Council Rejects Host Community Agreement in 4-3 Vote

In a 4-3 vote, the Newport City Council last night rejected a proposed host community agreement hashed out during negotiations between city lawyers and the investors proposing to buy and convert Newport Grand from a slot parlor into a luxury casino and entertainment complex.

With their vote, the council rejected an extra $1 million payment promised by the investors, led by former Providence mayor Joseph R. Paolino Jr., in addition to other nonbinding promises to hire locally, use local vendors, remove the garish “SLOTS” sign on the front of the building before the end of the year and pre-pay $200,000 in building permit fees, among other provisions.

City Councilors voting against the agreement said it didn’t go far enough and should have offered more annual revenue over and above the 1.45 percent of terminal revenue Newport is set to get according to state statute. They also took turns outlining myriad objections to the deal, from Councilor Michael Farley’s comparison to what he said were much-stronger HCAs in Massachusetts, to Councilor Justin McLaughlin’s explanation that he simply can’t support the use of gambling revenue to fund public services.

“It’s a matter of personal principle,” McLaughlin said.

Councilors in support of the agreement said it would be better than nothing. Mayor Harry Winthrop said the city needed insurance, much like car insurance or life insurance.

“You don’t get car insurance and hope to get into an accident,” he said. “We need casino insurance.”

Also supporting the agreement was Councilor Jeanne Napolitano, who said she was deeply troubled by the way the issue has been presented and the demeaning language used to describe existing workers of Newport Grand.

“It’s not minimum wage, they do have benefits and I think we need to open this discussion a little more, Napolitano said. “I don’t have a problem with you voting no, but I don’t want to see people demeaned because maybe they feel differently about losing a business.”

Immediately after the vote, Paolino, who told the council that he respected the passion on all sides and was not angry, unveiled “The Newport Partnership,” which is an apparent promise to do everything the rejected HCA would have done — except for the extra $1 million.

Instead, the Newport Partnership plan would offer a dollar for dollar match of city contributions to the North End Innovation Hub with a cap of $1 million.

We will do these things regardless of what the City does,” Paolino said. “We are committed to Newport.”

A political veteran in Rhode Island, Paolino said he suspects election-year politics factored into the vote.

“It had nothing to do with the merits. A lot of it is politics. I understand it, I have a pretty thick skin and let’s just keep on,” he said.

The lengthy discussion expanded to cover much more territory than just the specifics of the proposed HCA, reflecting the significance of the upcoming Nov. 4 ballot referendum asking voters to approve table games at Newport Grand.

Nearly 100 people attended the meeting, with large numbers of the anti-casino group, Citizens Concerned about Casino Gambling, as well as Newport Grand workers and members of the UAW Local 7770.

Voting in favor of the HCA: Mayor Harry Winthrop, Councilors Marco Camacho, Jeanne Napolitano

Voting against the HCA: Councilors Michael Farley, Justin McLaughlin, Naomi Neville and Kate Leonard

More coverage from Wednesday’s night’s meeting will be posted soon, including the broader discussion about the upcoming casino referendum. Stay tuned.