Staff Writer

 Voters should know soon where a proposed $250 million harness racing track and racino could be located in Biddeford. 

The Biddeford City Council voted Aug. 17 to let residents decide in November whether they want Scarborough Downs to relocate its harness racing track and build a racino in Biddeford. City officials say a racino could bring nearly 1,000 jobs and millions of dollars to Biddeford.

While Scarborough Downs and city officials have provided few details of the plan, Mayor Joanne Twomey said she is confident all questions from voters will be answered before the November referendum. A location for the facility should be announced by mid-September, according to Daniel Stevenson, Biddeford’s director of economic development.

Even if Biddeford voters back the plan, a change in state law is required to allow a racino to be built outside Scarborough. State law requires racinos be built within five miles of the track’s current location. Hollywood Slots was built in Bangor within the five-mile range, but Biddeford is more than five miles from Scarborough Downs’ current location.

Scarborough voters in 2003 rejected a referendum to allow slot machines at Scarborough Downs. In 2008 voters rejected Scarborough Downs’ $1 billion proposal to transform more than 200 acres of undeveloped land into a new “Scarborough Village” with slot machines, senior housing, community center, retail and commercial space and a Main Street atmosphere. The measure failed by a vote of 5,100 to 5,400.

Since then, Scarborough Downs has looked for another community that will welcome a racino. Edward MacColl, a spokesman and lawyer for Scarborough Downs, told the city council that racinos are needed to preserve the harness racing industry in Maine by providing more revenue.

“It’s a great and a proud industry that’s been an important part of Maine for more than a century,” he said.

Twomey said she was first approached about moving a racino to Biddeford several months ago, but didn’t start more detailed talks until recently. Though she repeatedly opposed the expansion of gambling while in the Legislature, she said she could not turn her back on the prospect of 900 new jobs in the city.

“I didn’t want to turn Maine into the gambling capital of the world,” she said. “But I just couldn’t turn it away anymore.”

The July 2010 unemployment rate for York County is 7.2 percent, slightly lower than the statewide rate of 7.9 percent. The national unemployment for last month was 9.7 percent. In Biddeford, 4,275 people receive social service benefits such as food assistance. The same assistance is given to 2,207 people in Saco and 1,452 in Old Orchard Beach.

While some residents at the council meeting criticized the idea for being brought up quickly and with little public input, Twomey said the vote was necessary to ensure the referendum would be on the November ballot. Deputy City Clerk Tricia Neault said the question needed to be approved by the city council no later than a Sept. 7 meeting to allow time for absentee ballots to be printed.

State Sen. Nancy Sullivan, who represents Biddeford and serves as chairman of the legislative committee that oversees gambling, said she was “shocked” to hear about the council vote.

“I had no idea it was coming and I’m surprised it hadn’t been vetted in public,” she said.

Sullivan said she hadn’t heard any rumors of the plan in Augusta or locally and is concerned information provided to voters will be biased because it will come from groups supporting or opposing the plan. Her top concern is where the racino and track would be located, she said.

“There’s so many things to consider. I’m shocked it came forward without so much as a peep and without any public input,” Sullivan said.

Sullivan said she needs much more information before developing a firm opinion on the proposal. She said she wants to ensure the plan won’t hurt downtown retailers, city infrastructure and schools.

“When we operate on rumor and hearsay, we make bad decisions,” she said. “There are too many unanswered questions.”

State Sen. Barry Hobbins, whose district includes part of Biddeford, also said it is too soon for him to back the proposal.

“Historically, I have not favored expansion of gambling. The bottom line is I think it’s a statewide policy,” he said. “It just doesn’t affect one community, it affects the whole state.”

Hobbins said he opposed a 2003 plan to move Scarborough Downs and a racino to Saco. Voters in the special election rejected the plan by a vote of 2,316 to 3,793, according to Saco Deputy City Clerk Michelle Hughes.

“They’d have to show me more than I’ve seen so far to change my mind and support the plan,” Hobbins said.

Craig Pendleton, executive director of the Biddeford-Saco Chamber of Commerce and Industry, said he anticipates the executive board will discuss the proposal before making any decisions about supporting the idea. He said the proposal opens up an important economic discussion.

The racino issue was not on the Aug. 17 council agenda and came as a surprise to people at the meeting. Following an executive session regarding a property issue related to the proposal, councilors voted 7-2 in favor of putting the referendum question on the November ballot. Councilors Clement Fleurent and Jim Emerson opposed the measure.

After Twomey read the referendum question, members of the public commented on the issue. Richard Rhames said he doesn’t feel this is the way to move forward for the city and said residents rejected a casino proposal before.

Biddeford voters in 2002 rejected a resort casino by a referendum vote of 2,964 to 4,761.

“I think this is likely a lame proposal. As people are deprived of options, they resort to taking chances,” Rhames said.

Resident Wayne Mcbreairty said he would vote against the proposal, but thanked the council and mayor for “the courtesy of letting people decide right off and without a lot of debate.” He said he is concerned profits from racinos don’t stay in Maine and the state “deserves more than just $200- or $300-a-week jobs.”

