Posts Tagged “Fort Wayne Casino”

By Jim Sack

There is an interesting story in the Journal-Gazette this morning concerning the casino. In short, the idea is dead…for the moment.

Here’s the link. Tell me what you think.

Here is my take. Mayor Henry still doesn’t get it and still is not being candid with us. Read the rest of this entry »

I found this article, published way back in 2002.

Who Killed Downtown?

What does a living downtown look like?

All day there are pedestrians along the streets, and even more in the evening.

Commerce thrives, from department stores to quirky little one-of-a-kind shops, from thrift stores to boutiques, and plenty of restaurants open from morning to night.

There are places to rest, lovely things to look at, public art and music, and occasional events that bring even larger numbers of people downtown.

When a downtown is alive, the people of the city think of it as their own, the place to be, the heart of their community.

What does a dead downtown look like?

The sidewalks are virtually empty. There are few shops, and the restaurants are only open for lunch. There is no pleasure in walking around because there’s nothing to see, nothing to do, nothing to buy.

Sound familiar?

[...]

So much time and money wasted on driving, when thoughtful urban planning could allow more and more of us to live in the kind of walking neighborhood, the living communities that used to be the rule instead of the exception in America.

Will it change? In many places in America, yes, it is changing, and more and more communities are realizing that the vibrancy and vigor of Manhattan and Paris and Florence and London are easily replicated without having to put up with the negatives of the big city.

But will it change here? Not a chance.

Because Greensboro is led by people who think the way to “revive downtown” is to build a big new stadium there.

A stadium! Oh, that’ll bring people downtown, won’t it — why, you could walk for ten or fifteen city blocks around that new stadium and never find a single thing to look at or a single thing to do.

A new stadium will be just another dead space, a monument to folly, like our ugly coliseum and convention center. Another proof that you don’t actually have to know what a city is in order to be elected to govern one, or hired to plan it. [more here]

Does that ring a bell with anyone? Here they are seven years later, with some limited success still trying to develop downtown Greensboro.

Friday, January 16, 2009

Winston-Salem and Greensboro — two cities that have spent several years rejuvenating their urban centers — say finding financing is difficult. As a result, they’re putting the brakes on plans for the foreseeable future.

And this.

FRIDAY, JUNE 13, 2008

Financing delays downtown projects

GREENSBORO — Developers who want to rehab the old Southeastern building downtown can’t get the financing they need for the $8 million [condo] project.

Brace yourself Effie.

WEDNESDAY, DECEMBER 31, 2000

Editorial: Downtown downturn?

The first phase of the Center Pointe tower now will open in January, says its developer, Greensboro builder Roy Carroll. He says the economy has slowed recent sales of condominiums in the new high-rise but no previous sales have fallen through.

“Most of our buyers are empty-nesters,” he says. “They don’t need to sell their current residences to buy ours.”

I thought here in Fort Wayne they were building the condos for the X&Y generations to help stop the brain drain. It’s almost February, and Barry Real Estate is pretty quiet on what’s going on with The Harrison development.

Even with the failure of some condo developments, Greensboro has been somewhat successful with apartments, even their stadium seems to be drawing crowds, according to this article.

One of the saving graces of today’s downtown may be its ability to help sustain itself. More than 1,200 people live there now versus 500 four years ago.

City View Apartments are a rousing success. New Bridge Bank Park defies conventional wisdom by attracting big crowds one baseball season after another. The opening of a popular new chain restaurant, the Mellow Mushroom, near the southern tip of downtown could draw more traffic beyond the center city’s hottest few blocks along South Elm.

Keep one thing in mind, downtown Greensboro has more than 1,000 retail shops, restaurants and service businesses to help draw people downtown. How many does Fort Wayne have?

According to The Downtown Improvement District’s web site, if you take out the fast food restaurants, i.e. McDonalds, Wendy’s Taco Bell, etc we have less than 30 restaurants and only about 12 within walking distance of downtown. We have less than 10 retail shops unless you include The Lincoln Museum, (now closed), Science Central, the Salvation Army Thrift Store, Ream-Steckbeck Paint Company, A Party Apart and several other ridiculous listings in their “Shopper’s Guide to Downtown Fort Wayne“, and what could be considered actual attractions amount to less than 20.

We’re stuck the the stadium, so maybe John McGauley’s idea for an indoor water park merits some discussion, as do other ideas. Given the current economic and financial environment, it’s about time Fort Wayne re-think its moving forward plans for downtown revitalization.

For starters, ditch the condos.

AWB

I’m a bit overdue on this but feel the need to comment.

Statement of Fort Wayne Mayor Tom Henry on the issue of gaming:

We are living in difficult, and for far too many, desperate economic times. With each new day, my concern for the health of our community and our people grows. I see businesses stretched to the limits. I see people losing jobs, homes, tuition for college, retirement savings – and with each of those challenges, some of our hopes and dreams for the future vanish as well.

We’re worried about the basics: staying employed, keeping warm, feeding our families, paying the mortgage, finding health care – all the things that add up to basic security for ourselves, our children and our grandchildren.

Stop right there. He said it, we’re living in tough economic times, so let’s bring a casino to town?

