THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Thursday, December 29, 1994 TAG: 9412290417
SECTION: LOCAL PAGE: B1 EDITION: FINAL
SOURCE: BY KAREN WEINTRAUB, STAFF WRITER
LENGTH: Medium: 85 lines
Once again, cities in Hampton Roads are competing for the promise of economic development. But, unlike the intercity battle that erupted over a horse-racing track, there is some chance for regional cooperation on gambling.
Del. Jerrauld C. Jones, D-Norfolk, who is sponsoring the riverboat-gambling legislation in the General Assembly, said Wednesday that his bill would allow cities that get casinos to share profits with neighboring communities that don't.
Norfolk, Portsmouth, Hampton and Newport News have announced intentions to pursue riverboat gambling, which could provide millions a year for city coffers.
Tuesday, the Norfolk City Council awarded three potential riverboat casino berths to the Spirit of Norfolk, a local cruise ship company. Hampton voted two weeks ago to select a national company as its exclusive casino developer. And both Newport News and Portsmouth have received bids from companies interested in building floating casinos.
But before any casinos are built, the legislature must approve the idea and the voters must give their consent.
Jones said he considered allowing regional profit-sharing last year and the year before when he sponsored similar gambling legislation, but decided against it. Before, he was afraid the specter of regionalism would cost his bill votes; this time, he's convinced it will help.
``Everybody seems to be saying the way we can make this happen is to give everybody a stake in it and not just the one city that would have (the casino) within its borders,'' Jones said. ``I think it's a very important step toward regionalism.''
Norfolk Mayor Paul D. Fraim said he thinks gambling could be the first major economic development venture that cities in Hampton Roads pursue jointly.
``If other localities are willing to share some of the burden of the infrastructure as well as help promote the effort, then I think we could find ways for them to share in the revenue,'' he said.
He would like to see similar regional cooperation in pursuing professional sports teams, Fortune 500 businesses and tourism attractions, Fraim said.
Competition among Hampton Roads cities has hurt everyone, he said. Many people believe this area lost its bid for the state's only horse track because Virginia Beach was vying against Portsmouth for the franchise.
``Guerrilla warfare has doomed the race track and other opportunities,'' Fraim said. `` `You can't have yours if I can't have mine' - those types of attitudes have worked against us for years.''
Reducing the competition among casinos is also a good idea, Fraim said: The more casinos in an area, the less money each one makes and the more difficult it is for them to stay afloat financially.
``Unbridled competition seems to have worked against the gaming industry in some localities, Mississippi being one,'' he said.
W.W. Harrison, a Virginia Beach city councilman, said a regional approach might persuade legislators from his city to support the gambling bill. Riverboat gambling is not likely to help Virginia Beach directly, Harrison said, because he knows of no viable places in the city to locate a floating casino.
``I hope Virginia Beach will either locate a site and be a player or, if we fail to locate a site, possibly broker our own delegates' approval in exchange for revenue sharing,'' he said.
Harrison said he would gladly vote for riverboat gambling in Virginia Beach if someone came to him with a viable site. Harrison's law firm, Willcox & Savage, represents the Spirit of Norfolk, the likely developer of any Norfolk casino.
Virginia Beach Mayor Meyera E. Oberndorf said Wednesday she's not convinced that riverboat gambling is a good idea, or that regional cooperation is the way to go.
She is concerned that regionalizing gambling's profits also means regionalizing its risks - that the city would have to pay for extra police officers or to build infrastructure in Norfolk to support a casino there. Oberndorf said she has not seen enough information yet to convince her that the tax money generated by casino gambling is worth the risk. ILLUSTRATION: Color photo
Del. Jerrauld C. Jones
KEYWORDS: RIVERBOAT GAMBLING PROPOSED by CNB