THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Friday, December 16, 1994 TAG: 9412160569
SECTION: LOCAL PAGE: B1 EDITION: FINAL
SOURCE: BY TONI WHITT, STAFF WRITER
DATELINE: HAMPTON LENGTH: Medium: 85 lines
It's not unusual to hear of a city promising a company a myriad of benefits, from free rent to tax breaks, to bring industry, jobs and revenue to their locality. But it's almost unheard of for a company to offer to pay extra for services.
On Thursday, Hollywood Casinos Corp. offered Hampton $17 million in incentives - including a park in Phoebus, a history and visitors center, classrooms and even police officers - if the City Council wouldagree to let it operate a floating casino there.
The council voted 6-0, with one abstention, to endorse Hollywood Casinos as the exclusive developer for Hampton and to urge the state legislature to put riverboat gaming to a vote. Del. Jerrauld C. Jones, D-Norfolk, has said he plans to introduce legislation in the upcoming General Assembly session that would allow voters a chance to permit riverboat gaming in their localities.
Hollywood Casinos Corp., which operates the Sands Hotel and Casino out of Atlantic City, N.J., is banking on floating the first riverboat in the state - giving it a jump on the competition and the first profits from the venture. They hope to construct a riverboat and entertainment complex on 28-acres at Strawberry Banks in Hampton. The company owns two other riverboat gambling operations in Illinois and Mississippi.
If gaming is approved in Hampton, the company initially plans to build a pair of riverboats, a waterfront terminal, festival marketplace, auditorium, parking garage and boat slips. If the venture is successful, the second phase of construction will include a hotel, expansion of the festival marketplace, boat slips and a parking garage.
``We can be the first to apply for the license,'' said Edward Pratt III, Executive Vice President for Hollywood Casinos. ``This is going to be a very competitive process. We're way ahead of the competition right now.''
The competition was what worried Councilor Linda E. McNeeley, who abstained from voting because she wanted more information. McNeeley said she was concerned because Hollywood Casinos Corp. supplied revenue figures based on only one license being awarded on the Peninsula.
``Hampton and Newport News may end up competing for licenses, and there is a possibility that two licenses will be awarded on the Peninsula,'' McNeeley said. ``What happens then? If the second license is issued, are you going to downsize the scope of your facility?''
Developers said their figures do take in account the possibility of two other licenses being awarded in the region. If riverboat gambling is approved, Norfolk is guaranteed a license.
But with promises of $1 million for small business loans, $250,000 in scholarships, $4 million for a history and visitors center, $3 million for police services and $800,000 for electronic classrooms, few other council members worried about possible competition in Newport News.
``I wholeheartedly support this plan,'' said council member Ruthann N. Kellum.
``This is a private investment, they met with private landowners, but then they came to the city and asked what can we do to be a good neighbor,'' said Ross A. Kearney. ``I put up no tax money, the city puts up no tax money; they just want an endorsement. In return the city will achieve a lot of its goals.''
Developers also promised the council that the city would reap $12 million to $14 million a year in tax revenues. The Riverboat and Entertainment Complex would provide 2,000 to 2,500 new jobs. Corporate officials also promised that they would buy at least 60 percent of needed goods and services locally, which would amount to about $45 million a year.
Hollywood Casinos Corp. hopes to earn $150 million to $180 million a year in profits from its gambling operations.
In Portsmouth, five casinos have submitted bids to build a riverboat basin and complex on 15 acres near City Hall. The basin, at the old Guard Station, would include bulkheaded pier space for the riverboat, an hotel, retail shops, an entertainment complex and the riverboat gaming operations. Portsmouth officials are negotiating those bids. In Newport News, six companies are vying for rights to operate a floating casino. ILLUSTRATION: Map
STAFF
Hollywood Casinos, whose plans are shown here, offered Hampton
incentives including a park in Phoebus, a history and visitors
center, classrooms and even police officers.
by CNB