One
group that has been monitoring the casino proposal closely is the Rochester
Downtown Development Corporation, a non-profit economic development
organization. The RDDC began intensive research on urban casinos and state
land-claim settlements once casino talk started surfacing in the media months
ago. Much of that research has been compiled on RDDC’s website
(www.rochesterdowntown.com/news/casino_news.html).
ย ย ย ย ย ย ย ย ย ย ย Because of the complexity of the
casino issue, RDDC has made a policy decision not to take a stand, says RDDC
President Heidi Zimmer-Meyer. Instead, it has focused on issues the community
should address if a casino is built: what impact the casino might have, how Rochester might protect
developments already underway downtown, and how Rochester might capitalize
on the casino.
ย ย ย ย ย ย ย ย ย ย ย In a recent discussion with City Newspaper, Zimmer-Meyer shared her
corporation’s research. An edited transcript of that conversation follows.
Zimmer-Meyer: We’re all trying
to wrap our arms around the prospect of a downtown casino, which is being
increasingly discussed in the media. We’re trying to understand what all of
this means in terms of the components of a proposed casino, the process by
which it might be approved, and how it would impact the community.
ย ย ย ย ย ย ย ย ย ย ย About two months ago when we first
began hearing that there was potential for a project like this downtown, it
became immediately apparent how little we know about casinos here in Rochester. This is a
new issue for us locally. So we began collecting everything we could find about
casinos — hundreds of articles, research documents, websites, etc.
ย ย ย ย ย ย ย ย ย ย ย We’re trying to more clearly
understand the many aspects of this issue. What does the modern urban casino
model look like? What are its impacts in other cities? How does the approval
process work in New YorkState? How are
other communities developing relationships with Indian tribes? What impacts do
these kinds of investments have on the existing infrastructure, on existing
developments?
ย ย ย ย ย ย ย ย ย ย ย The
reports are that a massive, $400-$500 million investment in two major blocks
downtown — the Sibley and Midtown Complexes — would be involved, along with
a new hotel, restaurants, and many new jobs. This is coming at a time when,
unlike Atlantic City and Niagara
Falls, the rest of our downtown is experiencing
substantial public and private investment in market-rate housing, higher
education, entertainment, commercial, and public facilities. For Rochester,
a casino would not be viewed as a “silver bullet,” as it was in the other two
cities, both of which were on a severe downward economic spiral before their
first casinos were built.
ย ย ย ย ย ย ย ย ย ย ย Our corporation has made a policy
decision at this point: We are not taking a position on the casino, pro or con.
There are several reasons for this. There is significant value in being able to
provide neutral information to our constituents and to the larger community in
an environment where little exists on this topic. And that’s critical, because
the more you get into this issue the more complicated it gets.
ย ย ย ย ย ย ย ย ย ย ย I’ve met with a number of business
leaders and public officials over the past two months where the potential
downtown casino has been discussed. Once the complexities of this subject are
articulated, we often get the response that: “You know, I was against this at
the beginning of this conversation, and now I’m not so sure.” And vice versa.
Part of what has to happen in this community is we have to understand what
we’re dealing with before we can have any kind of a reasoned reaction to the
prospect of this massive project in the center of the city.
ย ย ย ย ย ย ย ย ย ย ย The other reason is that we need to
understand the process by which a downtown casino may be approved here in Rochester. There may be
no local approval component involved, which we think at this point may possibly
be the case. That’s how the casino announcement took place in Buffalo. The issue
then becomes not how we come to a decision, but rather how we maximize its
positive impacts as an economic development project — one of several in the
constellation of investments under development in the center of the community.
ย ย ย ย ย ย ย ย ย ย ย It
appears that this project will involve the creation of sovereign land, which
would not pay local property taxes or be subject to state or local laws.
Perhaps it would be appropriate at some point reach out to the tribe involved,
and negotiate a long-term partnership that recognizes that if their casino does
well, Rochester benefits. If our community is rich in economic growth, their casino
will do better. Given the way the project may roll out, it might ultimately
benefit both to begin working together in a partnership from the beginning.
