Mazze Study Concludes Newport Grand Deal would Save 200 Jobs

Proponents of the November table games referendum that would pave the way for Newport Grand to be sold and converted into a full-scale resort casino are touting a recent study by a local economist and University of Rhode Island professor that concludes a $40 million Newport Grand upgrade proposed by a team of investors would generate $50 million in economic activity in Rhode Island.

The study also concludes that the city of Newport would see an extra $9 million in property tax relief over the next six years once renovations were complete.

“The proposal to make improvements at Newport Grand is an economic opportunity for the City – and the State – to protect the jobs and revenue that exist today, and create more of both,” said Ed Mazze, a well-known economist and professor of business administration at the URI.

According to the study, the $40 million spent on construction would create $50 million in economic activity in Rhode Island. The construction will support 226 full-time jobs and 188 indirect jobs with $19.9 million in wages and salaries. In addition, 350 new permanent full time jobs will be created in gaming and hospitality when the project is complete. In addition to 764 new jobs in construction, gaming and hospitality, Newport Grand’s existing 175 jobs would be saved, as well.

The results of the study were released by Jobs for Newport, which is lobbying on behalf of the Newport Grand upgrades.

Voters in November will be asked whether to approve table games at Newport Grand, which is the deciding factor in whether the former Newport Jai Alai is sold by owner Diane Hurley to former Providence Mayor Joseph Paolino and a group of investors. Without table games, Paolino has said that an upscale renovation would not be viable.

The Paolino team is proposing building a new “Newport Entertainment Center” with 70 table games, entertainment venue, dining, spa and space for large meetings and banquets.

According to Mazze’s report, there has been a 25 percent reduction in staff at Newport Grand since 2005. Revenues have also fallen dramatically, from $79.4 million in 2005 to $44.6 million in 2014, due in no small part to the lack of table games and other limitations inherent at the existing facility.

The new complex will draw visitors with the addition of table games, the two restaurants within and to attend trade shows at the meeting and exhibition space. Those visitors and the employees that serve them would generate economic activity that would spill over into the rest of the Newport economy “from people who previously had to travel outside Newport to play table games but who will now be able to stay in the area,” the report states.

The report uses the Regional Input-Output Modeling System, or “RIMSII” model to measure potential economic activity.

The full report is available here: http://jobsfornewport.com/economic-study