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Why you should be concerned about the proposed casino-resort

June 2006

The proposed Cowlitz casino-resort is a bad bet for many reasons. The following are some of CARS' top concerns that you might want to share with other concerned citizens and decision-makers.

If the casino-resort were developed, it would require approximately 3,000 employees, according to developers, who have stated that the average salary would be $28,000. This would bring:

Many low-wage jobs: The salaries of many employees would be far lower than $28,000. According to the Draft Environmental Impact Statement's socioeconomics report, the wage midpoint of the lowest-paid 630 employees would be $17,090.

A three-member household qualifies for food stamps at a household income of $20,920, and a two-member household qualifies for food stamps at an income of $16,660. It is clear that many families with their sole wage-earner working at the casino would need assistance.

Increased demand for cheap housing: Low- wage jobs mean that low-rent housing will be in demand. (The median home sale price in April was nearly $255,000—most casino-resort workers could not afford such a price.) Do Clark and Cowlitz counties have enough apartment units to house all of those employees and their families?

Demands on schools: Leisure and hospitality workers are already in demand in this area with 12,800 employed in Clark County. That means the casino-resort would probably have to bring in many workers. Some might come from other parts of the country; others might come from other parts of the world, as has happened with other large casino- resorts. Many of these workers would bring families, many lacking English skills. This would create a challenge for schools, as they would have to increase resources spent for English instruction to speakers of other languages.

If the casino-resort were developed, two- thirds of its revenues would be drawn from people living within an hour’s drive. This would cause:

Loss of local tax revenue: The DEIS estimates the proposed casino would bring in $415 million in gaming revenue a year. That is $415 million in disposable income (and, in some cases, income that should be used for basic needs) that would not be spent in the community. Gaming revenue is not taxed, so counties and other local jurisdictions would lose taxes that would have been collected had that money been spent in other pursuits.

Loss of local businesses: If the casino-resort were to be developed, a good number of its visitors would do their shopping and eating at the chain stores and restaurants on site, instead of patronizing local merchants and restaurateurs. Local dollars would leave the area, and local businesses would suffer. Some would close.

Increased demand for social services: Where there are mega-casinos, you will find gambling addiction and problems the DEIS lists as secondary effects: “crime, bankruptcy, divorce, domestic violence, and mental or physical health problems.”

In fact, problem gambling doubles within 50 miles of a gaming facility. Area residents will need counseling, law enforcement services, legal advice and financial assistance.

The Cowlitz Tribe’s agreement with Clark County states that the tribe would offer $50,000 a year to assist with gambling problems. The average cost of treating a problem gambler is approximately $1,560, so the tribe’s contribution would help treat only 32 problem gamblers a year. MOU update: Agreement declared Invalid, 6/19/07

Increased traffic jams along Interstate 5: According to the DEIS, the proposed casino-resort would add 13,616 daily weekday trips and 17,820 Saturday trips to the transportation network, 82 percent would come from the south. If Oregon and Washington residents have similar rates of casino attendance, 4 out of 5 of those trips would involve crossing the Columbia River. Imagine the impact on the already at-capacity I-5 Bridge, not to mention spillover to I-205. The DEIS makes no mention of these problems. Its mitigation measures are concerned only with the La Center-Interstate 5 interchange.

Due to the casino ownership and management structure, a lot of the money would leave the area.

The proposed casino-resort is being developed by Cowlitz Tribe member David Barnett of Seattle, son of Chairman John Barnett, and the Mohegan Tribe of Connecticut. According to the development and management agreement, for the first seven years, 24 percent of the net revenues would go to David Barnett and the Mohegan Tribe, which would develop, manage and maintain the proposed casino- resort. The Mohegan Tribe holds a 54 percent interest in the partnership. That means millions in local dollars—local losses—would leave our area for the East Coast and the Seattle area.

A casino-resort in northern Clark County could put off other developers.

The Columbia River Economic Development Council (CREDC) advocates making use of growth areas that provide space, infrastructure, access and amenities — like the Port of Vancouver and Columbia Business Park. The Discovery Corridor, between Salmon Creek and La Center, is a prospective growth area. The presence of a casino there would prevent its being used to its fullest capacity. The casino would not bring a knowledge-based industry to the I-5 corridor. It would not produce goods and services to draw revenue from outside the region. And it would cause traffic congestion that could make the rest of The Discovery Corridor an unattractive location. The question is, will the presence of the largest tribal casino in the Pacific Northwest attract or deter desirable industries that are looking to make an investment in our community?

Three other things to consider:

Future expansion: If the casino developers get their approval and build a casino, there’s no guarantee that they won’t expand their operation and/or land holdings in the future as have many other Indian casinos in the country.

A Seattle-based developer, David Barnett, would become the strongest political force in Clark County. He already has demonstrated his willingness to buy off local politicians by contributing $100,000 to an out-of-state political action committee that then financed campaigning on behalf of Steve Stuart.

If the purpose of establishing a reservation and casino-resort is to provide reservation housing, health care and jobs for Cowlitz Tribe members, how does a casino at La Center serve them when their members are primarily located in Thurston, Pierce, King, Lewis and Cowlitz counties?

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