Legislation Makes Way For Casinos To Be Built In Christiansted, Frederiksted

On Dec. 19, the 30th Legislature made law a bill sponsored by Senator Nereida “Nellie” Rivera-O’Reilly that allows business owners in Christiansted and Frederiksted to obtain a special license to build and operate casinos in St. Croix’s two historic towns. The bill was previously vetoed by Governor de Jongh in October.

Bill No. 30-0392 became law when 10 of the 15 senators voted in its favor and overrode the Governor’s veto.

The legislation will allow owners of existing hotels or other businesses in the towns’ “Enterprise Zones,” which offers low-tax incentives to businesses operating there, to obtain casino licenses if they purchase or renovate more property within those zones with a portion of net revenues from their Enterprise Zone businesses.

The bill’s summary states: “To qualify for an approved hotel in the Enterprise Zone, the applicant must make Qualifying Enterprise Zone Investments in an amount equal to sixty percent of the Net Cash Flow generated by their Consolidated Enterprise Zone Investments during the first ten years following the opening of their casino.”

Gambling revenues would be taxed at normal rates and not be subject to tax breaks.

De Jongh said the bill had not been properly vetted.

Senator Nellie Rivera O’Reilly

“The manner in which this amendment was offered and enacted without going through the Committee process and without the proper due diligence is troubling,” he said in October, “especially when the charrettes conducted in both the Christiansted and Frederiksted communities…definitively revealed that residents did not want casino gaming as part of their community development plans.”

Rivera-O’Reilly, however, refuted the Governor’s claims, stating that the bill was properly vetted in Committee, and adding that without the measure, she believes Video Lottery Terminals (VLT) would begin spreading throughout the territory.

Additional language found in the bill says, “‘Blighted’ areas are deterrents to investment and redevelopment and require incentives to counter the existence of dilapidated and substandard dwellings, and abandoned or untenable buildings.”

It went on to say that the “safety, health, and welfare of residents who either live or work in the Enterprise Zones are threatened by the proliferation of abandoned buildings, unemployment, crime and decreased socio-economic opportunities.”

Those who voted for and against the measure are as follows:

1. Senator Craig Barshinger — No
2. Senator Judi Buckley — No
3. Senator Diane Capehart — Yes
4. Senator Donald G. Cole — Yes
5. Senator Kenneth Gittens — Yes
6. Senator Clifford Graham — Yes
7. Senator Alicia “Chucky” Hansen — No
8. Senator Myron Jackson — No
9. Senator Shawn-Michael Malone — Yes
10. Senator Terrence “Positive” Nelson — No
11. Senator Nellie Rivera-O’Reilly — Yes
12. Senator Clarence Payne — Yes
13. Senator Tregenza A. Roach — Yes
14. Senator Sammuel Sanes — Yes
15. Senator Janette Millin Young — Yes