The Closing Circle Around Chinatown

There has been an incredible amount of news over the past few days that I want to discuss, from Obama in Philly to shameful actions by our State Legislature. As we try to catch up, I think it is worthwhile to think about the fiasco in Chinatown.

First, on Thursday night, there was Chinatown's incredible, emotionally charged meeting with Frank DiCicco and a lot of understandably pissed off residents:

In one of the most emotional moments, Lai-Har Cheung, who grew up in Chinatown, shouted at lawmakers and Foxwoods executives that gambling would destroy families. Through tears and pleas, she said her relatives were gambling addicts.

"I'm scared," Cheung implored. "This is going to take more people down."

City Councilman Frank DiCicco told her, "My father took his life because he was a gambler. I understand."

Cheung said the revelation had stunned her. In light of it, she said, "I don't understand why he would allow this to happen."

Chinatown residents are up against a wall. Supposed good government groups like the Design Advocacy Group have, for some reason, already come out big for Foxwoods, sending a letter saying that they were oh-so-very happy see the Chinatown move.

DAG is an organization of architects, planners, preservationists, builders, and others whose mission is to promote design excellence in the region. "A big design group has weighed in that this is a good move. We're happy about that," Gillen said.

DAG's letter, which was approved by the roughly 20-member steering committee and dated five days after Foxwoods announced it was considering The Gallery - states that the location is advantageous because it is very well served by public transportation and is close to existing hotels, shops and restaurants. DAG also wrote that both the site and the casino design must be thoroughly reviewed in an open process.

"We really do welcome this. This is a remarkable option for the city," said DAG vice chairman David Brownlee in a phone interview this afternoon.

But he and fellow vice chairmen George L. Claflen Jr., who was also part of the phone call, said while their organization has endorsed the site, much hinges on the design. DAG has invited Foxwoods' developers to a design review. They haven't heard back.

So, five days after the plan is announced, without seeing any... designs, but knowing full well that there will be an enraged community, the DAG enthusiastically promotes a Casino to Chinatown? Am I the only one who thinks that is ridiculous? You are enthused about a plan you don't know about, in a neighborhood that doesn't want it? I am sure the DAG means well, and is not exactly filled with awful people, but this seems like a strangely tone-deaf and -at best- premature decision.

Next, Frank DiCicco starts the process of introducing legislation to get the Casino process going, at least a little. (I encourage you to read his entire letter):

The beginning of this process will be the introduction of zoning legislation next Thursday, October 16. This legislation will amend the Commercial Entertainment District zoning classification to create design guidelines that are appropriate for a Center City casino. In addition, a second bill will alter the zoning classification of the Gallery to CED.

It is important to know that should this legislation pass, Foxwoods still will not have the ability to pull zoning or construction permits. The CED zoning classification requires that Foxwoods submit and that the Planning Commission and City Council approve a Plan of Development. Currently, it is unclear if and when that Plan will be submitted.

In other words, if Foxwoods fails to provide adequate plans or the City determines that this is an inappropriate location, then we still have the opportunity to abandon the project.

I am sure he is right, that introducing the first piece of legislation doesn't make this a done deal. But whether he is right or not, this all points me to a 10,000 pound weight sitting on the back of Chinatown residents, telling them to negotiate. Expect to hear that advice a lot.

Chris Satullo, who has some sympathy for the residents, echoes that call:

Chinatown, like Fishtown and Pennsport before it, has to decide. Either go for the long shot - utter resistance to casinos - or engage cautiously with the devil to limit damage and extract benefits while praying for a late-arriving angel.

And that, 'my friends,' is where this is all headed. Maybe negotiating is the right thing to do, maybe not. I know in East Falls, the Multi-Community Alliance tried to walk a fine line, when they said would negotiate a community benefit agreement (CBA), but that they refused to drop opposition to a casino they didn't want. Trump's answer was to play divide and conquer, and go find a member of the community who would support it. It is not an easy line to walk.

