In Virginia, political strategist Paul Goldman announced he will sue the city of Richmond for not requiring a bidding process for a proposed casino resort.
In an 8-1 vote in June, the Richmond city council selected RVA Entertainment Holdings LLC as its preferred choice to operate a casino resort in the city. That could lead to a second voter referendum on the casino, which voters narrowly rejected in 2021.
According to the Richmond Free Press, Goldman said, “This is the most lucrative franchise the city has ever awarded and it was done without the kind bidding process that was initially used in 2021. Both the state constitution and the Virginia Public Procurement Act were written to prevent just this kind of sweetheart deal.”
Mayor Levar Stoney’s office said it did not believe a bidding process was required. City officials said they had the authority to recommend RVA Entertainment Holdings, a 50-50 joint venture between Maryland-based Urban One and Kentucky-based Churchill Downs. But Goldman said Stoney’s team never mentioned the deal has changed.
Specifically, in 2021, Urban One listed RVA Entertainment Holdings as a wholly owned subsidiary but Goldman said new information shows that’s incorrect. He said the Virginia Lottery was notified that 6 percent of the equity in the casino would come from other private investors.
“Either both companies will have less than majority stakes, or one company will have less, but they cannot be 50-50 owners if others are taking 6 percent,” Goldman said, per the Free Press.
He noted Article 7, Section 9 of the state constitution states a city or town “shall, after due advertisement, publicly receive bids therefor” prior to granting a franchise or privilege, Goldman also said the Virginia Public Procurement Act includes requiring “fair and impartial” conduct in the award of contracts to avoid “any impropriety or appearance of impropriety” and ensure that “qualified vendors have access to public business and that no offeror be arbitrarily or capriciously excluded.”
In addition, Goldman pointed out Urban One President and Chief Executive Officer Alfred C. Liggins III had stated the proposed casino would be the only Black-owned company in the U.S. But he noted that won’t be the case according to filings by both companies with the U.S. Securities and Exchange Commission.
Goldman, a strategist for former Governor L. Douglas Wilder, said he supports a do-over on the casino issue but wants people to cast “an informed vote.” He said he didn’t know exactly when he would file his lawsuit against the city because he’s still collecting data. He added the Lottery has declined to release all of their documents relating to the casino and said he may have to file a Freedom of Information Act request.
Meanwhile Richmond is moving forward. The city recently received a court order to put the casino referendum on the November 7 general election.
