Philadelphia Center-Right Coalition Nov. 12 (Norquist/Freind)

Friends,

I am pleased to inform you that Philadelphia has been selected to host a monthly Center-Right Coalition meeting, following the hugely-successful model of Grover Norquist, President of Americans for Tax Reform (ATR). We will be one of the few non-state capital cities to have such a gathering.

The kick-off meeting, which I will be hosting, will be Thursday, November 12 at the Union League in Philadelphia, with Mr. Norquist in attendance. Light refreshments will be served at 7:00 AM, with the program going from 7:30 to 9:00. The Union League is located at 140 S. Broad Street, just two blocks south of City Hall.

In Grover’s words, the objective is “to get everybody who is center-right to tell each other what they are doing, to share technology and tactics, and to tell stories” regarding issues facing Pennsylvania and the nation.

One key function, according to ATR, is to facilitate collaborative activities of coalition members, many of whom may have not previously known one another, and foster the potential for mutual cooperation.

The rules are simple: Anyone who so desires may speak for three minutes on current initiatives, answer questions, and pass the microphone to the next speaker.

The only prohibition is whining. It is a positive meeting, one that will unify southeastern Pennsylvania.

Attendees will typically include influential political, business, policy and grassroots leaders.

If anyone who would like several minutes on the agenda, please let me know.

You are encouraged to bring any literature for distribution.

I hope to see you next Thursday.

For future reference, the monthly meetings will be held on the FIRST THURSDAY of each month at the Union League, with the same time format as above.

Feel free to invite colleagues and associates. All meetings are off the record.

Steadfast,

Christopher Freind
“Freindly Fire”
Audaces fortuna iuvat
610-659-0098
christopherfreind@hotmail.com (E before I in Freind)
CF@FreindlyFireZone.com

 

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Table Games!

We welcome our new table game overlords.

Legalized table games part of the deal. 25 cent cig tax increase, too. #pabudget

I always thought that was only a matter of time.

 

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Stopping Campaign Contributions by Casino Owners

Written by Roberta Biros

On May 1, 2009, I wrote about the recent decision by the Pennsylvania Supreme Court to overturn a five-year old ban on political campaign contributions from casino owners and executives [read the full story HERE]. The law was originally established in order to prevent any possible impropriety (or the look of any impropriety) from the relationships between casino owners and lawmakers. The April 30th decision by the PA Supreme Court ended the ban contributions on the basis that it “violated the state constitution’s guarantee of free speech”.

Luckily, I was not the only one outraged by the ruling. Representative Curt Schroder (R-Chester County), Republican chairman of the House Gaming Oversight Committee has been all over this issue, and he was quick to respond. In a press release on May 1, Representative Schroder said:

“Act 71 clearly banned all political campaign contributions by gaming interests. However, in its decision in DePaul v. Commonwealth of Pennsylvania, the court
elected to base its decision on introductory language in the act that referred to the danger of large campaign contributions by gaming interests,” said Schroder. “Because the statutory section of the law prohibited all contributions, the court said the statute violated the preamble. A first year law student would understand the actual statute overrides introductory language. The court removed the only true public protection portion of the gaming law.”

In a rapid preventative measure on May 4th, Representative Schroder and Representative O’Brien (D-Philadelphia) came out and asked members of the “General Assembly to refrain from accepting political campaign contributions from gaming interests while legislation is pending to restore a state ban on the contributions.” Representatives Schroder and O’Brien are hopeful that the self-imposed moratorium will prevent contributions during the time required to put the ban back in place.

Also on May 4th, Rep. Schroder and Rep. O’Brien announced that they would co-sponsor House Bill 1440, which is designed to reinstate the ban [watch the announcement video HERE]. Although the full text of the legislation is not yet available on-line, the basis of the Bill is actually quite simple. The Supreme Court rejected the ban on contributions because the preamble of legislative intent of the Act spoke to only ‘large’ contributions. Upon review, the Supreme Court felt that the Act went too far by banning ‘any’ contribution. To correct this, House Bill 1440 simply removes the word ‘large’ from the wording of the preamble so as to not unfairly limit the legislation.

