HomeMy WebLinkAbout2011-07-11 11-238 RESOLVECOUNCIL ACTION
Item No,
nate: July 11 201
Item/Subject Resolve, Establishing the Position of the City of Bangor in Regard to the Operation of
Table Games at Hollywood Slots in Bangor
Responsible Departmerrt: Legal
Commentary: If approved, this Resolve would support a yes vote on the Inclusion of Table Games at
Hollywood Slots. In lune 2011, the Legislature passed and the Governor signed a bill to allow table
games at Hollywood Slots in Bangor provided that table games are supported by a majority of voters at
a county -wide election. Additionally, Me legislation provides for a portion of the table game revenues to
be paid to the City of Bangor.
In 2003, voters approved both a local and state-wide referendum M allow the operation of slot machines
at the commercial harness racing track in Bangor. Since opening, Hollywood Slats has been a good
corporate aaen that has created an Important employment base for the region and pays approximately,
$4.7 million in annual revenues to the City in property taxes, lease payments, and the City's share of slot
revenues. Revenues generated by Hollywood Slots have been dedicated W funding construction of a
new arena and meeting complex in Bass Park.
In lune 2011, the City has awarded a contract for the construction of convention and meeting facility at
Bass Park, which will be financed through bonds and repaid using revenues generated by Hollywood
Slots. If approved, the revenues generated from table games will provide greater flexibility in the
repayment of debt over the next 30 years. This facility will serve not only Bangor but the entire
Penobscot Region by creating jobs and creating a one of a kind venue within the region and Me State.
In 2010, voters approved Me construction of a casino in Oxford County. When constructed, Oxford
County will operate both slots and table games. Because Hollywood Slots is a goad corporate dozen,
created hundreds of jobs and pay substantial tares W the City and State, it is important that they remain
equally competitive withany new facilities. For the reasons stated above and many others, this Resolve
expresses the City's support for a"yes" vote on the referendum question and authorizes staff M actively
support such a vote.
Department Head
Manager's Comments: /tell M ` ft� /
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`City Manager
Assodated Informathum Resolve
Approval:
France Director
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Intmducedfur
x Passage
_ First Reading Page _ M _
Referral
11 23$
Assigned to Councilor -Blanchette July 11, 2011
CITY OF BANGOR
(TITLE.) Resolve, Establishing the Position of the City of Bangor in Regard to the Operation of
Table Games at Hollywood Slots in Bangor
WHEREAS, on June 10, 2003, the citizens of the City of Bangor approved a referendum to
allow the operation of slot machines at a commercial harness racing track In
Bangor; and
WHEREAS, on November 4, 2003, a state-wide referendum authorizing the operation of slot
machines at commercial harness racing tracks was approved by the voters of the
State of Mainz; and
WHEREAS, at that time, voters in the City of Bangor also approved the state-wide measure,
once again affirming their support for authorizing slot machines in Bangor; and
WHEREAS, as a result of these actions, the voters of Bangor and Maine have authorized an
expansion of the gaming functions allowed in the State; and
WHEREAS, under the existing agreements between Hollywood Slots and the City, the City
receives approximately $4.7 million in annual revenue to the City in property taxes,
lease payments, and the City's share of slot revenues; and
WHEREAS, this provides a source of revenue to the City for reinvesting in our regional
economy through the construction of a new Arena to replace the Bangor
Auditorium; and
WHEREAS, the City has awarded a contract for the Contruction of a state of the art convention
and meeting facility at Bass Park Bangor estimated to have a direct economic
impact on our region of $17.1 million per year and to support over 296 jobs; and
WHEREAS, in order to proceed with constructng this facility it is necessary for the City to incur
long-term debt to be repaid through the revenues the City receives from gaming;
and
WHEREAS, the addition of tablegames at Hollywood. Slots will increase gaming revenue for the
City of Bangor and create a stable and predictable revenue stream for the full
period in which the City will be making annual debt service payments; and
WHEREAS, the introduction of table games at a slot machine establishment historically has
increased slot machine revenue; and
WHEREAS, the Legislature has passed and the Govemor has signed legislation to allow table
games at Hollywood Slots in Bangor', and
WHEREAS, said legislation provides for a portion of the table game revenue to be paid to the
City of Bangor; and
WHEREAS, mid legislation requires a Penobscot County wide referendum for approval of table
games at Hollywood Slots.
WHEREAS, the increased revenue to the City from table games and slot machines will benefit
the City in making its annual debt service payment for the new arena; and
NOW, THEREFORE, BE IT RESOLVED BY THE CIN COUNCIL OF THE CITU OF BANGOR THAT
The City takes the position in support of an affirmative vote on the November referendum
question to allow table games at Hollywood Slots.
BE IT FURTHER RESOLVED THAT
City staff Is hereby authorized, acting on behalf of the Bangor City Council, to actively support
an affirmative vote on the November referendum question to allow table games at Hollywood
Slots.
IB CITY CMCIL
July 11, 2011
Motion Bade aog Seconded Foe Passage
A Boll Call Vnte vas Begeestllpd
Vote: 9-0
Councilors Voting Yes: novelette. Bronson.
Margin. CraMck. Longo. Bares. aealley.
Palmer a Weston
Co Uors vot]ag we: Rose,
Passed
CITY "Cl®
Corea at Bollywod Blots in Bangor