Labor Union Demands Petersburg Disclose How Cordish Was Selected for Casino
Posted on: May 1, 2024, 10:31h.
Last updated on: May 1, 2024, 10:42h.
The Unite Here Local 25 labor union whose members are employed in casinos, hotels, and restaurants in Washington, DC, Maryland, and Virginia is threatening a lawsuit against the Petersburg City Council over how it decided to pick The Cordish Companies for its potential casino development.
Petersburg councilmembers are facing backlash for the local government’s seemingly backroom decision to select Cordish, the operator of Live! casinos, hospitality, and mixed-use developments across the country, as its preferred gaming partner. Transparency concerns are rampant, and Unite Here Local 25 is seeking full disclosure of how the council reached its pick.
The City of Petersburg’s actions show a shocking disregard for the law and democratic norms. Petersburg had begun a competitive Request for Proposal (RFP) process that should have proceeded with transparency and fairness,” said Local 25 Political Director Sam Epps.
“Instead, the City Council apparently abused a closed session to discuss the selection of the casino operator. Residents of Petersburg have the right to open governance — a right the City Council doesn’t seem to respect,” Epps continued.
The union is demanding the full disclosure of all documents and correspondence related to the process. If the council refuses, Unite Here says a lawsuit will be filed.
Cordish and Unions at Odds
Petersburg’s casino RFP fielded six responses. Along with Cordish, Bally’s, Rush Street Gaming, Penn Entertainment, Delaware North, and The Warrenton Group expressed interest in the gaming opportunity.
Many thought the competitive bidding process was only in its early stages when the council last week surprisingly announced that Cordish had been deemed the victor.
The Virginia Mercury dug up evidence that the seven Petersburg councilors had initially chosen to go with Bally’s. A draft letter of intent identifying Bally’s as the winner was relayed to the General Assembly but never sent to the Rhode Island-based casino firm.
Cordish has a murky — at best — relationship with labor unions. Unite Here says the Baltimore-based firm that runs Live! Casino & Hotel Maryland and two casinos in Pennsylvania under the Live! brand has opposed organizing efforts at its casinos and entertainment districts.
In its press release announcing its selection by the Petersburg City Council, Cordish and co-developer Bruce Smith Enterprise didn’t mention union jobs while promoting the proposed $1.4 billion mixed-use development anchored by Live! Casino & Hotel Virginia would create “over 7,500 new construction and permanent jobs.”
Lawsuit About Transparency
Unite Here says its threatened lawsuit isn’t about Cordish opposing its labor group, but instead, deals with the city’s alleged lack of transparency and violation of the Virginia Freedom of Information Act (VFOIA).
On April 24, 2024, the City Council held an unlawful closed door session at which the Council discussed a consultant’s report on the Request for Proposals, decided to withdraw the long-planned RFP, and rescinded its previous decision that Bally’s Corporation would be the preferred casino gaming operator,” wrote Unite Here Local 25 attorney Paul More. “Unite Here believes — and will demonstrate — that the City Council’s violations of VFOIA were willfully and knowingly made.”
Things indeed seemed fishy when city councilors hastily left the Petersburg Public Library on the evening of April 24 after announcing Cordish as the winner without taking questions from the media or providing a statement on how the outcome was reached.
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Bally's was really hoping for better luck in Petersburg than they had three years ago when Bally's was eliminated from consideration for their planned $650 million Bally's casino resort in Richmond, Virginia. Bally's was not pleased with that decision as reflected in this statement quoted from a casino-industry news article on April 21, 2021. "Despite the lack of public support, Bally’s still wasn’t expecting the result. Its President and CEO, George Papanier, said that the company was “disappointed and surprised” by the decision. He added that the company is “deeply committed” to the project and that it was willing to provide “the largest financial package” to the city. It won’t be able to dispute the decision, but Papanier added that Bally’s isn’t going to hold a grudge." Who would approve a future financing plan to build a "world-class" Bally's casino in Petersburg? How about the same question regarding their financing plan for the permanent Bally's Chicago casino resort hotel? Bally's is clearly both disappointed and surprised again. Remember, nobody ever said this was going to be charming!
Bally's chances now for a successful new casino anywhere are identical to a blank vaccine card. They don't have a shot
Well, Bally's reports financial results after the bell this afternoon. Bally's stock (BALY) struggles to hit even just $14.00. Not just recently. Take a look at their YTD performance since New Year’s Day. As first mentioned in the original "Top Gun" movie, "Well, that pretty much covers the fly-by!"