Russell Moore: Newport Must Embrace Paolino Plan
Monday, June 09, 2014
It's another one of those 'only in Rhode Island' scenarios.
A city in a state with one of the highest unemployment rates in the nation is considering snubbing its nose at a well-respected Rhode Island development group that has a plan that would save jobs and tax revenue for the city.
The city is Newport, and the development group is led by former Providence Mayor Joseph Paolino. Paolino and his partners have a plan that would invest $40 million into Newport Grand to upgrade the facility. Think of the economic impact and multiplier effect that would have not only on Newport, but Rhode Island as a whole.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTHolier-than-thou
But the plan is only feasible if the voters from the city of Newport agree to allow table games at the facility--which are currently forbidden.
Therein lies the rub. There are some holier-than-thou types who have combined forces with the classic not-in-my-backyard people in an attempt to thwart the plan.
These two groups are comprised of the types who think they should be able to tell lower income people how and when they should be spending their money and another group that has all the money it needs and doesn't care if the casino goes away and the workers lose their jobs. After all, they've got theirs!
Upgrade and update this asset
The facility needs a makeover like blood. Newport Grand, which employs roughly 200 people and provides the state as well as the city much-needed, non-tax annual revenue, cannot remain the way it currently is and stay in business any longer. Walk into the building and you'll forget that you're in Newport, but you'll think you're in one of the rundown, bankrupt Atlantic City casinos.
Making matters worse for Newport Grand is the fact that there are well publicized plans to build a casino in Fall River, Massachusetts--only a short drive away. When that plan comes to fruition, Newport Grand will go out of business faster than California Chrome turns for home.
And then Newport will lose not only the jobs, but the property tax relief the facility provides the city. Currently, Newport receives about $1 million per year from Newport Grand. The Paolino plan guarantees that the city could continue to receive that same amount. Struggling taxpayers don't need to take on an extra million in property taxes every year.
Save jobs, save money
So if Newporters reject table games, jobs and tax revenue will be lost. If table games are approved, jobs will be added and tax revenue will certainly increase.
Add to that fact that the facility will be transformed into a world-class entertainment facility, modeled after Monaco's Monte Carlo. It will not only create additional permanent jobs at the facility but also construction and contractor jobs to improve the building in order to make this a reality.
Given all these facts, you'd expect that Newport residents would be rolling out the proverbial red carpet for Paolino and his group's plan. But alas, there's a chance that the table games will not pass voter muster. The Newport City Council barely, yet thankfully, voted by a razor thin 4-3 margin to send this plan to the voters of the city.
Send NIMBYs a message!
Anyone reasonable person would see that approving this plan is a no-brainer. It not only creates jobs and revenue, but it also sends a vital message to developers that Rhode Island is open for business. That's the message we need to send--loud and clear.
Rhode Island cannot allow itself to be held back by these NIMBY sorts with their attitudes that are antithetical to economic development. If it weren't for the NIMBY's we'd already have a world-class gaming facility in West Warwick that would have gobbled up the market share that the Massachusetts casinos are poised to capture.
These protectionist minded people have the same mindset that opposed the creation of the Providence Place Mall and the Rhode Island Convention Center. Fortunately, the economic development-minded folks won the day on those issues. But the obstructionists carried the day in 2006 and prevented the creation of a world class resort style casino in West Warwick.
Newport: Let's not make that same mistake again.
A native Rhode Islander, Russell J. Moore is a graduate of Providence College and St. Raphael Academy. He worked as a news reporter for 7 years (2004-2010), 5 of which with The Warwick Beacon, focusing on government. He continues to keep a close eye on the inner workings of Rhode Islands state and local governments.
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