The lifting of the ban on campaign contributions by the PA Supreme Court was a travesty. I’m relieved to see that there are some lawmakers in Harrisburg that are willing to keep a close eye on the process to prevent corruption before it can begin. I only hope that House Bill 1440 turns around quickly enough to stop the flow of money . . . because we surely can’t count on a ‘self-imposed moratorium’ to prevent any hanky panky.

As always, just my opinion.
~Roberta Biros, Mercer County Conservatives

 

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Casino Owners Can Now Buy Legislators

Written by Roberta Biros

In 2004, when the Pennsylvania Legislature passed the law that legalized slots, they also built in a ban that prevented casino owners and executives from making any political campaign contributions. The intention of the ban was to prevent any “hanky panky” between the gaming industry and elected officials that might “erode public confidence”. Unfortunately, on Thursday (April 30, 2009), the Pennsylvania Supreme Court ruled (through a 5-1 majority) that the ban “violated the state constitution’s guarantee of free speech”.

My response . . . (to be polite) . . . BULLCRAP!

In a HARRISBURG-AP story in the Pocono Record [READ HERE], Chief Justice Ronald D. Castille explained that the ban was too broad and a “harmful attempt to combat corruption” as it prevented ANY and ALL contributions (not just “large campaign contributions”).

“What the . . .?”

Is there really such a thing as a “harmful attempt to combat corruption”? Are you kidding me?

Deeper in the story the following is written:

Philadelphia-area developer Peter DePaul, who sued to challenge the law in 2007, argued that the ban was a discriminatory infringement of the rights of free expression and association. DePaul, a part owner of as-yet-unbuilt Foxwoods Casino Philadelphia, also contended that the Legislature never justified the ban by looking into whether the gambling industry posed any risk of political corruption.

Again I say “What the . . .?”

Let me get this right. Mr. DePaul . . . a casino owner . . . is calling “foul” because he has lost is rights to “free expression” by being banned from lining the pockets of elected officials (including Judges I might add)? He has been “discriminated” against because he can’t donate money to political friends? In order to limit contributions the Legislature should have paid for a multi-million dollar study to find out if there is a “risk of political corruption” in the gambling industry? Worst of all the Pennsylvania Supreme Court bought into this?

The AP story went on to explain the numerous Bills that are currently under consideration by the Pennsylvania Legislature including the issues of video poker and table games. The timing of the elimination of this ban is amazing and particularly handy for state lawmakers as it opens up the flood gates for money to flow into the hands of politicians from very rich friends.

If there are ANY Legislators out there with a lick of honesty, they need to jump on this issue immediately. If the contention of the Supreme Court is that the ban was too broad, the Legislature needs to narrow the ban to specifically limit “large campaign contributions” and they need to do so quickly. Failure to do so will prove the existence of “political corruption in the gambling industry”.

As always, just my opinion.

~Roberta Biros, Mercer County Conservatives

 

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Video Poker is Just a Carrot on a Stick

Written by Roberta Biros

I was reading my daily email messages from State Legislators (courtesy of my many newsletter subscriptions). The most interesting message today came from Representative Curt Schroder (R-Chester), and it was titled “Schroder Says Now is No Time For Gaming Expansion in Pennsylvania” [READ HERE].

I’d like to start off by letting Rep. Schroder know that I’m fair. I passed along some criticism in his direction a few weeks ago regarding House Bill 1056 when I stated that it was a “waste of paper” [READ HERE]. I give kudos when you’ve earned it, but I am equally critical when I’m displeased. This week your pendulum is on the up-swing in my book! (I’m sure you’ve been losing sleep)

In the press release Rep. Schroder explains why the introduction of Video Poker gambling across the State is not a good idea. He sites “We should not be holding hearings on video poker or any other kind of gambling expansion before we have existing gambling under control and well-regulated.”

