include an opportunity for readers to indicate their opposition.
Has the Fall River Herald News ever raised the matter of the failure to consider the impacts and costs, which will be steep?
Bangor experienced a 40% increase in crime. What will that cost Fall River?
From the New Hamspire GSC Report [page 17]:
Substitution effect
Some jobs and other economic activity created by the expansion of legalized gaming will come at the expense of non-gaming businesses, including local restaurants and other entertainment venues. This substitution effect (also known as cannibalization) will be especially pronounced if the gaming operation attracts customers mainly from within the state. If a facility is close to the state border, the substitution effect will lessen. At the same time, the substitution effect means that one section of the state may benefit economically at the expense of another.
It's impossible to determine if the one-sided version consistently presented by the Fall River Herald News is caused by threats, promises of future revenue, or corporate ownership dictating propaganda.
Instead, as usual the Fall River Herald succeeds is appearing like the Casino Cheerleader and offers a flawed 'poll' that fails to even include an opportunity for readers to indicate their opposition.
Has the Fall River Herald News ever raised the matter of the failure to consider the impacts and costs, which will be steep?
Bangor experienced a 40% increase in crime. What will that cost Fall River?
From the New Hamspire GSC Report [page 17]:
Substitution effect
Some jobs and other economic activity created by the expansion of legalized gaming will come at the expense of non-gaming businesses, including local restaurants and other entertainment venues. This substitution effect (also known as cannibalization) will be especially pronounced if the gaming operation attracts customers mainly from within the state. If a facility is close to the state border, the substitution effect will lessen. At the same time, the substitution effect means that one section of the state may benefit economically at the expense of another.
The substitution effect can also apply to out-of-state visitors if they spend money at casinos that they would otherwise spend on other entertainment or tourism activity in the state.
What will cannibalization cost Fall River?
Or what of the other major issues raised by Spectrum Gaming Group in the CT DOSR Report? Excerpts here.
That report and many others may be found on the United to Stop Slots in Massachusetts web site. Maybe someone could point that out to the Fall River Herald News.
The FRHN continues to repeat the wildly exaggerated job figures provided by the Tribe, among other things.
For $500 million, poor Fall River will get a Slot Barn, increased crime and little else.
Has the FRHN even raised the issue of the lack of an "Agreement" ? Where's the 'slots participation' and other revenue that should be included?
If the annual cost estimates are in excess of $20 million, where does that come from?
All I see is Fluff and No Substance. Does information stop at the Fall River border?
Poll below:
The Redevelopment Authority’s
recently amended land sale to
an Indian tribe to bring a
casino resort and bio-manufacturing
center to Fall River prompted a
lawsuit by 10 citizens. What's
your take?
The RA and Mayor Will Flanagan are on
the right track to creating
jobs and
improving the economy.
The RA and Flanagan are dreaming.
This will never happen.
It’s too early to tell.
The RA
and Mayor Will Flanagan are on the
right track to creating jobs and
improving the economy. 39%
The RA and Flanagan are dreaming. This will
never happen. 41%
It’s too early to tell. 19%
Total votes: 141
Tuesday, October 26, 2010
Gambling: Youths most at risk
Youths are the most vulnerable to gambling vices
What will happen if the lottery and casino gambling are voted in? Our citizens most vulnerable to these vices are our youths.
The U.S. National Gambling Impact Study Commission recently concluded: "One of the most troubling aspects of problem and pathological gambling is its prevalence among youth and adolescents." Get the facts at the website http://thegamble.org/f_facts.htm .
The most striking to me was the Louisiana State University survey of 12,000 adolescents, which found that 86 percent had gambled, including many on legal forms; 32 percent gambled on lotteries; 24 percent on video poker; 16 percent on slot machines; and one in 10 had bet on horse or dog racing.
Should we invite these gambling pressures into Alabama for our young folks to deal with? I think not.
Gambling also increases corruption of people and government and causes an increase in crime and drug abuse. You can find those facts at http://spgfoundation.org/crime%20and%20corruption.htm . Recall a past gubernatorial candidate promoting a state lottery was convicted on corruption charges. Recent corruption charges of four Alabama senators in the federal gambling probe will likewise add emphasis to this Internet report.
