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

DATE: Sunday, March 5, 1995                  TAG: 9503030145
SECTION: PORTSMOUTH CURRENTS      PAGE: 07   EDITION: FINAL 
TYPE: Letter 
                                             LENGTH: Long  :  192 lines

RIVERBOAT GAMBLING STIRS UP IMPASSIONED DEBATE

Editor's note: The following comments were made by 4 of 27 speakers at Tuesday's public hearing before City Council on riverboat gambling.

In a 5-2 vote, council authorized the city manager to discontinue negotiations with gaming entities. Councilmen James C. Hawks and Ward Robinett voted in the minority.

In a 4-3 vote, council rejected a resolution requesting the Portsmouth delegation of the General Assembly to oppose riverboat gaming in Virginia. Mayor Gloria O. Webb and councilmen Johnny M. Clemmons and Cameron C. Pitts favored the resolution.

It is hard to believe the City Council is even considering whether to tie up the Downtown waterfront by reserving empty lots for riverboat gambling.

As a Downtown businessman, I have appeared before you on previous occasions to state my position that we need to find businesses for the empty lots Downtown.

I am all for bringing businesses in to fill these lots.

However, I would strongly urge that council consider filling the lots with enterprises what are currently legal.

As those who know me can attest, I strongly oppose casino gambling on economic grounds.

But the issue we debate tonight is not whether casino gambling should be legalized. The fact is casino gambling is illegal in Virginia and probably will be for years to come.

The issue is whether we will tie up our economic resources. A move by you to hold these lots for riverboat gambling will make it impossible to bring in legitimate businesses, thus the drain on Portsmouth's economy will continue, all in hopes that one day, maybe, riverboat gambling will become legal.

I would like to give you all a clear example of what tying up the property by giving the casino operators the first right of refusal would be like. I'll put in into terms you see every day in your own careers.

Mr. Hawks and Mr. Martin, it would be like handling a personal injury case for a person who had not yet had an accident.

Mr. Clemons, it would be like doing oceanographic surveys in the desert.

Mr. Robinett, it would be like giving a loan for an indefinite period at current prime, with no collateral.

Mr. Pitts and Mr. Griffin, it would be like allowing the treasurer of Orange County, Calif., to handle your retirement investments.

Madam Mayor, it would be like giving the key to the city to a crack dealer since that is just as illegal as gambling in the state at this time.

In short, it is simply not good business, not to mention ethical or prudent, to tie up good real estate at the taxpayers' expense in the hope that one day in the future, maybe gambling will be legalized.

It is far better to keep your options, and the options of the taxpayers of Portsmouth, open. Let's work to bring in real, taxpaying, job-providing businesses.

Dan Evans

President

Evans Inc.

451 Elm Ave.

In January 1994, the Hampton Roads Chamber of Commerce, representing 3,000 business firms in Hampton Roads, drafted a resolution of support of Riverboat Gaming. Our support is subject to approval of local referendum in the host communities. This position is based on the dramatic economic development impact gaming can have on our region.

A recent study by Robert W. Cook, Ph.D., chairman of the Economic Department at the University of Richmond, estimates riverboat gaming would generate more than 24,000 jobs and a total payroll in excess of $300 million in Virginia.

It is estimated by the Virginia Riverboat Council that Hampton Roads shipyards are likely to build and maintain the riverboats that could give the industry a $70 million to $200 million boost.

It is also estimated that more than 9 million passengers will visit Virginia riverboat communities each year, of which more than 1 million will be out-of-town visitors. Finally, it is projected riverboat gaming will generate more than $42 million in local tax revenue and $81 million in state tax revenue.

We believe riverboat gaming is too important an economic development and business opportunity for Portsmouth to pass up.

Roger C. Reinhold

Chairman

Hampton Roads Chamber

of Commerce,

Portsmouth Division

I don't want to take up your valuable time talking in favor of riverboat gaming. . . .

I want to talk about fear. The fear of some people that Virginians may decide that riverboats offer a good way to provide controlled gambling, raise much-needed revenue, and provide a lot of jobs.

What we need is calm, informed, sane discussion about an important issue that can benefit Portsmouth. Whenever a controversial issue comes up that has a moral component, many are quick to leap up and take a stand. Some feel the need to urge, even bully, our public officials into acting right now.

Let's face it. We could have turned this into a media circus by getting a crowd out tonight and having them hold signs and scream at the reporters and TV cameras and implore you, as members of council, to listen to us because we know what's best for everyone in Portsmouth. We'd prove it by the amount of noise we'd make.

