Casino deal near

NEW BEDFORD -- A well-connected developer in the gaming industry says he has purchased options on 30 acres in the Hicks-Logan section of the near North End and that a deal is imminent to bring a major casino to the Whaling City.
The abrupt holiday eve announcement came with no notice to local politicians and without reference to the fact that casino gaming is illegal in Massachusetts.
The would-be developer is H. Steven Norton, 69, of Norton Management in Las Vegas. He is the former president of the Sands Hotel & Casino in Las Vegas and has been developing casinos for 25 years, including the Resorts International hotel and casino in Atlantic City, N.J.
Yesterday he announced his plans to build what he said would be a $500 million hotel, entertainment and casino complex on the banks of the Acushnet River.
He said through a spokesperson that his plan would include a convention center, retail shops, restaurants and some type of major entertainment draw. Proceeds from the casino would provide half of the complex's revenue. The complex could employ 4,000 to 5,000 people, he said.
"He is very close to signing a publicly traded casino company to partner with him to do a major project on the New Bedford waterfront," said Valerie Barsom, a former state representative from Springfield and Mr. Norton's legal counsel for the project. She said he would like to buy options on a total of 50 acres.
Through Ms. Barsom, Mr. Norton said he will announce the signing of a deal with his casino partner soon.
Ms. Barsom offered no explanation for the timing of the announcement on the eve of July 4.
Despite Mr. Norton's show of confidence, the deal is far from final. There has been no visible sign of progress on casino-enabling legislation on Beacon Hill, and House Speaker Thomas M. Finneran and Gov. Mitt Romney have come out against the idea.
State Sen. Mark C.W. Montigny, D-New Bedford, said he has not spoken to the casino developers or been briefed on their plans. He said their proposal stands no chance of succeeding without the support of the community and local leaders.
"I have always felt that we should keep an open mind when there's economic development and revenue, but we should keep a very healthy sense of skepticism," Sen. Montigny said.
He said he is not surprised that a casino developer would purchase an option in the city, adding that lobbyists and casino executives have been swarming over the state. But he warned that casino gambling -- particularly in an urban area -- faces significant opposition in the Legislature.
The House voted 86-65 against slot machines in April, and House leaders deemed support for full-fledged casinos so low that the issue was not taken up for a vote. There is more support in the Senate, where Sen. Michael Morrissey, D-Quincy, is drafting legislation that would allow an Aquinnah Wampanoag casino in Southeastern Massachusetts and slot machines in several locations across the state.
The Wampanoag have been pressing the Legislature for a decade for permission to open a casino in the state. Earlier this year, the tribe sent out letters of inquiry to landowners and politicians in 40 cities and towns, to gauge their interest in hosting an Indian casino.
Ms. Barsom said she is confident that casino gambling is simply too lucrative for a cash-strapped state to ignore.
"I'm pretty confident that they're going to take it up in September," she said of the Legislature. "Considering the budget we just saw, and the fact that the state is surrounded by gambling, it will be tough to overlook."
The site is located just south of Interstate 195, an area of the city with mills, warehouses and some low-income housing. Revere Copper & Brass and the former Natco building are in the immediate vicinity. The site is well-situated to infrastructure, with two exits off I-195. It also is walking distance from what could one day be a commuter rail station.
Mr. Norton does not own land in the area, nor has he exercised his option to buy the land. He has purchased options on the 30 acres, options he has held for about six months. The options earn him the right of first refusal if some other developer -- casino or otherwise -- seeks to buy the land.
A key parcel within the tract under consideration belongs to Frederick R. Satkin, president of Satkin Mills. A credible group, which Mr. Satkin would not identify, first offered to buy the options on his 1.67-acre site in May last year with the intention of eventually building a casino.
Although Mr. Satkin would not identify the source of the offer, he said it was not Norton Management. The group's ultimate goal was to amass a lot of 50 to 80 acres.
Mr. Satkin said he waited and accepted a second offer that arrived in January. Although his property is small compared to other parcels on the industrial lot, it occupies a key position.
"You can't get to the others without getting to me," he said.
However, he said the entire deal hinges on the Legislature legalizing gambling. Although legislative leaders have balked at legalizing gaming in the past, Mr. Satkin said attitudes could change if state revenues continue to decline.
"I just can't conceive why they wouldn't pass this. From my perspective, gaming has always been around because when I came here the rackets were thriving," he said.
Now, Mr. Satkin said, state residents who want to gamble simply cross into Connecticut instead of spending money in SouthCoast casinos.
Ms. Barsom described Mr. Norton as "very interested" in sitting down with members of the New Bedford Oceanarium's board of directors. "There is an obvious synergy between gaming and a facility like the oceanarium," she said. The oceanarium's largest obstacle, right now, is money. Asked if Mr. Norton would offer to bankroll the oceanarium, she replied:
"I cannot say specifically, but he looks very favorably on sitting down and chatting with them," she said.
Mr. Norton could conceivably have chosen a site anywhere in Massachusetts, but Ms. Barsom said the city, with its ocean access and waterfront, is perfectly located. New Bedford consistently has one of the highest unemployment rates of any region in the state, and its residents have twice approved ballot referendums on casino gambling.
"The people want it," she stated.
It has been no secret that out-of-town developers have been eyeing the Hicks-Logan site as a casino possibility. Former City Solicitor George Leontire, now a developer, said he met with representatives from casino developers in March, and that Mr. Norton was part of a group that had proposed a casino for Hicks-Logan. But he was surprised at this announcement, both because of its timing and the fact that he was left out of the loop.
"What they don't have is a license, and without a license, you've got nothing," Mr. Leontire said.