Councilors seek to nix racino deal Petition calls for referendum to reconsider developer contract

BANGOR – Two city councilors are among those initiating a citywide referendum intended to reverse a deal with a Las Vegas-based developer seeking to bring slot machines to the Bangor Raceway.

Councilors Anne Allen and Gerry Palmer, two of three councilors who opposed the Oct. 30 agreement with Capital Seven LLC, lent their names to the petition in hopes that voters would overturn the council’s 5-3 vote to partner with the firm.

“I just want to make sure we have a good deal with a good partner,” said Palmer, stressing the petition is not an attempt to reverse the results of the local June referendum that initially allowed slot machines at the track.

The Bangor petition, filed late last week with the city clerk’s office, is a required first step in launching a citywide referendum. Petitioners then have 45 business days to collect the needed signatures – in this case 2,274, or 20 percent of the votes cast in the last gubernatorial election – to send the matter to voters.

But Norman Heitmann, the city’s chief legal counselor, said Friday that the petition, as worded, would not have the effect its creators envisioned because it does not ask whether voters want to end the city’s relationship with Capital Seven.

Heitmann said the referendum, as worded, only would serve as a gauge of public opinion but would not force the council to dissolve the agreement, which calls for a $30 million investment in the aging track and guarantees the city a minimum of $1 million a year.

John Hanson, a Bangor resident among those critical of the council vote, said Friday that the group would review its options with its attorney before pursuing the referendum with its current wording.

Like Hanson, Palmer and other opponents of the Capital Seven deal contend it was struck in haste, especially considering the late interest of an Iowa-based developer that proposed $40 million in improvements to the track and guaranteed the city a minimum of $1.5 million a year.

Ed Bearor, the Bangor attorney representing both the petitioners and the Iowa-based casino development firm Kehl Management Co., could not be reached for comment Friday.

Some on the council suggested that the involvement of Palmer and Allen in initiating the referendum drive set a troubling precedent for future councils.

“So every time the minority doesn’t like a majority decision on the council they’re going to send it out to referendum?” asked Councilor David Nealley, who is also a Capital Seven employee and therefore did not vote on the October agreement. “If that happens it’s going to be a very long year.”

“I haven’t given up my citizenship rights,” Palmer countered.

An official Capital Seven spokesman could not be reached for comment about the petition drive late Friday, but Nealley did offer his thoughts.

“I think the voters of Bangor, knowing who the developer was, spoke clearly,” said Nealley, referring to both the June and November votes, at which times Bangor voters convincingly approved slot machines at the Bangor Raceway, the operator of which is owned in part by Capital Seven.

Mayor Dan Tremble, despite being the third council member to oppose the Capital Seven deal, was wary of an attempt to overturn the council action.

“I just don’t see that any positive results will come out of this process,” he said, noting that should the city back out of its signed agreement with Capital Seven, the company could sue the city for breach of contract.

Capital Seven owner Shawn Scott also has expressed interest recently in developing a similar racetrack casino in Saco with the owners of Scarborough Downs.

The Saco City Council will decide Tuesday whether to ask voters if they want to host a racetrack casino. The owners of the Scarborough track proposed the Saco referendum after Scarborough voters rejected slot machines in their town.