Petersburg casino referendum bill passed by Senate committee but with a wage-guarantee caveat

This artist's rendering is of the proposed Live! Casino and Hotel Virginia planned for Petersburg's Wagner Road area. Petersburg City Council officially formalized its agreement with Maryland-based The Cordish Companies to build a $1.4 billion multi-use development during its meeting Tuesday, Dec. 13, 2022.
This artist's rendering is of the proposed Live! Casino and Hotel Virginia planned for Petersburg's Wagner Road area. Petersburg City Council officially formalized its agreement with Maryland-based The Cordish Companies to build a $1.4 billion multi-use development during its meeting Tuesday, Dec. 13, 2022.

RICHMOND — Petersburg's casino dreams moved another step closer to reality Wednesday despite a surprise amendment by a Senate committee member to add a required wage rate that the city's casino developer must pay its employees if the project gets approved by Petersburg voters.

The Senate General Laws & Technology Committee voted to send state Sen. Joe Morrissey's bill to the Senate Finance & Appropriations Committee for review with a "prevailing wage rate" amendment attached. Morrissey, D-Chesterfield County, appeared perplexed by the amendment, but after about 20 minutes of discussion with the bill's supporters, he said he would "acquiesce" to the amendment simply because he wants the bill to go through.

"I'd like to see this come out 14-0 or 15-0," Morrissey said, adding that would help bolster the chances of Senate Finance & Appropriations — which killed similar legislation last year — sending the measure on to the Senate floor.

Instead of unanimous, he got 11-4, with all four dissents coming from Democrats. Sens. Jeremy McPike of Prince William County and Mamie Locke of Hampton, who both voted against the measure in last week's subcommittee meeting, were joined by colleagues Jennifer Boysko of Fairfax County and Ghazala Hashmi of Chesterfield County.

McPike, who proposed the prevailing-wage rate amendment, already was not a fan of Morrissey's bill. Last week, he said one of his primary reasons for voting against it in subcommittee was because he thought Petersburg acted outside of the Virginia Public Procurement Act by not allowing open bids on the project. Instead, former Petersburg lobbyist Lisa Speller vetted seven proposals and recommended Maryland-based The Cordish Companies as the primary vendor. Speller resigned from the project last week citing differences in the direction of the project between her and Petersburg city government.

More:Senate subcommittee sides with Petersburg on casino referendum legislation

The prevailing wage rate is the average wage paid to workers similarly employed in specific job areas. Federal law requires that all people in that specific area of employment receive the same amount of hourly or non-exempt pay.

Zed Smith, COO of The Cordish Companies, testifies Wednesday, Feb. 1, 2023 before the Senate General Laws & Technology Committee in Richmond on the casino referendum bill for Petersburg. To his left is Sen Joe Morrissey, D-Chesterfield County, the bill's sponsor.
Zed Smith, COO of The Cordish Companies, testifies Wednesday, Feb. 1, 2023 before the Senate General Laws & Technology Committee in Richmond on the casino referendum bill for Petersburg. To his left is Sen Joe Morrissey, D-Chesterfield County, the bill's sponsor.

During the subcommittee deliberations last week, members of the hospitality workers union UNITE HERE accused Cordish of inflating its numbers to show equal pay, a claim disputed by the Seafarers Entertainment and Allied Trades Union (SEATU) that will represent workers at the Petersburg location.

Cordish has proposed building a $1.4 billion multi-use development off Wagner Road in south Petersburg over the next 10 years, starting with a 670,000-square foot combination of casino, hotel and entertainment venue. Morrissey's bill sets up a referendum next November for Petersburg voters to decide if they want the project coming to town.

In a statement after the meeting, Cordish's Smith said he was "thankful" for the outcome. As for the wage amendment, Smith said, “Cordish has a long track record of treating our employees with respect and dignity and providing them with careers that offer long-term financial stability and security for them and their families.”

Its House companion legislation, sponsored by Del. Kim Taylor, R-Dinwiddie County, passed through the House General Laws Committee Tuesday night and is now before the House Appropriations Committee. That bill is expected to be amended to mirror the Morrissey bill with the prevailing-wage statement included.

More:House subcommittee recommends passage of Petersburg casino referendum bill

Of her bill's passage, Taylor said, “As a businesswoman and entrepreneur, I approach my role as a legislator with a growth and opportunity mindset: I look always for creative solutions that will generate advancement and improvement. I believe a casino in Petersburg will do just that.”

The casino issue was the catalyst of a political feud between Petersburg and Richmond. One of the original five cities picked to host a gambling establishment in Virginia, Richmond voters narrowly rejected a referendum 14 months ago. That opened the door for Petersburg to step up, and while legislation advancing Petersburg failed last year, proponents were able to get a budget amendment preventing Richmond from re-voting on the referendum until a state-sponsored study on Petersburg's feasibility was completed.

That study came back late last year not only extolling Petersburg's virtues as a casino host but also noted that gambling revenues for central Virginia could be even greater if both Petersburg and Richmond had venues. Richmond was all for that, but Petersburg objected, saying that Cordish would pull out of the deal with the city if Richmond was allowed to vote.

The crux of the Petersburg legislation chugging through the legislature now essentially blocks Richmond from a re-vote if Petersburg passes its own referendum.

More:Germaine Fauntleroy, Petersburg's first Black female superintendent, shares her story

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Bill Atkinson (he/him/his) is an award-winning journalist who covers breaking news, government and politics. Reach him at batkinson@progress-index.com or on Twitter at @BAtkinson_PI.

This article originally appeared on The Progress-Index: Virginia Senate committee recommends passage of Petersurg casino bill