Virginia legislators from three cities announced their efforts Monday in Richmond to try to get legislation passed that would legalize casinos in the state, and a Danville City Councilman went to listen and lend his support.
“It’s a coalition between Portsmouth, Bristol and Danville and we wanted to show that we’re in this together,” City Councilman Gary Miller said.
Other city officials including Mayor Alonzo Jones, Vice Mayor Lee Vogler, City Attorney Clarke Whitfield, and City Manager Ken Larking were supposed to go, but decided against it due to inclement weather and potentially bad road conditions, Jones told the Danville Register & Bee.
One Danville legislator did not attend the announcement made at the State Senate Briefing Room because he is highly skeptical over whether a casino would be beneficial for the city.
People are also reading…
“I’m torn,” said State Sen. Bill Stanley, R-Moneta, whose district includes part of Danville. “I don’t think I’ve made a decision yet.”
While local officials believe it will bring thousands of jobs and much-needed revenue to the area, Stanley sees a potential casino as a short cut in the city’s long-term economic development plan.
“This seems like in some ways a sellout on that long-term plan,” Stanley said.
The proposed legislation would allow referenda in Danville, Bristol and Portsmouth for local residents to vote whether to allow construction of a casino in their cities.
State Sen. Bill Carrico, R-Galax, and Del. Israel O’Quinn, R-Bristol, are introducing the legislation during the 2019 session. Developers in Bristol want to open a $250 million casino at the former Bristol Mall property.
The legislation would apply only to those three cities and would allow only one casino per locality.
The casino bill would designate the Virginia Lottery Board as the regulatory body that would oversee the facilities, enforcing rules that would ban anyone younger than 21 and divert some money to programs to help those addicted to gambling.
Del. Danny Marshall, R-Danville, spoke during a news conference Monday morning, letting the press and other state legislators know that Danville City Council and the Danville School Board passed resolutions in favor of the legislation.
Marshall, who has signed on as a co-patron of the House bill, backs the legislation because it would allow only one casino per locality and would let residents vote whether to allow it.
Andy Poarch, spokesman for the Bristol Resort and Casino team that includes Jim McGlothlin and Clyde Stacy, said the bill’s central purpose is letting residents determine what’s good for their localities.
“The crux of the bill is giving local voters control of their own destiny,” Poarch said.
Southwest and Southside Virginia face the same challenges — poverty, unemployment, underemployment, and loss of anchor industries, he said.
“A lot of those jobs are gone and not coming back,” Poarch said.
In order for the proposed Bristol project to come to fruition, the project’s partners need state approval for legalization of casinos, he said. Also, if the legislation focused on only one locality, a super-majority vote (two-thirds in the House of Delegates and the state Senate) would be needed.
“In any environment, that’s a pretty high bar to meet,” Poarch said.
During an interview last month, Jones said the city could use the tax revenue from a casino resort, especially since the Danville school division has more than $100 million in capital improvement needs for four schools: George Washington High School, G.LH. Johnson Elementary School, Woodberry Hills Elementary School, and the Danville Alternative Program at Langston.
Larking said during City Council’s Jan. 3 meeting that the real estate tax would have to increase by 31.4 cents per $100 of assessed value to cover the $126 million for the schools. Also, it would mean the city would have to pay $7 million annually for 30 years to pay for the renovations, including interest, without the needed revenue a casino would bring.
While a casino resort would have its benefits, there would be drawbacks, as well, Stanley pointed out.
“I believe it will bring a lot of unintended things to our area as well that we need to think carefully about,” Stanley said.
Pointing out Las Vegas, Stanley said the Strip there may be appealing, but “go about four blocks over, it’s not so great,” he added.
Reiterating his support for long-term economic development in the Danville area, he said he hates to see what a casino might do to that plan.
“I understand the idea of leaving it to the voters, but I’m not sure this is the remedy for what ails us economically,” Stanley said.
Also, the revenues from a casino could compel the state to withhold needed funding from Danville and the Southside, he added.
“One has to wonder if the casino legislation passes, they’ll pat us on the head and say, ‘you’re on your own,’” Stanley said.
According to results of a study by Chmura Economics and Analytics in Richmond, a casino resort with a hotel, restaurants, entertainment and convention space would bring a one-time economic impact of about $118.7 million and 182 jobs for renovation and construction of a resort in Danville.
The project would generate $12.1 million in local taxes in 2022, and $20.3 million by 2028, according to the employment and fiscal impact analysis.
In 2022, it would generate 2,534 direct and indirect jobs and by 2028, those numbers would grow to 5,426 direct jobs and 1,408 indirect jobs, according to the study. It would have a direct and indirect economic impact of $384.8 million in 2022, and grow to $909 million in direct impact — with another $183 million in indirect impact — by 2028.
John Crane reports for the Danville Register & Bee. Contact him at jcrane@registerbee.com or (434) 791-7987.