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
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... SEP 2 6 2005
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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
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