Joseph Connaughton
Huntsville
What will happen if the lottery and casino gambling are voted in? Our citizens most vulnerable to these vices are our youths.
The U.S. National Gambling Impact Study Commission recently concluded: "One of the most troubling aspects of problem and pathological gambling is its prevalence among youth and adolescents." Get the facts at the website http://thegamble.org/f_facts.htm .
The most striking to me was the Louisiana State University survey of 12,000 adolescents, which found that 86 percent had gambled, including many on legal forms; 32 percent gambled on lotteries; 24 percent on video poker; 16 percent on slot machines; and one in 10 had bet on horse or dog racing.
Should we invite these gambling pressures into Alabama for our young folks to deal with? I think not.
Gambling also increases corruption of people and government and causes an increase in crime and drug abuse. You can find those facts at http://spgfoundation.org/crime%20and%20corruption.htm . Recall a past gubernatorial candidate promoting a state lottery was convicted on corruption charges. Recent corruption charges of four Alabama senators in the federal gambling probe will likewise add emphasis to this Internet report.
Joseph Connaughton
Huntsville
Monday, October 25, 2010
Maine 'Casino": Wouldn't serve the community
Wouldn't serve the community
I am proud that the delegates of the Oxford-Union Association of the United Church of Christ voted recently to oppose the referendum on a casino in Oxford County. The Oxford Clergy Association brought the concerns about increased gambling to the church gathering.
Specifically, the delegates said a casino will bring increased traffic congestion, further disruption in the quality of life, increased crime and increased gambling addiction. Gambling is not consistent with the Christian ethos of honest pay for honest work. The false promise of unearned wealth is not merely harmless entertainment — it undermines the foundation of healthy lives and a healthy community.
In addition, the Maine Legislature, the governor of Maine and Maine voters in a 2002 referendum have already rejected gambling proposals by the Passamaquoddy tribe and the Penobscot Nation.
Although the delegates fully recognize the pressing need for jobs in Oxford County, this kind of employment doesn’t serve the community well or embody the values the United Church of Christ traditionally stands for.
We hope people will think honestly about the type of jobs and other problems a casino would bring to the town of Oxford.
The churches took a stand to recommend a "no" vote on Question 1.
Jane Chandler, Bryant Pond
for the Oxford-Union Association United Church of Christ
I am proud that the delegates of the Oxford-Union Association of the United Church of Christ voted recently to oppose the referendum on a casino in Oxford County. The Oxford Clergy Association brought the concerns about increased gambling to the church gathering.
Specifically, the delegates said a casino will bring increased traffic congestion, further disruption in the quality of life, increased crime and increased gambling addiction. Gambling is not consistent with the Christian ethos of honest pay for honest work. The false promise of unearned wealth is not merely harmless entertainment — it undermines the foundation of healthy lives and a healthy community.
In addition, the Maine Legislature, the governor of Maine and Maine voters in a 2002 referendum have already rejected gambling proposals by the Passamaquoddy tribe and the Penobscot Nation.
Although the delegates fully recognize the pressing need for jobs in Oxford County, this kind of employment doesn’t serve the community well or embody the values the United Church of Christ traditionally stands for.
We hope people will think honestly about the type of jobs and other problems a casino would bring to the town of Oxford.
The churches took a stand to recommend a "no" vote on Question 1.
Jane Chandler, Bryant Pond
for the Oxford-Union Association United Church of Christ
Sunday, October 24, 2010
Nevada: More Budget Shortfalls
Nevada, the State of the Casinos, for the Casinos and by the Casinos is facing severe budget problems that threaten to continue and worsen as the recession continues, market saturation explodes and the House of Cards erected on the foundation of "Something for Nothing" pays dividends.
Property taxes: Falling revenues add another hit to state budget
Statewide property tax revenues are projected to drop 18.69 percent this fiscal year, causing yet another multimillion-dollar hit to the state budget.
That is the projection the Budget Division is using to build the state budget for the coming biennium. While the state only uses 17 cents of the maximum $3.64 per $100 of assessed valuation rate, the state is on the hook for the decrease in revenue from the 75-cent portion each school district receives. The law requires the state to make up any shortfall suffered by the school districts.
