With the blessing of the governor and the general assembly, the Newport Grand is pushing ahead with a $20 million expansion plan that will include 800 more video slot machines and new hotels. The governor’s office yesterday unveiled a draft contract sent by the newport grand to the state government. The terms of the proposed contract reflect a bill signed by Governor Karsieri on July 15 and approved by the general assembly.
The bill would allow the Newport Grand to increase its video slots from 1,301 to 2,101, and would guarantee a 10-year current tax rate. In exchange, the Newport Grand would have to work on a $20 million improvement project. “We were not involved in drafting it at all,” said Jeffrey Neil, the governor’s spokesman. “And so far, we haven’t even read it. We’re just getting it. The administration and the new lottery department will work with representatives of the Newport Grand to draft, ultimately approve, and sign a contract, in consultation with the governor’s office.”
The bill, which also favors the “Newport Grand,” allows Lincoln Park to add 1,750 more to its 3,002 video slots and freezes tax rates for 15 years. Due to time constraints that affect BLB investors, who are potential buyers of the facility, the state has already signed an agreement with Lincoln Park.
“The BLB situation was unique because it was under a very specific deadline,” Neil said. The bill proposed in the spring was originally intended to benefit Lincoln Park only. But the Newport Grand quickly followed suit, asking lawmakers for a similar tax pact, and announcing an expansion plan that said such an agreement would be possible. The proposed contract calls for Newport Grand to invest $20 million in “improvements, renovations and additions” within three years. It specifically mentions the construction of “at least 90 hotels.” 안전 토토사이트
The 10-year contract will be frozen at the equivalent of 26% of video slot revenue. Newport Grand will be required to pay taxes to the state on both old and new machines. As with the agreement reached with Lincoln Park, the agreement also compensates Newport Grand for any loss of income it may suffer if other gaming facilities open in the week. The “slip-proof” was added to the bill in 11 hours earlier this month, and is intended to address Hara’s ongoing efforts to build a casino in West Warwick with Naraganset Indians.