Rendell: "Clock is ticking" on city casinos

Gov. Rendell yesterday pressed for an end to the year-plus impasses that have delayed the opening of Philadelphia's two waterfront casinos.

Standing with Mayor Nutter at his side, the governor acknowledged the rights of Nutter as well as City Council to review decisions made by the previous administration, and to call for new studies on casino-related matters, from zoning to traffic impacts.

"But the frustration is mounting, and the clock is ticking," said Rendell, in response to a reporter's question at a news conference announcing state funding for two economic development projects. "It's time to get moving."

The catalyst for his comments was a proposal circulating in the state House to prevent Philadelphia from receiving its share of revenue from Pennsylvania's newly built casinos until the city's two slots parlors are built.

The proposal faces serious hurdles, particularly since it would have to be approved by two legislative committees chaired by Philadelphia Democrats. Still, if successful, it would threaten $94 million worth of planned cuts this summer in Philadelphia's wage-tax rate. The decreases are expected to be from 4.2 percent to 3.9 percent for residents, and 3.7 percent to 3.5 percent for nonresidents.

Nutter forcefully denied that his call for a thorough review of the two waterfront project sites was an effort to impede them. "I absolutely reject any notion I've slowed anything down," he said.

At the same time, Nutter told reporters afterward that the matter was "a big issue and very complicated," and said he had not dismissed weighing alternative sites for the two casinos slated for Philadelphia. "It's something I am taking a serious look at," he said.

The $650 million SugarHouse Casino is held up on two fronts.

It can't proceed with construction at the proposed location in Fishtown/Northern Liberties until receiving clearance from the Army Corps of Engineers relating to the impact on the environment as well as historic artifacts on the site.

That permit would enable SugarHouse to begin some building work, but it also is awaiting a state Supreme Court decision on whether it can build out over the Delaware River with a license permit issued by Mayor Street's administration in November - then revoked by Nutter in January.

And Foxwoods can't build its $670 million slots parlor until City Council grants the required zoning for its proposed South Christopher Columbus Boulevard site in Pennsport. Council has begun a series of hearings on that zoning permit, with the next one slated for March 10.

Considering that the licenses for both casinos were awarded in December 2006, and with still no date certain in either case, Rendell yesterday warned that the state House proposal could "pick up steam."

Its author is Rep. Robert W. Godshall (R., Montgomery), whom the governor described yesterday as "no gadfly" and a Philadelphia ally.

"I am not a Philadelphia-basher, never have been," Godshall said in an interview. "But Philadelphia is not contributing anything, and yet they're siphoning off money . . . . And that's hurting the people in my school district and people in other school districts across the state."

Except for Philadelphia, casino revenues will be used to keep property taxes from rising.

Godshall's legislation would be referred to the House's Gaming Oversight Committee, chaired by Rep. Harold James - a Philadelphia Democrat. At some point, the bill would also have to get a hearing in the House Appropriations Committee, chaired by Rep. Dwight Evans - a Democrat from Philly.

If, somehow, it managed to survive those committees and made it to the House floor, it would likely face stiff opposition from other high-ranking lawmakers from Philadelphia, including Speaker Dennis O'Brien (R., Philadelphia).

Still, that will not stop Godshall from playing tough.

"There are no ulterior motives," he said of his proposal. "But I get yelled at every day by someone when it pertains to to their property taxes. Something needs to be done."