1). A 1996 Mississippi State University study found that poor Mississippians living in counties with casinos lost a far greater percentage of their income in the casinos than did wealthier gamblers. Gamblers earning less than $10,000 per year lost about 10 percent of their family income to casinos, while those earning more than $40,000 spent only about 1 percent of their earnings on casino gambling.

2). A study of 1,800 Minnesotans in state-run gambling treatment programs found that 52 percent had yearly incomes of $20,000 or less. The study also discovered that the amount of debt, as a proportion of income, was highest among the poorest gamblers seeking treatment.

3). University of North Florida researchers reported: “Gambling expenditures in Las Vegas indicate a regressive pattern for gambling taxes because the percentage of household income devoted to gambling falls consistently as income rises.” For instance, Las Vegas casino gamblers with household annual incomes of less than $10,000 lost 3.25 percent of their income to casino gambling. Those with annual incomes between $50,000 and $60,000, by comparison, lost only .8 percent of their income to the casinos

Today ABCNews reported this:

The Nevada Gaming Control Board reported last week that revenue at the state’s casinos fell by 22 percent in October, compared with the same month last year. It was the 10th straight monthly decline — and the biggest ever. The story was even worse on the Las Vegas Strip, where the October take was down by 26 percent. The steep downturn has sparked a movement to lower the legal gambling age to 18.

[...]

Thousands laid off as casinos near bankruptcy
For operators of casinos and other gambling concerns, the outlook is as grim as it’s ever been, with executives predicting that no new casino projects will be started for at least five years.

Henry continued…

On top of this, the City anticipates a sizable budget shortfall next year, worsened by the economic meltdown, but due in large part to changes made by state government.

We are living in uncertain, unsettled economic times. As your Mayor, I look around and ask: What can I do to strengthen our community? How can I help the citizens of Fort Wayne? How can I ensure a hometown that’s an attractive, vibrant place to live? How can I bolster revenue without adding to taxpayer burdens?

The evidence proves that those with lesser incomes will spend (throw away) more on gambling, so any economic gain will be perceived to be on the backs of the poor. I can already hear Reverend Latham howling at the moon.

Recently, several groups have come to us. They are exploring the potential for gaming in our community. Once again the City is doing what it should be doing.

Step one: We’re listening and talking to those with the ideas. We’ve made it clear that we’re open to meeting with anyone who wants to bring a viable proposal to the table.

Step two. We’re taking action. I’ve directed my staff to study the issue. As a community, we need to be informed and prepared. As your Mayor, I want to be in the best position possible to represent the community’s interests. It is a responsibility I take very seriously – and knowledge is the key. We all know you can’t negotiate well, shape plans or make informed decisions, without solid, objective information.

As our work unfolds, we may need specialized counsel and expert assistance. If we do, we will determine how best to secure that help. The Fort Wayne City Council will be our partner is this endeavor.

You may be wondering why all of this is happening now. The answer: The upcoming session of the Indiana General Assembly. The legislative calendar is driving the actions of various private business interests, and in turn our need to delve into this matter.

As Mayor, I am keenly aware that others look to me for guidance. That is why research and analysis are imperative. I could not take a position on an issue of this magnitude – for or against, or ask the people of Fort Wayne to consider it, without having completely examined it or knowing what its impact on our community might be.

We are living in painful economic times. It would be irresponsible for the City not to talk to individuals interested in gaming because of the potential revenue it could create to help us provide the level of services expected by our residents and necessary to keep us competitive.

It would be equally irresponsible for us not to be doing our homework. We are doing our homework. And we are doing it thoughtfully and thoroughly.

Casinos do not offer high paying wages. The typical dealer at a casino makes less than minimum wage, with the balance made from tokes (tips). In Buloxi, MS for example, dealers average an hourly wage of $4.50 to $5.00 per hour and can count on tips to range from an additional $6 – $9 per hour, but that was two years ago and casinos are hard pressed to find gamblers these days. Vegas dealers average quite a bit higher, but this isn’t Vegas we’re talking about, it’s Fort Wayne.

In addition, most casinos keep dealers hours at or below 30 hours in order to keep them from becoming full-time employees. This allows them to keep the employee from gaining access to healthcare benefits.

Think about the jobs associated with a casino. The bulk of them will be waitresses, busboys, cooks, dealers, parking attendants, etc.

Henry seeks to balance the city budget on the backs of the poorest and most vulnerable citizens, all the while basking in the virtue of fighting tax increases. Bringing a casino to Fort Wayne will only peddle false hope to confiscate cash from our poorest citizens to fatten shrinking city coffers.

AWB

Footnotes
1 William Rivenbark and Don Slabach, “Who Pays to Play? Voluntary Tax Incidence and Mississippi Gaming,” Mississippi State University, the John G. Stennis Institute of Government, July 1996, p. 33.

2. Pat Doyle, “Compulsive Gambling Hitting Poor Hardest, New State Study Says,” Minneapolis Star Tribune, July 25, 1997, p. 1B.

3. Mary O. Borg, Paul M. Mason and Stephen L. Shapiro, “The Incidence of Taxes on Casino Gambling: Exploiting the Tired and Poor,” American Journal of Economics and Sociology, July 1991, pp. 323-332.