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HomeMy WebLinkAbout2005-09-26 05-316 RESOLVEMUNaL AMON [tem no. I6 Date: September 26, we B ]tem/SabjecD Resolve, Calling Upon the lanes to and Eisting a Branches of the State of Maine ro Supporta Three -Year roes In Maine. on Any Changes [o the Existing Stale Legislation Governing the OperationResponsible of Slot Machines In Maine. Responsible Department: Ory Manager/Legal ' Commentary: In lune 2003, Bangor's voters approved the operation of slot machines at Bass Park. Statewide voters approved slot machines at commercial harness racing tracks in November 2003, with Bangor voters again approving this measure. Following approval, the legislature significantly revised the referendum's language W strengthen the state regulatory role. The Gambling Control Board was established and has worked diligently to develop the required regulations. There have been repeated efforts to further modify state gaming laws and regulations, both legislatively and through the citizen initiative processes. These efforts have created an environment of uncertainty surrounding slot machines, even prior to any actual experience with them. We anticipate that these efforts will noontime, both at the legislature and through the initiative prones. Penn National is moving rapidly to open an interim slot facility in Bangor. It Is also developing plans for a permanent faci0ry. Both of these efforts will require significant expenditures by the company and long- term commitments by the City. To protect these investments and to insure the benefits that are anticipated to the harness racing industry and the regional economy, a stable legislative and regulatory environment is required. We believe that It is in the best interests of the City W support a moratorium on any further substantive charges in slot machine legislation that will allow sets to come on line in Bangor and the Qty and State W gain actual experience in this area. We also believe that such an approach reflects the opinion of our voters who supported both the local and statewide referendums. As the next legislative session approaches, we anticipate that numerous pieces of legislation will be Introduced dealing with slot machines. We also anticipate Nat signature efforts will intensify for proposed initiatives as we approach the November election. We also anticipate future efforts to amend state slot laws in the next legislature Nat will take office In 2007/2008. The attached Resolve will place the Council on record in support of a three-year moratorium on any significant changes ro state set machine statutes, thus allowing the necessary time for slot operations W begin in Maine and for Ne City and State W gain experience in how this industry II a ate. Department Head Manager's Comments: This has been reviewed by MED, which recommends approval City Manager Finance Director Legal Approval: 'ty Sclicker X passage _ First Reading Page _ of Referral 05 316 - escito councilor u•arrico ... SEP 2 6 2005 �ea CITY OF BANGOR (TIRE.) Resolve, Calling Upon the Legislative and Executive Branches of the State of Maine to Support a Three -Year Moratorium on Any Changes to the Existing State Legislation Governing the Operation of Slot Machines in Maine. 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 acing 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 Mese 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 detalled 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 a gaming operator 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, the gaming operator Is moving rapidly toward opening an interim gaming facility In Bangor in the fall of 2005 and is continuing to work with the City on plans for a permanent facility; and WHEREAS, during the last legislative session, numerous proposals were advanced to modify the state gambling laws and/or change the regulatory framework developed by the Gambling Control Board; and 05 316 WHEREAS, efforts are under way to gather the necessary signatures to place initiatives on the state-wide ballot that would modify existing state gambling laws; and 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 lune 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 Gty's share of gross slot revenues; and WHEREAS, this may provide 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, 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 W 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, a three-year moratorium will 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; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BANGOR THAT we call upon the Legislative and Executive Branches of Maine State Government to support a three-year moratorium on any significant changes to the Maine statutes governing slot machines. Further, we call upon the citizens of Maine to oppose any effort to modify these laws and regulations through the citizen initiative and referendum process. A moratorium will provide an opportunity to sufficiently study the effects of a slot machine gambling facility in Maine prior to any further significant modifications in State laws and regulations that would either eliminate or further expand slot machine operation in the State. IN CITY COUNCIL SePT@OteN 26, 2005 NOTION NRU& A SeCONOEU FON P SACS PA% CI y OS 316 RESOLVE Wo F Wgq,qi 141 item mo Amliw, .Vogl �ml