Town of Raynham: Gaming Impact

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Town of Raynham Gaming Impact

• Raynham has retained BS Consultants to assist in
  determining benefits and mitigation needs.
• BS is
• Robert J. Birmingham (AICP ret),Town
  Administrator (Vermont), Town Planner (Stonington
  CT), Development Director Foxwoods, Facilities
  Executive Director Foxwoods, Land Use
  Consultant, Realtor, Veteran, Vol Fire Captain
  (ret), and volunteer committee member.
• David W. Schweid AICP Town Planner (Groton,
  CT, Norwich CT, Exeter, RI) Assistant Planning
  Director (Foxwoods), Land Use Consultant
• Scott Hesketh PE FA Hesketh Associates, Traffic
  Engineers, licensed in Mass, CT, RI, NY and North
  Carolina.

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Scope of Services

• General Scope of Services
• Review the Raynham Park proposal for a slot
  parlor
• Prepare an impact mitigation study of the
  proposed slot parlor at Raynham Park for the Town
  of Raynham as required by statute
• Using personal knowledge from past experience
• Review of Raynham Parks proposal for basic
  planning concerns, including
• Traffic, signage, parking, site circulation
• Storm water management
• Landscaping
• Lighting
• Interviews w/ Town Staff
• Review of historical data
• Interviews with regional officials and other
  towns
• Reviewing other facilities such as Twin Rivers
• Work with the Selectmen to identify necessary
  mitigation measures as they work toward a signed
  agreement
• Present findings of study at a public forum prior
  to referendum to help voters make informed
  decision

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The Industry TodayAmerican Gaming Association
2010

• World Wide 2.2 Billion People gamble 1.5
  Trillion Dollars
• America has 566 Casinos in 22 states
• 42 States have lotteries 37 racetracks, Indian
  gaming or other games, Only 2 states have none of
  it Utah and Hawaii.
• Revenues are 55 billion in Direct revenues and
  up to 125 billion, indirect , (1 of GDP)
• 350,000 direct jobs 820,000 indirect jobs.
• Gaming (Gambling) is here to stay

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Who Benefits

• Corporate Entities Native Tribes
• Peaking in 2007 New England Casino operations
  reaped over 3 billion in gross revenues
• Potential Market estimated (ERA) at 6 billion
  (2008)
• State and Local governments.
• Taxes (New Jersey 8, CT 25 slots)
• Transfer Payments (0peration payments)
• Employment
• Reduced Welfare health costs
• Gaming Operators in northeast
• Private Gaming companies in New York, New
  Jersey, Penn., Maryland, Rhode Island, Maine.
• 537 Federally recognized Tribes/100 operate
  gaming Nationwide.

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Who Gets Hurt?

• Motoring Public Changes in traffic patterns.
  But less so as gaming becomes ubiquitous
• Towns with unfunded burdens
• Emergency Service Providers.
• Roads, water/sewer
• Social Service Agencies Homeless workers
  problem gamblers
• Neighbors noise, intruders, decreased property
  values.
• Low Income Families
• Gaming in larger percentages that other groups
• Increasing scarcity of affordable Housing

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Problems?Natl council on Problem Gambling

• 2 - 3 of gamblers are problem gamblers or 6
  9 million Americans
• 50 of Young people gamble in some way.
• People 65 and older are twice as likely to gamble
  as compared to others.
• Areas near casinos experience higher levels of
  economic decline.

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THE MASS GAMING ACT

• The Act itself
• Sec 2 defines a Category 2 license no table
  games and up to 1250 slot machines
• Sec 11a Cat 2 minimum investment 125,000,000
  w/in 2 years after license does not include
  traffic mitigation measures or infrastructure
  improvements
• Application must address
• Lottery mitigation
• Compulsive gambling
• Workforce development
• Host and surrounding community impact mitigation
• identify the infrastructure costs of the host and
  surrounding communities
• Provide signed agreements between the applicant
  and the host and surrounding communities
• Raynham may end up as both
• A certified and binding vote in favor of the
  license by the host community

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Mass Gaming Act Basics.

• Sec 20 Category 2 licenses
• Only one category 2 license will be issued
• Sec 55 Daily Tax and Assessment payable by
  licensees
• (a) A category 1 licensee shall pay a daily tax
  of 25 per cent on gross gaming revenues.
• (b) A category 2 licensee shall pay a daily tax
  of 40 per cent on gross gaming revenue.
• (c) In addition to the tax imposed under
  subsection (b), a category 2 licensee shall pay a
  daily assessment of 9 per cent of its gross
  gaming revenue to the Race Horse Development Fund
  established in section 60.
• (d) Taxes imposed under this section shall be
  remitted to the commission by a gaming licensee
  the day following each day of wagering.

