What's next for racino?

By Gillian Graham

Staff Writer

 AUGUSTA -– Supporters of the proposed Biddeford Downs racino on Monday asked state legislators to make “simple changes” to move the project forward and support the harness racing industry.

Opponents, however, urged lawmakers to put the issue to a statewide vote in November. They say any expansion of gambling in Maine should be decided by voters.

The Legislature’s Veterans and Legal Affairs Committee heard about five hours of testimony on two bills that would increase the number of gambling facilities in Maine from two to five. The committee will recommend the Legislature either adopt the bills into law or put them on the November ballot for a statewide referendum.

One of the bills, LD 1203, allows a racino in Biddeford and a racino run by the Passamaquoddy Tribe in Washington County. A second bill, LD 985, would allow a slot machine facility in Bates Mill No. 5 in Lewiston. Both bills were brought to the Legislature through the citizens’ initiative process of gathering signatures and qualify for the November ballot.

A work session on the bills has not been scheduled.

The proposed Biddeford Downs project, approved by Biddeford voters in November, would move Scarborough Downs to the city and create a racino and hotel complex. The $120 million project would create 800 construction jobs, 500 full-time jobs and provide tax money for the city and state, according to project developers and city officials.

The Biddeford Downs project cannot move forward without changes to state law. Voters in 2003 approved racinos near existing harness racing tracks in Bangor and Scarborough with a tight deadline to move the project forward. Scarborough Downs was unable to get local approval for a racino and began looking to move to another community.

Also on Monday, Gov. Paul LePage signed a bill to clarify a law that requires a 100-mile distance between gambling facilities. The 100-mile distance will be measured by roads instead of “as the crow flies.” The Biddeford racino bill exempts the facility from the 100-mile requirement.

 

Before the hearing, about 40 supporters of the Biddeford and Washington County racino proposals gathered in a State House hallway with signs that asked legislators to support jobs.

Bruce Gordon of South Paris said he came to the hearing because he is a full-time security guard at Scarborough Downs. He said the Legislature should pass the bill because “it’s going to put a lot of people out of work if they don’t.”

Robyn Crochere of Sydney stood nearby with her husband, David. They currently train 19 horses. She said if Scarborough Downs is unable to survive, they would have to go out of state to race.

“It’s very important to us to stay in this state to compete,” she said.

Crochere said the Biddeford racino will help the harness racing industry, as well as farmers, veterinarians and others who provide services to horse owners.

Ryan Hall, 17, and Aaron Hall, 21, both of Gardner, said they went to the hearing to support the harness racing industry. Ryan Hall is a driver at Scarborough Downs and their family trains 12 horses. The Halls said they fear the industry will “fizzle out” if Scarborough Downs is unable to relocate and attract more people to races.

 “(This bill) is the fate of Maine harness racing,” Ryan Hall said.

Pat Leavitt, a farmer from Buxton, stood immediately outside the hearing room and asked people to read his sign as they walked past. He said people should support the bill to preserve open space and create “much needed” jobs.

Donna DuBois of Biddeford attended the hearing with her husband, Tom, and their two sons. Three generations of the family is involved with harness racing.

Biddeford City Council President Bob Mills said he traveled to Augusta to “speak for the 59 percent” of Biddeford voters who approved the racino project last November.

 

Biddeford Mayor Joanne Twomey urged the committee to support the bill because the city “is in desperate need of revenue.”

“We have lost our textile industry and our job loss is in the hundreds. LD 1203 offers us an opportunity to put money back in our economy and it offers hope – hope by way of jobs,” she said.

Twomey said people looking for work stop by her office every day. She said she could not turn her back on the prospect of 500 full-time jobs with an average salary of $35,000 plus benefits.

City Manager John Bubier said waiting on a statewide referendum to make changes could cost the state $40 million.

“Can we really afford to lose $40 million in taxable income?” he asked.

Economic Development Director Daniel Stevenson said the city supports Biddeford Downs because it will provide a “significant investment” in the local and regional economy. He said the city will receive $1 million annually in net property taxes, $2 to $3 million in gaming revenue and the annual contribution to the state’s general fund will be $30 million.