I concur whole-heartedly.

The press release then goes on to explain why the expansion of State authorized Video Poker machines is a bad idea as follows:

Schroder told the committee that video poker is the most addictive form of
gambling and the governor’s plan would allow these machines in 14,000 locations
throughout the state. Schroder said this is akin to having mini-casinos in every
neighborhood.

The most compelling part of the press release was the following:

Schroder said he has been told by representatives of a number of casinos that if the video poker law passes, they will sue to get back the $50 million they gave the state in license fees. He said if that happens, it will eat up any hope of meaningful property tax relief.

Schroder indicated that the governor’s real motivation may be table games. He presented a scenario whereby video poker passes, casinos sue to have their license investment returned and the compromise ends up being that casinos get table games.

Why do I find this so interesting? Well, my friends, Representative Schroder is quoting my exact prediction of several months ago. In my blog post titled “Governor Rendell Wants to Put the Screws to Casino Owners” I made the following statements and predictions:

The point that I find surprising today is that the Governor now decides that it is time to do something about these “illegal” gambling machines? AND, in doing so, he takes business away from his pals (the casino owners)? I don’t get it. Therefore, I think it is not as simple as the Governor makes it out to be. I’m sure that there is something more to it. I question the Governors motivation . . .

. . . it seems odd that the State (who has put so much effort into issue of legalizing Casino Gambling) would now simply abandon the casino owners and legalize gambling across the state. It just doesn’t “smell right”. Mark my words on this, after bar owners invest in machines and licenses for their establishments, the Governor will come through with some sort of DEAL or the Casinos again. It will be table games, or free liquor, or even full smoking facilities—something substantial . . . and the cycle will continue. He has no intention of abandoning his friends who own Casinos. It just won’t happen. I don’t trust that Governor Ed Rendell is doing this without some motivation for the casino owners at some later point.

Rep. Schroder’s assessment is spot on. He has it absolutely right and he should be congratulated for seeing through the smoke and mirrors. I hope that other Lawmakers have the same “clear vision”. The entire issue of Video Poker machines has nothing to do with “tuition”. It is all just a “carrot on a stick” to drag Pennsylvanians even deeper into the dependency on gambling income . . . and another way to line the pockets of the Casino owners. Anyone that is on-board with this ruse needs to invest in few lessons in common sense.

See, Rep. Schroder . . . I’m not so bad! I’ll always back smart decisions by smart Legislators.

(By the way, you’re welcome to use scenarios from my blog any time . . . you don’t even have to ask.)

As always, just my opinion.
~Roberta Biros, Mercer County Conservatives

 

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Re: Rendell Screws Casino Owners

Roberta,

When I was a kid ( a very long time ago) you had three choices when you graduated high school…you got a job, went to tech-school or, if you were lucky, you went to college.

Now, if you went to tech school, you had to get a job to pay for it. If you went right into the workforce, you found a niche and worked your way up in the business, as I did.

If you went to college, you were either a) lucky enough to have parents who could afford to send you, b) lucky enough to pull grants and scholarships to pay for it, or c) in hock up to your “wazoo” in student loans. The government did not guarantee you a college education.

College was for the best and the brightest, not a place where mommy and daddy sent you to “grow up” or “find yourself”. One just has only take a look at the influx of libtards in society over the past twenty or so years to see what I mean.

So, what happened? Half the kids who go to college nowadays have no business being there. They can’t do simple math, can’t dangle a participle, and most have no idea what they want to be when they grow up. You have more people with MBA’s flipping burgers at McDonalds because of “downsizing”. Industry has moved overseas because of either an overpriced or non-existent work force.

So, why the “need” to send every Tom, Dick and Harriet to college? I really can’t answer that question. But rest assured, if my kids aren’t “college material” I’ll be damned if even the Governor of Pennsylvania is going to convince me that my kid isn’t better off learning a job skill…one that will put food on his table, a roof over his/her head and maybe, just maybe, my grandkid in college someday. Or, tech school, if he/she is so inclined.

