Posted on Thu, Jan. 13, 2005
BY CHARLES RABIN Miami-Dade County leaders and three parimutuel operators reached a tentative 30-year agreement Wednesday that calls for a $4 million up-front payment to the county that would in effect offset the cost of a referendum on Las Vegas-style slot machines, and a percentage of gross revenues that could be worth up to $10 million a year if voters approve them.
crabin@herald.com
Miami Hearald
The proposed agreement -- which must pass a County Commission vote next Thursday to set up a March 8 referendum -- could also mean as much as $300 million annually to the state's public school system, officials said.
The deal would permit up to 6,500 Las Vegas-style slot machines at Flagler Greyhound Track, Calder Race Course and Miami Jai-Alai.
''I think this will spur huge economic growth in the community,'' said Ron Book, who represents the parimutuel industry. ``People will be coming in from all over the place to play.''
State voters in November passed a constitutional amendment that permits Miami-Dade and Broward counties to have slot machines at their parimutuels if voters approve.
The amendment allows state legislators to set such rules as how many machines are permitted, and who operates them. But both counties are moving ahead with agreements with to establish rules before the referendum votes are held.
In a two-page memo Wednesday, County Manager George Burgess pointed out to Commission Chairman Joe Martinez several negative aspects to bringing gambling to the community.
''Anticipated impacts to the county include increased development, traffic, crime congestion, and potentially, social service demands,'' Burgess wrote. ``Costs associated with problem gambling, while not quantifiable, may be significant . . . ``Spending on activities that generate sales tax revenue or other revenues that accrue Miami-Dade County may be diverted to slot machines.''
Still, Burgess said he sees the proposal as a way for the struggling parimutuels to supplement their core activities and make themselves a destination point. He called them ``Racinos.''
LEGISLATIVE SESSION
Local politicians and gaming industry executives believe they need to have an agreement in place before the state's legislative session gets into full swing in March and April.
The proposed 30-year agreement would permit 2,500 machines at Calder and Flagler, and another 1,500 at Jai-Alai. More could be added later, both parties said.
It calls for an up-front payment of $4 million from the parimutuels to in effect offset the expected $3.5 million cost of the election. The industry cannot legally pay for the election, but it can help with expenses related to gambling, such as security.
The agreement also would give the county 1.25 percent of the gross revenues of each machine during the first three years. By year four, the county would receive 1.5 percent of the first $250,000 of gross revenue per facility and 2 percent of gross revenues above that number.
Book and Burgess estimate each machine would generate between $214 and $275 per day after payouts to winners, which are generally a little more than 90 percent of the total wagered.
What that means, according to Book, is the state would receive in excess of $300 million a year to divvy up among its public school systems, and Burgess calculated the county would collect anywhere between $3 million and $8 million annually.
Broward commissioners were expected to vote Tuesday for a March 8 referendum there, but postponed a decision to continue negotiations with the industry.
State Rep. Randy Johnson, R-Winter Garden, who chairs the antigaming industry group No Casinos, said it would have made more sense if the counties had engaged the Legislature before creating their own rules.
''It could very well be the state decides to operate the machines, when and how many machines, and decide what class they are,'' he said.
But another parimutuel lobbyist, Jim Horn, said it's unlikely the state would interfere.
`WHAT-IF GAMES'
''The state can play a lot of what-if games, but they generally don't interfere with local decisions,'' Horn said.
Martinez, who said he has yet to see the actual 75-word resolution that could go before the public, called it a good deal for the county -- and the state.
''I think it will be good for education, but that's up to the Legislature,'' said the county chairman. ``If it passes, I'll lobby for the two counties to get a little more. But ultimately the state will decide on the division of money.''
The resolution before the commission next week is sponsored by commissioners Bruno Barreiro, Carlos Gimenez, Sally Heyman, and Dennis Moss.
(Herald staff writer Tere Figueras Negrete contributed to this report.) © 2005 Herald.com and wire service sources. All Rights Reserved. http://www.miami.com