New Casino Land Agreement Authorized for Norfolk’s Waterfront, Virginia

Jane ShawBy Jane Shaw Senior Editor Updated: 09/26/2019
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An aerial shot of Norfolk Pamunkey Tribal Casino Planned Close to Norfolk’s Harbor Park, Photo by Pixabay

According to a report, Norfolk’s City Council has allowed an agreement that will provide the Pamunkey Indian Tribe with a 5-year option of acquiring a 13.25-acre plot next to Harbor Park for approximately $10 million.

On Tuesday, the 24th of September, The Virginian-Pilot newspaper reported that the federally recognized tribe is looking to purchase the conveniently located property, which is in proximity to the city’s bustling downtown area.

Economic contribution

Under the terms of the agreement between the state’s second-largest city and the Pamunkey tribe, the latter will:

  • Pay for any infrastructure enhancements that may be required with regards to their development
  • Make an annual contribution to local organizations that are responsible for helping residents deal with their gambling addictions.

Plans in the pipeline and tax implications

If the acquisition goes through, the plot of land will most likely be placed into a trust that, in turn, will make it part of the Pamunkey reservation lands. This move will permit the tribe to construct a tribal casino, which will be exempt from tax if the state approves a special agreement with the tribe.

The Pamunkey tribe is hoping to build a $700 million gambling mecca cum resort on the land that will boast:

  • A 500-room hotel and restaurants
  • Up to 4000 slot machines
  • 225 gaming tables

An expansive entertainment tribal facility of this size would bring in high revenues to Norfolk’s coffers, estimated to be around $33 million per annum.

Alternatively, the tribe might choose to construct a smaller venue that will only feature:

  • A 150-room hotel and restaurants
  • 750 slot machines
  • 25 gaming tables

A casino of this size, on the flip side, would only warrant the tribe contributing a minimum of approximately $3 million to the city every year.

Some residents aren’t happy

Norfolk’s City Council initially held a public hearing on Tuesday during which several residents requested that the committee postpone approving the agreement, the details of which were only publicized a couple of weeks back.

Among those who voiced their concerns were members belonging to the Nansemond Indian Tribe, who challenged the Pamunkey tribe’s ancestral claims on the land. Many of these members requested that the council hold off making a decision until they had a better understanding of the land’s history and heard what other native groups had to say on the matter.

Furthermore, approximately half of the speakers at the hearing petitioned the city to delay its vote until the economic impact could be analyzed.

Max Shapiro, a resident who lives north of downtown, told the committee:

You have not done the due diligence and you can’t tell us how much it will cost the city.

While the city hasn’t conducted its own research, a study authorized by the state is expected to be made public this November.

Despite their efforts, the 8-member committee approved the deal in a 7 to 1 vote.

Councilwoman Andria McClellan was the only member to push for the council holding off their decision. She said:

I have too many unanswered questions to consider an undertaking that will bind the city forevermore.

Those who voiced their support

Residents who were in favor of Norfolk’s deal with the Pamunkey Tribe included Delegates Jay Jones and Joe Lindsay. The latter is a representative of the Hamptons Roads Chamber of Commerce, and he, along with several others, was of the opinion that the envisioned facility would bring in jobs and economic development to the city.

In addition, a majority of the council’s members believe that the vote wasn’t rushed into and that Norfolk would undoubtedly benefit from the economic investment that the new gambling venue will generate.

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