Saturday, November 14, 2015

Owners of 2nd Phila. casino commit to minimum wage, diversity & more



Owners of Philadelphia's second casino have announced agreements with the city that includes being more inclusive toward minorities, a commitment to giving workers minimum wages and working with local universities.


Live! Hotel and Casino last November won the city's second and last Category 2 standalone license. Its parent company, Stadium Casino LLC — a joint venture between Cordish Cos. and Parx Casino owner Greenwood Gaming and Entertainment Inc. — on Thursday announced a committment to four key initiatives.
Inclusion, diversity local economic opportunity

The first agreement Stadium Casino made with the city is the Economic Opportunity Plan that calls for:
  • 47 percent to 58 percent of construction contractors to be minority business and women businesses
  • 50 percent to 60 percent post-construction professional services and suppliers to be minority and women businesses
  • 42 percent to 50 percent of the construction workforce to be minority.
  • 50 percent of the permanent workforce to be minority and 40 percent to be women.
  • 60 percent of the construction and permanent workforce to be local residents and 85 percent to be state residents.
The Cordish Cos. have come under fire over alleged discrimination against African-Americans, although leaders of the local NAACP chapter and other civil rights groups have called the accusations bogus.

Stadium Casino also announced it would report to a diversity advisory board in order to facilitate compliance to the Equal Opportunity Plan.

The company said Councilman Kenyatta Johnson will announce the board members at a later date.

“The Stadium Casino agreement with the city is transformative and sets a new gold standard for inclusive economic development in the city," Steven Bradley, chair of the African-American Chamber, said in a release.

Living wages

Stadium Casino also announced it would commit to a minimum wage of no less than $12 an hour for all contractors during operations. That rate went into effect for all city contractors earlier this year, but contractors based outside the city limits were not required to pay the $12 wage.
The company said the construction process would generate 3,000 jobs, resulting in about $145 million in estimated new wages and salaries during construction, which will be all union. The casino should also create 2,000 permanent jobs, according to Stadium Casino.

The company said about 750 of the permanent jobs will be associated with table games, with an estimated average total compensation of about $70,000 a year, including tips.

Stadium Casino said it's signed Community Benefits Agreements with five community groups in the neighborhoods surrounding the casino site, which will establish a community charitable fund amounting to a minimum of $15 million in grants from the project to local communities during construction and the 20 years of operation.

The grants will be administered by the community advisory board, Stadium Casino said. The company added it would also partner with local schools to create training programs for prospective casino dealers and other hospitality workers at the casino.

Commitments include job fairs, local job placement workshops, online job postings, job matching and recruitment services, and community college and university partnerships for job placement.

The casino in early October got the majority vote from the city planning commission after adjustments made to the master plan, including eliminating two large-scale digital billboards.
The revised master plan for the $500 million project was a result of a letter received in August to address four topics, Eric Rahe, principal at BLT Architects, said in the October meeting.
Plans for the South Philly casino are pending final gaming approval from the Pennsylvania Gaming Control Board, although the developer is dealing with several other issues that are putting a wrench into construction.

During the October meeting, Alan Greenberger, deputy mayor for economic development and director of commerce, addressed an appeal filed against the Gaming Control Board’s decision to award the casino license. It's related to the licensure itself to turn on gaming machines and run table games, Greenberger explained.

The state Supreme Court will review the appeal before making a decision.
Members of the National Action Network were present at the October meeting, reiterating their findings that Cordish Cos. discriminated against African-American workers.

Richard W. Hayden, attorney of Saul Ewing representing Live!, said in October the companies' studies found contradictory results and that NAN's allegations had no merit.

About Live! Hotel & Casino

Live! Hotel & Casino, located at 900 Packer Ave., will include a 2 million-square-foot facility with a Las Vegas-style casino floor, featuring more than 2,000 slot machines and more than 125 table games.

The property will also include an 18-story hotel, spa, valet parking and a seven-story, 3,000-square-foot parking garage. It will also have restaurants, entertainment venues and other amenities.
The casino-hotel is expected to generate gross gaming revenues (table and slots) of more than $300 million a year and more than $1.6 billion during its first five years of operation. It will generate about $130 million in state and local taxes.

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