My oldest son decided to go to community college. He has no business being there (he’s very smart, but has a slight learning disability), but he’s spending his own money, not mine. As I told him before he went off to college to find out what he wants to do in life, “be an electrician…I’ll pay for tech school and remember, wire can’t pull itself through walls”.

Hopefully, he’ll come to his senses. Probably right about the time he wants his own roof over his head and food on his table.

 

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Casinos for College

What the hell?

In a proposal that was met with instant criticism across the Capitol, the Rendell administration said yesterday it wanted to legalize video-poker machines at restaurants, private clubs and corner bars to help Pennsylvania students pay for college.
Rendell will ask the legislature to approve the video-poker legislation – the first expansion of gambling since the landmark 2004 bill legalizing slots casinos – in his otherwise somber, reduction-driven budget address today.

If the proposal becomes law, tuition relief will start this fall for incoming freshmen and reach nearly $550 million by the time the program is fully in place, according to administration officials, who estimate that 175,000 students could receive aid.

I could have sworn, sworn, we were going to get property tax relief out of the initial casino licensing.

Has anyone seen it?

I know the Pens got a new stadium out of the gambling revenues… and… oh… aren’t we still a billion or two short on the budget?

But by all means, let’s start a new spending program.

 

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An Idea

So, I’m just throwing this out there…

Our budget gap is something $1.5 Billion. With a B.

How much can we get for our liquor store monopoly?

… and since we’re being fanciful, why can’t we get those casinos finished off in Philadelphia? The city is short money too…. some additional fundage would be nice… otherwise illiteracy will grow and homes will burn.

Two birds with one stone here.

Retrain the LCB employees to become slots operators (and card dealers) when that day comes.

It’s a win-win.

 

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PA Legislators Introduce Bills to Reform State Contracts

PA Legislators Introduce Bills to Reform State Contracts

By: Chris Freind

One of six articles in the 11/14/08 Philadelphia Bulletin exposing Gov. Rendell’s intimate relationship with Ballard Spahr and his political contributors www.thebulletin.us

Harrisburg – In a September memo to the members of the Pennsylvania House of Representatives, four state legislators outlined their respective bills aimed at reforming how state contracts are awarded.

State Reps. Mike Turzai, R-28th, Allegheny; Doug Reichley, R-134th, Lehigh; Robert Godshall, R-53rd, Montgomery; and Glen Grell, R-87th Cumberland, stated their reasons for introducing the package of bills.

In the memo, they wrote, “For more than one year now, press reports have divulged procurement practices of the Rendell Administration which have avoided using the required procedures of the Procurement Code. The code’s purpose is to award state government contracts through a public bidding process to the ‘lowest responsible bidder.’ However, a January 2007 Special Audit released by the Auditor General revealed the prevalence of this administration to use ‘settlement agreements’ to pay venders without contracts. The audit also found a lack of monitoring invoices before approving payment.”

They added that, “These practices spawned ‘the perception of circumventing the competitive bidding process.’”

The memo went on to detail what the legislators claimed were “questionable processes,” and wrote that, “…we are introducing a package of procurement reform bills which will clean up any ethical entanglements the administration has created, save taxpayer dollars, and make the operations of the Executive Branch more transparent to the General Assembly, and more importantly, to the general public.”

Following is a brief synopsis of each house bill (HB):

HB 2805 (Turzai) – Would remove legal “services” from the definition of those contracts which can be awarded under the emergency provisions of the Procurement Code.

HB 2804 (Grell) – Would require any contract to be awarded as an extension of a currently existing contract to be posted on the DGS website for ten business days before the contract is submitted to the Attorney General for review of form and content.

HB 2397 (Godshall) – Would ban any contract from being awarded to any person, partnership or corporation which donated to the campaign of a candidate for local or state office within one year of the date a contract is posted for public bidding.

