In Richmond, Virginia’s casino bidding war, it’s now down to two.
Last week, the office of Richmond, Virginia Mayor Levar Stoney eliminated the third bidder from consideration: Rhode Island-based Bally Corp.
The last proposals standing are the Baltimore-based Cordish Companies’ $600 million Live! Casino & Hotel, and Silver Spring, Maryland-based Urban One’s $600 million ONE Casino and Resort.
Leonard Sledge, director of Richmond’s Department of Economic Development, said, “The evaluation panel is no longer considering the Bally’s project or the Parkway Crossings site for a resort casino due to concerns about site access, environmental factors and required approvals from non-city entities that may not be granted or extend the project timeline. We also appreciate the many Richmond citizens who have shared their thoughts throughout this process.”
Bally’s President and CEO George Papanier said he was “disappointed and surprised in the evaluation panel’s decision. We’re the best operator to partner with the city on this endeavor, and we provided the largest financial package with the most economic benefit to Richmond residents and business owners.
“We were deeply committed to this project, as well as to becoming a responsible neighbor and member of the Richmond community. Should the city reconsider its decision, we would be pleased to reengage.”
Papanier noted that Bally’s still plans to offer its online sports betting platform in the state; it was awarded a temporary permit in mid-March. Sports wagering became legal in Virginia in January, and in February Virginians bet $265 million with five licensed operators.
City officials recently held a series of virtual public meetings and took public comments about the casino proposals. Many residents around Bally’s proposed casino site in the Stratford Hills neighborhood organized protests, based on concerns about traffic and crime. Bally’s subsequently offered to move the proposed location, but city officials rejected the offer. Bally’s also offered to soothe worries over traffic by changing road configurations leading to the casino.
Urban One and Cordish Companies were permitted to enhance their proposals. As a result, Urban One raised its investment from $517 million to $600 million and increased the number of hotel rooms from 150 to 250. The company, which owns and operates 55 radio stations and the TV One cable network, has partnered with Peninsula Pacific Entertainment, Los Angeles-based owners of the Colonial Downs racetrack and Rosie’s gaming emporiums. If approved, the project will be built on land currently owned by Philip Morris USA and will offer a sportsbook, 3,000-seat theater, 100,000 square foot casino and 12 bars and restaurants, 20-acre park, and television and radio studios.
Urban One Chief Executive Officer Alfred Liggins said, “The city didn’t ask us to do anything specific, but we heard feedback about our proposal in comparison. As opposed to saying, ‘We’ll build more as demand increases,’ we decided to come out and say we’ll commit to building a similar-sized hotel.” In an odd twist, several residents from the Stratford Hills area have been helping to promote the One Casino project.
Peninsula Pacific Entertainment is the gaming partner for Urban One, with extensive experience in Virginia as the operator of Colonial Downs racetrack and several Rosie’s gaming parlors, which feature historic horse racing machines.
Cordish Companies, owners of casinos in Baltimore, Philadelphia, Pittsburgh and Florida, has proposed a property near the trendy Scott’s Addition neighborhood, on the current Movieland theater location. That resort would include a 300-room, 30-suite hotel, a 4,000-seat entertainment venue, a 250,000-square-foot casino, plus 18 restaurants, a community festival lawn, a wellness center, a resort pool and a music hall.
Cordish said its proposal now also includes a commitment of more than $200 million in payments to the city over the first 15 years of the project to “help fund critical community services.” Cordish officials said the project would create 5,000 construction jobs and 3,000 permanent jobs.
However, in a letter to Richmond officials, Ginter Park Residents Association President Prudence Justis wrote 94 percent of respondents to a recent neighborhood survey opposed a Live! casino at the Movieland property. The letter stated, “Because so many of our residents feel strongly that the presence of a large casino-resort so close to our neighborhood would be contrary to the interest of the neighborhood, the board of directors has taken the further step of formally opposing this site as well.”
Responding to the association, Cordish spokeswoman Cari Furman said the company’s project would generate the most tax revenue. She added, in response to public feedback, the company may offer a movie theater in the new development.
Rob Norton, president of Cordish Gaming Group, told GGB News, “We’re very excited to be selected by the city of Richmond as one of the two finalists. We firmly believe that our location is the strongest location aligned with this type of entertainment project development. We have the strongest economic benefit and employment opportunities, and the best track record for delivering a world-class resort and entertainment experience of the two remaining proposals, with the most experience.”
“We thank the city of Richmond for continuing to recognize the strength of our proposal and its overall benefits to the city, its residents and visitors,” said Cordish COO Zed Smith. “We are excited by the support we are receiving from residents, businesses and civic organizations throughout the city who believe it’s a no-brainer to focus the project in a district known for great dining and entertainment and easily accessible to the population base from both I-64 and I-95.”
Anonymous flyers against the Cordish project recently were distributed around the city. The flyer said a casino in Greater Scott’s Addition would lower the area’s quality of life, and suggested that residents tell city officials to “build it over there.” The flyer’s meaning wasn’t clear, but numerous local leaders and residents, including the mayor, condemned it as racist.
A nine-member selection committee will make site visits, then make its recommendation to the city council in May. If the council approves the operator and location, the issue will go on the November ballot.
Voters in Bristol, Danville, Norfolk and Portsmouth passed casino referendums last year by large margins; the four casinos are now under construction.
Richmond originally received six casino plans in response to a request for proposals. In March, officials rejected proposals by the Pamunkey Indian Tribe, Golden Nugget Hotels & Casinos and Wind Creek Hospitality.