From a high of $143.5 billion in assessed value two years ago, the Department of Taxation's annual property tax report says the value of property in the state of Nevada fell to $119.66 billion as of the fiscal year which ended June 30, an overall drop of 17 percent.
If the valuation drops 18.69 percent this fiscal year as predicted, total assessed values for Nevada will fall another $22 billion to $97.3 billion.
According to projections, that total will take an additional 2.83 percent hit in fiscal 2012 before values begin to rise again.
What that means to the state budget is a $139 million check to Nevada school districts to make up lost property tax revenue in their current budgets.
It also means a $31.5 million reduction in the money the state has for bonded indebtedness, but Mark Winebarger of the Treasurer's Office said barring something unforeseen, the state will have no trouble making bond payments.
Carson City Assessor Dave Dawley said his office has been very conservative in raising assessed values, even freezing them on the west side after the Waterfall Fire. But for the first time, he said, declining values will give about a quarter of the capital's homeowners a reduction in their annual property tax bill — unless supervisors raise the tax rate. In that case, he said no one will see a smaller tax bill.
Because the decline wasn't as severe in Carson as in Clark and Washoe, assessed values for about three-quarters of Carson homes still are higher than the capped valuations used to calculate property taxes. They won't get a tax cut.
The system imposed by the Nevada Legislature in 2005 limited annual increases in a homeowner's taxes to
3 percent. For a business, it's a maximum of 8 percent.
So as home prices rose dramatically from 2000 through 2007 — by double-digit percentages annually in Clark, Washoe and the lake portion of Douglas County — actual tax increases were held low by the caps.
Until and unless the assessed value falls below the taxable value, the property tax bill won't go down.
That has happened in Clark and Washoe counties where the projected declines in valuation are 23 percent and 8 percent respectively, on top of double digit declines the previous year.
But, in the capital, total assessed value dropped just more than 1 percent from $1.84 billion in 2008-09 to $1.827 billion in 2009-10. Because supervisors raised the city's overall rate, revenues actually increased by about $700,000 to more than $60 million.
In Douglas, property owners got some relief as total assessed valuation declined $124 million to $3.368 billion last year. That resulted in a drop of just less than $3.2 million in the $103.6 million in revenue shared between the county, school district and special assessment districts.
Douglas Assessor Doug Sonnemannn said values have since dropped to about $3 billion and he expects they will fall as much as 10 percent more.
The primary cause was casino properties at Stateline receiving substantial devaluations. They did so by using the income model in appeals to the board of equalization, which allows businesses to receive property tax reductions based on a poor business year rather than basing the tax on the value of the property and improvements.
Sonnemann said none of the Tahoe residential properties have fallen to below their taxable value so there will be no decrease in taxes there. Older neighborhoods in the valley, he said, are also unlikely to see any tax decrease because their values have also remained pretty stable.
But he said houses built in the last five to 10 years will probably see a tax decrease because their values rose dramatically and have fallen just as dramatically.
Unlike Carson, Sonnemann said Douglas commissioners can't raise the countywide rate because Minden is at the top allowable tax rate and Indian Hills isn't far behind. But he said homeowners and businesses still valued at above the cap could see the 3 percent and 8 percent increases despite falling property values.
In Churchill County, property values defied the statewide trend and rose from $725.9 million to
$790.8 million, resulting in an increase of $1.8 million in total tax collections to
$24.16 million.
Property taxes: Falling revenues add another hit to state budget
Statewide property tax revenues are projected to drop 18.69 percent this fiscal year, causing yet another multimillion-dollar hit to the state budget.
That is the projection the Budget Division is using to build the state budget for the coming biennium. While the state only uses 17 cents of the maximum $3.64 per $100 of assessed valuation rate, the state is on the hook for the decrease in revenue from the 75-cent portion each school district receives. The law requires the state to make up any shortfall suffered by the school districts.
From a high of $143.5 billion in assessed value two years ago, the Department of Taxation's annual property tax report says the value of property in the state of Nevada fell to $119.66 billion as of the fiscal year which ended June 30, an overall drop of 17 percent.
If the valuation drops 18.69 percent this fiscal year as predicted, total assessed values for Nevada will fall another $22 billion to $97.3 billion.
