Urban One’s Bet On A Richmond Casino Goes To Voters On Tuesday.

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Urban One’s proposal to build a Richmond, VA casino faces a key hurdle next week when residents in the city will cast their votes on whether to allow the 100-acre complex to be approved. The One Casino and Resort would cost an estimated $562.5 million to build with the sprawling complex becoming home to a casino, a 150-room hotel and a dozen bars and restaurants. The developers expect to hire about 1,300 employees and bring 3.7 million tourists into Richmond each year.

“We’ve polled four times this year and it shows the majority of Richmonders are supportive of casino gaming and entertainment complexes and the benefits it brings,” said Urban One CEO Alfred Liggins. “That’s encouraging, and oddly enough, the polling has been frighteningly consistent,” he told Richmond BizSense.

Despite those poll numbers, it is not a sure bet that that the Nov. 2 referendum will be approved. With Virginia’s hotly contested gubernatorial race expected to bring out a large number of voters, there is an added sense of uncertainty.

A survey released earlier this month by a group against the casino called Richmond For All found 45% opposed the plan, 30% backed its construction, and 25% were undecided. Sen. Tim Kaine (D-VA) voted early and his office said he was among those against the plan. “He believes there are better ways to enhance economic development in Richmond,” his reps said.

Liggins said if his company’s efforts to convince voters come up short, it does not mean the project will be dead. Instead, he expects the city and state would likely look for an alternative site.

“I do not believe that the General Assembly and the governor will want to leave Central Virginia without a gaming opportunity,” said Liggins. “The state has decided this is good for the state from a revenue generation standpoint.”

Urban One and partner in the One Casino and Resort, Peninsula Pacific Entertainment, estimate the casino will generate as much as $170 million in tax revenue in its first five years.

If voters approve the plan, Liggins told Richmond BizSense, they will submit an application for a gaming license to the state by Dec. 15 and they will close a deal to buy the land in the city’s gritty Southside neighborhood from Phillip Morris by year-end. If all goes as planned, Liggins said they expect to be begin preparing the site in the spring with construction set to begin by next July. The casino is slated to open in 2024.

Liggins has said he expects Urban One will be responsible for about $100 million of the investment and will own 85-90% of the entity when the project is completed. When asked how the money would be raised, he said they expect it will be through the public debt markets – a financing avenue he noted other casino projects have taken. “We’re working with Credit Suisse and Bank of America, who’ve provided us financing commitments to go out and raise that debt,” he said.

Using Radio To Sell Casino To Voters

One pitch to potential voters is the One Casino and Resort would become the only Black-owned casino in America. The Silver Spring-Maryland based company owns five radio stations in Richmond, including adult R&B “105.7 Kiss FM” WKJS, the “ESPN Richmond” simulcast of WXGI (950) and WTPS (1240), hip-hop/R&B “iPower 92-104.1” WCDX, and gospel “Praise 104.7” WPZZ.

Urban One has been using the reach of its radio stations to promote the project. That includes running ads on its radio stations. It also created a 47-minute video featuring Liggins and Urban One founder Cathy Hughes and posted on station websites that addresses many of the questions and concerns they have been raised during the campaign.

“The idea that there’s organized crime in the casino business is a remnant of a 1950s bygone area,” said Liggins, addressing concerns about crime. “It’s the most regulated business in the entire country,” he said.

Liggins also noted that Urban One has a deal with Richmond to give 10% of the casino’s revenue to the city in addition to any property, sales and hotel use taxes that are due. It is why he says the project will pay $50 million per year to Richmond that won’t need to be shared with the county or state. “This is a new pot of money,” said Liggins. He also committed to meeting minority hiring goals set by the city.

Urban One is already in the casino business. It owns a seven percent stake in MGM National Harbor in Prince George’s County, MD.

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