Nutter revokes casino's license

Reversing a key decision of the Street administration in its closing weeks, Mayor Nutter yesterday revoked a city license awarded to the SugarHouse Casino to build a $550 million slot-machine parlor along the Delaware River.

The decision guarantees more delay for the disputed project.

And in an afternoon news conference, Nutter supported City Council legislation introduced hours earlier that would require several independent studies on traffic, economic impact and other concerns before Council voted on zoning matters needed for construction of a Foxwoods Casino in South Philadelphia.

Nutter's stand against the SugarHouse license was among his boldest moves since he took office three weeks ago, pitting him against Gov. Rendell, who backed Mayor John Street's move to issue the license.

"The governor is clearly disappointed with the decision," Rendell spokesman Chuck Ardo said.

Referring to intended uses for much of the anticipated casino revenue, Ardo added: "The delay means that homeowners will have to wait longer for more substantial property-tax relief, and the wage-tax reduction will be smaller than he had hoped."

Nutter said the issue was "not just about money."

"This is about proper process and procedure and how we conduct ourselves here in the city," he said.

SugarHouse's developer indicated it would seek to reverse Nutter's decision.

"We fully expect the city, regardless of a change in its administration, to honor all of its contractual obligations," chief executive officer Greg Carlin said in a statement. "We are disappointed by these actions and will seek the appropriate relief immediately."

Nutter said he had asked acting Commerce Director Duane Bumb to revoke the license because it had been "issued in error" and "unnecessarily rushed."

Specifically, Nutter said Bumb's predecessor and former boss, Stephanie Naidoff, had not adequately considered whether it was appropriate for a casino to be built on "riparian lands" - land beneath the river. SugarHouse wants portions of its casino to extend out over the Delaware.

He also objected to the fact that plans presented to the Planning Commission were not identical to what was described to the state Gaming Control Board when it gave SugarHouse the green light.

Traffic, parking, storm-water management, and other citizen concerns were "brushed to the side" as the license was "rushed through at the end of the last mayor's term," Nutter said.

Naidoff held one hearing before issuing the license Nov. 27, a decision that Nutter called "an abuse of a discretion."

SugarHouse has 30 days to appeal to Bumb for a public hearing, Nutter said.

"We are hopeful SugarHouse will accept this invitation" for a hearing, he said, "and not resort to further litigation."

Naidoff and Street did not return calls late yesterday seeking comment.

The SugarHouse permit was questioned from the start. Casino opponents and some state legislators from Philadelphia contended that the city, which cited a 1907 law, had no right to issue a license to allow construction on the state-owned riparian land.

The legislators sued the city, and the case is pending in the Pennsylvania Supreme Court. The city expected to file a motion today, arguing that the suit was moot because the license has been revoked.

Nutter said yesterday that he believed the city was within its rights to issue a license should it decide to do so.

Reaction to his decision varied in the Fishtown and Northern Liberties neighborhoods around the proposed SugarHouse site.

State Rep. Michael O'Brien, a Democrat who represents the area and is one of the litigants against the city, lauded Nutter for "turning his back on the skulduggery of the previous administration," but said he believed the city had no right to issue the license.

Hilary Regan of Northern Liberties, an active member of the Philadelphia Neighborhood Alliance, a coalition of civic associations seeking to move the casinos, praised Nutter's stated commitment to an "open and transparent process."

"It's a huge victory for us," Regan said. "We've never had it before."

Donna Tomlinson of Fishtown Action, which supports the SugarHouse site, had a different take.

"What are they going to do with the land now? Put in another condo they don't need? Mayor Nutter needs to know there is support in this community for this development," she said.

Meanwhile, legislation introduced by Councilman Frank DiCicco yesterday would add to barriers that Foxwoods, which has yet to receive any permits, faces in its efforts to build its slots casino.

The legislation would give Foxwoods the Commercial Entertainment District zoning it needs only if Foxwoods meets a list of conditions. They include independent studies on traffic, public safety, storm water, and businesses in surrounding neighborhoods.

The legislation also calls for Foxwoods to reach an agreement with surrounding neighborhoods to create a nonprofit entity, funded by Foxwoods, to pay for neighborhood improvements.