The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Wednesday, March 1, 1995               TAG: 9503010497
SECTION: LOCAL                    PAGE: B3   EDITION: FINAL 
SOURCE: BY TONI WHITT, STAFF WRITER 
DATELINE: PORTSMOUTH                         LENGTH: Medium:   72 lines

PORTSMOUTH HALTS TALKS WITH CASINO FIRM

The one thing opponents and proponents of riverboat gambling could agree on Tuesday was: Don't bet the city's waterfront property on the mere prospect of floating casinos plying the Elizabeth River.

More than 200 citizens turned out Tuesday for a public hearing on riverboat gambling - the majority in opposition to the venture.

After two hours of debate and about 30 speakers at Willett Hall, the council voted 5-2 to discontinue negotiations with Eldorado. The wording was specific. If the council had voted to terminate negotiations, it would prohibit council members from resuming talks with Eldorado Hotel and Casino at a later date.

Council members James C. Hawks and P. Ward Robinett voted against the measure.

Mayor Gloria O. Webb, Vice Mayor Johnny M. Clemons and Councilman Cameron C. Pitts were defeated in their attempt to send a resolution to the General Assembly opposing future legislation on floating casinos.

The riverboat opposition was a strange mix of folks, including the religious community, political activists, horse-racing enthusiasts, neighborhood leaders, mothers and a retired Navy admiral.

They talked about the potential for political corruption, rising crime, families that could be torn apart by compulsive gambling and the loss of moral values.

The council was trying to decide whether to end negotiations with Eldorado Hotel and Casino and send a resolution opposing future legislation on riverboat gambling.

Proponents urged the council not to kill the deal but to be cautious in its negotiations. They asked the council to let the issue go to a referendum that would allow the voters a say.

For weeks the council has been holding at 4-3 in favor of riverboat gambling and in favor of pursuing negotiations with Eldorado Hotel and Casino. But more recently the support had wavered.

Last week, officials with Eldorado Hotel and Casino threatened to pull out of negotiations with Portsmouth unless the company received an ``unequivocal'' endorsement from the city.

Councilman James T. Martin was apparently the swing vote, according to several council members. Martin was unwilling to commit until he heard what Portsmouth residents wanted.

Said resident Dan Evans: ``I encourage you to fill the downtown with businesses that are legal. The drain on Portsmouth's economy will continue if you tie up property in hopes that riverboat gambling will come.''

Evans said tying up the property would be akin to council members Hawks and James T. Martin, both lawyers, taking a personal injury case for a person who had not yet been in an accident.

But representatives of local labor and building unions urged the council to stick with the prospect of floating casinos. They touted the promise of a building boom, job prospects and spin-off industry.

``This is an opportunity for decent people to make a decent living,'' said Jerry Hoffman, a member of a council representing 42 organized labor unions.

The president of Spirit Cruises, Perry Miles, urged the City Council to ``sit on'' the issue. Spirit Cruises has signed a contract with Norfolk to operate floating casinos in that city if state legislation allowing the venture is passed.

``Let's not try to resolve an issue earlier than it's ready to be resolved, no matter how many people show up claiming to represent the whole populace of Portsmouth,'' Miles said. ``I am for the benefits of riverboat gambling in Virginia. . . But I'm not going to stand here tonight and ask that you take actions one way or another.''

Also Tuesday, the council voted 4-3 to approve a $7.3 million construction budget after cutting out plans to build a 3,000-seat stadium at Wilson High School and $500,000 for fields for the Cradock Little League. by CNB