City favors downtown casino

PHILADELPHIA While not naming a favorite in the race for the city's second casino license, Mayor Nutter's economic team conveyed strong support Tuesday for two downtown locations - Market8 and the Provence - over the others.

At a hearing before the state's Gaming Control Board, Deputy Mayor Alan Greenberger also expressed interest in Wynn Philadelphia, but said its proximity to SugarHouse Casino could cause problems for the city's first casino.

The three proposed sites in South Philadelphia received only lukewarm endorsements from Greenberger.

Each project has strengths, Greenberger said. But he said the three would have the most difficulty drawing new customers to gaming and lack the level of additional amenities, such as restaurants and shops, as the other projects.

In addition, with more than 300 events a year at the stadium and arenas, the area already suffers from traffic congestion, he said.

Casino Revolution recently announced a plan to develop a sports and family recreation area next to its project. But Greenberger said the neighborhood is best suited for industrial and warehouse uses.

The gaming board held the special hearing to give city officials a chance to voice their opinions, preferences, and concerns.

William Ryan, chairman of the gaming board, called the testimony helpful.

But what the city may want from a second casino will only be one of many factors that the seven commissioners weigh as they decide who - if anyone - should get the license.

For a project to receive a license, all four commissioners appointed by the General Assembly must endorse it, in addition to at least one of the three gubernatorial appointees.

After the hearing, Ryan said it was possible that no project would receive five of the seven votes. That has never happened since Pennsylvania legalized gaming. Ryan added that he was not certain how the board would proceed if such a situation arose.

John Neill, a consultant for AKRF of New York, which was hired by the city to assess the projects, focused on the potential for job creation, the impact on SugarHouse, and the potential for gambling revenue and tax growth.

Neill said the gaming market in Pennsylvania was approaching saturation. Within 100 miles of Philadelphia, he said, are 22 casinos.

As a result, he said, the projects that offer the broadest mix of entertainment - restaurants, shops, theaters, nightclubs and bars - had the strongest potential for generating new revenue for the city and state.

On that score, the Provence, to be developed by Bart Blatstein of Tower Investment at Broad and Callowhill Streets, could generate the most gross revenue, followed by Market8, at Eighth and Market Streets, AKRF projected.

Greenberger expressed a decided preference for projects that would spur additional economic development.

The Provence, he testified, represents the opportunity for "a major investment in a critical section of Center City." The Nutter administration has made a revival of North Broad Street from City Hall to Temple University, a priority.

Of concern to the city, however, are potential traffic issues for the Provence. The front door of the casino would open onto an interchange for the Vine Street Expressway, already congested during rush hour.

With Market8, to be developed by Ken Goldenberg of the Goldenberg Group, the city also sees spin-off economic development in a key district, Market Street East. The mixed-use casino, he said, could transform Center City and develop a site that has been vacant for three decades.

Greenberger said city and state transportation agencies would have to do significant work to "mitigate inevitable" traffic issues.

Greenberger said the Wynn project, about a mile from SugarHouse, also has the potential to be "transformative," if the Las Vegas company could work with SugarHouse to develop the mile of barren waterfront between the sites. This could create a more well-defined recreational and entertainment district, he said.

While Steve Wynn has promised to draw an international clientele to a resort-style casino, Greenberger said, the site in Fishtown is isolated. "The Wynn project is a little harder to get our arms around," he said.

"The power of the Wynn brand is not to be taken for granted," he testified, "but we do not yet see clearly how it integrates with the rest of the city."

The gaming board is evaluating each of the six applications, as well as the investors behind them. Ryan announced that the board had extended the public comment period on the projects until Nov. 29. He also said the gaming board has scheduled more detailed hearings in Philadelphia on the suitability of each candidate for Jan. 28, 29, and 30.

The hearing was interrupted by protesters who carried signs and chanted, "No casino, no matter where." Police led them from the meeting room of the Convention Center.

Greenberger said it was the city's hope that with this feedback, the developers will continue to improve their proposals. Already, two - the Provence and Market8 - have released new renderings of their plans.

"I fully expect and want to make each proposal better, certainly around the things we have talked about," he said.

jlin@phillynews.com 215-854-5659 @j_linq