Casino Four Hands Out 11-Month Extension of Point Molate
By Councilmember Tom Butt (Partisan Position)
May 19, 2010
With a rambling and multifaceted motion, the actual details of which are still being debated, Maria Viramontes emerged last night as the new champion of the controversial Point Molate mega casino and leader of the “Casino Four.” Joined by Bates, Rogers and Lopez, the “Casino Four” gave Upstream Point Molate nearly another year’s extension of the Land Disposition Agreement (LDA) that expired in January of this year without specifically attaching any of the conditions that have been the subject of intense negotiation over the last several months.
I believe the story in the Contra Costa Times may include some errors. My recollection is that the extension is through April of 2011, not July of 2010. The revenue from the Municipal Services Agreement is a function of the area of building constructed and begins to flow only when the facility opens for business. Upstream has made it clear that they plan to phase the project, building only a casino, hotel and a 4,000 car parking structure in Phase 1, which in the best case scenario would be 5 ½ years from now. The $16.6 million estimated revenue is based on a full build out, which Upstream has said would not occur under even the most optimistic scenario for nearly eight years. Under the MSA, most of the revenue would have to be spent providing infrastructure, services and maintenance for Point Molate, leaving little to spend in the rest of Richmond.
