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IN THE ARENA

IN THE ARENA | KEVIN BLAUM: Casino is in line for cut of funds

THE STATE Department of Community and Economic Development recently released a list of 32 projects that may receive money out of a $10 million fund authorized by the state gaming law. This funding, created by a $10 million assessment on each of the 14 casinos in Pennsylvania, is for health, safety and economic development projects in those counties where the casinos are located.

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Out of 83 local applications, only 32 made DCED’s first cut and that list will be further pared to meet the roughly $10 million available. However, last week when I picked up a list of the lucky 32, there was a malodorous stench wafting off the page.

Sure enough, there was an application on DCED’s list for $5 million, half the amount available, to remove garbage from Mohegan Sun land to enlarge its parking lot. Obviously Mohegan is capable of paying for its own paving and garbage removal. Yet this project survived DCED’s initial cut (an official act) while many projects in other communities did not.

It’s important to note that a casino may not apply for this money. If it did, it would be laughed out of town. The casino already makes so much money that it’s off the charts. The public outcry would be enormous.

To end-run this prohibition, the application was submitted by none other than Plains Township (an official act). This application, if approved, would return $5 million to Mohegan Sun at the expense of other municipalities that need these funds.

Why would anyone do such a thing? Follow the money. According to state law, $10 million comes out the casino’s front doors and into the state treasury for local projects. Plains Township applied for $5 million to slip the money back to the casino through the back door by doing $5 million worth of work that the casino wants done. Like magic, the $10 million assessment established by state law becomes a $5 million assessment. Voila! The casino wins again and our communities lose.

Plains Township, as the host municipality, already receives a guaranteed 2 percent of the gross profit from Mohegan Sun every year for the rest of time. Yet Plains Township plays lapdog for Mohegan Sun with the result that other communities will get $5 million less so Mohegan can keep $5 million more. Are you beginning to smell it, too?

Back in 2006, Mohegan Sun and its lobbyists wanted state government to change the law so they could keep the $10 million meant for projects in our communities. Legislators from Luzerne County said no.

When that didn’t fly, their lobbyists worked hard for a change in state law to allow our county commissioners to determine the amount, from zero to $10 million, they would have to pay annually. Huh? Where did that idea come from? Raise antennae. Why did they believe they might get a better deal from the county?

Mohegan Sun said they needed this change in state law or they might have to leave town. Remember that one? After the laughter subsided, our experienced and seasoned legislators once again said, no, absolutely not.

But in short order, the county, city of Wilkes-Barre and Plains Township, like medal-winning synchronized swimmers, adopted a resolution (official act, three of ‘em) saying they would do their best to get Mohegan Sun $15 million within five years, at the expense of more deserving local projects, to ease their pain. Whoever was directing this choir had everyone singing their tune.

Question: If savvy Harrisburg reporters covering this issue and our most experienced legislators were not taken in by this bunk, why did local officials believe it? Not only did they believe it (or pretend to), they believed it unanimously and in record time.

Needless to say, this unusual act by three municipal governments raised serious questions in the minds of many Wyoming Valley residents and in Harrisburg. All the while Mohegan was quietly getting a $30 million reduction in the Pocono Downs purchase price from Penn National.

Time passed, whispers subsided and one might argue that no harm was done.

Until now.

Now we have Plains Township’s $5 million application (an official act) to DCED for Mohegan Sun.

This application so violates common sense and the public interest that it is no wonder the whispers have begun anew. Only now they have become an audible murmur.

John Blake, now deputy secretary of DCED and formerly of the governor’s Northeast Regional Office, was recently quoted in local news accounts. He and his DCED friends, in reducing the local applications from 83 to 32, were the ones who allowed this disturbing application from Plains Township to slide through (an official act).

Plains officials have said they are more interested in two other projects in the township. If that is the case, why apply for $5 million for Mohegan? Are they not concerned that the $5 million for Mohegan might get approved at the expense of their other two projects? Or have they been given assurances not to worry? And if so, by whom?

This $5 million application for Mohegan Sun smells to high heaven and the odor is spreading. For DCED to slip any amount of public money to one of the wealthiest gambling organizations in the world at the expense of our people and their projects is obscene.

John, this money was placed in DCED to prevent the type of shenanigans now being perpetrated by DCED.

So utterly inconceivable is the series of official acts noted above, on behalf of a casino at our people’s expense, that it raises obvious questions of propriety.

Like the puzzles we all did in elementary school, few will have trouble connecting the dots, if they are not already doing so.

Kevin Blaum is associate director of admission at Wyoming Seminary in Kingston where he also teaches government. Blaum spent 26 years as a Pennsylvania state legislator and was a Wilkes-Barre City Councilman. Reach him at kblaum@wyomingseminary.org.