Study: Casino holds great promise> Well-known analysts see 1,516 new jobs, $30 million in salaries

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AUGUSTA — On the eve of what may be a critical vote in the Legislature, the promoters of a Passamaquoddy gambling casino at Calais on Wednesday unveiled a study promising great economic benefits from the enterprise. According to the study by Wharton Econometric Forecasting Associates,…
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AUGUSTA — On the eve of what may be a critical vote in the Legislature, the promoters of a Passamaquoddy gambling casino at Calais on Wednesday unveiled a study promising great economic benefits from the enterprise.

According to the study by Wharton Econometric Forecasting Associates, the Passamaquoddy casino could create 1,516 jobs, both directly and indirectly, and generate almost $30 million a year in salaries. The casino alone, the study said, could lower Washington County’s unemployment rate from about 10 percent to about 6 percent.

The WEFA Group is a widely respected forecasting firm and has been used by state government to project budget revenues.

The Passamaquoddy Tribe would own the casino and be guaranteed to receive at least 60 percent of its profits.

Thomas J. Carr, senior vice president for Indian gaming for The Promus Companies, the parent firm of Harrah’s Casinos, which wants to build and manage the Calais casino, said 725 permanent jobs would be created at the casino-hotel complex.

Carr said earlier that some of those would be part-time jobs.

The average wage would be $23,000 to $25,000 a year, he said.

In addition to the permanent casino jobs, and 218 construction jobs, an estimated 527 jobs would be created outside the casino as a result of an estimated 800,000 visitors a year to the facility. Another 265 jobs would be created to serve the needs of the 725 casino employees.

Carr said Harrah’s expects gambling revenue at the Calais casino to be about $48 million a year.

The Legislature’s Judiciary Committee will meet Thursday morning to consider a revised version of the casino bill and possibly vote on it.

Rep. Constance Cote, D-Auburn, House chairman of the committee, said she thought it would be highly unlikely for the casino bill to be amended to include a proposed second casino at Loring Air Force Base.

New York developer John J. Capenos last week announced his plan to build a four-season resort and casino at the air base when it is finally closed. That plan, which apparently includes no Indian involvement, also will be subject to close review by the Legislature.

While Carr’s projection of economic impact from the Calais casino was rosy, a state economist took a more skeptical view.

“The whole thing is based on how many people come and how much money they spend,” said Stephen J. Adams, director of the State Planning Office. “People who spend money at this casino are not going to spend it somewhere else. If it’s Mainers who would have spent their money somewhere else in Maine then there’s no net benefit.”

Adams also said there were social and public costs to a casino, in controlling things like crime and traffic, that had not been figured into the WEFA Group’s calculations.

Carr also unveiled some paintings of a possible layout and a possible interior for the casino. He said it would be designed to look like a turn-of-the-century hotel at a national park.

“The feel we are trying to create is wilderness lodge,” he said. “We’re certainly not in any stage of completion, but we are farther along. This is beginning to gel at this point.”

Carr said his company estimates the casino-hotel complex will cost $25 million to build and equip. Another $5 million would be spent to double the size of the Calais municipal golf course and to make improvements downtown.

He said The Promus Companies is willing to spend $20 million of the estimated $30 million cost and expects to find other backers for the rest.

He said Larry Mahaney of Bangor is very interested in building the 116-room hotel, but “nothing’s been decided yet.”

Carr said Harrah’s is unconcerned about the prospect of a casino in northern Maine, because the Loring site is more than 150 miles away.

“It would not have a major impact,” Carr said. “We don’t see it as a major threat.”

The casino-hotel complex is designed to be 57,500 square feet with the casino portion 18,000 square feet.

According to developers, the Calais casino also would have:

About 500 slot machines, 25 table games and a 25-seat Keno area.

A 100-seat off-track betting facility.

Two restaurants, a dance hall and an area for live entertainment.

A gift shop, a video arcade and a child care center.

Meeting rooms of about 4,000 square feet.

An indoor pool and a health club.

Carr also said Harrah’s would like to build a small outdoor amphitheater, tennis courts, a nature trail, an aviary and a parking area for 850 cars.


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