According to projections, that total will take an additional 2.83 percent hit in fiscal 2012 before values begin to rise again.
What that means to the state budget is a $139 million check to Nevada school districts to make up lost property tax revenue in their current budgets.
It also means a $31.5 million reduction in the money the state has for bonded indebtedness, but Mark Winebarger of the Treasurer's Office said barring something unforeseen, the state will have no trouble making bond payments.
Carson City Assessor Dave Dawley said his office has been very conservative in raising assessed values, even freezing them on the west side after the Waterfall Fire. But for the first time, he said, declining values will give about a quarter of the capital's homeowners a reduction in their annual property tax bill — unless supervisors raise the tax rate. In that case, he said no one will see a smaller tax bill.
Because the decline wasn't as severe in Carson as in Clark and Washoe, assessed values for about three-quarters of Carson homes still are higher than the capped valuations used to calculate property taxes. They won't get a tax cut.
The system imposed by the Nevada Legislature in 2005 limited annual increases in a homeowner's taxes to
3 percent. For a business, it's a maximum of 8 percent.
So as home prices rose dramatically from 2000 through 2007 — by double-digit percentages annually in Clark, Washoe and the lake portion of Douglas County — actual tax increases were held low by the caps.
Until and unless the assessed value falls below the taxable value, the property tax bill won't go down.
That has happened in Clark and Washoe counties where the projected declines in valuation are 23 percent and 8 percent respectively, on top of double digit declines the previous year.
But, in the capital, total assessed value dropped just more than 1 percent from $1.84 billion in 2008-09 to $1.827 billion in 2009-10. Because supervisors raised the city's overall rate, revenues actually increased by about $700,000 to more than $60 million.
In Douglas, property owners got some relief as total assessed valuation declined $124 million to $3.368 billion last year. That resulted in a drop of just less than $3.2 million in the $103.6 million in revenue shared between the county, school district and special assessment districts.
Douglas Assessor Doug Sonnemannn said values have since dropped to about $3 billion and he expects they will fall as much as 10 percent more.
The primary cause was casino properties at Stateline receiving substantial devaluations. They did so by using the income model in appeals to the board of equalization, which allows businesses to receive property tax reductions based on a poor business year rather than basing the tax on the value of the property and improvements.
Sonnemann said none of the Tahoe residential properties have fallen to below their taxable value so there will be no decrease in taxes there. Older neighborhoods in the valley, he said, are also unlikely to see any tax decrease because their values have also remained pretty stable.
But he said houses built in the last five to 10 years will probably see a tax decrease because their values rose dramatically and have fallen just as dramatically.
Unlike Carson, Sonnemann said Douglas commissioners can't raise the countywide rate because Minden is at the top allowable tax rate and Indian Hills isn't far behind. But he said homeowners and businesses still valued at above the cap could see the 3 percent and 8 percent increases despite falling property values.
In Churchill County, property values defied the statewide trend and rose from $725.9 million to
$790.8 million, resulting in an increase of $1.8 million in total tax collections to
$24.16 million.
House of Financial Cards, Greedy Investors, Democracy Sold
Several articles similar to the one below have appeared and Sandy Adell said it best.
Marian Ilitch and New York’s Shinnecock Native Americans
Sandy Adell
In an earlier blog post I wrote about billionaire casino moguls, like Lyle Berman, whose enterprises broker the deals to gain Federal recognition for Native American Tribes and then work as middle-men between the tribes and the Federal government to hold land in trust in order to build “Native American” casinos. (See my post dated August 12, 2009)
Well now we can add a “middle-woman,” Marian Ilitch, to the list. According to an October 19, 2010, article on Crain’s Detroit Business website, Marian Ilitch has teamed up with the Southampton, New York based Shinnecock Native Americans in a new casino deal.
As I wrote in a comment on Crain’s website, it continues to boggle my mind that people like Marian Ilitch and other casino moguls, really wealthy people, are looking to expand gambling throughout this country under the guise of helping bring economic development to the less fortunate among us, this time to a community of 1200 Native Americans.
Gambling is not a philanthropic enterprise; The only real winners in the casino industry are billionaire owners, operators, and middle-men-and-women like Marian Ilitch and Company.
