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The clock is ticking and the dollar signs keep mounting for Foxwoods Philadelphia, who can’t seem to catch a break in its high-stakes plan to bring slots to South Philly.
Jan. 27, The Pennsylvania Gaming Control Board levied hefty fines against the casino group for missing a Dec. 1 deadline to provide detailed plans for its proposed waterfront entertainment complex at Columbus Boulevard and Reed Street. At the 90-minute meeting, the board set the fine retroactively to Dec. 1 to the tune of $116,000 and $2,000 a day going forward, board spokesman Richard McGarvey told the Review.
“The other important thing that came out of the hearing was the board issued a motion-to-show-cause,” McGarvey said. “Foxwoods must appear March 3 and explain why they are not in compliance. The board can take further action, up to and including revoking their license.
“They were making it very clear that [revocation] was on the table.”
‘Table’ being a most interesting word choice because, Jan. 7, Gov. Ed Rendell signed an act that allows Pennsylvania casinos to add table games. Foxwoods wanted to see the outcome of that bill so its design could include the new addition, including games such as craps and poker, if passed. Hence, the delay, in part, in not meeting the December deadline, McGarvey said. The allowance calls for tighter access to gaming floors by making it unlawful for anyone “under the age of 21 to enter and remain in any area of the licensed facility where slots machines are operated or the play of table games is conducted,” according to a Jan. 27 board press release. No one under 21 can play table games or slot machines, but the age restriction for entering the gaming floor was 18 prior to the bill’s approval.
McGarvey said if Foxwoods submits its overdue plans at the beginning of March there is a possibility the Harrisburg meeting may not happen.
Foxwoods attorney F. Warren Jacoby, vice president of the Cozen O’Connor law firm in Center City, did not return phone calls for comment. A call to the firm founder Stephen Cozen also went unanswered.
Pennsport resident Rene Goodwin, who was an original anti-Foxwoods activist and remains on the frontlines years later, thinks it’s absurd Foxwoods can’t seem to honor state-mandated deadlines.
“How many times can you come before a body and say the dog ate my homework? ‘We [Foxwoods] haven’t met any other deadline and now we can’t meet the Dec. 1 deadline because we don’t know what’s going to happen with table games.’ Somebody should have reminded them that their license was for slots only, not table games,” Goodwin said.
In December 2006, Foxwoods was awarded one of Philadelphia’s two slot parlor licenses. More than three years later, it has yet to break ground — largely due to staunch and unrelenting opposition from neighborhood groups that don’t want a casino in their backyards. In September ’08, Rendell and Mayor Michael Nutter urged Foxwoods to consider relocating to The Gallery Market East at Eighth and Market streets. Foxwoods agreed and, Aug. 28, asked the board to extend its license that expired in May and approve the move. The board unanimously approved the extension, but stipulated Foxwoods build in South Philly. A May 29, 2011 deadline to have 1,500 slot machines in operation was set by the board.
Nov. 30, one day before the Dec. 1 deadline to submit plans, Foxwoods approached the board and asked for another extension.
Paul Boni, legal counsel for Casino Free Philadelphia, applauds the board for lobbing fines.
“I feel it was outrageous that Foxwoods asked for an extension on the deadline, one day before the deadline. That’s insulting to the [board] to ask for an extension on the eve of the deadline. This is really a company that feels it has an entitlement, rather than a license,” the Society Hill resident said.
Also at the Jan. 27 hearing, Foxwoods requested an extension of the Dec. 1 deadline to March 3, Jacoby stated on his client’s behalf, adding the casino group was negotiating with a major investor and that entity would be named in the coming weeks.
“The board asked that over and over again [at the meeting] and Foxwoods’ representation chose not to disclose that,” McGarvey said of the investor.
Based in Ledyard, Conn., Foxwoods Casino Group (The Mashantucket Pequot tribe) controls 30 percent while lead local investors are New Jersey sports-team owner Lewis Katz, Center City developer Ron Rubin and Comcast-Spectacor chairman Ed Snider. All three have a partnership representing their family charitable trusts and control 70 percent of the project.
“When do we stop calling this the Foxwoods project and start referring to it by its real name — the Katz, Rubin and Snider Project,” Boni asked rhetorically, adding the three entities have a much larger stake than the Connecticut-based group.
For weeks, rumors have been swirling about the mystery investor. In a published report, Steve Wynn and his Las Vegas-based Wynn Resorts’ was named as the newcomer.
Wynn Resorts public relations department did not respond to the Review’s request for comment.
“I have no idea who it is,” Boni said. “I am assuming that what Jacoby said is true, that they are meeting with this mystery investor. It really speaks to the desperation of Rubin, Katz and Snider. I cannot imagine that Steve Wynn or another wealthy investor would come into the project without demanding many pounds of flesh. Any new investor has [Rubin Katz and Snider] over a barrel.”
Despite the fact it’s been three years and counting since a license was granted and Foxwoods has had problem after problem in its attempt to build, Boni and Goodwin believe the project will happen.
“I’m hoping that it isn’t going to happen at this location. I have to say that this community is not anti-gaming. Our community position has always been pro-community. We support good development, the expansion of the ports, development on the ports that is mixed-use. We’re against a development of [Foxwoods] nature being put so close to such a densely residential community. Just on the issue of traffic alone, you have to wonder why someone would want to do that,” Goodwin said.
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