Resident Roland Pelletier said the referendum “says nothing” and people need more information before voting on the issue. Resident Denis Rioux, who said he heard about the proposal through the grapevine before the meeting, asserted he is “confident the people of Biddeford would have the good sense to turn this down.”

“I couldn’t believe how this thing was fast-tracked,” Rioux said. “We want to be known for (Maine Energy Recovery Co.), a race track and slots in Biddeford? This seems preposterous to me.”

Resident Matt Hight echoed the idea and said the proposal came too quickly. He said putting the question on the ballot “is not a neutral act.”

“It’s going to put this question into a forum where big money has a lot of play,” he said.

Resident Bill Durkin said he was “dumbfounded” by the referendum question and previously opposed putting a resort casino in Biddeford. Redevelopment of the mills and downtown seem to be going well and much more information about the impact of a racino on the city is needed, he said.

After hearing from the public, city councilors weighed in on the issue. Councilor Raymond Gagnon said the racino could offset some of the tax increase expected from the $34 million Biddeford High School renovation bond. Hollywood Slots in Bangor is “thriving” and a racino will bring much-needed jobs and money to Biddeford, he said.

“I think this is a good thing. It’s going to revamp a lot of Biddeford,” Gagnon said.

Councilor Alfred Lamontagne said he spent many years working in manufacturing and recognizes manufacturing jobs won’t be coming back to the area “anytime soon.” Councilor Rick Laverriere said he fully supports allowing residents to decide if they want a racino in their city.

“I personally would welcome them with open arms. I love the slots. This is a way to really help the city,” he said. “It will bring people downtown also and support our shops downtown. I look forward to the day I can go there.”

Council President Bob Mills said the potential of millions of dollars pouring into the city would help education and public safety budgets.

“That’s money we need in this city, that’s jobs we need,” he said. “It’s time to take charge and stimulate our own economy and this is how we can do it.”

Fleurent was the only councilor to speak against the proposal. He said he is “totally opposed” to the plan and will “do my best to make sure it doesn’t pass.” This week, he said the plan came on short notice. He said he hadn’t heard anything about it until Twomey pulled him aside before the executive session.

“I had no idea. They can keep a good secret. It was a complete surprise,” he said. “I had no idea it was going to be on the agenda.”

Twomey said the meeting was held in executive session at the suggestion of the city attorney because it pertained to property negotiations and contracts.

Fleurent doubts the racino will generate 900 new jobs and said it is more likely many of the jobs are already held by people in Scarborough who would transfer to Biddeford.

“I think they’re painting a rosy picture here as usual,” he said.

Fleurent said he also doubts a racino would benefit the downtown and doesn’t want a new facility to take away from the city.

“It’s not going to bring anything downtown. When they leave (the racino) they won’t have any money to spend downtown,” he said.

Fleurent said he also is morally opposed to gambling because “it is wrong to take somebody else’s money.”

“We don’t want MERC around because it pollutes our bodies, but we’ll pollute our souls and mind with that racino,” he said.

Though she recognizes residents may be wary of the plan because it seemed to come up suddenly, Twomey said she promises a series of public meetings will be held to provide more specific information as soon as it is available. She and other city officials met with Scarborough Downs representatives Monday for the first time since the council vote.

Twomey said the meeting went well, in part because of assurances from Scarborough Downs that a contract with the city could include provisions to benefit downtown. She imagines shuttle buses ferrying people from the racino to downtown shops and restaurants.

“I’m not looking to locate something that will shut down downtown,” she said. “I’m very sensitive about bringing in something that will hurt downtown. I think these things go hand in hand.”

Before bringing the proposal to the city council, Twomey said she did her own research about racinos and their effects on communities. She said Bangor has seen no increase in crime since Hollywood Slots opened and the city benefits financially from the arrangement, she said.

Hollywood Slots, which is about 305,000 square feet, pays more than $1.6 million each year in real estate taxes to Bangor. Stevenson estimates Biddeford will benefit in two significant areas, gaming revenue and property taxes.

Stevenson said the city could receive more than $5 million annually from gaming revenue from slot machines. A “conservative” estimate for property tax revenue from the facility is $1 million annually, he said.

Stevenson said Scarborough Downs has not asked for tax increment financing, though it is too soon in the planning process for those discussions. Scarborough Downs has been asked to provide the city a breakdown of potential jobs. The anticipated number of jobs is 900, not including construction jobs, he said.

Twomey said she has been assured the jobs are full-time positions with benefits. She said she would prefer to replace the hundreds of manufacturing jobs lost in Biddeford in recent years, but recognizes that is not possible in the short term.

“People are hurting. Do I think this is a magic pill? No. But I do see potential,” Twomey said. “This is not my decision – I’m asking the people of this city. This is about jobs, jobs, jobs. They’re going to go somewhere, why not here?”

Staff Writer Gillian Graham can be reached at 282-4337, ext. 213.