Councilors OK talks on ‘racino’ City to negotiate Bass Park proposal

BANGOR – City councilors unanimously granted tentative developer status Monday night to a Las Vegas-based entrepreneur who hopes to develop a gaming and entertainment complex at Bass Park that could cost up to $30 million.

Tentative developer designation allows the city to negotiate a development agreement with a designated party for a specified period. The purpose of awarding that status is to see if a development agreement can be negotiated that is acceptable to the city and the developer.

According to the council order, the deadline for coming up with a deal is May 1.

Given the potential of more than 300 new jobs and more revenues for the city and state, the plan to overhaul the city’s harness racing track proved a gamble that Bangor’s councilors were willing to take.

The nine councilors’ vote came near the end of their regular meeting, which was preceded by a workshop with Shawn Scott, owner of Capital Seven LLC, the firm that runs the Bangor track. Capital Seven is one of several businesses owned by Scott, whose primary residence is in Nevada.

During recent presentations, Hoolae Paoa, Capital Seven’s chief executive officer, said the proposal for city-owned Bass Park is a new concept in entertainment called a “racino,” a racetrack and casino combined.

The idea is to bolster harness racing, which has been in decline, by combining it with gaming and year-round entertainment. The racino would be Maine’s first.

Capital Seven was satisfied with Monday’s talks.

“I think we’re off to a tremendous start. We appreciate the forward-looking council,” Scott said after the vote.

“It’s just the beginning,” added Paoa.

Plans for the complex, called Bangor Historic Raceway, include a rebuilt track, a new grandstand, clubhouse and stables, a hotel-conference center, restaurant and associated parking. The first phase of redevelopment at Bass Park would involve expanding the existing half-mile track to five-eighths of a mile. Phase two, which hinges on voter authorization to install video lottery terminals, calls for a racino, conference center and hotel.

Although most councilors met Scott for the first time Monday, all have taken part in committee meetings and council meetings during which the project was discussed.

Most councilors were enthusiastic in their support for the plan. Two of the idea’s biggest fans are councilors David Nealley and Michael Crowley.

Nealley, Crowley and Councilor Gerry Palmer were among the six people who signed the application for the citizen initiative and signature campaign now under way. Last Thursday, slots backers submitted slightly more than 64,000 signatures in their effort to put the question on the November ballot.

Among the pluses Crowley cited were that the racino would be taxable, that Scott planned to make a substantial investment in Bass Park and that Scott’s strategy could help “reinvigorate an industry that is hanging on by its hooves.”

Nealley said the racino could help offset such regional problems as poverty, the departure of young people, the departure of older people to retirement havens, and the possible closure of Great Northern Paper Inc.

Nealley said his research turned up several states currently benefiting from racinos, including Iowa at $97 million, West Virginia at $156 million, Delaware at $185 million and Rhode Island at $104 million.

Councilor Dan Tremble was more restrained, saying the tentative developer status would allow for informed decision-making.

Tremble said that as far as he was concerned, the council was not taking a position on gaming or on video lottery terminals nor was it endorsing the Bass Park project. He cautioned that tentative approval status should not be interpreted as a green light for the project. If anything, he said, it was a “very bright yellow light.”

Only two residents – Charles Birkel and Edward Rudnicki – took advantage of the public comment period. Birkel said he saw the proposal as one worth exploring, while Rudnicki, of Norway Road, expressed concerns about what impact the project would have on his nearby neighborhood.