Ilitch teams with tribe on N.Y. casinos: Long Island plans could top $1 billion
By Bill Shea
Debt part of Ilitch equation
As the Ilitch family assesses how it will pay for the Detroit Pistons, Palace Sports & Entertainment Inc. and possibly a new downtown arena, debt remains on the family's past projects.
In January 2009, Marian Ilitch injected $45 million into her MotorCity Casino after lenders -- including Highland Capital Management LP -- threatened to hike interest rates to 18 percent on the $625 million loan her CCM Merger Inc. got in 2005 to finance purchase of the casino and for the later construction of its 300-room hotel.
The lenders reportedly wanted the additional investment because the casino was in jeopardy of violating its loan terms, a situation created when gambling revenue began to fall with the recession.
Deutsche Bank and Merrill Lynch arranged the loan in 2005.
The total financing for MotorCity is believed to be $950 million through a highly leveraged mix of fixed- and variable-rate bank debt and junk bonds, according to Forbes.
Ilitch paid $525 million to buy the majority ownership of the casino in April 2005 from Las Vegas-based MGM Grand/Mirage Casinos' Mandalay Resort Group, the MGM subsidiary that owned MotorCity.
She also paid Detroit entrepreneur Herb Strather $106 million for his Atwater Entertainment Associates LLC's 11.5 percent stake in MotorCity.
[If the name Herb Strather sounds familiar, it might be his connection to the Mashpee Wampanoag Tribe that he financed in order to gain recognition to build a casino.]
Another $85 million to $100 million went to former Ilitch partner Tom Celani for his 10 percent stake.
The Detroit Tigers, owned separately by Mike Ilitch, borrowed $140 million in August 2005 from a syndicate of 11 financial institutions, led by what is now Sumitomo Mitsui Bank, to refinance what had been $115 million remaining in debt from the original $145 million loan to build Comerica Park, industry magazine Sports Business Journal reported at the time.
The team has declined to comment on its current stadium debt.
Public debt on Comerica Park is through the Detroit-Wayne County Stadium Authority.
(This story has been updated to correct information about a lending company that was misidentified in the original version.)
The Ilitches' high-profile pursuit of the Detroit Pistons and plan to build a downtown arena could be dwarfed financially by the family's quiet effort that could top $1 billion to construct casinos for an American Indian tribe on New York's Long Island.
Marian Ilitch, sole owner of MotorCity Casino and matriarch of the family whose fortune is built from the Little Caesar Enterprises Inc. pizza chain she co-founded in 1959, has a casino development deal with the Southampton, N.Y.-based Shinnecock Indian Nation, which recently said it may build up to three casinos now that it has official federal recognition.
Even if the tribe builds just one hotel-casino, because it will serve New York it's expected to be significantly larger than MotorCity, for which Ilitch financed the purchase and expansion for $600 million. A trio of casinos could each still be as large as or even larger than the Detroit property.
MotorCity reported $446 million in 2009 revenue and had 2010 revenue of $333.5 million through September.
"The location will dictate the size of the casino, but it certainly will be larger than the operation at MotorCity," said Tom Shields, owner and president of Lansing-based Marketing Resource Group Inc. and spokesman for Ilitch and her partner in the casino effort, Birmingham developer Mike Malik.
The U.S. Bureau of Indian Affairs this month rejected final objections to its acknowledgment of the Shinnecock as a federally recognized American Indian tribe -- one seeking to build a casino, with Ilitch financial backing, to improve the lives of its roughly 1,200 members. They live on about 800 acres, mainly in mobile homes.
Such formal recognition, which the Shinnecock tribe first sought in 1978, is needed to open an Indian-run casino under federal law. It also makes the tribe eligible for federal housing, health and education funding.
Ilitch and Malik have been working with the tribe since 2003 on plans to build and operate a casino in Long Island's upscale Suffolk County -- an area better known as the Hamptons.
Casinos could be built elsewhere on the island to serve a wider population.
Ilitch and Malik are partners in Gateway Casino Resorts LLC and Gateway Funding Associates LLC, the businesses working with the tribe. They are headquartered in Detroit's Fox Theatre, whose offices are home to Ilitch Holdings Inc. and other Ilitch-owned ventures.
