Middleboro Mashpee Wampanoag Resort Casino

 

LETTER TO ENTERPRISE, GAZETTE, THE STANDARD TIMES

From Jack Healy

RE:  THE WAMPANOAG DESTINATION RESORT/CASINO

June 28, 2007

 

 LETTER #1

 

Dear Fellow Middleborough Residents:

 

            Once again, I was disappointed to see the Enterprise reporting on the proposed Resort/Casino Agreement, “the Tribe has offered the Town 7 million dollars a year payout for 10 years to host the Casino.”  While it is true that part of the draft proposal did provide for a Payment In Lieu of Taxes (“P.I.L.O.T”) of 7 million dollars a year as a base figure, there is no ten year limit to the P.I.L.O.T. as has been repeatedly stated in the Enterprise.

 

            I would like to outline the FACTS  for all to read, so everyone can consider the IMPACTS of hosting a Resort/Casino.

 

            Here are the essential elements of the proposed Host Community Agreement which is currently being revised to more fully describe the terms of the agreement prior to sitting down with the Tribe to further refine the Agreement:

 

1.                   Once the Tribe’s land is designated as “Trust” land by the federal government, the Tribe will not be subject to taxation by the Town.  However, the Tribe has agreed to pay a P.I.L.OT. to the Town based on a rate of $15.00 per thousand valuation.  The current rate for this property is $9.28 per thousand.  Yes, they have agreed to pay over 150% of the tax rate, that the rest of us are paying from “Trust” approval until they open the Resort/Casino to the public, at which time they will pay the Town 7 million dollars a year as a minimum.

 

2.                   This payment of 7 million dollars a year applies whether the State Legislature approves slots (Class Three Gaming) or not.  If the State does not approve Class Three Gaming, the Tribe will open a Class Two Facility that will include high stakes bingo, bingo slots, and Las Vegas Night type table games.  Either way, the Town will be paid 7 million dollars a year.

 

3.                   After each five year period, the compounded Consumer Price Index (“C.P.I.”) for that period will be added to the 7 million dollar initial payment.  Based on historical information, the increase after the first five years would exceed 8 million dollars and the increase after the second five years would exceed 9.5 million dollars.  This would also apply if the Town received less than one percent of the State’s (Class Three) slot revenue (see 4. below)

4.                   The Tribe and the Town would go to the Governor as partners should the State Legislature approve slots and we would have an opportunity to negotiate a percent of the State’s share of the slot revenue.  This could add 4 to 8 million dollars to the 7 million the Town would receive in the first year of operations.  (Fiscal Year 2011). 

In my next letter, I will provide you with some FACTS that will put a 7 million dollar P.I.L.O.T. in perspective.  I must keep my letters under 500 words or the Enterprise will refuse to print them, as they have in the past. 

                                                                        Very truly yours,

 

                                                                        John F. Healey, Town Manager

 


LETTER TO ENTERPRISE, GAZETTE, THE STANDARD TIMES

            LETTER #2 RE:  THE WAMPANOAG DESTINATION RESORT/CASINO

 

Dear Fellow Middleborough Residents:

 

            I promised you I would follow my last letter with a letter providing you with some perspective on what the Agreement to Host the Wampanoag Tribal Resort/Casino would mean to us as residents of the Town.

 

1.                                           The Agreement provides that the Tribe will spend nearly 200 million dollars on highway improvements to eliminate the Rotary and eliminate all street lights and at grade crossings of Route 44.  The gridlock at the Rotary, especially in the morning and afternoon commuter periods, would be eliminated.  The sometimes deadly accidents at the intersections on Route 44 would be eliminated.

 

2.                                           The Agreement provides that all water, sewer, gas and electric system improvements needed to serve the Resort/Casino would be paid for by the Tribe.  This new customer would pay prevailing utility rates for these services and make it possible to stabilize rates for all users of these utility systems. 

3.                                           In my last letter, I spoke of the initial 7 million dollar Payment In Lieu of Taxes (“P.I.L.O.T.”).  This would be a huge infusion of dollars, making it possible to meet the needs of families and children in this Town, rather than suffering layoffs and reductions in services each year.

