Takeover, Gambling Proposed For Center

Confusion reigns again over the Convention Center's future as officials digested one plan to put slot machines inside an expanded building, and another to turn the center into an arm of the state government.


Neither Mayor Street nor Gov. Rendell commented on the proposals, saying they were unfamiliar with them.The idea of gambling in Philadelphia has been around for years, most recently linked to Rendell's proposal to legalize slots at the state's racetracks.


But on Friday, House Speaker John Perzel (R., Phila.) put forth a new approach by saying he was considering writing a bill that would allow slot machines to be installed inside a bigger Convention Center.


However, no expansion will occur unless the six trade unions that work in the building reach a labor agreement, Perzel and other leaders in Harrisburg have said. Perzel's effort to broker such a pact failed last week with the demise of his quietly negotiated agreement.


Another shot at working out a deal will begin in earnest Monday, when Rendell and trade-show contractors are expected to meet with the carpenters' union. That union, which provides most of the center's workers, has challenged work-rule changes that a key Convention Center consultant has called vital to improving labor operations.


Major convention planners have been booking meetings in other cities, complaining that Philadelphia's archaic union work rules make it an expensive, unpredictable and hostile environment. Subsequently, there has been a steep drop in bookings for the next five to 10 years. Hotel occupancy levels are also expected to fall.


This has led to mounting fears that hotel workers will be laid off; there are even rumblings that some hotels and restaurants could close. Increasing pressure for a new agreement, Rep. Dwight Evans (D., Phila.) said he would introduce a bill this week for the state to take control of the workforce, as well as the board of directors.


Under Evans' proposal, which is undergoing legal review, the center would be run by the state Department of General Services. The Convention Center's governing board would cease to exist. And just one union - the American Federation of State, County and Municipal Employees - would represent the center's workers, he said.


"What would happen is, all those people would have to reapply for their jobs under the state," Evans said, outlining a plan that mirrors the labor-force structure at New York's Jacob K. Javits Convention Center.


The idea of transforming the workforce has been floated for nearly a year, but has never officially been proposed in the General Assembly.


"If they don't come to a [labor] agreement in a week or so, I think it would sail through," said Stephen Miskin, a spokesman for Perzel. He said the pressure was on for a fast resolution because June 30 is approaching - the end of the state's fiscal year and the end of the legislative session. Otherwise, expansion - an idea proposed years ago - would again be delayed. "There are people who want to see a... bill which would include an expansion of the Convention Center," he said.


The only previous expansion proposal was based on the city and state splitting what was then an estimated cost of $464 million. But Perzel has said that with revenue from a slot parlor, he expects there would be enough money to cover the expansion, as well as about $10 million annually that the city now pays to cover the center's debt service and operating costs.


Evans shared his plan on May 31 with Perzel and City Councilman Michael Nutter, the Convention Center's chairman. "At this stage, there is a significant amount of frustration," he said. "It would be irresponsible for us not to get a full reading on what all of our options are."


The head of the carpenters' union, which is a vital party because it provides 60 percent of the center's workforce, could not be reached Friday. The union was the lone holdout on a labor agreement proposed in September by Mayor Street.


"If Evans was looking to take a bold and brazen step, he should mandate that the holdout labor unions sign a labor agreement," said an angry John Dougherty, business manager of electricians' Local 98. "It would be irresponsible to throw away our good efforts over the past several years with something that is dramatic and does not face the present problems at the center."


Patrick Gillespie, business manager for the Philadelphia Building and Construction Trades Council and a member of the Convention Center board, criticized Evans' proposal as an attempt at another "political solution" to the Convention Center mess. "What Dwight Evans is trying to do is glean some attention to soothe his political ego," he said.