Feb. 25, 2003 – Issuing ultimatums is probably not the best approach to getting the controversial video lottery terminal legislation repealed, according to Eileen Petersen, Casino Control Commission chair, but a group planning a $500 million resort and casino on St. Croix issued one for that and more on Tuesday.
The local attorney for Robin Bay Associates said in a terse release that if the law allowing the gambling machines, known as VLT's, on St. Thomas and St. John is not repealed by March 20, developer Curtis Robinson will look for a new home for his Seven Hills Beach Resort and Casino project.
Robinson has said repeatedly that VLT's would jeopardize his ability to secure financial backing for the mammoth project on St. Croix's south shore. But Tuesday's five-sentence release states that "an international source" has made a financial proposal for its development, and that "construction of the mega resort can begin by July 2003."
However, the statement continues, Robinson "will not proceed with the development unless (a.) the law authorizing VLT's is repealed and (b.) Virgin Islands Code is amended to permit the construction of a 12-story resort/convention center."
The second demand is something new. Previously published plans for the resort cited a hotel of 300 rooms but never mentioned a high-rise building. Three hundred rooms is the minimum size hotel for the "Casino II" license that the casino gaming commission has reserved for Robin Bay Associates. The maximum size is 1,200 rooms.
The financial commitment now on the table has an expiration date of March 21, according to the release. "If the requested preconditions are not in place by March 20," it states, "Curtis Robinson will move his development to another Caribbean destination."
Robin Bay attorney Jeffrey Moorhead, who signed the release, did not return telephone calls Tuesday. Robinson also was unavailable for comment.
"I don't believe in ultimatums," Petersen said Tuesday. "I believe in reasoning. If you're dealing with reasonable people, you will get reasonable results."
Petersen said she found the Robinson's conditions "unusual." "I don't know if he was misunderstood or misinterpreted, or if his feelings were misconstrued," she said.
Petersen has been a staunch opponent all along of video lottery terminals, which she has termed "slot machines." She said the Senate has failed to explain why the video gambling law now in force is threadbare of safeguards to prevent minors from playing, to limit the placement of VLT's to tourist areas, and to ensure that the machines are properly tested and licensed.
The strongest "explanation" on the part of some legislators, she said, is that the machines will bring in a projected $12 million a year. "The only statement they will make is that we will get money," Petersen said. "Well, we can sell weapons and get money. We can sell drugs and get money."
She said states including Delaware and Oregon have much more stringent rules about video gaming. And some states, such as North and South Carolina, are looking to get rid of their VLT's because they have had a detrimental affect on communities there, she said.
The pullout of Robin Bay would be another huge blow to St. Croix's already fragile economy. Last spring, all but one of the cruise ships that had been calling at the island scratched their scheduled visits for this season and next, citing crime and low demand for the island as the major reasons.
Robin Bay Associates also threatened to abandon its plans for St. Croix a year and a half ago, when the 24th Legislature, for the second time, passed legislation legalizing video lottery operations territorywide. When Turnbull, for the second time, vetoed the measure, Moorhead said the Seven Hills developers had resolved to go forward with their plans. (See "Major casino plans reported back on track".)
Moorhead said at that time that his office had received invitations from the Dominican Republic and the Eastern Caribbean to relocate the resort to those locales.
In December 2001, the Casino Control Commission voted to reserve one of the territory's two allowed "Casino II" licenses for Robin Bay Associates. The Legislature approved and the governor signed rezoning for the project a year ago. Last May, the Public Finance Authority approved $35 million in private activity bonds for the project.
On Dec. 23, the 24th Legislature in its final session overrode the governor's third veto of VLT enabling legislation. The new law restricts their operation to the St. Thomas-St. John district.
A top official of the territory's only operating casino, at the Divi Carina Bay Resort, has also been vocal all along in opposing the introduction of VLT's.
In October of 2001, the gaming commission reserved the other authorized "Casino II" license for Golden Gaming Inc. The Golden Gaming proposal is for development of a 400-room hotel, 18-hole golf course and casino on 265 acres at Great Pond Bay, slightly to the west of Robin Bay.
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