Moving a step closer to a November referendum, the Petersburg, Virginia city council recently voted 6-0 for a resolution formalizing its partnership with the Cordish Companies and Bruce Smith Enterprise to develop a $1.4 billion casino entertainment district on 92 acres at Wagner Road and Interstate 95.
The Lottery Board must receive all of the official paperwork by May 31, after which it will have 45 days for review. If the board approves the action, a Circuit Court judge must allow the voter referendum to proceed. Petersburg officials have said all approvals must be in place by early August.
According to the resolution, Petersburg’s official casino partner will be PPE Casino Resorts Petersburg LLC, a Cordish entity similar to those that operate its Maryland and Pennsylvania properties. Under the operating agreement, a temporary casino with 1,275 gaming locations and restaurants will operate at the site while the permanent facility is constructed.
That venue will offer a casino with 2,000 slot machines and gaming tables, 200-room 4-star hotel, up to eight restaurants and bars and conference and entertainment space. The temporary casino will be converted into an entertainment venue when the permanent location is operational.
Under the agreement, Cordish will pay Petersburg up to $80 million over three years as an investment in the infrastructure. Petersburg will designate 5 percent of those funds for special city initiatives and community investments. In addition, the city will pay PPE $1 a year for a police substation inside the permanent facility.
The agreement also states that PPE is “solely responsible” for all building and design costs, plus offsite improvements for additional utility, traffic and landscaping surrounding the casino. PPE officials agreed to give preference to residents for jobs and to local companies for contract work, as well as minority based enterprise participation.
On July 1, Petersburg officially became the fifth casino-host city in Virginia, along with Bristol, Danville, Norfolk and Portsmouth. Richmond originally was one of the five cities selected for a casino but voters rejected the issue in two referendums.
