John Byrne and Jon Seidel, Post-Tribune staff writers
jbyrne@post-trib.com; jseidel@post-trib.com
INDIANAPOLIS -- Gary's two casino licenses are back in play in the Statehouse, with legislators trying to broker a late session deal that could culminate with the creation of a land-based casino near the Borman Expressway or a riverboat in the Little Calumet River. The deal could also transfer a gaming license to another part of the state.
Several lawmakers confirmed Wednesday that behind-the-scenes talks focused on Gary's Don Barden-owned Majestic Star casino boats are heating up with two weeks left in the legislative session.
But Gary Mayor Rudy Clay urged caution and community input as the legislators consider any movement of the two casinos the city has enjoyed since 1996.
Gary's representatives in the Statehouse said they are open to the idea of giving up one gambling license if the other can be applied to the state's first land-based casino, on the south side of the city near Interstate 80/94.
They insist any deal must include significant economic development payments to Gary from revenue produced by the casino that moves out of the city.
Local lawmakers said they have discussed several specific projects they want funded in exchange for giving up the casino, among them a teaching hospital at Indiana University-Northwest; regional shoreline development and clean-up; and an extension for the South Shore commuter rail line.
"Our desire is to stabilize what's happening in our community, and these projects provide a strong possibility for doing that," said Rep. Vernon Smith, D-Gary.
Sen. Earline Rogers, D-Gary, said the city needs to try to strike the best deal possible, because officials from elsewhere in the state have their eyes on the licenses.
"I think all of us realize it's only a matter of time before Gary loses one of its licenses," Rogers said.
Gary is the only city in the state with two casinos, Majestic Star I and II. Barden's financial problems have heightened the interest in the potentially lucrative licenses in recent years, with Fort Wayne and Steuben County making unsuccessful bids to acquire one of them during the 2008 legislative session.
Senate President Pro Tem David Long, R-Fort Wayne, said there is broad support in the General Assembly for allowing Gary to move one of its licenses within the city.
One proposal has a casino boat being built in the Little Calumet River near the Borman, Long said, which could be accomplished by the state Gaming Commission without amending state law. That would likely leave Buffington Harbor on Lake Michigan without a casino boat if a license is transferred and a boat is moved to the Little Calumet River.
"I don't have any problem -- nor do I think anyone in my caucus has a problem -- with helping Lake County try to maximize its profits from its boats," Long said.
But as for the other license leaving Gary, Long insisted it's premature to speculate on Fort Wayne's interest.
"As far as what happens to the other one, I think that's still pretty speculative right now, and it just depends on a proposal coming from Lake County, and I suppose the terms and conditions and what-not," Long said.
With the end of the session looming, however, Long said negotiations are "moving quickly" on possible deals for the licenses.
Nonetheless, legislators will be hard-pressed to reach agreement on such an ambitious plan before the session ends April 29, said Rep. Earl Harris, D-East Chicago.
Harris hopes to secure money from the casino sale to subsidize the Shoreline Development Commission, a board he created with authority to clean up and develop the lakefront.
"That would be nice, but it's a lot to get done in a very compressed time frame," Harris said. "But never say never."
Clay said the negotiations for the casino license are moving too quickly.
Clay confirmed that he's "been talking to some people" about the possible move, and said a teaching hospital or land-based casino are "on the table."
He insisted he has not signed off on any deal to move one of Gary's licenses, though, and said "the people of Gary must be involved in this."
"I don't want to move a license or support moving a license until I talk to the people of Gary, Indiana," Clay said.
Clay suggested the General Assembly should slow down on any deals, pointing out that there are just a few weeks left in the 2009 session.
"They're doing the Macarena, and I'm saying, 'Let's waltz a little bit,'" the mayor said.
And Barden himself denied any knowledge of an impending casino deal.
But Rep. Charlie Brown, D-Gary, said local lawmakers may need to move forward if they get a good deal for the city.
"There has to be some kind of significant quid pro quo," said Brown, pointing to the teaching hospital as the key component in any deal.