April 29, 2004
Lake Charles, Louisiana
The Police Jury of Calcasieu Parish, Louisiana, met in Special Session at 5:30 p.m. on Thursday, April 29, 2004, in the Police Jury Meeting Room of the Parish Government Building, 1015 Pithon Street, Lake Charles, Louisiana, with The Honorable Brent Clement, President, presiding, and the following members present:
Mesdames Elizabeth Conway Griffin and Sandra J. Treme; and Messrs. Francis Andrepont, Mike Danahay, Tony Guillory, Chris Landry, Don Manuel, Hal McMillin, Cornie Moon, Tony Stelly, and Alvin Stevens
Absent: Mr. Calvin Collins (recuperating from surgery), Mr. Chuck Kleckley, and Charles S. Mackey, D.D.S. (out of town)
Also present were Mr. S. Mark McMurry, Parish Administrator; Mr. Bryan Beam, Assistant Administrator; Mrs. Coleen Clark, Executive Secretary; Mr. Richard Gremillion, Director of Emergency Preparedness; Mrs. Cheryl Heisser, Director of Human Resources; Mr. Jerry Milner, Director of Finance; Mr. Claude Smart, Parish Engineer; Mr. Allen L. Smith, Jr. of the firm of Plauche, Smith and Nieset, General Counsel; Mrs. Kathy P. Smith, Recording Secretary; Mr. Gerry Trahan, Director of Facility Management; and Mr. Jim Vickers, Director of Planning and Development.
President Clement called the meeting to order. The invocation was pronounced by Mrs. Griffin which was followed by the Pledge of Allegiance. The roll was called with the result being as outlined above.
President Clement welcomed everyone in attendance and asked those who would like to address the Police Jury to fill out a “Request to Appear” form and submit it to the staff. He also asked that all cellular telephones and pagers be turned off or set on a suitable mode so they would not interrupt the meeting.
Motion was made by Mr. Landry, seconded by Mr. Stelly and carried unanimously that the rules be suspended by a two-thirds majority vote to receive and open bids, as advertised in accordance with law for action to be taken at 5:30 p.m. on this date, for Calcasieu Parish Project No. 2004-05 (Overlaying of Various Roads in Calcasieu Parish).
Mr. McMurry then proceeded to open the following bids:
Prairie Contractors, Inc. $2,088,907.59
R. E. Heidt Construction Company, Inc. $2,091,749.10
There being no other bids, motion was made by Mr. Andrepont, seconded by Mrs. Griffin and carried unanimously that the bids be referred to the Parish Engineer for final tabulation with further action thereon to be taken at the Regular Meeting on May 6, 2004.
President Clement advised that one purpose of the Special Meeting on this date was to take appropriate action with reference to House Bill No. 186, sponsored by Representative Frith, which, if enacted, would authorize gaming on a portion of the Sabine River and Sabine Lake in Cameron Parish.
Mr. McMurry pointed out that the City of Lake Charles and the Port of Lake Charles had recently adopted resolutions in opposition to House Bill No. 186.
Mr. Manuel stated that when a local or state government set rules to do something one way and got businesses to spend millions of dollars to locate in an area, to change the rules after that would definitely have a negative effect on economic development. He further stated that he supported the adoption of a resolution in opposition to House Bill No. 186.
Mr. Andrepont asked what advantage Cameron Parish would have if the bill passed, if there were no state licenses available for riverboat gaming, pointing out that there were only 15 and those were all currently held by various companies throughout the State.
Mr. McMurry explained that the bill would allow an increase in the number of bodies of water on which riverboat gaming could be conducted which meant that a riverboat gaming company holding one of the fifteen licenses could relocate to a new location if it obtained approval of the Louisiana Gaming Commission to do so.
Mr. McMurry advised that state law specifically set forth the approved bodies of water and that sizeable investments had been made on those rivers and lakes, but if the list was expanded, that would put at great risk those investments, as well as the satellite businesses which had evolved to serve the needs of the riverboat companies. Mr. McMurry further stated that it would have an impact on the business climate in the State and the “splintering” effect caused by licensees moving to other areas rather than clustering here would significantly decrease the possibility of Southwest Louisiana becoming a destination market.
Mr. McMurry pointed out that the original legislation enacting riverboat gaming was named the “Riverboat Economic Development and Gaming Act” and that if the original intent had been merely to enact gambling, it probably would not have passed. He stated that the legislation was passed for economic development purposes and that could only be accomplished in the riverboat gaming industry by clustering those facilities.
Upon motion made by Mr. Manuel, which was duly seconded by Mr. Landry and carried unanimously, the rules were suspended by a two-thirds majority vote, and the following resolution was adopted:
RESOLUTION
A RESOLUTION expressing opposition of the Calcasieu Parish Police Jury to the passage of House Bill No. 186 which, if enacted, would authorize gaming on the Sabine River and Sabine Lake in Cameron Parish.