HB 2803 (Reichley) – Would require that any contract to be let by the executive, legislative, or judicial branch, or any legislative caucus, with an initial value over $100,000 be subject to the requirements of the procurement code.

The Representatives said that changes in the Procurement Code are needed “to help restore the integrity of state government against contract abuses.”

Chris Freind can be reached at CF@TheBulletin.us

 

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GTECH: A Company With “Checkered History” Awarded State Contracts

GTECH: A Company With “Checkered History” Awarded State Contracts

One of six articles in the 11/14/08 Philadelphia Bulletin exposing Gov. Rendell’s intimate relationship with Ballard Spahr and his political contributors www.thebulletin.us

By Chris Freind

The state Department of Revenue awarded a five year contract to the GTECH corporation earlier this year “to supply terminal-based game services to the Pennsylvania Lottery,” potentially worth $25 million/year. This is in addition to GTECH’s existing five-year contract in which it provides a computer-control system that monitors slots gaming in Pennsylvania.

The awarding of contracts to GTECH has not been without controversy. In 2005, the Rhode Island company, which specializes in casino-related operations, hired Ballard Spahr partner Ken Jarin for assistance in contract negotiations while it was attempting to win its contract. Mr. Jarin maintains a close relationship with Gov. Ed Rendell, and has contributed $90,000 to his campaigns. Ballard Spahr is the Governor’s former law firm, and has been the recipient of over $10 million in state contracts during Mr. Rendell’s Administration. State legislators have expressed concerns about how much state business Ballard has received since 2002, including large dollar no-bid contracts.

GTECH business dealings have come under fire from around the world. Former GTECH Chairman Guy Snowden was convicted in 1998 of attempting to bribe Richard Branson of Virgin Airlines, who had bid for a lottery license in Britain. In 2006, New Jersey State Treasurer Bradley Abelow declared he would re-bid the state lottery contract amid concerns that GTECH had an insider advantage, according to the Lottery Post. And the NJ.com news site reported this past September that, “GTECH Corporation, the longtime operator of New Jersey’s lottery, has been fined $1.4 million by Washington, D.C., over charges that subcontractors of the company or a partner firm hacked into the District’s lottery system and printed winning tickets for themselves two years ago.”

In a 2006 letter to Governor Rendell, the top two Pennsylvania state senate leaders expressed reservations about awarding GTECH a state contract, writing, “…there is considerable concern regarding the award of the central control computer contract to GTECH, given that company’s long and checkered history of reported misconduct in venues across the globe.”

A 2007 edition of the Lottery Post reported that GTECH “hired the former patronage chief for then-New York Gov. Mario Cuomo as a $20,000-a-month consultant. Tonio Burgos held the job for about three months until the deal leaked out.” Additionally, The Post reported that GTECH “awarded a former gubernatorial aide in Missouri a 10-year, $80,000-a-year consulting contract after GTECH won that state’s business,” and hired “lobbyists in Texas who included two former aides to then-Gov. George W. Bush, as well as former Lt. Gov. Ben Barnes. In 1996, public pressure led to Barnes’ contract being bought out for $23 million.”
A 2006 report issued by the Texas Department of Public Safety stated that GTECH paid $380,000 to a Brazilian nonprofit organization that “was a paper company suspected to be used in Brazil as a means for laundering money and making illegal political contributions.”
The gaming company has acknowledged the U.S. Securities and Exchange Commission had investigated the company’s operations in Brazil.
GTECH has contributed nearly $500,000 to the Democratic Governors Association (DGA). The DGA has contributed over $1.3 million to Gov. Rendell’s campaigns.

Chris Freind can be reached at CF@TheBulletin.us

 

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Ballard Spahr and Ed Rendell: Joined at the Wallet

Ballard and Rendell: Perfect Together

One of six articles about Gov. Rendell, Ballard and state contracts in 11/14/08 Bulletin (thebulletin.us)

By: Chris Freind

The Bulletin

In 1999, after serving eight years as Mayor of Philadelphia, Ed Rendell joined the Ballard Spahr law firm, headquartered in Center City. Two years later, during his campaign for Governor, Rendell stated, “I have, for the last two years, done practically nothing for [Ballard],” according to numerous press reports.