But, before everyone tells Chinatown to just negotiate, I think we all need to ask ourselves what we would do if, after seeing all these backroom deals with the Casino lobby criticized for so long, that we were told to suck it up for the good of the city or the good of another neighborhood? We are not talking about asking a neighborhood to accept its share of just another LULU. We are asking them to accept something they think will destroy what they have worked so hard to create.

So, I won't offer advice to Chinatown. Instead, I will just support the efforts of their residents, whatever they decide, and ask Foxwoods, as they conduct layoffs for the second time in a year....

How do you feel about a nice expedited strip of land at the airport?

The focus should be on

The focus should be on minimizing road traffic, and that makes DAG's position seem reasonable. I don't think you can truthfully say they have "come out big" for the site, when their letter says:

"This location offers many important advantages for both the casino and Center City, where the new facility can take its place among nearby hotels, shops, and restaurants, and where excellent public transportation is already in place.

"We believe that the success of this project will depend on good process and good design. Any site considered for the casino must go through a thoughtful and open vetting process, and the design must be carefully shaped and rigorously reviewed. To that end, we have invited the developers of the casino to discuss the project at one of DAG’s monthly public meetings this fall."

That sounds like cautious optimism to me. The Gallery sits on top of the El and regional rail, and next to Septa, NJ Transit, Greyhound and other smaller bus lines. For that reason alone, it's worth a look. But on top of that, as the letter says, *if* done well the slots parlor could be a boon to businesses in the neighborhoods around, including Chinatown.

The problem with the Delaware Avenue site was that none of that was true. Leaving aside the opportunity cost of taking up a big chunk of waterfront space, you would have had to drive to get there. And it would be a standalone project, which would offer nothing to nearby retail businesses, unless you think slots players would pop out to Home Depot to pick up a few things on impulse. And the proposed Navy Yard location, while well away from a purely residential neighborhood, doesn't solve either problem.

So, there is reason to be concerned about the impact of a slots parlor on the area where it is located, but there's no reason to make a fetish out of opposing it. It's just a business. Of course, if it is too big, that can be a problem. If it tries to prevent customers from leaving to go out to businesses on neighboring streets, that presents less benefit to everyone except them. These are things we should negotiate over.

The focus should be on

The focus should be on minimizing road traffic? Really? I agree that should be a concern, but that is it? And, do you get to decide that, or should the residents of the neighborhood?

And, it is true, the letter does say this:

But on top of that, as the letter says, *if* done well the slots parlor could be a boon to businesses in the neighborhoods around, including Chinatown.

And to follow up on that, if my magic potion works out like I want, everyone gets candy canes.

Sorry, but I think the letter is pretty clear in what they were saying, and so does City Hall:

"I think we'll see something by the end of next week," Terry Gillen, senior adviser to Mayor Michael Nutter for economic development, said Thursday morning. Gillen was also clearly pleased with a letter the city received last week from the Design Advocacy Group in support of relocation to the Gallery.

DAG is an organization of architects, planners, preservationists, builders, and others whose mission is to promote design excellence in the region. "A big design group has weighed in that this is a good move. We're happy about that," Gillen said.

Anyway, if you really think this,

So, there is reason to be concerned about the impact of a slots parlor on the area where it is located, but there's no reason to make a fetish out of opposing it. It's just a business.

... we probably will not be coming to an agreement.

I agree that should be a

I agree that should be a concern, but that is it?

I think that when considering whether to approve an economic development proposal, yes, transportation issues should be the first thing you focus on. The extra traffic on Columbus Ave. - and the resulting effect on other businesses and the Pennsport neighborhood - was the most powerful argument against locating Foxwoods there. As far as I can tell, there was no way to negotiate away that concern.

And, do you get to decide that, or should the residents of the neighborhood?

Please, don't be juvenile. I intend to make up my own mind about what is important. What about you?