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• Sec 56 an annual fee for each slot machine of
  600 (600 x 1250 750,000) is due July 1st of
  each year
• 59 (1) 100 per cent of the revenue received from
  a category 2 licensee shall be transferred to the
  Gaming Local Aid Fund
• Sec 61 The commission shall establish a Community
  Mitigation fund. The commission shall administer
  the fund to assist the host community and
  surrounding communities in offsetting costs
  related to the construction and operation of a
  gaming establishment
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• Massachusetts Gaming Commission Regulations
• On its website, the MGC has posted draft
  regulations that detail how the Commission will
  access license applications.
• For example, after determining that an
  application is complete, the Commission will hold
  a public hearing in the host community.
• 30 to 90 days after closing their hearing, the
  Commission will grant or deny the license, or
  grant an extension of the process.

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Category 2 License The Commission has determined
that efforts will be made to award a Category 2
(slots only) gaming license prior to the award
of Category 1 gaming licenses. The anticipated
schedule for the award of a Category 2 license is
as follows
License Application Step Earliest Likely Date Latest Likely Date
Applicants submission of completed RFA-1 January 15, 2013 NA
Commission review of completed RFA-1 and release of RFA-2 to qualified applicants May 2013 July 2013
Host and Surrounding community agreements executed February 2013 August 2013 (October 2013 for Surrounding Community Agreements)
Host community agreements approved by referendum June 2013 October 2013
Applicant submission of completed RFA-2 July 2013 October 2013
Commission review of completed RFA-2 and selection of licensee(s) July 2013 (review of any early filed applications) December 2013 (award)
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G.L. c.23K, 15, lists 16 application
requirements (to be supplemented by Commissions
Rules and Regulations)

• 1. Agree to be a Lottery sales agent
• 2. Provide signed Surrounding Communities
  agreements
• 3. Capital investment of at least 500 million
  (125m Cat 2)
• 4. Provide signed Impacted Live Entertainment
  Venues agreements
• 5. Own or acquire 75 year lease on land
• 6. Pay nonrefundable application fee of 400,000
• 7. Meet licensee deposit requirement
• 8. Comply with state and local building codes and
  local ordinances and bylaws
• 9. Ability to pay gaming licensing fees
• 10. Favorable binding ballot vote in Host
  Community
• 11. Address mitigation and impact issues
• 12. Provide community impact fee to Host
  Community
• 13. Identify infrastructure costs to
  host/surrounding communities and commit to
  mitigation plan
• 14. Minority/women/veteran business outreach
  program
• 15. Provide signed Host Community Agreement
• 16. Affirmative action program

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Host Community Mitigation Agreement can include
(MGA)

• Infrastructure and Equipment Needs
• Public Safety (note special requirements re
  public safety arrangements)
• Traffic Impacts
• Housing Needs
• School Impacts
• Impacts on Local Businesses
• Cross-Marketing (local restaurants, hotels,
  shops, entertainment venues, etc.)
• Environmental Impacts
• Process Costs (elections, town meetings for
  zoning changes, consultants, publication and
  mailings, etc.)
• Local Preferences (jobs, construction contracts,
  etc.)
• Design Considerations/Aesthetics

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Raynham Race Track Application
Phase 1 Class 2 license application 1250 slot
machines, Ancillary activities Gaming Commission
reviews and accepts applicant for phase 2 in
June, July or Aug. MGA to award one slot license
by the end of 2013.
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THE MARKET
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Massachusetts Gaming Commission Educational
Forum June 14, 2012

• Facilities would open Jan 1, 2014
• First Stabilized Year-2016
• Of the seven scenarios analyzed, Scenarios 4 (A)
  and 5(b) are nearest to the final bill
• Both scenarios assumed one Destination Resort in
  each of 3 regions.In addition
• 4(A) assumed 750 slots at each of 4 racetrack
  locations
• 5 (b) assumed only 1,500 total slots (split
  between two racetrack locations).
• Gaming Revenue ranges 1.74 Billion-2.07 Billion
• Total Direct Indirect job creation between
  16,600-19,800TIG Engagement-Key
  Assumptions/Conclusions

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Foxwoods Mohegan Revenue2007 2012 Compared

• Foxwoods 2007

• Mohegan Sun 2007

• Pd to State fund
• 229, 095,455
• To est. slot gross X 4
• 916,318,780 25 1.2 Bi
• Total Gross Over
• Foxwoods pd toState2012
• 165,547,090 X4 25
• 882,917,843 or net -27

• Pd to State Fund
• 201,580,751
• Est. Gross X 4
• 806,121,028 25 1.1 Bl
• 2.3 Billion in 2007
• 2012 Sun pd to State
• 178,783,321 X 4 25
• 953,511,045 or net -12

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Connecticut Economic Resource Center Inc.
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New London Day August 2012

