| 11/16/2009 |
Sen. Ciccone proposes commission to study state’s role in controlling VLT license, choosing next owner of Lincoln Park
Saying he is greatly concerned with many matters surrounding BLB Investors, in particular the video lottery terminal license and any proposed successor to BLB, Sen. Frank A. Ciccone is proposing the immediate formation of a commission to evaluate the state’s role in controlling the Master Video Lottery Terminal License and choosing the next owner or manager of Lincoln Park.
Senator Ciccone’s concerns stem from the fact that, over the past seven years, Lincoln Park has suffered the following significant setbacks:
- Under Wembley, Lincoln Park, Inc. became federally indicted.
- BLB was awarded a long-term contract by the state and lobbied against a full-scale casino in the 2006 casino referendum, only to announce afterward that it was teaming up with a Massachusetts Indian Tribe to build a full-scale casino in Massachusetts that would compete against Rhode Island.
- While BLB was pursuing a casino in Massachusetts, it shut down restaurants and other amenities in Lincoln and filed for bankruptcy in breach of its long-term contract with the state.
And most recently, said Senator Ciccone, “Warner Gaming- who I presume the bondholders and Governor Carcieri have chosen to manage Lincoln Park- announced in the Boston Globe in late October that it is planning to build a casino in Milford, Massachusetts because it is, and I quote, an ‘ideal location’ and will capture traffic which heads to ‘Rhode Island gaming facilities today.’”
The casino pitched by Bill Warner and David Nunes of Warner Gaming, to be called “Crossroads Resort Casino,” would cost $800 million in the first phase and include 5,000 slots, 250 game tables, several thousand high-rise hotel rooms, 13 restaurants and other amenities. This project would generate up to 7,000 jobs.
“At the end of the day, I am not concerned with the bondholders, BLB or Warner Gaming- they are only concerned with their own financial well-being and not the financial well-being of the state,” said Senator Ciccone (D-Dist. 7, Providence, North Providence). “I am worried about the state of Rhode Island and our ability to control this license. This license is an asset of the state and should revert to the state. It does not permanently belong to bondholders, BLB or Warner Gaming; it belongs to the state and should only be issued to a company that has the history, brand recognition, management and marketing experience to help Rhode Island compete in this increasingly competitive marketplace.”
“It should not be with a company that is less than two years old that recently announced that it plans to build a casino in Massachusetts to compete against Rhode Island,” he continued. “Maybe this plan somehow works for the bondholders, but it does not work for, and is not in the best interest of, Rhode Island. And the state of Rhode Island should control the license.”
The commission recommended by Senator Ciccone would be charged with studying the following issues specifically:
- The potential termination of the Master Video Lottery Terminal Contract due to breaches by BLB.
- The potential expiration of the five-year term, and non-renewal, of the Master Video Lottery Terminal Contract.
- The creation of more desirable provisions for the state in any new or revised Master Video Lottery Terminal Contract.
- The potential right of the state to revoke the Video Lottery Terminal License.
- With the breach of the Master Video Lottery Terminal contract, the bankruptcy of BLB and the actions and statements of the bondholders’ appointee Warner Gaming, whether the rights and long-term interests of the bondholders are superior to that of the state now and after the bankruptcy process.
- The possible options of the state, in the event that the license is revoked, to reissue the license in accordance with a bidding process, or to a better location in the state, or on more desirable terms.
- The right of the state to approve or disapprove the next owner or manager of Lincoln Park, whether it be the bondholders themselves or an appointee of the bondholders.
- The right of the state to determine the selection process of the next owner or manager of Lincoln Park.
- The criteria that should be met concerning the next owner or manager of Lincoln Park, i.e. operating history, brand recognition, marketing and management expertise, ability to bring outside tourists to Rhode Island, the ability to develop and operate Lincoln Park as a destination resort, etc.
For more information, contact:
Shana Mancinho, Publicist
State House Room 20
Providence, RI 02903
(401) 222-2457 |
LEGISLATIVE INFO
