Innovative Funding Deal Cuts Both Ways

Here is an innovative approach to EDO funding, but one that cuts both ways in terms of public reaction.

Northampton County, Pennsylvania administrators propose channeling $400,000 a year to a consortium of Lehigh Valley business leaders if state legislators approve a racetrack and casino in Palmer Township. The Lehigh Valley Economic Development Corp. would get 20 percent of the $2 million "host fee" collected by the county from the proposed horseracing track and slot machine parlor. On the surface, this sounds all fine and good, but read on.

This is a complex situation because of politics and different views about the proposed deal. LVEDC President Raymond Suhocki denied that the deal might create a perception that the LVEDC was being paid for its support of the track by the county, which stands to earn at least $2 million annually.

"The issue of supporting the racetrack was always discussed separately from the finances of the racetrack," Suhocki said. "You have to do it. It can cloud the issue."

Gambling remains controversial in most states, even where it is very commonplace, like in Las Vegas. It is an important revenue source for state and local government, which has spurred several places to "place their bets" on gambling as an economic engine. In one word: "careful!"

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