ROANOKE, Va. (WFXR) — On Tuesday, Roanoke city leaders announced plans outlining a push to bring an entertainment district, which would include a casino, to the Berglund Center.
In the days since, reactions have poured in from the area’s state lawmakers and Roanoke residents, ranging from full-fledged support to complete opposition.
But the predominant reaction centers around a desire to learn more about what the plans entail.
Here’s everything we know right now about the city’s decision to roll the dice on its next phase of economic development.
Where did the idea come from, and when did conversations begin?
It remains unclear exactly when discussions about pursuing an entertainment district in downtown Roanoke began.
One council member told WFXR on Tuesday that the idea was conceived sometime over the summer, but the general consensus at this point is that it sparked a few months after Valmarie Turner took over as Roanoke City Manager.
As for why, Mayor Joe Cobb told WFXR on Thursday that the city has been looking for creative ways to generate revenue without increasing taxes.
“We’re limited in our ability to raise revenue,” said Cobb. “We can do that through real estate property tax, through personal property tax. But outside of that, unless we think creatively, we have limited revenue streams.”
This idea presented that creative solution.
Why was the Berglund Center chosen, and what impacts will it have on the existing site?
Nestled right off Interstate-581 and in close proximity to Interstate-81, the Roanoke-Blacksburg Regional Airport, and just a few blocks from the downtown Roanoke Amtrak station, the Berglund Center’s location was a significant reason it was selected ahead of other possibilities.
It also presented an opportunity to funnel additional revenue into the 50-plus-year-old Berglund Center, which Cobb says is experiencing its own “capital issues.”
The city was also intrigued by the prospect of adding on to an existing structure as opposed to constructing an entirely new complex in a city with limited developable land.
Plans revealed at Tuesday’s announcement mentioned upgrades and renovations to the special events center (where the casino would likely be located) and arena.
The other thing to keep an eye on is the Berglund Center’s naming rights deal, which has been extended to run through November 2025.
City Council is actively reviewing the deal and reportedly accepting sponsorship applications.
It remains unclear what impact the proposed entertainment district would have on the naming rights deal if ultimately developed.
Aside from a casino, what would be included in an ‘entertainment district’?
The proposed entertainment district would include restaurants, lodging, a parking deck, and a refurbished civic center and performing arts center, in addition to a casino.
The city says it has a developer in mind regarding the casino, but “is not at liberty” to reveal who that is.
Cobb described the district as a “public/private partnership,” with “additional spaces for events,” as the city aims to attract more people to the area.
How much revenue could a casino generate for the city?
The proposal presented on Tuesday promised six percent of the first $100 million in gaming revenue generated annually for the city.
The city says that money would be reinvested into neighborhoods, schools, public safety, and infrastructure.
The plan also states that the entertainment district could create nearly 1,000 jobs through construction and operation. It could positively impact tourism by attracting larger acts to the Berglund Center, supporting the need for expanded rail and airport services, and providing new dining and lodging facilities.
“People are already coming to this region because of the natural beauty of this place,” said Cobb. “We’re an outdoor destination. How cool would it be for us to continue to be an arts, culture, and entertainment destination too?”
There are three full-scale casinos already operating in the commonwealth: Hard Rock Bristol, River’s Casino Portsmouth, and Caesar’s Virginia in Danville.
According to the Virginia lottery, the three have generated more than $717 million in adjusted gaming revenue year-to-date.
The three host cities have received a total of $44 million in adjusted tax revenue year-to-date as a result.
Cobb said Tuesday that the city is not looking at the pursuit of its own casino as an act of competition with any other nearby casinos (including Rosie’s Gaming Emporium in Vinton).
However, the mayor also said Thursday that the city is not currently pursuing any revenue-sharing agreements with neighboring localities.
“We’re looking at this as the city’s asset,” said Cobb. “And we certainly know there will be benefits to the region.”
What’s the process to make this desire a reality?
First, the city needs a state legislator to sponsor a bill designating Roanoke as a city looking at a casino location.
That bill must pass both chambers of the Virginia General Assembly, be signed by the Governor, and a casino must receive approval from the Virginia Lottery.
At that point, it would be subject to a local referendum to be voted on by Roanoke City residents.
At the moment, residents seem incredibly split on their feelings toward the idea.
“I’m personally not in favor of gambling of any kind,” said Jeff Krajnik, who says he’s lived in Roanoke for 25 years. “But a casino, I think, would really be terrible for the city of Roanoke. I think it would just drag the whole city down.”
Others are more optimistic.
“I think that it could be very beneficial to the area financially and, to a certain extent, culturally as well,” said Steve Chovanec, who clarified that he would still like to know who the developer would be before making a final judgment. “I think that there is a lot of benefit to having a destination for people to be drawn to the area to visit.”
Long before anything gets to the local voters, the city needs to identify a sponsor for a bill, and at the moment, all three nearby lawmakers aren’t playing ball.
“I was almost shocked that we would think that evaluating a casino for downtown Roanoke City and the implications it would mean for the city would be a good idea,” said Del. Joe McNamara, the 40th district representative in the Virginia House of Delegates.
“[Roanoke has] lots of tough decisions to make locally,” said Del. Sam Rasoul, who represents the 38th district. “I’ve just been against casinos in general. I think that there are better ways to invest in communities and grow our economy.”
Sen. David Suetterlein, fourth district representative in the Virginia State Senate, has also voiced strong opposition, asking the city not to “double down” on its 1971 decision to use eminent domain to construct the Berglund Center during ‘urban renewal.’
“None of us are in favor of a casino in our town that we love and adore,” said McNamara. “So, Roanoke City would have to find a legislator outside the district to carry the bill.”
According to Cobb, the city says it is willing to do just that, though it would prefer to work with its nearby legislators.
“I think for some of them, this is a philosophical difference,” said Cobb. “And I understand that. I would encourage them to think holistically, as I’m inviting the public to do. A part of this is the casino, but the whole of it is an opportunity to revitalize assets for the city and to boost some of the revenue for the city, which benefits the region.”
Cobb said the city will present its proposal to the Virginia General Assembly at-large in search of a sponsor.
“This is really an opportunity for us to think big picture, and we’ll be talking with legislators across the Commonwealth to help them understand that this is an opportunity to build on the fact that Roanoke is becoming one of the leading growth hubs of Virginia,” said Cobb. “This is an opportunity for us to expand on that.”
City Manager Valmarie Turner echoed the mayor, saying in a Wednesday statement that the city is “exploring possibilities and carefully considering all options.”
“We recognize that meaningful progress takes time and understood from the start that this process would not happen overnight,” said Turner. “We are taking all feedback into account and thoughtfully evaluating the next steps to ensure the best outcome for our community.”
What kind of timeline are these plans working on?
Due to the nature of the legislative process, it’s difficult to say for sure.
Cobb has said on multiple occasions that he would like to see a referendum on the ballot as soon as next year, while acknowledging that this could be a multi-year process.
“In my own research of this process, it sometimes happens in one year,” said Cobb. “Sometimes it takes a couple of years. So, we wanted to get this out in front of the public, to really engage in this conversation.”
For the time being, Cobb is asking Roanoke residents to consider the impacts this proposal could have on the city’s long-term future.
“Celebrate the fact that we’re willing to explore possibilities,” he said. “We want to be a city that explores possibilities to make the quality of life better for everyone who calls Roanoke home.”
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