There are people in Philadelphia who are opposed to a slots parlor no matter what, some from sincere belief and some because they've gained a measure of influence from opposing the projects and the (clearly heavy-handed and stupid) way the locations were picked. There are also people who believe that individual neighborhoods should have veto power over anything that can potentially affect that neighborhood, no matter what. Both of those beliefs are the antithesis of city planning, however, and having a plan is what the city needs.

You aren't the first, and

You aren't the first, and will not be the last person who called me juvenile. But coming from someone who talked about a community's opposition to casino as a fetish, it is particularly amusing.

I wasn't talking about

I wasn't talking about community members. (I don't recall people in Chinatown being up in arms about the Pennsport location for Foxwoods, for example, just as members of the Queen Village Neighbors Association probably don't care about the Gallery spot.) You seem very ready to use the perfectly understandable anxiety of community members to stifle discussion of the merits of the proposal.

I am talking about activists and politicians who don't live in the affected areas who garnered a following by being against the ham-handed, suspicious way the original sites were approved, but who now are against locating the businesses anywhere no matter what. These people may sincerely believe what they say, in which case they're being foolish, or they're just securing their base of support, in which case they're lying.

Personally, if a lot of people called my actions juvenile, I would think about it rather then expressing pride in those actions.

The residents can scream all they want,

but the 450MM budget deficit that is more likely to be 1BN will scream a lot louder than the NIMBY groups.

All the more reason to get it right

Whether its at the airport or The Gallery, the bulk of the impact on the city of Philadelphia's budget will be very short term - i.e. wage tax on the construction work of building/setting it up. Building new at the airport is more wage tax than converting a department store.

The gambling tax revenue gets dispersed across the state or pumped into Convention Center construction both which have deep budget holes or are way, way overbudget themselves currently.

Planning to do it right, weighing in the economic costs of gambling addiction, the extra police and traffic costs, the very real possibility that the casino if done poorly could hurt, not help tax revenue from surrounding businesses - all of that means that if it goes in The Gallery it should be done right or that we should look carefully at the economics of the quick cheap option of switching to the airport.
-Sean
MrLuigi, my cat, actually only types half as badly as I do.

Bringing new visitors to

Bringing new visitors to center city means higher personal income and more tax revenue, if those visitors also use other businesses like restaurants and hotels. If those visitors only spend money at a standalone location, there is no such effect.

Secondly, the beneficial effect on mass transit should be quantified. It's not just the case that the Gallery location would decrease the impact of additional car traffic (which the Pennsport, navy yard, or airport locations would not). It's also that additional ridership on buses and trains means additional revenue for those transit agencies - requiring a smaller tax subsidy - and, to the extent additional service is added to meet the demand, fewer people relying on cars to get to and from work in center city.

Mayor Street commissioned a study

Back when the slots parlors were first put on the table. They were considering the Girard Trust building across the street from the Gallery at that point. The commission found that most of the traffic for the slots parlors would be from nearby burbs and older and that many would choose to come by car anyway. The found the two best locations in terms of revenue would be on different locations convenient to traffic coming along I-95 or the Schuykill Expressway. There was some consideration that a downtown location could make use of mass transit but that a sizable amount of folks would come by car anyway.

The report specifically criticized the gaming industry's numbers in terms of not taking into account the social costs of gambling addiction.

In terms of economic benefit to surrounding businesses, a lot of people make faulty assumptions. Casinos by nature are designed to capture people inside the casino and keep them there. From the "well" design and the lack of clocks and windows, that idea of keeping the people in is essential to casino design. The big trend in gaming these days is "rewards" systems where customers that come to gamble earn a small amount of credit for the money they lose gambling towards meals and comped hotel stays in the casino itself. The whole idea, as well the idea of entertainment venues inside of casinos, is to include other features the gambling can subsidize as a loss leader to keep customers inside the casino itself. Its also why casino buffets tend to be a good deal - the casino pumps money into the restaurant to keep the customers inside the casino so they get every possible dollar the people coming to the casino are going to spend.