WHEREAS, the Police Jury of the Parish of Calcasieu has long been committed to the enhancement of economic development within the Parish and throughout Southwest Louisiana, and has, in fact, directed a significant amount of time and revenue in the form of grants and economic inducement incentives toward those efforts; and
WHEREAS, The Honorable Kathleen Babineaux Blanco, Governor of the State of Louisiana, has expressed not only her opposition to any further expansion of gaming in Louisiana, but has also recently stressed her commitment to work “hard to persuade the nation that Louisiana really has adopted a new way of business” while pointing out that one of the biggest barriers to inducing new investment in the State has been the negative view held by many potential business investors of how business is done in the State; and
WHEREAS, while it is vitally important to continue efforts to induce new businesses to locate in our area and State, it is equally important to honor those existing businesses that have already invested in the State by not arbitrarily changing the rules, regulations, policies, or procedures in ways that impair or place at risk the investments those businesses have made in the State’s economic base; and
WHEREAS, the fact that one-third of the State’s fifteen Riverboat Gaming licenses are held by companies doing business in Calcasieu Parish has created the opportunity for the establishment in this area of a true “destination market” due to the clustering of major gaming operations; and
WHEREAS, it is only through the development of such a destination market that significant, and sustainable, economic development growth from the gaming industry can occur exponentially; and
WHEREAS, in 2002, the 15th and final riverboat license authorized by current state law was granted to Pinnacle Entertainment to conduct riverboat gaming in Calcasieu Parish, an action resulting in said company’s decision to construct a $325-million hotel and gaming resort in Calcasieu Parish which is reported to be the largest casino complex under construction outside of Las Vegas and which is currently being built; and
WHEREAS, Pinnacle Entertainment’s investment is precisely the type of development the State of Louisiana should be trying to encourage and attract with its riverboat licenses; and
WHEREAS, House Bill No. 186 (HB 186) now seeks to change a very key component of the rules on which the decision by this company to build such an unprecedented and world-class development was based, said change being to add the Sabine River and Sabine Lake in Cameron Parish to the list of permitted waterways on which riverboat gaming can be conducted, which would inflict potentially severe and damaging risks to not only this impressive development in Calcasieu Parish, but to many other local businesses that have expanded or made investments in anticipation of meeting the needs of this development; and
WHEREAS, HB 186, if enacted, would expand gaming, which is contrary to the stated desire of Governor Blanco, and further, would allow for development of casinos at the extreme western border of our State, stimulating economic development almost exclusively in our neighboring State of Texas, instead of Louisiana, a phenomenon completely outside the mission and purpose of this State’s authorizing Act; and
WHEREAS, HB 186, if enacted, would greatly impair Calcasieu Parish’s ability to continue its efforts to effectively develop itself into a “destination market” for tourist trade that a clustering of gaming operations can establish, and would serve to reduce the resulting tax revenues from outside sources and job opportunities in the Parish and State, that accompany such tourism efforts; and
WHEREAS, beyond the obvious negative impact on the State’s future economic development efforts the instability resulting from such an abrupt changing of the rules would have, that future could be further damaged by the fact that existing businesses contemplating expansion and additional investment will no doubt take note of the slippery slope created by this proposed legislation before making such expansions or investments; and
WHEREAS, it would appear that the proposed legislation at the very least exhibits utter disregard for the mission of the original authorizing Act as expressed in its title — the “Louisiana Riverboat Economic Development and Gaming Control Act” (emphasis added); and
WHEREAS, the fact that the Police Juries of the Parishes of Calcasieu and Cameron enjoy an excellent working relationship makes it very difficult for this Police Jury to oppose a measure that would benefit our friends to the south, but this legislation is in such direct conflict with the State’s best economic interest, because it reinforces the negative image of the business climate in Louisiana, and is so potentially damaging to the extraordinary investment already made by the gaming industry and other businesses in Calcasieu Parish and in the State of Louisiana, that we are left with no choice but to take the action expressed herein.
NOW, THEREFORE,
BE IT RESOLVED BY THE POLICE JURY OF CALCASIEU PARISH, LOUISIANA, in special session convened on the 29th day of April, 2004, that it does hereby express opposition to House Bill No. 186 for the reasons set forth above.
BE IT FURTHER RESOLVED that a certified copy of this resolution be forwarded to members of the Calcasieu Legislative Delegation and to Governor Kathleen Babineaux Blanco, urging their opposition to the passage of House Bill No. 186 of the 2004 Regular Session of the Louisiana Legislature.
* * * * * * * * * * * *
With regard to this matter, Mr. Billy Rimes, representing Pinnacle Entertainment, appeared before the Police Jury and expressed the appreciation of his company for the resolution by the Police Jury. Mr. Rimes stated that when Pinnacle had been granted the 15th and final state license, it was given a set of rules and regulations it had to meet, and that was what the company’s bid had been based on. He further stated that Pinnacle had kept its end of the bargain and hoped the State would too. Mr. Rimes pointed out that if the bill passed, other entities would be attempting to add bodies of water, i.e. Bayou Chicot.
Mr. Rimes stated that Pinnacle supported its neighbors in the gaming industry in Lake Charles and hoped to make them better which would benefit Calcasieu Parish and Southwest Louisiana.