• Casino official blames part of decline on
  popularity of new Resorts World at New Yorks
  Aqueduct
• Slot machine revenues, the main barometer of the
  local casinos financial health, told a sorry
  tale in July.
• At Foxwoods Resorts Casino, the slots win the
  amount of wagers the casino kept after paying out
  prizes totaled 51 million, down 15.8 percent
  when compared to the same month in 2011, the
  steepest decline since December 2008, when
  Foxwoods win tumbled 19 percent.
• Mohegan Suns July win of 60 million was down
  10.4 percent.
• We thought it was going to be a tough month,
  Scott Butera, Foxwoods president and chief
  executive officer, said

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SLOT Gross REVENUE BY STATE average per slot
machine

• CONNECTICUT
• Foxwoods July 2012 263
• Mohegan Sun July 2012 327
• RHODE ISLAND
• Twin Rivers 2012 293
• MAINE
• Bangor 2012 145
• New YORK

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THE PROPOSAL
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Raynham Slot Casino Proposal

• Phase I
• 1250 slot machines installed in existing
  simulcast club house
• Renovations to include improved restaurant and
  offices
• Demolition of Grandstands
• Construct 3 access drives and turning lanes
• Phase 2 3
• Construct 175,000 sq ft building move slots
• New Restaurants and offices
• New Event Ballroom
• 2438 Parking spaces

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THINGS TO EXPECT
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Experience vs. Expectations

• Local street crime has not increased, on campus
  crime has.
• Wave of embezzlement town halls to docs offices
• Employment is declining Current Foxwoods FTEs
  about 7500 from 11000 at peak, about same at the
  Mohegan Sun
• Gaming has a high employee turn over rate and at
  Foxwoods about 3000 on average or 10 - 20 of
  the labor force per year
• Spin off business serving the drive or primary
  market has been limited, minimal growth of local
  business.
• Low cost Housing is in short supply
• Gaming is trending to be a ubiquitous activity
  slots in bars to on line gaming. Eroding
  revenues for large casinos.
• As revenues erode, Gaming Managers will seek to
  evade local mitigation funds if allowed
• Quarterly Revenue will be increasing concern for
  Gaming Managers Govt Officials.

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Indirect employment effects Based on Conn
Study in 2005

• CERC Inc Spin Off effect factor 1.107 non
  casino Jobs for every Casino Job. State wide spin
  off Factor .74
• Total 2005 Casino employment 20220 x 1.1.0
  42603 total jobs within the County
• State wide additional jobs 20220 x .74 14963
• Total Job Creation 57,566 (2005)
• 2012 Estimate 25 - 35 reduction from peak, or
  about 7,500 7,000 employees.
• High job turn over Foxwoods Badge numbering now
  at 80,000 or about 3100 employee departures
  (turnovers) averaged per year or about 20.

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TRAFFICFA Hesketh Associates

• Traffic Review Tasks
• - Review traffic impact report
• o Background Data
• o Site Generated Traffic
• o Intersection/Roadway analysis
• - Review proposed off-site improvements
• - Make recommendations on mitigation
• - Obtain input from residents

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Seasonality of Traffic Generation2007
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Study Continues

• BS met with Traffic/ Site Engineers 4/18
• Staff interviews 4/10 4/18
• Summary report to Selectmen 4/23
• Town Counsel 4/23
• Additional data gathering 4/25 5/17

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B S Mitigation Plan Questions

• Site infrastructure
• Raynham Sanitary Sewer System Collection
  upgrades, capacity through Phase 3
• North Raynham water supply system loop supply
  system
• Provide detailed plans for EIR review Raynham
  permitting
• Building Site plan with drainage
• Emergency Services to site 24/7
• Road improvements to improve response time
  between Fire/Police and Track.
• Fire Police Duty Station (on site) enhanced
  communications and detention facility
• Emergency Medical Services unit.
• Provide Ambulance staff support for Raynham
  Fire Dept.
• OR Contract with Private provider for 24/7 on
  site presence

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Next Steps

• Wed 4/24/13 Kick-off Forum
• Mon 4/29/13 to Fri 5/10/13 Interview Town
  Agencies
• Mon 5/1/13 to Fri 5/10/13 Interview Regional
  Agencies
• Tue 5/7/13 Review Input w/ Selectman
• Wed 5/1/13 Tasks 1-3 (complete)
• Fri 5/10/13 MFR 1 MFR 2(20hrs)
• Fri 5/10/13 MFR 3, 4(20hrs)
• Tue 5/17/13 Forum 2 Findings Traffic
  Report
• Tues 5/21/13 Finalize Tasks 4, 5, 6 7
• Tue 6/4/13 Meet W/ Selectmen

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Public Comments

• Your Comments Questions