NEWPORT, R.I. (AP) – The Newport City Council has rejected an agreement with developers of a proposed casino at Newport Grand that would have provided a $1 million payment, which a critic called a bribe.
Officials voted 4-3 Wednesday night to turn down the Municipal Community Agreement.
State legislation putting the casino question on the Nov. 4 ballot would allow Newport’s share of slot machine revenue to rise from 1.01 percent to 1.45 percent, if the table games resolution is approved.
The agreement would have given preference to Newport residents for hiring and to Newport vendors for purchases of goods and services. The developers would have provided $1 million to Newport over three years once they are licensed, in addition to the $9 million in additional property tax relief guaranteed by state law.
The Newport Daily News reported that Council Vice Chairwoman Naomi Neville called the proposed $1 million payment a bribe. She said the agreement should not be a factor in the Nov. 4 vote.
Joseph R. Paolino Jr., one of three partners in the casino development, said shortly before the council meeting that rejecting the agreement would not stop the project from moving forward; Newport would just receive less money if voters approve adding table games. The former Providence mayor said it is “shortsighted” to oppose the agreement.
Paolino and developers Peter de Savary and Paul Roiff plan to spend $40 million on upgrading the site to turn it into an “entertainment complex.”
“We will still make a financial commitment to the city, and may put together our own partnership with the people,” he said.
Senate President Teresa Paiva Weed told Rhode Island Public Radio that in light of the council’s decision, she cannot support the referendum.
Paiva Weed backed the addition of table games in 2012, a measure that was approved statewide that year but rejected in Newport. She had not announced her position this time around until now, but she did help draft and shepherd through the bill that set out the financial terms of a deal.
Copyright 2014 The Associated Press.
