Group Opposed to Paolino Casino Proposal in Newport
Tuesday, May 06, 2014
Members of the group Citizens Concerned About Casino Gambling are voicing their opposition to the announcement by developer Joseph Paolino, Jr. and investors that they want to purchase and revive Newport Grand -- if table games at the slots parlor are approved by voters on the ballot in November.
Following the revelation that former Mayor of Providence Paolino, along with an investor team including Peter de Savary and Paul Roiff, signed an agreement with Newport Grand owner Diane Hurley, a new video opposed to the effort was unveiled on the site's website on Monday, less than two years after Newport voters defeated a tables game measure in 2012 by a vote of 52.9% to 47.1%.
See Opposition Video BELOW
"Citizens Concerned About Casino Gambling is made of members who oppose gambling for a number of various reasons," said group member and Newport City Councilman Justin McLoughlin. "We're not uniform -- we're kind of like Unitarians. It's people who oppose casino gaming on moral grounds, those who don't see as good for community, some who don't see it as good economic policy, those who oppose it because it doesn't appear to make sense."
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTMcLoughlin continued, "Are you buying a pretty pig, and just to dress and sell it? A pretty rendering does not make a successful outcome for a community."
While not with the "concerned citizens" group, Mike Stenhouse with the Rhode Island Center for Freedom and Prosperity voiced his opposition.
"The insatiable appetite for revenues by our political class, whether in the form of higher taxes, new fees, or gambling proceeds is what has been strangling our state's economy for decades," said Stenhouse. "It must stop. No matter how they take money out of the pockets of families and businesses, and then spend it on their priorities or their friends, it's bad for economic growth, and the cycle only perpetuates itself. We must cut spending - and taxes - to save our state."
Paolino said that he has had communication with those opposed to expanded gaming in Newport, including the Concerned Citizens group.
"I said to them that even though we may have a disagreement, we don't have to be disagreeable," said Paolino. "If anyone states that they want to stop gaming, there has already been gaming in Newport for years."
"This is just another form of gaming -- once you see with Foxwoods, what they plan to do in Fall River, we're talking 200 people out of jobs," Paolino continued, referring to the potential impact from competition in Massachusetts for Newport Grand just over the state border, with Rhode Island expected to lose $422 million in five years from Massachusetts casinos.
Paolino Unveils Plans
Paolino, whose Newport property holdings currently include the Vanderbilt Residences at Brown and Howard Wharf, has joined forces with Peter de Savary, who counts over seventy projects in nine countries including Carnegie Abbey in Portsmouth, and Paul Roiff, a Rhode Island native and Boston real estate developer, to develop the property, should table games garner voter approval in November.
Paolino noted that the lobbyist for the effort would be current Newport Grand lobbyist Chris Boyle, and paid for by Newport Grand. Newport Grand owner Diane Hurley did not respond to request for comment on Monday.
"Over $3 million has been invested already to bring up the facility up to code," said Paolino. "We're concerned that how it looks, it's just not attractive. What we want to see it become is a Monte Carlo. It's not going to compete with big casinos-- it's a boutique facility. It will have entertainment. We'll work with Newport Jazz Festival, folk festivals, not just in the summertime, but for winter, fall, to use our facility."
Paolino addressed what he perceived would be a major distinction in 2014, as opposed to 2012.
"We're encouraged, because the people of Newport voted for Twin River last election," said Paolino. "We believe it was voted down in Newport last time because [voters] believed there would be satellite facilities," noting that the investor proposal would be for the current Admiral Kalbfus Road location -- and nowhere else. "It would be only that site," Paolino said.
English international entrepreneur, yachtsman and philanthropist de Savary spoke to the economic impact of the facility -- as well to points made by opponents.
"[Newport] receives $1 million a year [from Newport Grand], and the state, $20 million," said de Savary. "It's important that this is maintained, hopefully by what we plan on doing -- creating a full entertainment venue. If we spend $40 million to improve the facility, you'll attract more people, and range of people from all over."
de Savary addressed the argument that an enhanced casino could take away from the existing business base. "We think it's compatible with the character of Newport, to the grand mansions, the attractive Tennis Hall of fame... I think we can create something here that looks attractive coming over the bridge."
"It's like saying we've got 25 shops in town, we better not add another. I don't think that's in the best interest of Newport. Two plus two won't come to four -- there are people who are afraid it's 3, but it's actually 5."
Twin River, whose table games ballot effort, unlike Newport Grand, was successfully approved in 2012, is among those who support the Paolino group efforts in Newport.
"As was the case two years ago, we support the addition of table games at Newport Grand. A competitive, strong Newport Grand is good for the State from a revenue and jobs perspective, particularly as we brace for the eventual impact of casinos in nearby Massachusetts," said Twin River spokesperson Patti Doyle.
Looking Forward
"I believe Newport Grand is an important source of state and local revenue, I anticipate I would support legislation again," said Senate President -- and Newport resident -- M. Teresa Paiva-Weed. "I share the concern that many have that in order for the facility to be able generate the revenue for the city and the state that we be able to ask voters in light of the competition from Massachusetts."
"I anticipate that the one distinguishing factor in a proposal moving forward is that there would be unequivocal language that any facility would be located its current location and no where else," continued Paiva-Weed, who added that it was "premature" to discuss terms prior to the Newport City Council voting on a resolution requesting that the question be placed on the November ballot.
Senator Lou DiPalma, whose district includes Little Compton, Tiverton, Middletown, and Newport has been part of the Citizens Concerned About Casino Gambling Group in the past -- and said he will continue to oppose efforts to expand gaming at Newport Grand.
"[Newport Grand owner] Diane Hurley has been looking for buyers for a while, and she's doing the best she can with the facility she has," said DiPalma. "My take is this. I don't knock anyone who likes going to a casino. I've been to Las Vegas, I've been to Twin River twice. If it's how people chose to entertain themselves, power to them."
DiPalma continued, "However, we need development that adds to the GDP of our state, which isn't gambling. I don't have the silver bullet. Growing the economy is hard work. We need the residuals of say tech companies, something that contributes to the GDP from a products or services perspective."
"Lottery's the third largest revenue source for Rhode Island. We'll certainly be impacted by Massachusetts," said DiPalma. "Our challenge is our reliance in the state on casino gambling. We're addicted to it."
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