Additional state and federal legal, environmental and regulatory approvals are needed before a casino project can start -- something industry insiders have said is a long process with no guarantees and in which longer-recognized New York tribes have been mired for years.
The tribe prefers to negotiate with authorities to build a more lucrative Class III casino, which allows table games in addition to video slot machines under federal law. A Class III casino must share revenue with the state.
Ilitch and Malik will give the tribe financing and guidance on development and operations, Shields said. How much they'll be paid, and how much of a cut of the casino revenue they'll get, isn't yet known.
There is no timeline for the development, Shields added, noting that it's expected to take several years to get approvals and finish construction.
Beverly Jensen, communications officer for the tribe, declined to comment.
Casino spending
Malik and Ilitch have worked on casino efforts in Port Huron and Manistee and in Hawaii and California, but none have reached the stage of the New York project.
Expenditures on the Long Island effort have been significant.
Through Gateway, Ilitch and Malik paid Arlington, Va.-based lobbying firm Wheat Government Relations more than $1 million since 2003 to push for federal recognition for the Shinnecock, records show.
The casino project still needs the approval of New York's governor and Legislature.
Gateway hired Washington D.C.-based Mercury Public Affairs to lobby state government on behalf of the casino. The firm reportedly has met with New York Gov. David Paterson and state legislative leaders to discuss the gambling plan.
A comprehensive anonymous website, TheVerifiableTruth.com, for several years has tracked news and public records linked to Ilitch and Malik's casino ventures, and it shows that they have donated money to political candidates in positions to influence the tribal recognition or other casino-related issues.
The tribe's federal recognition suggests it was money well spent and eventually might result in new cash flow for the Ilitch empire.
In the meantime, the Ilitches will be conscious of the dangers of over-leveraging themselves, sports insiders say.
"All sports properties are acutely aware of not burdening themselves with debt," said Maury Brown, president of Portland, Ore.-based Business of Sports Network, which includes websites devoted to the business side of pro sports.
Marian Ilitch and New York’s Shinnecock Native Americans
Sandy Adell
In an earlier blog post I wrote about billionaire casino moguls, like Lyle Berman, whose enterprises broker the deals to gain Federal recognition for Native American Tribes and then work as middle-men between the tribes and the Federal government to hold land in trust in order to build “Native American” casinos. (See my post dated August 12, 2009)
Well now we can add a “middle-woman,” Marian Ilitch, to the list. According to an October 19, 2010, article on Crain’s Detroit Business website, Marian Ilitch has teamed up with the Southampton, New York based Shinnecock Native Americans in a new casino deal.
As I wrote in a comment on Crain’s website, it continues to boggle my mind that people like Marian Ilitch and other casino moguls, really wealthy people, are looking to expand gambling throughout this country under the guise of helping bring economic development to the less fortunate among us, this time to a community of 1200 Native Americans.
Gambling is not a philanthropic enterprise; The only real winners in the casino industry are billionaire owners, operators, and middle-men-and-women like Marian Ilitch and Company.
Ilitch teams with tribe on N.Y. casinos: Long Island plans could top $1 billion
By Bill Shea
Debt part of Ilitch equation
As the Ilitch family assesses how it will pay for the Detroit Pistons, Palace Sports & Entertainment Inc. and possibly a new downtown arena, debt remains on the family's past projects.
In January 2009, Marian Ilitch injected $45 million into her MotorCity Casino after lenders -- including Highland Capital Management LP -- threatened to hike interest rates to 18 percent on the $625 million loan her CCM Merger Inc. got in 2005 to finance purchase of the casino and for the later construction of its 300-room hotel.
The lenders reportedly wanted the additional investment because the casino was in jeopardy of violating its loan terms, a situation created when gambling revenue began to fall with the recession.
Deutsche Bank and Merrill Lynch arranged the loan in 2005.
The total financing for MotorCity is believed to be $950 million through a highly leveraged mix of fixed- and variable-rate bank debt and junk bonds, according to Forbes.
Ilitch paid $525 million to buy the majority ownership of the casino in April 2005 from Las Vegas-based MGM Grand/Mirage Casinos' Mandalay Resort Group, the MGM subsidiary that owned MotorCity.
