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City Hall• 27 Pine Street • Lewiston, Maine • 04240 • Voice Tel. [PHONE REDACTED] • Fax [PHONE REDACTED] • TTY/TDD [PHONE REDACTED] www.ci.lewiston.me.us City of Lewiston, Executive Department EDWARD A. BARRETT City Administrator April 25, 2011 TESTIMONY IN SUPPORT OF LD 985 – AN ACT REGARDING ESTABLISHING A SLOT MACHINE FACILITY Senator Farnham, Representative Beaulieu, and Members of the Joint Standing Committee on Veterans and Legal Affairs: My name is Ed Barrett, I am the City Administrator of the City of Lewiston, and I’m here today to speak in favor of LD 985. The City of Lewiston today is not the City of Lewiston of twenty or thirty years ago. Over that time, Lewiston and our region have faced the significant economic challenge of transitioning from an industrial center to a service center and logistical hub. These challenges have been significant. Lost jobs had to be replaced; the skills of our workforce modified; underused or vacant mills and buildings rehabilitated or removed; brownfields cleaned; blighted housing addressed; new private sector investment encouraged. We have made progress, but it has not come easily and significant challenges remain. Virtually every private investment that has occurred has required some form of City assistance in such areas as land acquisition and clearance, infrastructure development, or Tax Increment Financing. The City has made these strategic investments, but they must be paid for over time. As a result, Lewiston has among the highest property tax rates in the state. When median income is taken into account, we also have one of the highest property tax burdens. Recently, we’ve also seen additional property tax burden as a result of the state’s budget problems. This year, Lewiston received $1.5 million less in revenue sharing than called for by the distribution formula. For next year, we anticipate that this will increase to $2 million. The business equipment tax exemption will reduce City property tax revenues by an estimated $200,000 next year with State reimbursements continuing to decline annually until the constitutionally required 50% level is reached where we will receive at least $400,000 less. The most recent changes to the homestead program reduce our reimbursement by ---PAGE BREAK--- City Hall• 27 Pine Street • Lewiston, Maine • 04240 • Voice Tel. [PHONE REDACTED] • Fax [PHONE REDACTED] • TTY/TDD [PHONE REDACTED] www.ci.lewiston.me.us about $200,000 per year. As state funding falls, personnel and services are cut and property taxes increase. The proposed casino in Lewiston addresses some of these problems. It will create jobs with livable wages and benefits, jobs matched to the skills of our residents. It will provide revenues, both through new property taxes and gaming, funds that will allow us to continue to make the strategic investments necessary to complete our transition to today’s economy. As the City Manager in Bangor, I saw firsthand the impact of Hollywood Slots. It created jobs – both at the facility and throughout the economy. It brings visitors to the community who contribute to the economy. Revenues from Hollywood Slots have been invested in a tremendously successful waterfront redevelopment project and have been set aside for a new Arena and Conference Center, projects that further the economy of the Bangor Region. While renewed growth and vitality have come to Bangor through a variety of efforts, Hollywood Slots has made an important contribution. Its impact on Bangor has been overwhelmingly positive. The same came happen in Lewiston. The City and Great Falls Recreation have worked closely together on this project, including an agreed upon purchase option on the city-owned Bates Mill an historic structure that was within weeks of demolition at a cost of $800,000. Not only can this project preserve and redevelop this property, it will do so in the heart of our downtown and within our waterfront redevelopment project area, an area that we believe offers great promise for our future. Through this option agreement, the City has an important role in the future of this project. In addition, Great Falls has agreed to establish a seven member task force to select the company to operate this facility, only three of whom will be associated with Great Falls. This will allow that the City and community to have a role in the selection process, ensuring that the benefits to our community can be safeguarded and maximized. This project is important to the City of Lewiston and our future. I urge your support of LD 985.