THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Friday, December 2, 1994 TAG: 9412020580
SECTION: LOCAL PAGE: B3 EDITION: FINAL
SOURCE: ASSOCIATED PRESS
DATELINE: NEWPORT NEWS LENGTH: Short : 47 lines
Six months after launching an effort to lure floating casinos, city officials have told potential developers what they expect in return.
In a letter sent last week to six businesses that have expressed an interest in the project, the city said it will require the businesses to spend $2.75 million on roads and ``quality-of-life'' amenities.
The city also expects a minimum of $1 million annually to lease city-owned land.
The Newport News Industrial Development Authority will recommend to City Council by the end of this month which applicants to endorse.
The applicants have until Tuesday to respond to the city's requirement list.
One of the interested operators said that the city's demands won't hamper the allure of a potentially profitable undertaking.
``We're still very excited about the opportunity there,'' said Joe Duellman, president of Aerie Hotels & Resorts.
Still, however, the General Assembly will have to pass legislation to allow riverboat gambling before any casino can open.
Del. Jerrauld Jones, D-Norfolk, has said he will introduce a gambling bill when the legislature convenes in January.
Such measures have failed twice previously.
Some of the items listed in the city's letter were mandatory, said John Munick, vice chairman of the local authority.
Others will be negotiable, he said.
``These are things that we feel are important for the city,'' Munick said.
``We were looking to try to get everyone closer to a proposal that we felt was more in line with what the city needed.''
The letter requires that the selected applicant spend $100,000 to lobby the General Assembly to pass a gambling bill and seek passage of a local referendum.
The city also wants two casino boats, not one.
It also has plans for a hotel to be built on the site where the boats would operate. by CNB