By Dave Dyer

Staff Writer

Final statements and analysis of a proposed racino and village center were presented by the Scarborough Economic Development Corporation (SEDCO) and the Scarborough Town Council on Oct. 15, the final town council meeting before the Nov. 4 referendum vote concerning the racino. 

The referendum question will ask voters whether they agree or disagree to have amendments made to the town’s zoning ordinance to allow slot machines at the Scarborough Downs racetrack, along with the development of a new Scarborough Village on the surrounding 501 acres of the racetrack.

SEDCO President Harvey Rosenfeld made a PowerPoint presentation to town councilors concerning the potential economic development impact the possible racino could have on the town. 

According to a story printed in the Sept. 12 issue of the Leader, the SEDCO board of directors decided not to endorse the proposal. From the story, SEDCO Chairman Roger Beeley explained the board’s stance on the subject.

“We have some serious questions about how a racino would bring high-quality development to Scarborough,” Beeley said. “If there was a racino here, could you envision Fairchild Semiconductor moving in next door? We want high-quality businesses which pay good money.”

Rosenfeld said the presentation was made to answer questions for voters who are still undecided on the subject. 

According to the presentation, in order for the racino and Scarborough Village project to be constructed, there are a number of steps beyond the approval of the referendum  Nov. 4. Next, a citizen’s referendum to overturn a zoning ordinance prohibiting video gambling in Scarborough would have to be addressed, as well as the development of numerous agreements with the town, including a host agreement and a contract zone. A town-wide referendum will be needed to approve the host agreement. 

Rosenfeld said the focus of the proposal for the racino and Scarborough Village is to help the harness racing business at Scarborough Downs, as well as accommodate more businesses and jobs while providing a new “heart of Scarborough” with a Main Street concept, meaning Scarborough Downs would be the center of business in Scarborough, something a number of councilors disagreed with.

Councilor Judith Roy said she has repeatedly stated she is against the racino and is against the idea of there being a Main Street of Scarborough when the town already has many villages. 

Councilor Carol Rancourt said she is against the racino and the issue itself is one of lifestyle. She said she didn’t like the idea of any one area of the town becoming “the heart” of Scarborough.

Rosenfeld also said interest and attendance at the racetrack are down, and the reason could be the availability of other gambling opportunities such as government-sanctioned lotteries, the development of casinos in other states and the Internet. He said it’s unlikely the racing at Scarborough Downs will continue without some other type of financial gain.  

In regard to the racino and Scarborough Village concept, Rosenfeld said SEDCO used research from information they obtained by visiting the Hollywood Slots facility in Bangor. Rosenfeld said Hollywood Slots employs around 500 people with 70 percent of the jobs being hourly positions, which pay $3.75 to $16 an hour, with the median being $9.50 an hour, plus tips. The remaining 30 percent of jobs are salary positions, with the median income being $34,000 per year. 

Rosenfeld said 90 percent of the patrons of Hollywood Slots were from the Greater Bangor area. 

According to the presentation, the construction of the facility will generate direct and indirect impacts. The proposed racino would generate $8 million in taxes and fees for the municipality. Property values may also rise if the facility is well designed and fits well within the community. 

Conversely, Rosenfeld said if the racino is successful, it may cause pollution and traffic congestion problems due to the surrounding and potential infrastructure and may cause unforeseen municipal costs. Because of the geographic location of Scarborough, being only two hours away from Boston, the facility would likely attract visitors from outside the area and create jobs for the short and long term, with the median hourly wage being around $10 an hour. 

Councilor Richard Sullivan asked Rosenfeld about SEDCO’s stance on the racino and said he understands SEDCO is against the project. Rosenfeld confirmed the SEDCO board of directors is against the racino, but said the presentation was meant to show positive and negative impacts of the racino, with the goal of educating voters. 

Sullivan, who has publicly supported the racino, said one of the main jobs of SEDCO is to look for the expansion of jobs and to bring taxpayers to Scarborough and the racino would do both.

In response, Rosenfeld said it’s the job of SEDCO to look for quality projects and discourage bad ones. He said there are plenty of $8 to $10-an-hour jobs in the area already. The town needs higher paying jobs to allow people to be able to live in the Scarborough area, he said. 

Councilors remained divided on the issue. Councilor Sylvia Most said she would not vote for the racino because it will go against the town’s comprehensive plan, will be against existing business’ best interest and said she doesn’t think it will be a good idea to vote until the traffic flow of the area could be checked.  

    Councilor Michael Wood said he is conflicted on the issue and sees both points of view on the subject.  

Sullivan said he prepared a statement, but said he feels people have already made up their minds on the issue. He said the building proposed for the racino will not be large and said the building will only have slot machines, not other casino-type games. He said the town will gain a lot by hosting a racino and development will be the key for its success. 

Councilor Ron Ahlquist said he feels both sides of the issue have exaggerated the facts. He said he only has one vote and will not try to sway others, but said the racino is a “quality of life” issue. 

Council Chairman Jeffrey Messer said he will not endorse or approve the proposal and his vote will be one of an estimated 12,000. He said the racino is a quality of life issue and townspeople need to have their say.