She also paid Detroit entrepreneur Herb Strather $106 million for his Atwater Entertainment Associates LLC's 11.5 percent stake in MotorCity.
[If the name Herb Strather sounds familiar, it might be his connection to the Mashpee Wampanoag Tribe that he financed in order to gain recognition to build a casino.]
Another $85 million to $100 million went to former Ilitch partner Tom Celani for his 10 percent stake.
The Detroit Tigers, owned separately by Mike Ilitch, borrowed $140 million in August 2005 from a syndicate of 11 financial institutions, led by what is now Sumitomo Mitsui Bank, to refinance what had been $115 million remaining in debt from the original $145 million loan to build Comerica Park, industry magazine Sports Business Journal reported at the time.
The team has declined to comment on its current stadium debt.
Public debt on Comerica Park is through the Detroit-Wayne County Stadium Authority.
(This story has been updated to correct information about a lending company that was misidentified in the original version.)
The Ilitches' high-profile pursuit of the Detroit Pistons and plan to build a downtown arena could be dwarfed financially by the family's quiet effort that could top $1 billion to construct casinos for an American Indian tribe on New York's Long Island.
Marian Ilitch, sole owner of MotorCity Casino and matriarch of the family whose fortune is built from the Little Caesar Enterprises Inc. pizza chain she co-founded in 1959, has a casino development deal with the Southampton, N.Y.-based Shinnecock Indian Nation, which recently said it may build up to three casinos now that it has official federal recognition.
Even if the tribe builds just one hotel-casino, because it will serve New York it's expected to be significantly larger than MotorCity, for which Ilitch financed the purchase and expansion for $600 million. A trio of casinos could each still be as large as or even larger than the Detroit property.
MotorCity reported $446 million in 2009 revenue and had 2010 revenue of $333.5 million through September.
"The location will dictate the size of the casino, but it certainly will be larger than the operation at MotorCity," said Tom Shields, owner and president of Lansing-based Marketing Resource Group Inc. and spokesman for Ilitch and her partner in the casino effort, Birmingham developer Mike Malik.
The U.S. Bureau of Indian Affairs this month rejected final objections to its acknowledgment of the Shinnecock as a federally recognized American Indian tribe -- one seeking to build a casino, with Ilitch financial backing, to improve the lives of its roughly 1,200 members. They live on about 800 acres, mainly in mobile homes.
Such formal recognition, which the Shinnecock tribe first sought in 1978, is needed to open an Indian-run casino under federal law. It also makes the tribe eligible for federal housing, health and education funding.
Ilitch and Malik have been working with the tribe since 2003 on plans to build and operate a casino in Long Island's upscale Suffolk County -- an area better known as the Hamptons.
Casinos could be built elsewhere on the island to serve a wider population.
Ilitch and Malik are partners in Gateway Casino Resorts LLC and Gateway Funding Associates LLC, the businesses working with the tribe. They are headquartered in Detroit's Fox Theatre, whose offices are home to Ilitch Holdings Inc. and other Ilitch-owned ventures.
Additional state and federal legal, environmental and regulatory approvals are needed before a casino project can start -- something industry insiders have said is a long process with no guarantees and in which longer-recognized New York tribes have been mired for years.
The tribe prefers to negotiate with authorities to build a more lucrative Class III casino, which allows table games in addition to video slot machines under federal law. A Class III casino must share revenue with the state.
Ilitch and Malik will give the tribe financing and guidance on development and operations, Shields said. How much they'll be paid, and how much of a cut of the casino revenue they'll get, isn't yet known.
There is no timeline for the development, Shields added, noting that it's expected to take several years to get approvals and finish construction.
Beverly Jensen, communications officer for the tribe, declined to comment.
Casino spending
Malik and Ilitch have worked on casino efforts in Port Huron and Manistee and in Hawaii and California, but none have reached the stage of the New York project.
Expenditures on the Long Island effort have been significant.
Through Gateway, Ilitch and Malik paid Arlington, Va.-based lobbying firm Wheat Government Relations more than $1 million since 2003 to push for federal recognition for the Shinnecock, records show.
The casino project still needs the approval of New York's governor and Legislature.
Gateway hired Washington D.C.-based Mercury Public Affairs to lobby state government on behalf of the casino. The firm reportedly has met with New York Gov. David Paterson and state legislative leaders to discuss the gambling plan.
