The developers of the Richmond Grand Resort Casino have reached an agreement with the union regarding construction terms.
If the Richmond Grand Resort & Casino project is approved through a ballot referendum in November, the developers plan to employ union construction workers for the development located south of Virginia’s downtown capital.
The Richmond community is divided over the decision to approve a casino resort located south of downtown near I-95. In November, city residents will have the opportunity to vote on the $562 million Richmond Grand Resort & Casino. This will be the second time in three years that the city has had a gaming referendum. (Image: Twitter)
Urban One, a company based in Maryland, is a conglomerate focused on Black-owned and Black-centered entertainment. They possess and manage both Radio One and TV One. For multiple years, they have been attempting to acquire permission to construct a casino resort near the I-95 area, close to the Philip Morris main office.
In 2020, legislators in Virginia, along with then-Governor Ralph Northam, approved the establishment of casinos in five cities that were facing economic challenges.
One city that fulfilled the requirements was Richmond. These included a decrease in population of at least 20% between 1990 and 2016 and a poverty rate of 20% or more in 2017.
Even though Urban One lacks experience in constructing or overseeing a casino or hotel, Richmond city officials chose the versatile entertainment company instead of more experienced gaming companies such as Bally’s and The Cordish Companies, partly to contribute to the capital metro’s equity.
In 2021, the people of Richmond narrowly rejected Urban One’s proposal for a casino, which was created in partnership with Peninsula Pacific Entertainment, a casino operator based in Los Angeles. However, Urban One has since revised their casino plans and formed a new partnership with Churchill Downs.
Project Benefits
The Richmond City Council, which is controlled by the Democratic party, is pushing for a second casino referendum. This decision has been met with resistance from community members in the area, who feel that the local government should honor the will of the people expressed in 2021. Despite this, Richmond leaders are confident that a unified explanation of the financial advantages of the casino will sway the outcome of the vote in their favor.
In February 2022, Churchill Downs purchased Peninsula Pacific, which includes the opportunity to develop a casino in Richmond through Urban One. Churchill has a stronger reputation and may be more appealing to the affluent neighborhoods in Richmond’s northern region, where residents were more resistant to the Urban One casino proposal during the vote in November 2021.
Urban One and Churchill’s pitch is called the Richmond Grand Resort & Casino. The $562 million project would include a casino and a 250-room luxury hotel and resort amenities, such as restaurants and bars, a spa, a pool complex, and an outdoor event venue.
According to the developers, the casino will result in the creation of 1,300 long-term positions with salaries of $55,000 per year. Additionally, it is estimated to generate approximately $30 million in tax revenue annually for Richmond.
Union, City Partner
Urban One and Churchill representatives announced this week that in addition to the potential advancement of the casino, there is also an advantage of employing union labor for the construction of the integrated resort. Should the vote in November be in favor, the Richmond Grand Resort & Casino will be constructed by unions affiliated with the Richmond Building Trades Council.
Urban One, Churchill, and local government representatives are promoting the potential positive impact of the proposed taxes on education in the area. The City Council recently approved allocating a majority of the casino tax earnings to the city’s Childcare and Education Trust Fund. This fund will only be established if the casino is approved.
Critics argue that the use of children as pawns is being exploited to gain support for a casino.
The mayor [Levar Stoney] has stated that a trust fund for children would only be considered a valuable idea if the referendum is approved, making it morally questionable. However, if the referendum fails (again), the mayor will not make efforts to create the trust fund. Former Richmond city councilor Jon Baliles expressed his disappointment, saying that if the adults are not taking action, the children will not receive the necessary assistance.
Voting for the casino and other state and local elections started last Friday, September 22.
The developers of Richmond Grand Resort Casino have consented to the terms proposed by the union for construction.
