By JON BAKER

LINCOLN — Town Councilman James R. Jahnz’s decision to compose a press release regarding “24/7”expansion at Twin River came long before news filtered out of a private meeting held Thursday between casino owners and Rhode Island Lottery director Gerald Aubin.

In that meeting, those owners indicated that approximately $16.5 million per year in new state revenue could be gained by such expansion, and would help reduce Rhode Island’s current and projected budgetary woes.
In that release, dated Jan. 9, Jahnz claimed he was “troubled” by the wording of House Bill 7040 (recently introduced by Rep. William San Bento, a Pawtucket Democrat who doubles as chairman of the legislature’s Lottery Oversight Commission), which would allow 24-hours-a-day, seven-days-a-week gaming at both Twin River and Newport Grand.
Jahnz stated “it would strip host community revenue sharing from (both) during expanded hours.
“On its face, I find the bill to be inconsistent … and not representing the wishes of the residents of Lincoln, as stated in last November’s referendum,” wrote Jahnz, the council vice president who represents District 4 (including parts of Albion, Lime Rock and Quinnville).
“I am troubled to think that this bill, which places increased burdens on the town’s services, would eliminate the very compensation we receive.
See JAHNZ, Page A-2
“Quite the contrary, I feel that any additional revenue derived from expansion of hours (which would be between 2-9 a.m.) should reflect a higher compensation to the host community,” he added. “I am calling for an increase to four percent on Lincoln’s take during an expansion of hours from what is currently taking place. I feel this will allow the people of Lincoln to avoid shouldering the costs for what is assuredly (going) to be a more demanding need for additional police and rescue services.”
Jahnz said that, last year alone, the town received about $8 million from Twin River. It came from revenue attained from slot machines, not to mention a one percent meals tax.
Council president Jeremiah T. O’Grady stated that the town receives approximately 1.25 percent of all casino revenue, and 1.5 percent from monies gained by new video lottery terminals (VLTs).
“I know of another house bill that was sent to the General Assembly last week … and I know of no amendment to it,” O’Grady said. “The new one I’m referring to is similar to Rep. San Bento’s, and it seems to take away the town’s share of such new revenue from staying open (24/7). As it is written, it states all remaining funds would go into the General Fund, and it makes no mention of either Lincoln or Newport.
“I’m not pleased by it,” he continued. “San Bento’s response to it was that it was an error in writing, or the way it was drafted. I’ll take him at his word, but -- obviously -- it needs to be changed.”
Added Jahnz: “It doesn’t take a weatherman to decipher which way the wind is blowing. With the burdens that’s going to be placed upon Lincoln’s services, Lincoln should realize increased compensation … The 24/7 thing is inevitable, and I wish there was some way to avoid it, but there’s no way given the financial state of Rhode Island. It seems there’s a hunt for revenue in every corner, and this seems to me the first place that’s been targeted.
“I’m calling for the four percent only during the hours between 2 and 9 a.m. because we’re going to see a lot more traffic -- people streaming into Lincoln, and that means more accidents, etc. We’re going to need to provide more police and rescue coverage on our streets.”
San Bento had a different take..
“It didn’t reflect my intentions, and I requested an amendment to the bill,” he said Friday night. “I don’t know if that amendment has gone through, or even if the bill will be passed. When we have a hearing on that bill, my suggestion to those councilmen is that they come in and testify in front of House Finance. I’m not wanting to pick a fight. I’m just trying to do what’s best for the state.
“The Town of Lincoln is doing very well financially from Twin River revenues, and that includes what it receives from the one percent increase in meal tax,” he added. “That’s as far as I’m going to go with it. If they have questions or concerns, they can come to the State House and ask all the questions they want. Like I said, I introduced (the first bill), and I don’t know if it will pass. We need the money and the Governor (Donald Carcieri) says we need the money . He says we should open (both casinos) to 24/7 operations.
“I do believe it’s inevitable, and -- if we didn’t need the money -- I wouldn’t be as hot about it as I am. There’s $16 or $17 million out there, and I don’t see it coming from anywhere else. Believe me, this won’t com from anywhere else. I don’t want to increase taxes. I may look -- in fact, will look -- at the tax breaks we’re giving the rich. It was said that would create new jobs, but I don’t see that happening.”
As for the four percent of revenue Jahnz requested with expanded hours, San Bento offered, “I don’t think that increase is going to happen. When all this started, I just wanted Lincoln to continue to get its fair share of Twin River revenue. Whatever it’s getting currently, it should receive that 1.5 percent for the entire 24 hours (per day).”
Councilman John Flynn, a Democrat who represents Lonsdale (District 2), said he supports Jahnz’ attempt at increased revenue, but doubts it would happen.
“The state is so desperate for money, I can’t see the legislature giving us four percent when they’re only obligated to give us a little over 1.25 percent,” he noted. “When the casino went to a 2 a.m. closing (instead of 1), the town council opposed it, but we couldn’t do anything about it because it came down from the Governor’s office. A provision was cited that he could decide whatever the hours would be.”
Both Jahnz and Flynn stated they believe the Governor and General Assembly are waiting for the other to take action, and O’Grady heartily agreed.
“I think if either is going to decide to go to 24/7, or any hourly expansion, the Town Council has an obligation to get the best deal possible for the town,” he said. “If the legislature is not going to abide by the sentiment expressed by Lincoln voters on Nov. 10 (an overwhelming decision against full casino operation or adding table games), then it’s not unreasonable to request due compensation.”