Norfolk Seawall's sovereign wealth fund relies on HeadWaters casino opening
Norfolk will soon begin construction on a $2.6 billion project to better protect the city from coastal flooding caused by nor'easters, hurricanes and other major weather events. The majority of the project is funded by the federal government, with 35 percent (an estimated $910 million) coming from state and city funds.
Virginia's governor said this week as he unveiled his budget. Glenn Youngkin (right) surprised Norfolk officials with a commitment of an additional $21 million in state funding to the city’s coastal storm risk management program. The $21 million is in addition to nearly $74 million that the Youngkin administration has already committed to infrastructure projects.
A condition of the additional funding, however, is that Norfolk won't receive it until the city's casino finally opens. In the November 2020 election, Norfolk voters approved a more than $500 million commercial casino resort created by the Pamunkey Indian Tribe in partnership with billionaire Jon Yarbrough.
The destination, to be called HeadWaters Resort & Casino, will be built along the Elizabeth River adjacent to the city's Harbor Park minor league baseball stadium.
The tribe and Yarbrough this week unveiled a new proposal for the casino resort that would move the development slightly inland from the river. Project spokesman Jay Smith said the change was due to the seawall project.
Norfolk Casino Concept
The Norfolk Coastal Storm Risk Management Project is a partnership between the city and the U.S. Marine Corps. Army Corps of Engineers. The multi-year project includes the development and implementation of storm mitigation measures through structural barriers such as levees, ecological shorelines, pumping stations and levees.
The Infrastructure Investment and Jobs Act signed by President Joe Biden in November 2021 launched the project with $400 million in federal funding.
Youngkin is prepared to provide more government funding to help Norfolk undertake its share of the project. But he'd like to see HeadWaters open first. The project was repeatedly delayed due to design setbacks.
The tribe originally proposed opening a Seaport Park Temporary Casino on approximately 13 acres of the stadium's parking lot while the resort was under construction.
However, legal issues have raised concerns because Virginia regulations that would allow Norfolk to consider a commercial casino require that the temporary casino can only operate at the "same location mentioned in the referendum." In a 2020 referendum, Norfolk voters approved building a casino "on land east of Harbor Park Stadium."
A phased development of the project was subsequently proposed. But the city's response at the time was to require the entire resort to be built at the same time as the casino.
Smith said HeadWaters had to change its construction plans again because of the seawall project. The project will be constructed from north to south, with the casino not opening until the hotel and resort facilities are completed.
Casino first, then money
Youngkin made no mention of Norfolk Dam in his budget speech. However, details of the project's $21 million in overfunding are detailed in the 669-page spending plan.
Youngkin said the city may receive additional funding in addition to the $73.85 million allocated next year for the Norfolk Coastal Storm Risk Management Project.
The Secretary of the Treasury is authorized to provide additional federal assistance to the city through a $21,000,000 state loan to further promote the non-federal gaming industry, provided the city receives revenue from the casino-gambling companies used. ” The budget is.
A spokesperson for Youngkin told WAVY that the casino was conditioned to "maximize economic development associated with the federal government's continued investment of taxpayer dollars in the project."
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Source: www.casino.org
