Ahead of a 7-1 vote approving a land deal for the Pamunkey Indian Tribe’s proposed $700 million waterfront casino resort development, about two dozen Norfolk, Virginia residents asked the City Council to postpone the vote. They claimed there had not been enough time to inform the public about it. Mayor Kenny Alexander said it’s “disingenuous to say this was rushed. There were meetings with lawyers, with staff. So for council members or anyone to say there’s no due diligence, it hadn’t been vetted, there was no research, I take issue with that. We have been immersed in this since early 2018.”
In response, a group of residents said they’ll launch a petition drive to reverse the city council’s decision. They’ll need 4,000 signatures from registered Norfolk voters within 30 days of the adoption of the ordinance. If they succeed, Norfolk’s chief Circuit Court judge would then set a date for a referendum vote to be held 30-60 days later.
Prior to the city council vote, Alexander said in a statement, “What is before the Norfolk City Council is not a standalone gaming facility, but a $700 million resort hotel casino and spa that will include at minimum 750 gaming machines, 25 gaming tables, a luxury hotel, at least three upscale restaurants, a 750-seat entertainment facility and a waterfront promenade. This will encompass 13.4 acres on the east side of Harbor Park that will be purchased from the city at its appraised value of $9,937,500. The tribe will be responsible for all costs associated with the construction of the project including infrastructure, flood mitigation, parking, and utility improvements. After the sale of land closes, the tribe will pay the city $125,000 per year until the casino opens. After the casino opens, the tribe will pay the city 4 percent of net gaming revenues with a minimum payment of $3 million per year.”
The city and tribe said the project could generate $1 billion in direct economic benefits for Norfolk, including up to $33 million annually for the city.
Council member Andria McClellan cast the sole opposing vote. On her Facebook page, she asked how a casino would impact downtown businesses, how it would fit in with the nearby community like Norfolk State University and how public safety would be impacted. She says the city council was “rushing” the vote.
Councilman Tommy Smigiel, on his Facebook page, said, “There are some critical needs in our city which could be addressed sooner than later with the money generated from this project.”
Ahead of the vote, the Larchmont Edgewater Civic League posted an online survey for Norfolk residents to fill out. Nearly 71 percent of the 934 people who responded said the city should slow down; 42.6 percent said a casino would have a negative impact on the city; 37.3 percent said it would have a positive impact; and 20.1 percent said they were unsure.
Now that the land deal has been approved, the Pamunkeys will pay the city $100,000 a year for up to five years until one of two pathways toward opening a casino happens. First, lawmakers could approve legislation that would allow gaming in five cities, including Portsmouth and Norfolk. If the bill is approved in the next legislative session, and a majority of Norfolk voters approve it in a referendum in 2020, the Pamunkeys could open a commercial casino by 2022, according to the city’s interim economic development director said.
Second, the tribe also will submit an application to have the land taken into federal trust.
