Philadelphia’s commerce director yesterday awarded SugarHouse Casino a license to build on twelve acres of submerged state-owned land along the Delaware River.
Commerce Director Stephanie Naidoff’s ruling yesterday is yet another move in the chess game that pits Mayor Street and Gov. Rendell, who want to see two casinos built along the riverfront, against City Council, which has allied itself with neighborhood opponents and anti-casino activists.
A lawsuit challenging Naidoff’s decision is a foregone conclusion — City Council authorized funds to hire a lawyer for that purpose earlier this month.
The Pennsylvania Gaming Control Board last year chose SugarHouse and Foxwoods Casino as the two slots parlors to be built in Philadelphia as a result of the 2004 slots legislation. The legislation authorized a total of 14 casinos throughout the state, with up to a total of 61,000 slot machines.
The casinos in Philadelphia have thus far been blocked — first by appeals to the Gaming Control Board’s decision
Street and Rendell have envisioned waterfront destinations that also provide river access where there is currently none. SugarHouse and Foxwoods obliged with water-oriented designs along the rear of their projects.
Foxwoods has said it could build with or without the state-owned riparian lands that include piers and the riverbed. But SugarHouse owns only 10 acres of the 22-acres site, the rest belongs to the state.
Riparian lands have been viewed by casino opponents as one several weapons they have left.
State Representatives Michael O’Brien and William Keller, and State Senator Vincent Fumo have all declared that they wouldn’t cede state rights to the land without neighborhood approval. But SugarHouse, working with the Street administration and with Rendell’s support, asserted that the city could grant a lease to Sugarhouse.
Naidoff said in her ruling that SugarHouse would be charged $282,270 annually for a 99-year lease — that money would go to the city.
New regulations proposed by the state Department of General Services would charge $5 per square foot for riparian lands, which would translate to $2.6 million annual rent for SugarHouse — that money would go to the state.
Naidoff said the proposed state regulation, however, allows for tenants to be credited for improvements and community contributions
Officials at the Department of General Services could not be reached yesterday.
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