In a move that will further delay the progress of the Foxwoods SugarHouse Casino in Philadelphia, the new Mayor of the city has reversed a decision made by his predecessor. Mayor Nutter took office three weeks ago and yesterday he revoked a city licence awarded by former Mayor John Street for the construction of the US$550 million slot machine venue on the banks of the Delaware River.

In agreement with new City Council legislation but putting himself in opposition to state Governor Rendell, Mayor Nutter insisted that the issue was not just about money but about proper process after an ‘unnecessarily rushed’ agreement had led to a licence being ‘issued in error.’ Several independent studies on traffic, economic impact and other concerns will be required before a licence to build is granted. SugarHouse has said it will contest the decision and expects the city to honour its contractual obligations.

One problem with the SugarHouse project concerns the use of riparian lands – the areas beneath the Delaware – where the developers are planning to extend the casino. Opponents to the casino have cited a 1907 law that contends that the city has no rights over matters concerning the state owned land. A lawsuit by state legislators is now pending in the Pennsylvania Supreme Court.

It remains an uphill battle for Foxwoods to get its SugarHouse Casino operational. Legislation has been introduced that could add more problems. It calls for Foxwoods to reach agreement with surrounding neighbourhoods to fund a non-profit entity to make local improvements. It also would only entitle the company to Commercial Entertainment District zoning for its casino if Foxwoods meets a range of conditions including further impact studies. (E-01.25.08)

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