Officials, residents agree: racino could be a gamble

By Shira Kantor

Star Tribune

      A $120 million "racino" at Canterbury Park racetrack could bring significant money to Scott County and Shakopee, though Shakopee Mayor John Schmitt cautions the revenue projections may be a bit too optimistic.

      "I think the jury is still out on whether or not this is a good deal," Schmitt said after the latest proposal for expanded gambling in the south metro was unveiled last week. "I think the governor and the Legislature need to make some good decisions before we have something concrete to work with. There's way too much blue sky at this point."

      As proposed by Canterbury Park officials and legislative supporters, the racino would pay a $100 million licensing fee that would help bring the state more than $175 million in the first two years. It would pay at least $100 million annually after that.

      It would also pay Shakopee and Scott County together close to $5 million in annual taxes.

      The proposal calls for 3,000 slot machines as well as blackjack tables. Backers of the latest proposal left open the possibility that Canterbury could become the site for a tribal-state casino that has the backing of three Indian bands and Gov. Tim Pawlenty. 

      Canterbury's previous racino proposal was for 2,000 slots and did not include blackjack.

      "I think we're aggressively looking at projections that are too high," Schmitt said. "You're talking 12 to 18 months to build that sort of thing and we haven't even started the approval process yet."

More revenue

      Scott County commissioners have not taken an official stance on the latest proposal but have generally supported similar proposals if they included money for road and sewer upgrades.

      "I don't think anybody on our board is in favor of an expansion of gambling," Commissioner Barb Marschall said. "But the fact is, we have it here with Mystic Lake and Canterbury already."

      The Shakopee Mdewakanton Sioux Community has 4,000 slot machines and offers blackjack and bingo at its Mystic Lake Casino in Prior Lake. Canterbury Park has a 24-hour cardroom.

      The potential for raising more county revenue is what has commissioners interested, Marschall said.

      "That's where our support would be," she said.

      The county does not share proceeds or receive tax dollars from Mystic Lake Casino, but County Administrator Dave Unmacht said the county has general operating agreements and road improvement partnerships with the tribe. "And periodically they donate to the county," he said.

Residents' reactions

      Fred Inman, who lives about eight blocks from Canterbury Park, said he thinks the proposal will likely go forward but wishes it wouldn't. "I'd rather support the Indian communities in some other way than through gambling," he said. "I suspect it will raise the crime rate in Shakopee, and there will be a lot more traffic."

      Larry Williams, who has lived in Shakopee for three years, said crime shouldn't be a consideration. "If we keep doing what we're doing, all our money will be going to (Mystic Lake Casino). They'll use it to buy more land and more buildings and they'll still be tax-free," he said.

      Kay Lytle, who works in Shakopee, said she thinks "that we are becoming saturated with casino-type entertainment. It starts changing the culture of what Minnesota is really about. ...Too often we minimize the social and family problems that come with gambling."

      Gambling proposals will continue to evolve, Unmacht said.

      "The dynamics of the racino for quite some time were standalone: is it a good thing or a bad thing? Now the casino proposal is among a lot of different gambling initiatives," he said.

      The Shakopee Mdewakanton Sioux Community, owner of the Mystic Lake Casino Hotel in Prior Lake, plans a town hall meeting on gaming issues.

WHEN: March 23, 6 to 8 p.m.

WHERE: Playworks LINK Event Center, 2200 Trail of Dreams, Prior Lake

TO LEARN MORE: 952-496-6160