HARRISBURG -- A Republican state senator from Erie took aim yesterday at Philadelphia's pocketbook, trying to deprive the city of millions of economic development dollars if it doesn't get its two slots casinos up and running soon.
Sen. Jane Earll openly admits she's using financial pressure to get the casinos, called Sugar House and Foxwoods, open and generating revenue to reduce property taxes for Pennsylvania homeowners.
The ongoing delay in constructing Philadelphia's two proposed casinos -- first approved for licenses in 2006 -- is preventing the state from collecting millions of dollars earmarked for property tax relief across the state. Five other casinos already are operating, including sites in Erie and The Meadows in Washington County, but the two Philadelphia facilities are expected to be among the most profitable for the state.
Both casinos have met oposition from anti-gambling interests and been beset with procedural delays.
Mrs. Earl's Senate Bill 200 would deprive Philadelphia of up to $64 million a year from a slots-generated economic development fund, which is paying for an $880 million expansion of Philly's convention center. She also might take aim at the $86 million a year the city gets in wage tax relief. Both revenue streams would be shut off until the two casinos are open.
The money could be spent instead on water and sewer projects outside of Philadelphia and Allegheny counties, according to the legislation approved in 2006.
"There is at least a perception of a lot of game-playing and shenanigans to keep these casinos from getting up and running,'' she said yesterday. "There will be consequences if Philadelphia doesn't comply" with the 2004 law that calls for two casinos in the city.
Her proposal was approved 10-4 yesterday by a Senate panel. All but one yes vote came from Republicans, who were joined by Sen. John Wozniak, D-Cambria, who also was irked at the slow pace in Philadelphia. He contrasted that with the opening of The Meadows permanent casino last week and plans to open the Rivers Casino in Pittsburgh in August.
Mr. Wozniak said Philadelphia already has gotten hundreds of millions of state dollars for its new football and baseball stadiums, and now is getting more millions to enlarge the convention center.
"Yet they don't put any skin into the game. And other towns are supposed to just sit there and be good soldiers?"
When the slots law was passed five years ago, Mrs. Earll noted that some Philadelphia officials, such as ex-Sen. Vincent Fumo, pushed for having two casinos built in the city, but permits had been delayed by opposition from citizens groups. Now, all city permits have been issued.
Mrs. Earll and Mr. Wozniak said Philadelphia isn't holding up its part of the bargain with the slots law. It's taking wage tax relief money and convention center expansion funds but not producing any casino revenue for the state.
In a phone interview, Philadelphia Mayor Michael Nutter said he is keeping Mrs. Earll up to date on both casinos and is sure it won't come to withholding any state funds.
"The expectation is that Foxwoods will be up and running early next year, perhaps as early as January," he said. "Sugar House expects to be open in a March-April time frame.
"We, the city, are working in full cooperation with both casinos. There is a lot of work to be done, but city government isn't holding things up. The city isn't an obstacle in any way, shape or form."
Rep. Dwight Evans, D-Philadelphia, noted that the Philadelphia convention center project is being funded by revenue from a 5 percent tax on slots revenue, as is the new Pittsburgh hockey arena. Those two projects "are all about jobs" and shouldn't be halted, he said.
Rep. Bill Keller, D-Philadelphia, insisted that there's been "a lot of progress recently" on the casinos. "City Council has introduced a bill for a 'casino entertainment district' where the Foxwoods casino would be located in Center City."
Foxwoods wants to move from its original site along the Delaware River to an existing highrise in Center City, he said. But the state Gaming Control Board still must approve the new site and will hold at least one hearing in Philadelphia on the change.
Sugar House recently redesigned its project and said it could have a first-stage casino, with 1,500 slots, open within a year.
Mr. Keller said he doesn't think Gov. Ed Rendell, a former Philly mayor, would sign a bill that deprives the city of millions of development dollars or wage tax relief money.
Rendell spokesman Chuck Ardo said his boss "understands legislators' frustration over the slow pace of the casinos, but there has been positive movement over the past several weeks and we believe this [Earll bill] is unnecessary."
The predictions on when the casinos will open are being challenged, however, by Casino Free Philadelphia, a coalition of citizens' groups strongly opposed to slots in Philadelphia. They are vowing to do whatever they can to stop the gambling projects.
