In a 4-3 vote, the Newport, Rhode Island city council rejected the Municipal Community Agreement with developers who want to buy Newport Grand and expand it into a million casino-entertainment center with restaurants, event space and a high-end spa—but only if table games will be allowed. Legislators approved for the November 4 ballot a statewide question on whether to allow table games at Newport Grand. If so, Newport’s share of slot machine revenue would increased from 1.01 percent to 1.45 percent. Two years ago, state voters approved an expansion at Newport Grand but it was rejected by Newport voters.
The agreement would have given preference to Newport residents for hiring and to Newport vendors for purchases of goods and services. In addition, upon licensing, the developers would have provided $1 million to Newport over three years, in addition to the $9 million in additional property tax relief guaranteed by state law. Council Vice Chairwoman Naomi Neville stated that the $1 million payment is a bribe and that the agreement should not be a factor in the November vote. Senate President Teresa Paiva Weed, who helped draft and manage the bill specifying the financial terms of a deal, said because of the city council’s decision she cannot support the referendum.
Former Providence Mayor Joseph R. Paolino Jr., one of three casino development partners, said the council’s actions will not stop the project from moving forward. He noted Newport just would receive less money if voters approve adding table games. He added it is “shortsighted” to oppose the agreement. “We will still make a financial commitment to the city, and may put together our own partnership with the people,” Paolino said.
The anti-gambling group Citizens Concerned About Casino Gambling plan to canvas the city to urge residents to vote no in November. Group leader Reverend Eugene McKenna said the casino project would thwart plans to turn the city’s north end into an innovation hub that would create technology jobs. Also, he said, it would harm tourism and the local hospitality industry and lead to more gambling addiction. “If you want to ruin a city, have a casino,” McKenna said. In addition, three Newport residents have filed a lawsuit against the state to block the referendum.
Newport Mayor Harry Winthrop said the innovation hub is only a concept for now. He said he’s concerned that Newport Grand might close if it’s not renovated; 200 people would lose their jobs and the city would lose about $450,000 annually in gambling revenues. ‘‘I don’t really have a feeling one way or the other with respect to the gambling, only the revenues. The revenues are good for the city,’’ Winthrop said.
Paolino noted the casino could create 350 permanent jobs plus construction jobs. Also, he pointed out Newport Grand already is a casino with 1,200 slot machines. ‘‘I hate to tell them the bad news, but if this loses, they’ll still have a casino there. The only thing that will be lost is a $40 million investment,’’ Paolino said.
