Projo 7 to 7 News Blog

LINCOLN, R.I. -- If Twin River slot parlor's bankruptcy protection filing does provoke criticism from the host community, it may come over an included proposal to go to 24-hour, 7-day-a-week gambling.

It "is not going to sit very well with residents," Ronald A. McKenna, the Town Council president, said of a move to 24-7 operations. "The governor right now is not thinking of the people of Lincoln. He is only thinking of the the bottom line. They are forcing this down our throats."

But the federal Chapter 11 bankrupcty proceeding by BLB Investors on Tuesday is not expected to affect the town's finances, which include a hefty share of revenue from Twin River, according to Town Administrator T. Joseph Almond. He added that officials' concern this year had been over whether the property would remain under private ownership, which enables the town to tax it.

With Tuesday's filing, Almond said, "we think that will be resolved."

"My understanding of this is the lenders are taking ownership of the property -- nothing really else should be changing," he added.

Almond deferred to the residents of Lincoln on the matter of 24-7 gaming hours. If there is going to be opposition on that issue, he said, "it's something that the people in the community have a right to decide."

Lincoln budgeted $5.2 million in video lottery terminal revenue in the budget for the year that runs through June 30; Almond said the town's actual revenue appears to be headed for slightly more than that. He said that the town budgets for a coming year based on the actual revenue it received the year before. He said his understanding is that the town's percentage of VLT revenue, which determines what it gets, remains.

Governor Carcieri said in a statement Tuesday that his administration "is doing everything necessary to protect the critical revenue source from Twin River."

If Tuesday's filing proves resolves some financial concerns, others remain locally.

The town was already bracing for loss of much of the $70,000 in greyhound racing money it has included in the $70-million budget for the fiscal year that begins on July 1. That was after Twin River decided in May to suspend the racing Aug. 8.

Meanwhile, Twin River has two pending lawsuits against Lincoln contesting property tax valuations. One, filed last year, contends that real estate was overvalued by the town's assessors and asks the court to cut the assessment from $94.7 million to $26.07 million. A second suit, filed this year, seeks to shave $8.5 million off a valuation that covers equipment and fixtures. Twin River would reap tax savings if the valuations are reduced.

 Tags  economy Lincoln RI Twin River

Comments

Anon said:

It "is not going to sit very well with residents," Ronald A. McKenna, the Town Council president, They are forcing this down our throats."
Lets see how the residents of Lincoln like it when their property taxes go up about 25-50% if the track closes. And if it does close, think of all the new houses and services and schools that the town of Lincoln will have to put into place...

Link | June 23, 2009 6:20 PM
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anonymous said:

Mr. McKenna should think long and hard before making a comment like that.
Obviously he must have received complaints from the area residents. Think of the complaints that he will receive from the rest of the residents in the Town if the track closes. Not only will Lincoln lose over 5-6 million a year, the state will lose an enormous amount of money and will subsequently have to cut local aid...and you know what that means..the town will have a double hit, and will have to drastically increase property taxes well into the double digits..for the average homeowner, it will probably be in the thousand(s) range per year...

Link | June 23, 2009 6:33 PM
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steve said:

OH, BOO HOO ,POOR TWIN RIVER INVESTORS! BOTTOM LINE IS THAT YOU BIT OFF MORE THAN YOU COULD CHEW. THE OLD SAYING IS,THAT IF YOU SLEEP WITH DOGS,YOU GET FLEES. SORRY, BUT IN YOUR CASE YOU GOT WHAT YOU DESERVE. MAYBE THE STATE LEGISLATORS WILL LEND YOU A HAND {PALMS UP},THAT IS!

Link | June 23, 2009 10:53 PM
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