ย ย ย ย ย ย ย ย ย ย ย The
laws as we understand them don’t require this reaching out, but we might want
to for economic reasons. That would suggest that we need to think strategically
about how to build such a relationship, and how to identify and prioritize the
top two or three ways that the interface between the casino, the tribe, and the
surrounding properties could be maximized for the highest mutual benefit.
ย ย ย ย ย ย ย ย ย ย ย What
is confusing in the most recent reports is how our local area would be
compensated as in the recent NYS-tribal compacts approved in Western New York.
We don’t know how it would work in Rochester. The Syracuse paper is reporting
that the proposed downtown Rochester casino would have VLTs [Video Lottery
Terminals], not slot machines.
ย ย ย ย ย ย ย ย ย ย ย Currently,
both the state and local area get a percentage of the gross annual slot-machine
“take” resulting from the most recent compact and New York State-host community
arrangements. I don’t know how that would work with VLTs, which are generally
managed by the New York Lottery. As we understand it, all lottery funds go
directly into the state’s education fund. This question needs to be at the
forefront of our delegation agenda in representing us in Albany.
ย ย ย ย ย ย ย ย ย ย ย So we’ve got to think through and
understand what these developments do, how they operate, what impact they have
in other communities. How do we protect the incredible investment we already
have in this community in housing, in conversion projects? How do we ensure
that the progress to develop Renaissance Square is not hurt by a casino
project? And also, how can we maximize whatever potential to draw more
conventions that have longer stays because we have a casino? We have to start
thinking collaboratively about how we can create a whole that’s greater than
the sum of its parts.
City: What about opportunities for public input?
ย ย ย ย ย ย ย ย ย ย ย Zimmer-Meyer: Given what we
saw in Buffalo and what we are hearing from a variety of sources, the state is
under significant pressure to resolve the issues surrounding Indian land-claim
settlements emerging from the courts. These projects in New York State seem to
be on a fast track. As in many parts of the country, the potential of casinos
to yield income to states is very attractive in times of strained state
coffers.
ย ย ย ย ย ย ย ย ย ย ย If these assumptions prove to be
true, then the whole debate shifts and the question becomes: “If it’s going to
happen, how are we going to interface with this project in terms of its design,
its construction? How do we deal with the infrastructure needs that emerge from
this kind of development?”
ย ย ย ย ย ย ย ย ย ย ย When sovereign land and Indian land
claims are at issue, you’re in an entirely different arena. The federal
government becomes involved, most importantly the Bureau of Indian Affairs. So
we have to understand what this means and where Rochester’s voice can
be heard in the process. We think our time is better spent figuring out how to
deal with this new use in our community in a way that has the best chance of it
being on balance a net win for everybody involved.
ย ย ย ย ย ย ย ย ย ย ย Let’s understand what the process is
and whether we can even have an impact on its arrival. If not, the issue is
moot. Put it aside and start talking about the real issues: Is there any way to
impact the way it meshes in the community? What will our long-term relationship
be with the tribe? In our view, that’s where we should be putting our time.
City: What’s [Wilmorite Chairman] Tom Wilmot’s role in the
evolution of this thing?
ย ย ย ย ย ย ย ย ย ย ย Zimmer-Meyer: Wilmorite has
a national presence, and news reports indicate that that they have for years
been developing a very close relationship with the Seneca-Cayuga Tribe of
Oklahoma. They’ve had a long-standing interest in the gaming industry, from
what I understand. They’re a very sophisticated, clever, and successful
operation. They also have ownership of a downtown property [the SibleyBuilding] that’s
struggling and now $13 to $14 million in arrears. So what’s at stake is large
in scale.
ย ย ย ย ย ย ย ย ย ย ย Reports are that they have spent a
lot of time and money developing a long-standing relationship with this tribe.
They have been part of the process to shepherd the legal situation down in
Aurelius in CayugaCounty, which is the
original location of the land claims involving two tribes that have generated
the discussions here and for the Monticello Racetrack in the Catskills.