Upon assuming office, he appointed himself Chairman of the Delaware River Port Authority, the entity overseeing the four major bridges in Philadelphia. One of the major beneficiaries of Mr. Rendell being DRPA Chairman has been his former firm. In the three years preceding Rendell’s election, Ballard received $25,000 in legal fees from the Port Authority, including only $480 in 2001. From 2002 until the present, Ballard has received over $2.7 million.

Two of the Governor’s former top aides, John Estey (Chief of Staff) and Adrian King, (Deputy Chief of Staff) are currently partners at Ballard, and both hold influential positions related to DRPA. Mr. Estey chairs the board meetings and maintains full voting rights on behalf of the governor, and Mr. King serves as the Authority’s Outside Counsel. Estey and King are brothers-in-law, and together have contributed over $35,000 to Mr. Rendell’s political coffers.

Additionally, a Rendell appointee, Pennsylvania Treasurer Robin Wiessmann, sits on the DRPA Board. Her husband, Ken Jarin, also a partner at Ballard, serves as DRPA Outside Counsel and occasionally chairs board meetings. He contributed $90,000 to the Governor’s campaigns. Ballard attorneys have contributed nearly a half-million dollars to Governor Rendell. Hundreds of thousands of dollars of “in-kind” contributions were also donated.

The Philadelphia Future Political Action Committee, registered at the Ballard Spahr offices, contributed $471,000 to Mr. Rendell. The PAC’s Treasurer is David Cohen, former Chief of Staff under then-Mayor Rendell, former Chairman of Ballard Spahr, and currently Executive Vice President of Comcast Corporation. Mr. Cohen contributed $80,000 to the Governor.

And on Pennsylvania Department of State campaign filings, the address of Gov. Rendell’s campaign treasurer is the 51st Floor of 1735 Market Street in Philadelphia; Ballard Spahr occupies the entire floor.

While many believe this arrangement is a blatant conflict of interest, it is far from out of the ordinary. In fact, such relationships are commonplace in how business is conducted in Pennsylvania. Despite the questionable nature of such practice, it is not officially considered “pay-to-play,” which generally relates to the illegal practice of giving political contributions in return for government contracts. In the absence of a quid pro quo arrangement, the rewarding of former firms with lucrative contracts is legal, and continues unimpeded.

What has raised the ire of both the public and the state legislature, however, is the frequency of these contracts, the huge contract amounts, and the secrecy surrounding no-bid contracts ­– especially when they are doled out to firms, such as Ballard Spahr, that maintain a close relationship with the governor. When pressed for answers about the decision-making in hiring Ballard Spahr, Governor Rendell’s spokespeople routinely deflect all responsibility away from him, issuing statements that the Governor had no role in the selection process.

Consequently, there has been a renewed push in the state House to enact reforms in how contracts are awarded, and to prohibit campaign contributions by companies and individuals who contract with the Commonwealth or its political subdivisions. Four bills addressing these issues have been introduced as a legislative package by Representatives Godshall, Reichley, Grell and Turzai, and all remain pending in committee (see sidebar).

There are numerous firms that have benefited from political connections, but none navigate the political landscape so adroitly as Ballard. Many of its partners are consummate political insiders, so much so that according to press reports, Gov. Rendell chose not to utilize his Philadelphia office in The Bellevue for an August meeting regarding city casinos, preferring the cozy confines of Ballard Spahr instead. Zack Stalberg, President of the nonpartisan watchdog organization Committee of Seventy, was quoted as saying, “It seemed like an odd place to have it. There’s got to be a lot of other neutral territory around town other than a highly influential, connected law firm.”

