Raynham, MA

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Raynham has retained B&S Consultants to assist in
determining benefits and mitigation needs.
B&S is:
 Robert J. Birmingham (AICP ret),:Town Administrator
(Vermont), Town Planner (Stonington CT), Development
Director: Foxwoods, Facilities Executive Director:
Foxwoods, Land Use Consultant, Realtor, Veteran, Vol
Fire Captain (ret), and volunteer committee member.
 David W. Schweid AICP : Town Planner (Groton, CT,
Norwich CT, Exeter, RI) Assistant Planning Director
(Foxwoods), Land Use Consultant
 Scott Hesketh PE: FA Hesketh Associates, Traffic
Engineers, licensed in Mass, CT, RI, NY and North
Carolina.
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General Scope of Services
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Review the Raynham Park proposal for a slot parlor
Prepare an “impact mitigation study” of the proposed slot parlor at
Raynham Park for the Town of Raynham as required by statute
 Using personal knowledge from past experience
 Review of Raynham Park’s proposal for basic planning concerns,
including:
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Interviews w/ Town Staff
Review of historical data
Interviews with regional officials and other towns
Reviewing other facilities such as Twin Rivers
Work with the Selectmen to identify necessary mitigation measures as they
work toward a signed agreement
Present findings of study at a public forum prior to referendum to help
voters make informed decision
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Traffic, signage, parking, site circulation
Storm water management
Landscaping
Lighting
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World Wide 2.2 Billion People gamble; 1.5
Trillion Dollars
America has 566 Casino’s in 22 states
42 States have lotteries & 37 racetracks, Indian
gaming or other games, Only 2 states have
none of it: Utah and Hawaii.
Revenues are 55 billion in “Direct” revenues
and up to 125 billion, indirect , (1% of GDP)
350,000 direct jobs & 820,000 indirect jobs.
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Gaming (Gambling) is here to stay
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Corporate Entities & Native Tribes
Peaking in 2007 New England Casino operations reaped
over $3 billion in gross revenues
 Potential Market estimated (ERA) at $ 6 billion (2008)
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State and Local governments.
Taxes (New Jersey 8%, CT 25% slots)
 Transfer Payments (0peration payments)
 Employment
 Reduced Welfare & health costs
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Gaming Operators in northeast
Private Gaming companies in New York, New Jersey,
Penn., Maryland, Rhode Island, Maine.
 537 Federally recognized Tribes/100 operate gaming
Nationwide.
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Motoring Public: Changes in traffic patterns.
But less so as gaming becomes ubiquitous
Towns with unfunded burdens:
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Emergency Service Providers.
Roads, water/sewer
Social Service Agencies: Homeless workers &
“problem gamblers”
Neighbors: noise, intruders, decreased
property values.
Low Income Families
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Gaming in larger percentages that other groups
Increasing scarcity of affordable Housing
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2% - 3% of gamblers are “problem gamblers or 6 – 9
million Americans
50 % of Young people gamble in some way.
People 65 and older are twice as likely to gamble as
compared to others.
Areas near casinos experience higher levels of
economic decline.
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The Act itself
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Sec 2 defines a Category 2 license: no table games and up to 1250 slot
machines
Sec 11a – Cat 2 minimum investment $125,000,000 w/in 2 years after
license; does not include traffic mitigation measures or infrastructure
improvements
Application must address:
 Lottery mitigation
 Compulsive gambling
 Workforce development
 Host and surrounding community impact mitigation
identify the infrastructure costs of the host and surrounding
communities
 Provide signed agreements between the applicant and the host and
surrounding communities
 Raynham may end up as both
 A certified and binding vote in favor of the license by the host
community
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Only one category 2 license will be issued
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Sec 20 Category 2 licenses
Sec 55 Daily Tax and Assessment payable by licensees
 (a) A category 1 licensee shall pay a daily tax of 25 per cent on gross
gaming revenues.
(b) A category 2 licensee shall pay a daily tax of 40 per cent on
gross gaming revenue.
(c) In addition to the tax imposed under subsection (b), a category
2 licensee shall pay a daily assessment of 9 per cent of its gross
gaming revenue to the Race Horse Development Fund established
in section 60.
(d) Taxes imposed under this section shall be remitted to the
commission by a gaming licensee the day following each day of
wagering.
