Debate swirls around bills to allow casinos on all 3 islands
Published: January 28, 2012
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ST. THOMAS - The Senate Committee on Economic Development, Technology and Agriculture discussed two bills dealing with casino gaming in the territory during its hearing Friday.
One bill would allow casinos in the St. Thomas-St. John District and the other would allow a free-standing casino in Christiansted.
At the start of the meeting, a motion was made to hold a second hearing on St. Croix for both bills. Committee chairman Sen. Shawn-Michael Malone said the St. Croix hearing would be scheduled for sometime within the next month.
A casino in Christiansted
The proposal to build a free-standing casino in Christiansted arises from a specific public/private sector proposal by an organization called Christiansted Renewal Group.
The larger proposal would include a casino along with a parking garage, cultural center with fine dining and public infrastructure improvements, such as lighting along the boardwalk and new, working security cameras throughout the town.
Developer Duane Bobeck called the bill "enabling legislation." He said the project is not seeking government funding to build and operate the casino - the developers plan to invest $20 million in the casino itself. The $20 million already is available, Bobeck said.
The other aspects of the project would be funded through tax increment financing - administered by the Economic Development Authority.
Tax Increment Financing, or TIF, allows the government to issue bonds based on the projected increases in property and gross receipts taxes the project will bring in once it is completed.
The government benefits from the increased tax revenue, jobs and the infrastructure improvements, and the developer benefits by getting government-backed financing for the project.
"Through extensive promotions, a destination tenant, upgraded hotels, frequent events and live music, we want to create a safe, busy, fun and prosperous Christiansted town," Bobeck said.
The Casino and Resort Control Act, passed in 1995, legalized casino gaming in St. Croix but tied all casino projects to hotel development. V.I. Tourism Assistant Commissioner Brad Nugent said the law was intended to spur hotel development on St. Croix.
The new proposal chips away at the spirit and intention of the original law, Nugent said, and will not increase tourism for St. Croix.
Additionally, the bill comes on the heels of the Hotel Development Act, which sends mixed signals to the territory's existing hotel partners and future investors, Nugent said. The Hotel Development Act allows hotel developers to use a portion of their hotel occupancy and casino taxes to repay their long-term loans.
"Many will find it abhorrent, unfair and quite frankly cheating the system to now immediately waive the rules and regulations they were required to follow, for their competitor's benefit," Nugent said.
Brian Mika, owner of the restaurant Angry Nate's on the Christiansted boardwalk, testified in support of the project. He said the town is dying and while he would not support a casino in a thriving, vibrant community, Christiansted needs a shot in the arm.
"This casino seems like a good idea. I don't see anything else or anyone else with any ideas to do anything else in a timely manner to save this town, this island," Mika said.
St. Thomas, St. John gaming
A separate piece of legislation considered Friday also would amend the Casino and Resort Control Act and allow casino gaming on St. Thomas and St. John as well as St. Croix. Bill sponsor Sen. Carlton Dowe said the original law provided a moratorium on expanding to the St. Thomas-St. John District for five years, but that was almost 15 years ago.
He said it is time to explore all potential revenue sources. While he understands the staunch opposition many have to gambling, he said, he believes it will bring more tourism dollars to the territory.
Apostle Alger Warren, vice president of the St. Thomas-St. John Fellowship of Ministers, opposed the bill. He said the district's religious leaders oppose gambling for moral reasons and for the health of the community.
"Don't have tunnel vision and don't sell your soul, don't sell the soul of the people," Warren said.
- Contact reporter Aldeth Lewin at 714-9111 or email alewin@dailynews.vi.
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