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Richmond Casino Proposal Falters, New Alternatives Considered

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So much for a grand facility at Richmond’s waterfront. The proposed $1.2 billion casino project is now dead in the water and not expected CPR. This was the conclusion after a 5-hour meeting by city leaders earlier this week when proponents hope to achieve a resolution to the myriad of issues that were raised in previous discussions. Said city leaders, problems like traffic congestion, federal approvals and many others – both perceived and projected – render the proposal unsalvageable. Lending credit to this argument was the result of a November advisory ballot measure which saw Richmond residents quash the plan to build the new casino at Point Molate.

“This project has failed to obtain federal approval. The Bureau of Indian Affairs has not given a timetable for the decision-making process,” explained City Councilwoman Jovanka Beckles. “I don’t think it’s right nor is it fair to keep the residents of Richmond waiting for a decision indefinitely.” The 7-member council voted 5-2 in favor of trashing the proposal. The results of a November election which saw the election of new council members Beckles and Corky Booze created an anti-gambling majority which decided the fate of the measure. In that same election, 58 percent of Richmond voters rejected Measure U which included the suggestion to build the new facility at Point Molate. Councilmen Nat Bates and Jim Rogers were the dissenting members.

Bates has always been a supporter of the gaming proposal and he expressed sadness at the fate of the measure. He believes that a new facility would offset other issues by providing much needed jobs to locals who are in dire straits because of the recession and the fact that they lack the requisite college education to gain good-paying occupations. Bates adds, “I still think it’s a good idea what we tried to do. I think it would have been a positive.” The council has moved on to considering alternative proposals for the area. It has given direction to begin working with Upstream for a non-gaming option contained in the 2004 deal where the city agreed to selling Point Molate for $50 million. The definitive assessment is expected within 120 days. Jim Levine, the managing partner for Upstream, said “We’re going to wait and see what the city wants to do.”

Upstream also faces issues but they’re not as grand as those of the original proposal. For starters, it is currently not clear when the contract between the city and Upstream expires. The city thinks the deal expires April 20 of this year; Levine argues that a lawsuit by the Citizens of East Shore Parks back in 2004 extended the contract by 2 years. Thus far, Upstream together with the Band of Pomo Indians from Guidiville has paid the city a total of $18 million for land use and other related costs. Corporate expenses on other related matters bring the total cost to $30 million.

The Point Molate debate traces its roots to 2003 when the first proposal gained the favor of the city council to put up gaming facilities in the area. The original plan included 122,000 square footage of gaming space, 2 hotels, shops, restaurants, tribal facilities and even a shoreline trail. The point of contention rested on the gaming complex to which the community had a divisive stance. Given the need for employment in the area with unemployment holding steady at 18 percent, advocates argue that job creation will be served by building the facility. On the other hand, detractors contend that the project is more likely to bring problems like increased traffic, more crime, and pathological gambling cases without delivering on the promise of more jobs.

Still, the proposals keep coming. A third version by the Scotts Valley band of Pomo Indians proposes a facility at North Richmond. The public hearing was attended by most anti-casino protestors declaring through a bold banner at the balcony seats “Richmond Voted No Casino!”Levine and others implore the city to seriously consider the addition of a gaming facility in the area. Estimates from Levine’s group peg the benefits at $16.6 million in annual tax revenues, thousands of new jobs, and another $12 million a year to the host Contra Costa County.