Union Petitions Petersburg for Disclosing Selection Process of Cordish for Casino
The local labor union Unite Here Local 25, which represents workers in casinos, hotels, and restaurants in Washington DC, Maryland, and Virginia, is threatening legal action against the Petersburg City Council. This comes after concerns emerged over the council's decision to choose The Cordish Companies as their preferred casino developer partner.
The council members are under fire for their seemingly clandestine selection of Cordish, the operator of Live! casinos and mixed-use developments across the United States, as their casino partner. Transparency issues are mounting, and Unite Here Local 25 is demanding full disclosure of how the council arrived at their decision.
The actions of the City of Petersburg reveal a flagrant disregard for the law and democratic norms. Petersburg had initially started a competitive Request for Proposal (RFP) process that should have been conducted in the open and fairly. But instead, the City Council appears to have misused a closed session to discuss the choice of the casino operator. Residents of Petersburg deserve open governance, but it seems the City Council is disregarding that right.
The union is demanding the disclosure of all documents and communication relating to the process. If the council refuses, Unite Here has warned that a lawsuit will be filed.
Trouble in the Making
Petersburg's casino RFP garnered interest from six respondents: Cordish, Bally's, Rush Street Gaming, Penn Entertainment, Delaware North, and The Warrenton Group.
It was assumed that the bidding process was just beginning when the council surprised everyone by announcing Cordish as the winner last week. Further investigation revealed that the seven Petersburg councilors had initially chosen Bally's as their preferred operator. A draft letter of intent was even prepared, but it was never sent to the casino company in Rhode Island.
Cordish has had strained relations with labor unions. Unite Here claims the Baltimore-based company that runs Live! Casino & Hotel Maryland and two Pennsylvania casinos under the Live! brand has not been favorable towards organizing attempts at its casinos and entertainment districts.
The press release from Cordish and co-developer Bruce Smith Enterprises made no mention of union jobs while promoting the proposed $1.4 billion mixed-use development anchored by Live! Casino & Hotel Virginia, which is expected to create "over 7,500 new construction and permanent jobs."
The Lawsuit's Focus
Unite Here states that its threatened lawsuit is not about Cordish opposing the labor union, but concerns the city's alleged lack of transparency and violation of the Virginia Freedom of Information Act (VFOIA).
In a statement, Unite Here Local 25 lawyer Paul More wrote, "On April 24, 2024, the City Council held an unlawful closed door session at which the Council discussed a consultant's report on the Request for Proposals, decided to withdraw the long-planned RFP, and rescinded its previous decision that Bally's Corporation would be the preferred casino gaming operator. Unite Here believes — and will demonstrate — that the City Council's violations of VFOIA were willfully and knowingly made."
The council's actions on April 24, 2024, at the Petersburg Public Library raised eyebrows when councilors abruptly left without answering questions from the media or issuing a statement on how the outcome was decided.
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Source: www.casino.org
