Pondering slots’ payoffs

Move over, Atlantic City. One casino company is placing its bets on a brand-new location — South Philly, which has residents weighing the risks of gambling against its rewards.

Robert Blackburn, president of the Whitman Council, hopes a proposed Caesars casino complex would bring jobs and plenty of revenue, but he also has his concerns.

"Whenever there’s gambling involved, you can’t ignore the fact of a criminal element that comes in close proximity to the gambling venue," he said.

But Caesars Entertainment Inc. already is promising a win-win situation for the city and its residents, even though its 18-acre gaming and entertainment venue — if approved — is still years away from opening.

The $350-million project, which encompasses land on the waterfront side of Columbus Boulevard between Reed and Tasker streets, would include a 3,000-slot casino housed in an 80,000-square-foot building. If the approval process goes smoothly, the slot parlor could be open for business by 2008.

Visitors not particularly fond of those one-armed bandits could enjoy other attractions at the mixed-used destination. Phase One of the plan, for example, would include a 2,500-seat theater/auditorium, restaurants and retail stores.

"It would be a place where people could do a number of things in addition to gambling," said Robert Stewart, senior vice president of corporate communications for Caesars Entertainment.

While the types of stores and restaurants have not yet been determined, Caesars representatives believe local entrepreneurs would be able to get in on the action, Stewart added.

Phase One also includes a 3,000-car garage and, depending on the complex’s success, further additions are a possibility. A 500-room luxury hotel adjacent to the proposed casino and a marina already have been discussed.

Construction of Phase One and the complex itself could create 3,000 jobs. If additional phases were approved, that number would climb to 5,000, according to Caesars.

Ever since the notion of riverboat gambling on the waterfront surfaced 10 years ago, Caesars had the option of purchasing the land. Yet recent state legislation approving slot parlors was the catalyst for Caesars’ plans, said Stewart.

Caesars will purchase the property from owner and developer Bart Blatstein, who at one time had his own grand plans for reviving South Philly’s waterfront. The developer sold the Riverview properties on the other side of Columbus Boulevard a year ago.

Over the past few weeks, company executives have been meeting with local officials, including state Sen. Vincent Fumo, to have them evaluate and approve the casino proposal before it is submitted to the Pennsylvania Gaming Control Board.

"What he told them is that they need to address the traffic concerns that were not present years ago," spokesperson Gary Tuma said of his boss, Sen. Fumo.

Although Fumo is one of the gambling bill’s authors, he is staying out of discussions about where gaming venues should be placed, said Tuma. That decision is solely up to the gaming board, he said.

Caesars finds the site ideal due to its geographical location, said Stewart, who noted its proximity to the area’s sporting venues, interstate highway system and airport. Traffic woes also could be maintained more efficiently at the site than in Center City, he added.

But like Fumo, First District Councilman Frank DiCicco stressed the need to address development-induced traffic concerns along the waterfront.

While a proponent of the proposal and recent gambling legislation, DiCicco said the influx of retail stores at Riverview Plaza complicates matters.

"When the site was first looked at by the casino industry 10 years ago, the one thing we didn’t have in the equation was the IKEA," he said. "With its opening, the traffic problem has increased threefold — maybe more."

However, the councilman said he was in favor of the plan’s promised job creation. The entertainment venue also would help generate gambling revenues and maintain dollars normally headed for Atlantic City, he said.

The proposal could be the catalyst that transforms the entire riverfront into a multi-use facility, combining business with residential areas, DiCicco added.

"As opposed to spot development, we need a comprehensive plan," he said. "This plan should go as far south as Oregon Avenue."

Due to its riverfront location, employees who live in the river wards would have the option of walking to work, added DiCicco.

Blackburn, of the Whitman Council, acknowledged that he has not heard much about Caesars’ plans, but can foresee several payoffs.

"There should be a lot more revenue in the state and city coffers," he said. "We’re certainly in favor of economic development and anything that will favor the commonwealth and the city of Philadelphia. Hopefully, there will be substantial employment opportunities for the residents of Whitman."

While Caesars boasts a possible 5,000-job boost, Blackburn said he is unsure if these employment opportunities would include much-needed benefits.

He also expressed doubts that a parking garage could fully address the area’s traffic problems if the casino is built.

State Rep. Bill Keller said he didn’t know enough about the plan to be for or against it, but said he will gauge reaction from residents before making a decision.

Beginning next year, the gaming board will begin reviewing applications for the 14 statewide licenses. Philadelphia will receive two for stand-alone slot parlors. Licenses are likely to be administered in 2006.

Kvaerner still firmly anchored

As Kvaerner Philadelphia finishes up its contractual obligation to build three ships by the end of the year, the Norwegian company is dismissing speculation that it could sail away.

Kvaerner and the Philadelphia Shipyard Development Corp. both maintain that the shipbuilding company will remain docked in Philadelphia.

Under its master agreement with the state, Kvaerner is required to build three ships by the end of 2004. The company already has delivered two ships to the Matson Navigation Company in San Francisco.

A third ship is 85-percent complete, and construction has begun on a fourth vessel, said Dave Meehan, CEO and president of Kvaerner Shipbuilding Inc.

The company is leasing the property from the PSDC under a contract that extends for another 99 years, said Doug Peel, the corporation’s executive director.

Starting in January, Kvaerner will maintain full shipyard operations at the site, with a few requirements from the PSDC and governmental parties remaining in place.

By 2014, the company would operate as an individual company, free of additional oversights from the agencies.

Peel said he doesn’t expect Kvaerner to ship out any time soon.

"They’ve invested several millions of dollars in it so far, so it’s not something we expect to see," said Peel. "They have a large investment they need to protect."

Last year, state Sen. Vince Fumo expressed concern that Kvaerner could bow out of its contract or even skip town once the three ships are complete.

This week, a spokesperson said the senator was unaware of Kvaerner’s plans but remains optimistic.

"We remain hopeful that they can remain a viable shipbuilding operation that is successful in the private market and will continue to employ Pennsylvanians and Philadelphians well into the future," said Fumo spokesperson Ken Snyder.

Peel believes the shipyard will continue to be an important part of the city’s industry.

"We’re very proud of what we’re able to accomplish down here," he said. "We’re setting a new course for shipbuilding in the country."