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Ohio House OKs bill for racino payments, heads to Kasich for approval
By ROBERT CONNELLY
AUSTINTOWN
The Ohio House on Wednesday concurred 79-4 on House Bill 494, which included an amendment specifying $500,000 payments to local governments for the racinos in Austintown and Dayton.
The bill now needs only the signature of Republican Gov. John Kasich to be approved.
“We are deeply disappointed that the General Assembly chose to levy what amounts to a new state tax that applies only to our company in its efforts to get additional funds to Austintown Township,” said Bob Tenenbaum, spokesman for Penn National Gaming Inc.
A spokesman for Kasich did not comment Wednesday night, but said the governor’s office would comment once the bill is in front of him.
Tenenbaum went on to point out the $150 million in relocation fees that Penn National will pay over 10 years into a relocation fund for moving tracks to Austintown and Dayton, from Grove City, Ohio, and Toledo, respectively.
“Levying this new tax on us is, in our view, unfair and totally inappropriate. We are continuing to review our legal options should the governor sign the bill into law.”
State Rep. Kirk Schuring, R-Canton, was the lead sponsor of HB 494, which primarily dealt with local government issues. He said the bill allows “counties to partner and use collective resources to join with ODOT [Ohio Department of Transportation] to build regional highway projects.”
Schuring addressed the racino amendment to the bill, which passed the Senate unanimously Dec. 10.
“There’s some controversial things in this particular amendment, but I have told the interested parties I’m committed to working with them. ... [I] have support of the Senate sponsor to work in that endeavor.”
State Sen. Bill Beagle, R-Tipp City, introduced the amendment last week and worked closely with Senate Minority Leader Joe Schiavoni of Boardman, D-33rd, on this issue. State Rep. Ronald V. Gerberry of Austintown, D-59th, was a member of the committee that sought an annual payment, earmarked 50-50 for capital and infrastructure upgrades and general-fund use.
The amendment stipulates that only the tracks in Austintown and Dayton — Hollywood Gaming at Mahoning Valley Race Course and Hollywood Gaming at Dayton Raceway — get the $500,000 payments but just for the next three years. The first payment is due Dec. 31.
The payment will be split, $250,000 coming from Penn National — the operator of both facilities — and $250,000 from the track-relocation fund.
“I’m really impressed by Schiavoni and Beagle and their willingness to work in a bipartisan effort for their communities,” said Nan Whaley, Democratic mayor of Dayton.
“I’m excited and thankful for all the work that Ron Gerberry and Joe Schiavoni did for all of Austintown. I hope this will calm the relationships between our delegation and Penn National,” said Ken Carano, Austintown trustee.
Carano said Austintown had not decided on what to do with its first payment but will have meetings with its police and fire departments and the racino. He said the first $500,000 would be put into a contingency fund within the township’s general fund.
“What we would like to do is freeze that money in particular for situations that concern the racino, but certainly for things” as they come up, Carano said.
Whaley said Dayton had put its $500,000 as part of its budget. “We’ve seen a large cut from the state, nearly 10 percent of our budget from the state,” Whaley said. “We’ve had to use those dollars to help the police department and fire department and to provide the quality our community deserves.”
Both were asked why there had not been meetings between Penn National, Kasich’s office and their municipalities before just weeks ago as the deadline of Dec. 31 quickly approached.
“We didn’t want to step in and supersede the talks between the governor’s office and the racinos,” Carano said. “We sent a number of letters and a number of phone calls prior to the meeting that we just had [weeks ago].”
“I really have no idea because I never pretend to understand the workings of Columbus,” Whaley said.
Gerberry, Schiavoni and Beagle have all said they will revisit the issue of how long the payments should be for in the spring.