by Jon Baliles
The casino project proposal in Petersburg was unveiled this week and it is a big one. In poker terminology, it could be considered an “all-in” proposal. The Progress–Index reports that The Cordish Companies propose a $1.4 billion “‘city within a city’ of entertainment, retail, office and residential property. Its centerpiece would be Live! Casino & Hotel Virginia, a 670,000-square foot complex that would include more than 200 hotel rooms, an entertainment arena, and more than 2,000 slot machines and 60 gaming tables.”
The proposal got the nod from Petersburg City Council this week as they formalized the partnership, but it still has to run the gauntlet at the General Assembly, and then a referendum of the voters in Petersburg. It also has to survive a chess-match of lobbying against Richmond as they try to get their casino off of life support and back to the ballot for the third time after it was rejected by voters in 2021, and then blocked by legislation in the state budget, and then withdrawn from consideration in 2022. Third time is the charm!
The Petersburg project location at Wagner Road and Interstate 95 has a lot of room to grow and the proposal even has a few (but smaller) similarities to the Green City Project in Henrico, except with a casino instead of an arena as its focal point. It, like Green City, will be built in phases and have two hotels and a large retail and residential component.
Cordish envisions building out the development in three phases, with the casino and hotel going up first. The second phase would be growing more retail businesses and possible entertainment amenities such as movie theaters around the casino and hotel. The third phase, according to Cordish, would be development of around 1,300 residential units and an eventual second hotel toward the back of the property.
Cordish says it will generate north of $10 billion in economic revenue over 15 years along with 10,000 jobs, with 4,000 of those in the first phase. “With the first phase of the casino and hotel, expected revenue will be $3.6 billion for the region, and $675 million in gaming tax — including at least $214 million in gaming tax for Petersburg. Cordish also projected $220 million in annual economic benefits for the area after opening.” So a lot of the details are now public, and even more will be revealed at a meeting on December 19th.
Cordish owns other casino developments in Maryland and Pennsylvania, and has created billion-dollar downtown economic developments in places such as St. Louis, Kansas City, Baltimore and Louisville.
So, now comes the battle royale in the General Assembly and whether or not they allow casino referendums in Richmond and Petersburg — or just one of them. According to Michael Martz at the Richmond Times-Dispatch, the October report from a legislative agency said casinos in both cities could be viable. “A casino in Petersburg could generate $204 million in gaming revenue in 2028 and create about 1,300 jobs. The study also estimated that a casino in Richmond would generate about $300 million and 2,000 jobs.
If both cities develop casinos… the one in Petersburg would shrink in scope, producing about $140 million a year in gaming revenues, but generating about $4 million less in local taxes and creating 300 fewer jobs.
Martz writes that Zed Smith, Cordish Chief Operating Officer, “made clear after the meeting that the project also depends on preventing Richmond from approving a proposed casino resort less than 25 miles away that its voters rejected last year.”
“‘We can’t compete with another casino in Richmond,’ Smith said after the meeting.”
But The Progress-Index made it sound as if Cordish was ready for the legislative lobbying. Asked about the potential of holding off the expected punches from Richmond and Urban One, Smith said after the council meeting that Cordish would stand with Petersburg and flex its own lobbying muscle in Richmond. And win, because he thinks the Petersburg proposal would be more attractive to lawmakers than what Richmond wants.
“I think what you’ve seen tonight is a world-class destination for the city of Petersburg,” Smith said, ‘instead of just a casino and hotel.’”
The lobbyists have been hired, strategies are mapped but flexible, information is vital, and any kind of edge is eagerly sought. The game is on and we will watch and try to identify the “tells” from each side that could tip the balance of the game as the Assembly gets underway.
This will be one epic game of poker.
This report was first published by Jon Baliles on RVA 5×5. It is republished here with permission.