Sec 56 – an annual fee for each slot machine of $600 ($600 x 1250 =
$750,000) is due July 1st of each year
 59 (1) 100 per cent of the revenue received from a category 2 licensee shall
be transferred to the Gaming Local Aid Fund
 Sec 61 The commission shall establish a Community Mitigation fund. The
commission shall administer the fund to assist the host community and
surrounding communities in offsetting costs related to the construction
and operation of a gaming establishment
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Massachusetts Gaming Commission Regulations
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On its website, the MGC has posted draft regulations that detail how the
Commission will access license applications.
For example, after determining that an application is complete, the
Commission will hold a public hearing in the host community.
30 to 90 days after closing their hearing, the Commission will grant or
deny the license, or grant an extension of the process.
Category 2 License
The Commission has determined that efforts will be made to award a Category 2 (slots only) gaming
license prior to
the award of Category 1 gaming licenses. The anticipated schedule for the award of a Category 2 license
is as follows:
License Application Step
Earliest Likely Date
Latest Likely Date
Applicants submission of completed
RFA-1
January 15, 2013
NA
Commission review of completed
RFA-1 and release of RFA-2 to
qualified applicants
May 2013
July 2013
Host and Surrounding community
agreements executed
February 2013
August 2013
(October 2013 for Surrounding
Community Agreements)
Host community agreements
approved by referendum
June 2013
October 2013
Applicant submission of completed
RFA-2;
July 2013
October 2013
Commission review of
completed RFA-2 and selection
of licensee(s)
July 2013 (review of any early filed
applications)
December 2013 (award)
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1. Agree to be a Lottery sales agent
2. Provide signed Surrounding Communities agreements
3. Capital investment of at least $500 million ($125m Cat 2)
4. Provide signed Impacted Live Entertainment Venues
agreements
5. Own or acquire 75 year lease on land
6. Pay nonrefundable application fee of $400,000
7. Meet licensee deposit requirement
8. Comply with state and local building codes and local
ordinances and bylaws
9. Ability to pay gaming licensing fees
10. Favorable binding ballot vote in Host Community
11. Address mitigation and impact issues
12. Provide community impact fee to Host Community
13. Identify infrastructure costs to host/surrounding communities
and commit to mitigation plan
14. Minority/women/veteran business outreach program
15. Provide signed Host Community Agreement
16. Affirmative action program
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Infrastructure and Equipment Needs
Public Safety (note special requirements re: public safety arrangements)
Traffic Impacts
Housing Needs
School Impacts
Impacts on Local Businesses
Cross-Marketing (local restaurants, hotels, shops, entertainment venues,
etc.)
Environmental Impacts
Process Costs (elections, town meetings for zoning changes, consultants,
publication and mailings, etc.)
Local Preferences (jobs, construction contracts, etc.)
Design Considerations/Aesthetics
Phase 1 Class 2 license application: 1250
slot machines, Ancillary activities
Gaming Commission reviews and accepts
applicant for phase 2 in June, July or Aug.
MGA to award one slot license by the end
of 2013.
• Facilities would open Jan 1, 2014
o First
Stabilized Year-2016
• Of the seven scenarios analyzed, Scenarios 4 (A) and 5(b)
are nearest to the final bill:
o Both
scenarios assumed one Destination Resort in each of 3 regions.
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In addition
 4(A) assumed 750 slots at each of 4 racetrack locations
 5 (b) assumed only 1,500 total slots (split between two racetrack locations).
o Gaming
Revenue ranges $1.74 Billion-$2.07 Billion
o Total Direct & Indirect job creation between 16,600-19,800TIG EngagementKey Assumptions/Conclusions
FOXWOODS 2007
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Pd to State fund:
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MOHEGAN SUN 2007
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Pd to State Fund:
$229, 095,455
 $201,580,751
To est. slot gross X 4 =
 Est. Gross X 4 =
916,318,780 + 25%= 1.2 Bi  806,121,028 + 25% = 1.1 Bl
 Total Gross Over
Foxwoods pd toState:2012
$165,547,090 X4 + 25% =
882,917,843 or net -27%
2.3 Billion in 2007
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2012 Sun pd to State;
$178,783,321 X 4 +25% =
953,511,045 or net -12%
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Casino official blames part of decline on popularity
of new Resorts World at New York’s Aqueduct
Slot machine revenues, the main barometer of the
local casinos’ financial health, told a sorry tale in July.