Stevenson said the project will allow the city to invest in its downtown and infrastructure, including a parking facility. Other businesses will benefit from consumer confidence from people who are able to get back to work and off unemployment, he said.

Peter Cornell, a representative of Ocean Properties, the racino developer, said Biddeford Downs will be “a unique and spectacular” resort and is “precisely the type of facility” approved by voters in 2003.

Grady Sexton, vice-chairman of the Biddeford Downtown Development Commission, said the project will stimulate the local economy.

“The most important thing we have to gain is jobs,” he said. “This is our chance to lift the economy of Biddeford.”

 

Opponents of the bill repeatedly told the committee voters should be the ones to decide if more gambling facilities should open. They said the racino bill goes beyond small fixes because it calls for the creation of a third racino.

Dan Billings, chief legal counsel for the governor, said the administration feels questions raised by the bills should be decided by voters. He said LePage is not anti-gambling and sees the benefits of creating new jobs.

“He believes this is one of those questions best left to voters,” Billings said.

Billings said LePage’s “inclination would be to veto” the bills if approved by the Legislature.

Chris O’Neil, a lobbyist for the newly formed Mainers Against a Rotten Deal, said voters should decide the state’s threshold for gambling facilities.

“We feel the time and place to have that discussion is all summer and all fall,” he said. “We feel the people who should have that discussion are all the people of Maine.”

Dennis Bailey, executive director of Casinos No!, said legislators should not bail out the harness racing industry.

“What you are being asked to do with this bill is grant one business an exclusive right to operate slot machines in order to bail out a struggling industry at the expense of existing Maine businesses that will be unable to compete with this casino,” he said. “Maybe some track owners and horse breeders will benefit, but downtown restaurants, bars, social clubs and retail shops will suffer.”

David Flood, a Biddeford resident and downtown property owner, said he has problems with the process that put the Biddeford Downs project on the local ballot last year. He said the referendum “was bought by people with a whole lot of money.”

“I think there hasn’t been any thought to the long-term effect on Biddeford and the surrounding communities,” he said.

Biddeford City Councilor Clement Fleurent said he was “dumbfounded” by the council’s quick decision to go to referendum. He said he strongly feels voters statewide should decide the fate of the project because it does not effect just one community.

Marc Worrell, a Biddeford resident who helped form Mainers Against a Rotten Deal, questioned whether racinos create high-quality jobs that attract people to the area. He said he is concerned about the negative impact the facility could have on the community.

 

In addition to Biddeford city officials, people connected with the harness racing and agriculture industries testified in favor of the legislation. Supporters from Washington County asked legislators to take action to help the area’s high unemployment rate.

Don Marean of the Maine Harness Horseman’s Association said legislators need to act now so as not to “set the agriculture community back a whole year.” He said no less than 12 people are employed for each horse born and raised in the state.

“The industry needs you to pass the bill now… so we can maintain the jobs we have now,” he said.

Ernie Lowell, a blacksmith from Saco, said many farmers feel stress and fear over uncertainty about the future of harness racing in Maine. He said he would like to see the industry grow stronger so young people will come back to work. Lowell’s grandson currently attends veterinary school in London.

“My dream is for him to come home and find work locally,” he said.

Mike Sweeney told the committee he has worked in the harness racing industry since 1981 and currently calls races at Scarborough Downs. While traveling along the eastern seaboard, he has seen successful tracks with racinos, he said. He said he witnessed the “remarkable transformation” at Saratoga Raceway in New York.

“I’ve marveled as local business in the Saratoga area shared in the economic boom that was created in pure rising tide fashion. The same can happen in Biddeford and Washington County,” he said.

Joseph Socabasin, chief of the Passamaquoddy Tribe at Indian Township, said the impetus for gaming in Maine began with his tribe in the early 1990s. A racino in Calais is needed to create jobs and stimulate the local economy, he said. The unemployment rate in Washington County is 12.7 percent.

Socabasin said the tribe plans to build a modern racino that overlooks the St. Croix River in Calais.

“The facility will bring the excitement of harness racing back to Washington County along with a first-class hotel and a modest convention center, all designed with up-to-date market studies and meticulous business planning,” he said. “The racino brings prospects of financial strength to a proud and beautiful region with untapped potential.”

 

 

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