A comprehensive anonymous website, TheVerifiableTruth.com, for several years has tracked news and public records linked to Ilitch and Malik's casino ventures, and it shows that they have donated money to political candidates in positions to influence the tribal recognition or other casino-related issues.
The tribe's federal recognition suggests it was money well spent and eventually might result in new cash flow for the Ilitch empire.
In the meantime, the Ilitches will be conscious of the dangers of over-leveraging themselves, sports insiders say.
"All sports properties are acutely aware of not burdening themselves with debt," said Maury Brown, president of Portland, Ore.-based Business of Sports Network, which includes websites devoted to the business side of pro sports.
Tennessee: Gambling Influence
Wamp Says He Would Oppose Legalized Gambling In Tennessee
Zach Wamp, Republican candidate for governor, said he would oppose legalized gambling in Tennessee.
He called on Knoxville Mayor Bill Haslam "to publicly disclose all of his holdings, investments and partnerships with casino gambling interests."
The Wamp campaign said, "Haslam’s stake in gambling operations was the focus of an article published last week in the Knoxville-based Metro Pulse.
"Pilot Oil Corporation, which is co-owned by Haslam and members of his family, operates casinos and other casino games in at least three states through its subsidiary, Pilot Travel Centers. In Nevada, Pilot has partnered with Leisure Gaming in the operation of hundreds of 24-hour slot machines throughout the state.
Pilot also has a stake in gambling in Montana through an agreement with Town Pump, Inc, which offers keno, poker and other casino games at travel centers around the state. In addition, Haslam’s business partner, CVC Capital Partners, owns and operates major multi-national gambling interests.
"The Luxembourg-based CVC Capital Partners purchased a 47.5 percent stake in Pilot Travel Centers from Mayor Haslam and his family in September 2008. Earlier that same year, CVC Capital Partners purchased Magnum Corporation, an international gaming operator based in Malaysia that boasts annual revenues approaching $1 billion."
“The international gaming interests that Mayor Haslam has partnered with may think they can do business here in Tennessee, but they are dead wrong,” said Rep. Wamp. “Their gambling dollars are not welcome here, and casino gambling will not come into our state as long as I am governor. Period.
He said he was calling on Mayor Haslam "to immediately itemize for the public all of his holdings or investments with casino gambling interests, including the names and locations of his partners and the facilities they operate; the earnings he receives from those investments; and whether he intends to spend any earnings received from those operations on his campaign for governor."
Zach Wamp, Republican candidate for governor, said he would oppose legalized gambling in Tennessee.
He called on Knoxville Mayor Bill Haslam "to publicly disclose all of his holdings, investments and partnerships with casino gambling interests."
The Wamp campaign said, "Haslam’s stake in gambling operations was the focus of an article published last week in the Knoxville-based Metro Pulse.
"Pilot Oil Corporation, which is co-owned by Haslam and members of his family, operates casinos and other casino games in at least three states through its subsidiary, Pilot Travel Centers. In Nevada, Pilot has partnered with Leisure Gaming in the operation of hundreds of 24-hour slot machines throughout the state.
Pilot also has a stake in gambling in Montana through an agreement with Town Pump, Inc, which offers keno, poker and other casino games at travel centers around the state. In addition, Haslam’s business partner, CVC Capital Partners, owns and operates major multi-national gambling interests.
"The Luxembourg-based CVC Capital Partners purchased a 47.5 percent stake in Pilot Travel Centers from Mayor Haslam and his family in September 2008. Earlier that same year, CVC Capital Partners purchased Magnum Corporation, an international gaming operator based in Malaysia that boasts annual revenues approaching $1 billion."
“The international gaming interests that Mayor Haslam has partnered with may think they can do business here in Tennessee, but they are dead wrong,” said Rep. Wamp. “Their gambling dollars are not welcome here, and casino gambling will not come into our state as long as I am governor. Period.
He said he was calling on Mayor Haslam "to immediately itemize for the public all of his holdings or investments with casino gambling interests, including the names and locations of his partners and the facilities they operate; the earnings he receives from those investments; and whether he intends to spend any earnings received from those operations on his campaign for governor."
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