But quite frankly, that kind of political action is not what's needed. Besides, our opponents are better at making noise than we are. It's wrong because public policy should be decided by reasoned argument and a vote count, not by the volume of noise or the number of zealots who can be turned out on a given night; zealots who insist, loudly and clearly, to everyone, ``Listen to us because we know what is best.''

As Adlai Stevenson once said, ``Shouting is not a substitute for thinking.''

So let me make a simple request: Sit on it. That's right. Just sit on it. Sit on the issue, for now. Let's get all the facts. Let's talk to each other about the pros and cons of this issue. Let's talk about how something like this will affect Portsmouth and its citizens, schools, children and work force. Let's let everybody have a say, pro and con. 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.

... This is an important issue that deserves - no, make that demands - public debate. This should be public debate that comes with facts, facts and more facts.

What I find really baffling is why the opponents of this issue are so frightened of letting voters have a say in the matter. All the Jones bill asked is that voters, both locally and statewide, be allowed to hear both sides and vote on it. Is that so scary? It was done for the lottery in Portsmouth, as well as horse racing. Are they so sure they know what is right for everybody in this state? To me, that displays a supreme arrogance that runs roughshod over our sense of representative government. The thought of even thinking that could happen makes me shudder. The idea that it should happen makes me ill.

So what am I asking? Something very simple and clear. Reject any promises or demands to anyone. Let's just let this issue evolve naturally. If it is wrong, it will die.

Rather than working everyone up to the point where they are frothing at the mouth, let's agree to wait and see the particulars of the bill - if and when it should appear again.

I honestly cannot stand here tonight and tell you what is best for Portsmouth. Neither can anyone else. And perhaps many of you as members of council have doubts yourselves. That is understandable, and all the more reason to let anyone who wishes have their say. But let's not rush into a decision of any kind for now. Let's see what happens down the road and what, if anything, is presented and then let the people of Portsmouth have a full and fair say in the matter, not just well-funded special interest groups led by consultants who like to hit everyone's hot buttons.

Perry Miles

President

Spirit Cruises

Norfolk

I am a resident of (Waterview). I am also the owner-operator of two area restaurants (San Antonio Sam's in Norfolk and Virginia Beach) and I employ approximately 45 people whose resulting income is in excess of $600,000 annually. I am a member of several business and trade associations at the local and state levels.

After examining several studies and numerous articles from the food and beverage industry along with the study commissioned by Gov. Lawton Chiles titled, ``Casinos in Florida, an Analysis of the Economic and Social Impacts,'' I am urging you to come to the same conclusion that I have: These proposed casinos are not only disastrous for our industry but for the entire local economy.

The Florida study addresses the economic losses to all area businesses this way: ``. . . it is safe to say that restaurant and entertainment businesses will suffer the consequences of the substitution of current expenditures in favor of casino gambling. Madden, Volberg and Steufen (1991) in their South Dakota study found that while there was no appreciable statewide decline in total sales tax, categories such as recreation services, business services, auto dealers, clothing stores and service stations showed significant declines.''

. . . Some say that there will be increased tourist traffic but even the advocates of riverboat casino gambling acknowledge that only 8 percent of the participants will be tourists - 92 percent will be local individuals simply spending their food, entertainment and other retail dollars in the casinos.

Figures from the Economic Digest of the Virginia Hospitality and Travel Industry Association Inc. show that 2,740 Hampton Roads restaurants accounted for sales of $996,715,138 in 1993 alone. Our industry cannot afford the loss of 20 to 50 percent that was experienced in Minnesota by food and beverage operators within a 30-mile radius of casinos with food service or the 40 percent loss in Atlantic City or the 20 to 25 percent in Moline, Ill., since riverboat gambling came to the Mississippi River just a few miles away.

However, restaurants are just one facet of the losses. Timothy Ryan, a University of New Orleans economist, estimated that $62 million will be diverted from all retail businesses excluding hotels as a result of the operation of a single 100,000-square-foot casino in New Orleans.

. . . Although riverboat gambling was defeated again this year at the state level, the lobbying efforts of the casino operators have just begun. Therefore, I urge you to pass this resolution requiring the Portsmouth Delegation to the General Assembly to oppose riverboat gambling in the state of Virginia.

Ben Rogers

President

WR Inc., t/a San Antonio Sam's

KEYWORDS: PORTSMOUTH CITY COUNCIL HEARING RIVERBOAT GAMBLING by CNB