Mr. Rimes pointed out that if a riverboat was put on the Sabine River, it would be an “in your face” action toward the State of Texas. He stated that the timing was wrong since Texas was currently considering proposals for gaming. Mr. Rimes advised that Pinnacle was cautiously optimistic that gaming could be delayed in Texas for a few years, but that hope would be “watered down” if a riverboat was to locate on the Sabine River.
In closing, Mr. Rimes stated that Pinnacle appreciated the continuing support of the Police Jury, and he gave the assurance that in the end, Calcasieu Parish, Southwest Louisiana, and Pinnacle would be very good neighbors.
It was moved by Mrs. Griffin, seconded by Mr. Andrepont and carried unanimously to suspend the rules by a two-thirds majority vote to discuss Senate Bill No. 141, sponsored by Senator James David Cain, which proposed to alter the distribution of future occupancy tax receipts from the new Delta Downs Hotel and future hotel/motel properties in Wards Five, Six and Seven.
Mr. McMurry explained that the bill would cause hotel occupancy tax revenues on facilities in those wards to be split according to a formula in the bill instead of going to the Southwest Louisiana Convention and Visitors Bureau (CVB) as was currently being done. He stated that there was a point of contention between the CVB and some of the beneficiaries of the proposed legislation and that Senator Cain had asked that the Police Jury refrain from taking absolute action on this date to allow an opportunity for representatives of the Police Jury to meet with him in the following week to hammer out a compromise that might avoid the contentiousness that currently existed.
Motion was made by Mr. Andrepont, seconded by Mrs. Griffin and carried unanimously to suspend the rules by a two-thirds majority vote to authorize President Clement to appoint an appropriate number of jurors to negotiate on the Police Jury’s behalf with regard to Senator Cain’s bill before it went to the Senate for action.
Ms. Carla Roberts, Post Office Box 94183, Baton Rouge, a staff attorney with the Louisiana Senate, appeared before the Police Jury on behalf of Senator Cain to answer any questions the jurors might have regarding the proposed legislation. She apologized on Senator Cain’s behalf for not being able to attend the Police Jury meeting on this date due to another meeting that had been scheduled for several months. Ms. Roberts stated that Senator Cain had been extremely supportive of the Police Jury and other local governments since he had been in office.
Mayor David Riggins of the Town of Vinton appeared before the Police Jury and advised that the proposed legislation only affected revenues from future business developments, after July 1, 2004, and would not affect existing revenues. He stated that the bill came about when a new hotel was proposed to be built in the Town of Vinton. Mayor Riggins advised that he would be more than willing to sit down with the jurors and talk about the proposed changes.
Mr. Jim Coward, 1765 Highway 109, Vinton, Vice-President of the Niblett’s Bluff Park Commission, appeared before the Police Jury at this time. Mr. Coward stated that 24 years ago, Mr. McMurry, then-Senator Cliff Newman, and he had hammered out a bill that was ultimately approved by the Legislature to create a separate political subdivision known as the Niblett’s Bluff Park Commission due to the fact that at that time, the Police Jury was responsible for operation of the park but was in dire financial straits. Mr. Coward pointed out that the Niblett’s Bluff Park was now a very worthwhile and successful park.
Mr. Coward stated that Senator Cain’s proposed legislation would help the Commission and the Police Jury. He advised that the property on which the Niblett’s Bluff Park was situated was still owned by the Police Jury, and the Commission had a 25-year lease which would come up for renewal in 2005. Mr. Coward stated that the Commission would be asking for another 25-year lease at that time.
Ms. Shelley Johnson, Director of the Southwest Louisiana Convention and Visitors Bureau, 1205 North Lakeshore Drive, appeared before the Police Jury and stated that the CVB was very concerned about the precedent the proposed bill would set. She pointed out that the CVB represented the entire Parish and the six municipalities contained therein. Ms. Johnson stated that she approved of the formation of the committee to try and resolve this matter and appreciated the continued support of the Police Jury.
A vote was taken on the motion on the floor, which was to suspend the rules by a two-thirds majority vote to authorize President Clement to appoint an appropriate number of jurors to negotiate on the Police Jury’s behalf with regard to Senator Cain’s bill before it went to the Senate for action, and said motion carried unanimously.
It was moved by Mr. McMillin, seconded by Mr. Manuel and carried unanimously to suspend the rules by a two-thirds majority vote to exercise an option to cancel a lease between the Police Jury and Michael Kile for property located on Holbrook Park Road which was being used for grazing purposes, in accordance with Paragraph Seven of said lease, and to authorize the staff to renegotiate, if necessary, the extension of this lease, and finally, to authorize the President of the Police Jury, or his designee, when appropriate, to execute all documents related thereto. (It was noted that the current three-year lease would expire on June 30, 2004, and the Lessor and Lessee both had the right and option to cancel the lease with sixty days written notice. It was further noted that the Division of Engineering and Public Works did not wish to renew said lease for an additional three-year period due to the fact that they would like to begin plans and make capital improvements on this property which was adjacent to Holbrook Park.)
There being no further business, motion was made by Mr. Landry, seconded by Mr. Moon and carried unanimously that the meeting be adjourned.
/s/ Brent Clement, President
/s/ S. Mark McMurry, Administrator &
Ex-Officio Secretary