THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Monday, February 13, 1995 TAG: 9502130073
SECTION: LOCAL PAGE: B1 EDITION: FINAL
SOURCE: BY TONI WHITT, STAFF WRITER
LENGTH: Medium: 98 lines
Floating casinos may be stalled in the legislature for the next year, but Hampton Roads cities are going full steam ahead with plans to bring in the riverboats.
Most cities would have to go ahead with the plans even if citizens protested or if officials decided gambling wasn't such a great tool for economic development. They have entered into contracts that promise they will pursue riverboat gambling through the next General Assembly session.
Those contracts also prohibit two cities - Newport News and Norfolk - from using parts of their waterfront for anything else.
In Newport News, the City Council signed a contract with Aztar Corp. making its prime waterfront property available to the casino company until the end of 1996.
``We took a calculated risk,'' said Neil Morgan, the acting assistant planning director for Newport News. ``Based on the fact that we've owned the land since 1984, we did not feel like the opportunity cost of locking up the piece of land for two years was a problem. We still have some waterfront land that is not tied up.''
Norfolk's contract with Spirit Cruises Inc. is binding until July 1996 - the city can not sell or lease its docks until after the contract expires or both parties agree.
``I think there's fairly broad support on the council for riverboat gaming and I don't think that support has diminished,'' said Norfolk Mayor Paul D. Fraim.
Fraim also said he's not concerned that someone will suddenly want to lease the berths dedicated for floating casinos.
Hampton has promised to back riverboat gambling for the next two years, but it has not set aside public land for the operation. Hollywood Casinos plans to put its complex and riverboat at Strawberry Banks, a privately owned piece of land. The Hampton City Council has given the company its exclu sive endorsement to bring a floating casino in that city.
In Portsmouth, where that council is already split on the issue, officials have an opportunity to hedge their bet, several council members said. That city is still negotiating with Eldorado Hotel and Casino and it can dictate whether it will set aside land strictly for the casino company or make the contract contingent on the gambling bill passing in the state legislature.
Such a contingency would give the city freedom to sell or lease the land to some other company if the opportunity arises.
City Manager V. Wayne Orton said because the bill has been killed for this year, officials will have time to consider all of their options.
``There will have to be reassessments on both sides,'' Orton said. ``I suspect gaming entities will continue to maintain their interest because. . . the gaming issue is not dead for all time in the commonwealth.''
Mayor Gloria O. Webb said the council is set to discuss riverboat gambling on Tuesday. Four council members want to continue the negotiations and have a contract settled before the issue is raised in the General Assembly next year.
In the meantime, Webb said, most folks are just going to forget about the gambling issue until after the November elections.
None of the cities plans to bring citizens together to talk about their hopes or fears on riverboat gambling. Most officials across the region said they haven't asked citizens how gambling fits with their cities because the issue will go to referendum.
Hampton City Manager Robert J. O'Neill said city staff members talked to Hampton residents about what they hoped to gain by bringing in a floating casino. He said those things were included in Hollywood Casino's proposal.
``A lot of neighborhood work was done a year prior to the proposal coming forward,'' O'Neill said. ``We thought, if we get this to a contract stage, then when you have a debate or vote, it's on something specific rather than general.''
But Morgan of Newport News said the public hasn't really been interested in the issue so far.
``Judging from the number of calls and request for documents, the level of interest isn't high,'' Morgan said. ``It doesn't correspond to the press coverage. No citizen has asked if they can see the agreements we've entered into.'' MEMO: GAMBLING IN VIRGINIA: RIVERBOATS
Norfolk - The city has signed a contract with Spirit Cruises Inc.
which guarantees three downtown berths for floating casinos. Those
berths will be available to Spirit Cruises until July 1996.
Portsmouth - Officials are continuing negotiations with Eldorado
Hotel and Casino for waterfront land at the old Coast Guard Base
adjacent to City Hall. The council will discuss the contract on Tuesday.
Hampton - City Council has given its exclusive endorsement to
Hollywood Casino Corp. through 1996. The city has not set aside any
public land for the riverboat operations.
Newport News - The city has signed a two-year contract with Aztar
Corportation. That contract sets aside a portion of it's downtown
waterfront the casino complex. According to the contract that land will
be available to the Aztar Corporation through 1996.
KEYWORDS: RIVERBOAT GAMBLING by CNB