At Foxwoods Resorts Casino, the slots “win” — the
amount of wagers the casino kept after paying out
prizes — totaled $51 million, down 15.8 percent
when compared to the same month in 2011, the
steepest decline since December 2008, when
Foxwoods’ win tumbled 19 percent.
Mohegan Sun’s July win of $60 million was down
10.4 percent.
“We thought it was going to be a tough month,”
Scott Butera, Foxwoods’ president and chief
executive officer, said
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CONNECTICUT
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Foxwoods: July 2012 $263
Mohegan Sun: July 2012 $327
RHODE ISLAND
Twin Rivers 2012: $293
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MAINE
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Bangor 2012: $145
New YORK
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Phase I:
1250 slot machines installed in existing simulcast club
house
 Renovations to include improved restaurant and offices
 Demolition of Grandstands
 Construct 3 access drives and turning lanes
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Phase 2 & 3:
Construct 175,000 sq ft building & move slots
 New Restaurants and offices
 New Event Ballroom
 2438 Parking spaces
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Local street crime has not increased, on campus crime has.
 Wave of embezzlement: town halls to doc’s offices
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Employment is declining: Current Foxwoods FTE’s about 7500
from 11000 at peak, about same at the Mohegan Sun
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Gaming has a high employee turn over rate and at Foxwoods
about 3000 on average or 10% - 20% of the labor force per year
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Spin off business serving the “drive” or primary market has
been limited, minimal growth of local business.
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Low cost Housing is in short supply
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Gaming is trending to be a ubiquitous activity: slots in bars to
on line gaming. Eroding revenues for large casinos.
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As revenues erode, Gaming Managers will seek to evade local
mitigation funds if allowed:
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Quarterly Revenue will be increasing concern for Gaming
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Managers & Gov’t Officials.
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CERC Inc: Spin Off effect factor : 1.107 non casino Jobs
for every Casino Job. State wide spin off Factor: .74
Total 2005 Casino employment: 20220 x 1.1.0 = 42603
total jobs within the County
State wide additional jobs: 20220 x .74 = 14963
Total Job Creation: 57,566 (2005)
2012: Estimate 25% - 35% reduction from peak, or
about 7,500 – 7,000 employees.
High job turn over: Foxwoods Badge numbering now
at 80,000; or about 3100 employee departures
(turnovers) averaged per year or about 20%.
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Traffic Review Tasks
- Review traffic impact report
 o Background Data
 o Site Generated Traffic
 o Intersection/Roadway analysis
- Review proposed off-site improvements
- Make recommendations on mitigation
- Obtain input from residents
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B&S met with Traffic/ Site Engineers 4/18
Staff interviews 4/10 – 4/18
Summary report to Selectmen 4/23
Town Counsel 4/23
Additional data gathering 4/25 – 5/17
Site infrastructure:
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Raynham Sanitary Sewer System Collection upgrades,
capacity through Phase 3
North Raynham water supply system: loop supply system
Provide detailed plans for EIR review & Raynham
permitting
 Building & Site plan with drainage
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Emergency Services to site 24/7:
 Road improvements to improve response time between
Fire/Police and Track.
 Fire & Police Duty Station (on site) enhanced
communications and detention facility
 Emergency Medical Services unit.
 Provide Ambulance & staff support for Raynham Fire Dept.
 OR Contract with Private provider for 24/7 on site presence
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Wed 4/24/13
off Forum
Mon 4/29/13 to Fri 5/10/13
Mon 5/1/13 to
Fri 5/10/13
Agencies
Tue 5/7/13
Selectman
Wed 5/1/13
(complete)
Fri 5/10/13
& MFR #2(20hrs)
Fri 5/10/13
#3, #4(20hrs)
Tue 5/17/13
Traffic Report
Tues 5/21/13
Tue 6/4/13
KickInterview Town Agencies
Interview Regional
Review Input w/
Tasks 1-3
MFR #1
MFR
Forum #2: Findings &
Finalize Tasks “4, 5, 6 & 7
Meet W/ Selectmen
Your Comments & Questions
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