State, Local Dem. Officials Seek Competition For New Casino Bids

BRIDGEPORT, CT — Democratic state legislators representing Bridgeport and New Haven are calling on the state to launch a competitive process - for the first time - to determine where its first commercial casino would be located, according to legislation proposed at the State Capitol in Hartford.

The proposed bill, also supported by local officials from the two cities, will be considered in the 2018 legislative session that opens this week. The bill would establish the first step in a two-step, competitive process that would direct the Commissioners of Consumer Protection and Economic and Community Development to solicit responses to an RFP for a proposed commercial casino gaming facility; evaluate the responses; and select a single, qualified responder for the legislature to consider.

The RFP process outlined in the bill complies with the current tribal compacts. It is limited to only allowing the state to conduct an informed evaluation of the qualifications of the bidder and the economic benefits that might result from any proposals. As a result, it does not jeopardize the current revenue streams from the compacts. Specifically, the legislation clearly states that no license will be issued to a new casino operator without additional and independent legislative action.

"The numbers tell the story. As has happened in every other state that licenses commercial casinos, a competitive process will bring Connecticut the best deal, in terms of jobs, economic development, community benefits, and support for our local businesses," said Rep. Chris Rosario (D-Bridgeport) in a statement. "This process will let every developer with an interest – whether it is MGM or the Tribes or anyone else – give it their best shot. It is a process that is consistent with industry best practices, and it’s best for Connecticut."

Added State Rep. Juan Candelaria (D-New Haven), Deputy House Speaker, also voiced support. "For my constituents and people throughout Connecticut, this bill does what we should have done in the first place. It puts jobs first – and training for those jobs. At the end of the day, when the competition ends and the construction begins, our economy stands to benefit and our families stand to benefit."

As part of the proposed RFP process under the bill’s provisions, would-be developers would be required to meet specific requirements, including:

• A minimum of 2,000 people to be directly employed at the facility,
• $500 million minimum total investment for Commercial Casino Gaming Facility,
• $50 million nonrefundable license fee due before construction,
• 25 percent of the annual gross gaming revenue on both Slots and Tables,
• Additional 10 percent of the annual gross gaming revenue from the operation of video slot machine games to fund Educational Cost Sharing grants for distribution to municipalities.

The RFP would also require a community impact mitigation fee of at least $8 million for surrounding infrastructure, emergency responders, and law enforcement; and host community acceptance of gaming expansion by means of a local referendum. Demonstrated experience and financial stability to develop and operate the proposed facility, and submission of designs and timeline for construction, would also be required, as would an agreement with the City of New Haven to establish a regional workforce development center in the city.

In addition to Rep. Rosario and Rep. Candelaria, legislators supporting the bill include Rep. Jack F. Hennessy (D-Bridgeport), Rep. Toni Walker (D-New Haven) and others.

Rep. Walker, co-chair of the Appropriations Committee, said in a statement, "All of us understand just how important jobs are to our state and, most importantly, to our families, and that commitment is an essential element of this bill, as it should be. This is a real opportunity for us to maximize jobs and revenue. It is an opportunity we cannot afford to let go by."

"Establishing a competitive process, which would allow MGM to formally present its plan for a Bridgeport casino, gives the state an opportunity to evaluate competing proposals on a level playing field and decide which is best for Connecticut," added Rep. Hennessy. "Most of all, we need more good jobs and growing economic vibrancy that extends to our small businesses."

"With its strategic location right in the center of a transportation hub including highway, rail, bus and ferry, Bridgeport is uniquely poised to become an entertainment center that can attract patrons near and far," said Rep. Santiago (D-Bridgeport). "This means jobs and benefits to the city and the state that rival and surpass any other prospective Connecticut location."

The bill also directs the RFP process to include a $5 million deposit for each application; refundable if the applicant is not selected or the General Assembly does not authorize a facility.

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