Because the casinos are willing to lose money on the entertainment venue and the food inside the casino itself to keep people inside and be an "all-inclusive destination", they tend to actually have a significant negative effect on surrounding dining and entertainment options over time, at least in the "riverboat gambling" operations that are more comparable to what Philly is getting.

Casinos, in short, are lousy "corridor builders" generally in terms of economic spillover to other businesses. One might for example ask locally how the Harrah's slots parlor in Chester has impacted business in Chester's struggling downtown. By virtually all accounts, besides the traffic, the economic "spillover" has either been either non-existant or negative.

-Sean
MrLuigi, my cat, actually only types half as badly as I do.

Thanks, I'll have to try to

Thanks, I'll have to try to find the commission's report. If you know, how did they conclude that people will drive rather than, say, take regional rail from the suburbs? I wonder if there are existing slots parlors that are located on major subway, rail and bus stations that would show whether people take mass transit. Also, I think slots attract an older crowd than table games, so you'd have to look at whether there are differences in how slots players travel- it used to be that the A.C. casinos would give a free bus ride and roll of quarters to slots players, and it was a pretty popular program. I was thinking that part of negotiations could be a requirement that the slots parlors subsidize visitors who use mass transit.

I also take your point about casinos being designed to keep players inside. Again, we know this is usually true, but can we negotiate requirements that will get slots players out to neighboring restaurants? We could forbid onsite full-service restaurants, and in any case there will be no casino-run hotels, so people who stay the night will have to leave the place eventually.

I don't know how to take into account the gambling addiction issue. I mean, we're less than an hour from multiple casinos and slots parlors. Are we talking about a localized effect on Chinatown and Wash West? If not, is another slots parlor really adding to the problem regionally?

sorry bout all the typos

I should read what I write sometimes...

DAG's Casino Letter

Dan,
DAG has not "already come out big for Foxwoods," as you assert. Perhaps you have not read DAG's letter to the Mayor. However, please stop distorting the facts on this matter. DAG has not come out for or against this proposed casino location.

In its letter, DAG wrote that it "welcomes the decision by Foxwoods Casino to consider a site at the Gallery" and that "This location offers many important advantages for both the casino and Center City, where the new facility can take its place among nearby hotels, shops, and restaurants, and where excellent public transportation is already in place."

However, then the letter says, "We believe that the success of this project will depend on good process and good design. Any site considered for the casino must go through a thoughtful and open vetting process, and the design must be carefully shaped and rigorously reviewed."

Enclosed with the letter are four pages of urban design evaluation criteria, that DAG recommends for assessing the casino's proposed new location, from a design standpoint. DAG is a design organization, and it deals with design issues.

However, by no means has DAG endorsed a site or a design. It has simply written to the Mayor that it welcomes further discussion on this new site and advocates for a strong evaluation on design issues.

You can read the full letter here on DAG's website:
http://designadvocacy.org/docs/2008.09.15_Foxwoods_Letter_to_Mayor.pdf

Might DAG's letter be too nuanced

for the average person to understand that it didn't welcome the site? I mean after all the article in question claims:

"We really do welcome this. This is a remarkable option for the city," said DAG vice chairman David Brownlee in a phone interview this afternoon.
But he and fellow vice chairmen George L. Claflen Jr., who was also part of the phone call, said while their organization has endorsed the site, much hinges on the design.

If DAG isn't endorsing the site but allows Terry Gillen to wave the letter around and then allows media to trumpet that call as well, wouldn't it behoove the board to issue clarifying remarks to their letter, to the City administration and the media?

In addition, planning and process I would hope would be as important to DAG as any design concept any architect could or would draw to sell the site. The DAG letter, regardless of what was intended, is clearly being manipulated by the City. So if it's not true, is the DAG board planning to clarify what it meant by the letter and the City's use of it?

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