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Home My WebLink About2006-05-22 06-197 RESOLVEItem No, 06 157 Dace: 5-22-06 Item/Subject Resolve, Establishing the Position of the City of Bangor In Regard to the Operation of Slot Machines in Bangor. Responsible Department: City Manager Commentary: In November 2005, the City Council approved a resolve calling for a three-year moratorium on any significant changes m Maine Statutes governing slot machines. This posidon was taken in order to provide an opportunity to study the effects of a slot machine facility In Bangor under the existing statutory and regulatory framework. During negotiations involving an amended development agreement and lease, Bangor Historic Track indicated that Me continued strong support of one City of Bangor was essential in order for them ro proceed with the level of Investment that they antldpate In their permanent facility and asked the Cityto reaffirm the position taken lastyearand W publicly adopt a position in opposition to any charges in laws, rules, or regulations that could reasonablybe expected to have a slgnlOaMadverm effected Bangor Historic TrackanA It harness racing and slot operations in Bangor. The attached resolve will do so, and we recommend your approval. Associated Information: Department Head Finance Director Legal Approval: CitySolicitor Introduced for X Pa55age _ First Reading Page—of— Referral age_of_Referral 06 197 - 4 V Assigned to councilor Palner Nay 22, 2006 CITY OF BANGOR )iRLE.) Resolve, Establishing the Position of the City of Bangor in Regard to the Operation of Slot Machines in Bangor. WHEREAS, on June 10, 2003, the citizens of the City of Bangor approved a referendum that will permit 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 Maine; 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 traditionally allowed in the State; and WHEREAS, during 2004, the legislature modified the language of the state-wide measure authorizing slot machines and established the Maine Gambling Control Board for the purpose of developing and implementing detailed regulations governing slot machines in Maine; and WHEREAS, the Gambling Control Board, In conjunction with staff of the Maine Department of Public Safety, has worked diligently to establish an appropriate framework for licensing and regulating the operation of slot machines in Maine; and WHEREAS, the City of Bangor has entered into various agreements with Bangor Historic Track that allow for the introduction of slot machines in association with Bangor Historic Track, Including a provision that allows for the creation of an Interim gaming facility; and WHEREAS, Bangor Historic Track opened an interim gaming facility in Bangor in November 2005 and is continuing M work with the City on plans for a permanent facility; and WHEREAS, during the last legislative session, numerous proposals were advanced W modify the state gambling laws and/or change the regulatory framework developed by the Gambling Control Board; and WHEREAS, efforts are under way to place initiatives on the state-wide ballot that would modify existing state gambling laws; and 06 737 WHEREAS, continued uncertainty as to future changes in Maine gambling laws and regulations can have a negative impact on the development of a slot machine operation in Bangor and could conceivably result in thwarting the will of Bangor's voters as expressed in the elections of June and November 2003; and WHEREAS, the redevelopment of Bass Park and the construction and operation of gaming facilities in conjunction with the harness racing track will allow for the continued future of harness racing in Bangor and provide an economic boost to those engaged in this industry; and WHEREAS, such a facility will enhance the economy of the greater Bangor Region and the state, With a total annual impact on the Bangor economy estimated at $95.6 million in sales revenue, $10.3 million in wages and salaries, and the creation of 500 full and part-time jobs; and WHEREAS, under the existing agreements between the operator and the City, the permanent facility will generate a minimum of $2.1 million in annual revenue to the City in property taxes, lease payments, and the City's share of slot revenues; and WHEREAS, this may provide a source of revenue In the City for reinvesting In our regional economy through the construction of a new Arena to replace the Bangor Auditorium, a project which otherwise could not be undertaken given the limited revenue base provided to local governments in Maine; and WHEREAS, the presence of a state of the art convention and meeting facility in Bangor is estimated to have a direct economic impact on our region of between $21 and $28 million per year and to support over 1,000 jobs; and WHEREAS, in order to proceed with constructing this facility, it will be necessary for the City to incur long-term debt to be repaid through the revenues the City receives from slot machines; and WHEREAS, R is essential, therefore, that this revenue stream be stable and predictable for the full period in which the City will be making annual debt service payments; and WHEREAS, the City Council approved a resolve in November 2005 calling for a three-year moratorium on any significant changes to the Maine Statutes governing slot machines in order tol provide an opportunity to sufficiently study the effects of a slot machine facility in Maine prior to any further significant modification in State laws and regulations that would either eliminate or further expand slot machine operation in the State; and WHEREAS, given the requirement that slot revenues become a stable and predictable revenue source to support the City's planned Investment in a new facility to replace the Bangor Auditorium and Civic Center, it is appropriate for the City to take a position 0199 in opposition to any efforts that would have a significant adverse financial impact on Bangor Historic Track and the slot revenues to be received by the City. NOW, THEREFORE, BE IT RESOLVED BY THE CTTY COUNCIL OF THE CITY OF BANGOR THAT The Qty takes the position that neither the legislature nor the people of the State of Maine should sponsor, support, or advocate for any change in laws, rules or regulations that could reasonably be expected to have a significant adverse financial effect on Bangor Historic Track and its harness racing and slot operations in the City of Bangor. 18i 19111:AI:IA 7:7i4U104MA WA City staff is hereby authorized, aging on behalf of the Bangor City Council, to actively oppose any change in laws, rules, or regulations that could reasonably be expected to have a significant adverse financial effect on Bangor Historic Track and its harness racing and slot operation in the City of Bangor. BE rr FURTHER RESOLVED THAT The City Council hereby reaffirms its position, as expressed in Council Resolve 05-316, adopted on September 26, 2005, calling for a three year moratorium on any significant changes to the Maine statutes governing slot machines and opposing any effort to modify these laws and regulations through the citizen initiative and referendum process IN CIW MUCIL May 22, 2006 Motfoa case am Secoaaea for Passage Poa a fir/ �- P ,�S"A x9s ccg� R M-197 NC S a L vg �'�'�'�'yg) 8s[ehliehivg the Pos1[fw of the LYty o Baagur 1n Neff to the Operation Of Slot Machines is R® r nmg roCmuwftr?,��'////M vW\