ย ย ย ย ย ย ย ย ย ย ย Unlike downtown Buffalo, we have two
willing sellers [Wilmorite and MidtownPlaza] in virtually
adjacent properties, so it could happen more easily from that standpoint here.
And that’s a very different scenario and involves all private transactions.
ย ย ย ย ย ย ย ย ย ย ย Urban casinos are a somewhat new
phenomenon… and Rochester’s would be
placed in a vibrant urban setting. As I said earlier, we’re vibrant compared to
Atlantic City or Niagara Falls’ American side before their casinos came in. So
we have existing investment to protect as opposed to ‘this is the last ticket
out.’
City: But how do we protect those investments?
ย ย ย ย ย ย ย ย ย ย ย Zimmer-Meyer:
We think if we are as smart a community as our history has proven us to be,
we can figure it out. We can learn from other places, also.
ย ย ย ย ย ย ย ย ย ย ย There are two examples of
undesirable but common byproducts of casinos — pawn shops, and a rise in
problem and pathological gamblers. So how would we deal with this here, if a
casino redevelopment project happens? Perhaps, for example, we find a building
adjacent to the casino and incentivize every pawn shop to go into that building
as a “pawn shop arcade,” a mall for pawn shops. Why not? We’ve got to start
thinking differently about all of it.
ย ย ย ย ย ย ย ย ย ย ย No one else may have done this, but
so what? No one else invented the Haloid products, either. We’re the top
patenting workplace in the nation — we can find creative solutions to
leverage new growth and protect our existing investments.
ย ย ย ย ย ย ย ย ย ย ย One
of the concerns that gets raised immediately is that crime rates will go up.
Look at the experience in Atlantic City:
in the first few years, the rates went up. And then a few years after the first
casinos opened, the rates dropped to the national average. Why? In researching
this we think it’s because the use was new, and the kinds of crimes were
different and the community wasn’t prepared. When they hit, no one knew how to
look for them, how to prevent them, how to find them. But the community
readjusted.
ย ย ย ย ย ย ย ย ย ย ย A member of the clergy surprised me
last week. Rather than lead with a question about social impacts with the
introduction of a casino here, he wanted to talk about the jobs it would create
for people in the service sector, perhaps now unemployed, jobs for people who
don’t have college degrees. In New YorkState, it is
conceivable that these could end up being unionized workers earning a decent
wage, if our understanding about experience elsewhere in the state holds true.
ย ย ย ย ย ย ย ย ย ย ย Regarding problem gamblers, we’ve
got to be very concerned about ensuring social-service support for this portion
of our population, some of whom are already in our midst. We have to put a
social-service structure in place to deal with that, as experience in other
cities seems to show.
City: Unfortunately, the county’s social-services department is
already stretched unbelievably thin.
ย ย ย ย ย ย ย ย ย ย ย Zimmer-Meyer:
That’s one of the reasons we need to work hard to see that Rochester has a revenue
stream of some kind from this project over the long term.
ย ย ย ย ย ย ย ย ย ย ย Another interesting factor in all of
this is that we have been told that the ability to attract conventions today is
now impeded by the lack of a casino. That wasn’t the case 10 or 15 years ago.
So if a casino project moves forward here, let’s think of ways to parlay that
into more convention business. This behooves us to think about new ways to
package our offerings. Get people down to the wine country. Get them up to the
fast ferry. Get them to come back for something else once the convention is
over. Then it’s up to us to be smart and aggressive to attract them in other
ways for business or for recreation.
ย ย ย ย ย ย ย ย ย ย ย Frankly, our greatest concern is
that if our community becomes polarized over this issue, if a casino is going
to happen anyway, we may lose valuable time and opportunity to negotiate on
behalf of our future social and economic needs. We risk taking attention away
from parts of the ultimate deal that can really make a difference, and which
will affect our ability to manage its impacts and ensure the project will
encourage more investment and development.
n
This article appears in Jun 23-29, 2004.