For example, this year we took in less than a million dollars in new taxes.  A 7 million dollar a year payment by the Tribe would be seven times our annual tax revenue increase from all other sources. 

 

The Assessor’s records reflect that all commercial and industrial properties in Town paid a total of $3,716,591 in taxes this year.  Seven million is almost two times the total commercial and industrial tax base of the Town this year.  Ask yourself how many years you think it will take the Town to triple its current commercial and industrial development?  That’s what it would take to match the revenue we would get from the minimum of 7 million dollars a year the Resort/Casino would provide.

 

Then, ask yourself what the Town could do to improve school facilities and programs with this additional revenue.  We could have the best schools in the State and meet all the other needs of our families.  We could stabilize the tax rate by not taxing to the levy limit.  W would never have to face an override and never have to face an employee we were laying off again.

 

In addition, we would have funds we don’t have now to address problems of addiction, spousal abuse, bankruptcy and other social ills, all of which are very much present with us today.  What is not present with us today are the funds to deal with them. 

 

While we are studying IMPACTS of this development, let’s analyze the impact of not approving a Host Agreement with the Wampanoag Tribe. 

 

In my next letter, I will address these IMPACTS.  It is not a pretty picture.  It will not be the Middleborough we want it to be.  It will not be the Middleborough we all know and love.

 

                                                                        Sincerely,

                                                                        John F. Healey, Town Manager


LETTER TO ENTERPRISE, GAZETTE, THE STANDARD TIMES

            LETTER #3 RE:  THE WAMPANOAG DESTINATION RESORT/CASINO

 

Dear Fellow Middleborough Residents:

 

            In my last letter, I promised you I would write again to discuss the IMPACT on the Town if the Host Agreement between the Town and Wampanoag Tribe were NOT signed.  The Town of Middleborough, not unlike other cities and towns in the Commonwealth of Massachusetts, has been experiencing a slow slide into financial oblivion over the last decade or more.  Without a new, substantial reliable and continuing source of revenue, we will continue to come up short and continue to cut programs, personnel and services to our people. 

 

            I predict that the next two years will see 3 to 4 million dollar deficits each year.  And, without the Casino revenue in Fiscal Year 2011, we will see those deficits in year three as well.  It won’t take long before class sizes reach into the thirties and then the forties, until families with children decide to move out of Middleborough or place their children in expensive private schools.  Other Town services will also be cut to the bone, if they survive at all.  And, Override attempts will fail.

 

            It is ironic, indeed, that the majority of the anti-casino supporters are parents of school age children who will be hurt the most by the inability of the Town to meet the needs of the school system and the families and children of this Town if their arguments prevail.

 

            I have been intimately involved in the Town’s finances, which is why I can provide you with some insight into the future finances of the Town.  Some blame me (in part) for our financial circumstances.  Others, including the Department of Revenue, credit me and the Town Treasurer/Collector, with keeping the Town’s head above water for the past ten years or longer.  Whatever your position, the Town as we know it and love it will not be able to survive the next five years without a substantial, new and reliable infusion of revenue.

 

            Some will say that the source of revenue is “tainted” and we should not accept it.  To them I say I am a Christian man who has worked all my life to help the oppressed.  I see needy people, people who have addictions and people who have messed up their lives everyday.  And, as God gives us strength and resources, my friends and I do our best to help those in need.  If we had the financial resources we could do a better job of meeting those needs.

 

            So, for me, it is a “no-brainer”.  We can enter into a Host Community Agreement with the Wampanoag Tribe and:

 

Ř       Maintain Town services

Ř       Meet the needs of families and children in Town

Ř       Resolve our highway problems

Ř       Stabilize our tax payments, water, sewer, gas and electric rates

Ř       Enjoy the resources we need to address the social ills we already have and any additional social ills that may result from the gaming facility

Some will try to convince you that new municipal costs will outstrip the new revenue, you need to judge for yourself.  Do you want to choose additional revenue you will never see without the Agreement, or a slow slide into financial oblivion?

 

                                                            Sincerely,

 

                                                            John F. Healey, Town Manager

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