City Council in Portsmouth, Virginia recently voted 6-0 to approve a memorandum of understanding with Chicago-based Rush Street Gaming to develop and operate a proposed casino resort, if state and local voters approve casino gaming.
Under the deal, the city would sell the 50-acre tract at Interstate 264 and Victory Boulevard site to Rush Street at $400,000 per acre with a minimum price of $10 million. The project would include a 400,000-square-foot gaming and entertainment facility with a 3,000-seat performance venue, restaurants and meeting space; 4-star hotel; 30 dining and shopping outlets; movie theatre; and 3,000 space parking garage.
Rush Street Gaming cofounder and Chairman Neil Bluhm said, “I promise you we will build something you’ll be proud of. First and foremost, we’re real estate developers with a strong track record of successfully collaborating with our host communities.
“We choose our projects very carefully and we knew right away the Victory Boulevard location would be ideal. Portsmouth is central to the region, and the site itself is large with the potential to include a multitude of hospitality and entertainment uses, is well positioned in a development corridor with retail, superior infrastructure and immediate highway access from multiple directions.”
Portsmouth officials said they were impressed with Rush Street’s focus on employees and community engagement, plus its commitment to diversity and inclusion. They noted Rush Street contributes millions annually to minority and women-owned businesses. Rush Street currently operates two casinos in Pennsylvania, one in New York and another in Illinois.
Consultants have estimated the casino could generate $145 million in its first year of operation. The casino resort would create about 1,000 new jobs, officials said.
Rush Street operates casinos in Des Plaines, Illinois; Schenectady, New York; Pittsburgh; and Philadelphia. “In every case, we’ve had really good results. For us to feel successful, we’re going to have to make sure that the community is happy with what we end up doing,” Bluhm said.
Meanwhile in Norfolk, the Urban Land Institute convened a meeting of business leaders to discuss the pros and cons of a casino. Consultant Cory Morowitz said the city should develop a mix of shopping, restaurants, offices and homes around the Pamunkey Indian Tribe’s proposed waterfront casino resort at Hampton Roads. In September, the city council approved a land deal with the tribe for the casino and hotel complex.
Morowitz said Detroit, Philadelphia and New York built casinos hoping they would benefit nearby existing businesses. However, he said, “These casinos become islands unto themselves. People drive in, drive out and don’t come for anything other than the casino.”
A casino, he said, should be a catalyst for attractive amenities like movie theatres, stores and restaurants. “Creating mixed-use developments are really what benefits both the casino and the community,” Morowitz said.
Norfolk Interim Economic Development Director Jared Chalk said, “I do envision all of surrounding Harbor Park building out into a Harbor Village. It’s important to get that right and make it feel like it’s not out on an island.” However, the proposed casino would be wedged between Harbor Park and the Amtrak station, at least one mile from the closest downtown destinations—which are on the other side of the interstate.
In addition, a large area immediately north of the proposed casino site is expected to become a park to control flooding and storm water.
Virginia is one of the few states without casino gaming. But House Bill 4, recently pre-filed by state Rep. Barry D. Knight, would change that by amending the Code of Virginia to allow casino gambling and sports betting. Its outcome could depend on the results of a study authorized under Senate Bill 1126, which passed earlier this year, authorizing a review of casino gaming laws in other states and their fiscal and social impact. The report is due by December 1.
Knight’s bill would require a minimum investment of $200 million for a casino license; a sports betting license fee was not addressed. The Virginia Lottery Board would regulate casino gambling and sports betting. Both the House and Senate bills would require a local referendum on the November 2020 ballots in each city where a casino would operate.