According to state records, over $1 billion in no-bid contracts have been doled out during Gov. Rendell’s tenure. While the vast majority of state contracts require a bidding process, the Governor has the discretion to award contracts on a no-bid basis when it is in the “best interest of the Commonwealth.” It is not known whether the Rendell Administration has exploited this loophole more than the previous Administrations, since comparative state records were “lost.” To date, the Department of General Services has been unable to locate the records.

Ballard Spahr ranks near the top of law firms receiving state work since Gov. Rendell became the state’s chief executive, totaling over $10 million, not including DRPA fees, in large part because no other firm comes close to having the intimate connections with the Governor himself. Enough eyebrows have been raised by watchdog groups and the legislature that Barbara Adams, General Counsel to the Commonwealth and an appointee of Gov. Rendell, made a special presentation during a recent state-sponsored Continuing Legal Education (CLE) course to stress that law firms are not chosen because of their political connections. According to a source, many attorneys “rolled their eyes and smirked” at that comment. CLE courses are mandated for all Pennsylvania attorneys in order to keep their law licenses current.

In addition to the millions in DRPA legal fees, Ballard Spahr’s connections have allowed it to be selected as counsel for the following entities:

Pennsylvania Turnpike Commission –For several years, the Rendell Administration has proposed privatizing the Turnpike in order to raise revenue. Despite the Pennsylvania Department of Transportation having a large in-house legal staff, numbering over 70 attorneys, Ballard was selected as counsel for this project, being awarded a $1.8 million no-bid contract. Ken Jarin billed the state $25,000, which was ultimately paid for by the state Treasurer – and Jarin’s wife – Robin Wiessmann. Ballard chairman Arthur Makadon billed the state at a rate of $637/hour. Additionally, Ballard performed $773,000 worth of legal work without a contract. In order for those legal fees to be paid, a special arrangement, known as a “Compromise, Settlement, and Release” agreement, was executed between the state and Ballard. These actions have infuriated state legislators, prompting the proposed reform legislation.

The Philadelphia Regional Port Authority – As an “independent agency of the Commonwealth,” the PRPA depends on and takes direction from the state. John Estey serves as Chairman of the PRPA. During a June 18, 2008 board meeting, Ballard Spahr was selected to be counsel to the Authority.

GTECH- This Rhode Island company, which specializes in casino-related operations, hired Ken Jarin for assistance in contract negotiations while it was attempting to win a contract for a computer system that monitors slots gaming in Pennsylvania. GTECH received a five-year contract worth millions per year. Additionally, the state Department of Revenue awarded a five year contract to GTECH earlier this year “to supply terminal-based game services to the Pennsylvania Lottery,” potentially worth $25 million/year. (see sidebar article)

Chris Freind can be reached at CF@TheBulletin.us

 

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Casino Desperation

The Philadelphia casino opponents keep fighting, and looking more and more desperate by the day.

Move it or lose it. That was the message from two powerful Philadelphia lawmakers to the Foxwoods and SugarHouse casinos last night.

House Appropriations Chairman Dwight Evans and State Sen. Vincent J. Fumo said at a news conference that they would draft legislation to remove the casinos’ tax breaks if they did not abandon their proposed sites on the Delaware River waterfront.

The locations, which were decided upon 21/2 years ago, are “untenable and contrary to the public interest,” the Democrats said in a statement.

“We are sending a message to citizens of the Commonwealth of Pennsylvania that we are trying to fix the problem,” said Evans, joined by nine Philadelphia-area lawmakers in addition to Fumo. “We didn’t think it would be the problem it is today, but it has created tension for people in the community as well as politically.”

Remember the old days? When Mayor Street would just attempt a shakedown of incoming businesses? (See Disney @ 8th & Market)

Now it goes to higher levels, and it’s not even a shakedown. It’s just record depths of bureaucracy.

Sadly Fumo & Evans are completely oblivious to the looks they’re getting from business leaders who might want to relocate to the city.

“What’s the point?”

 

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Casino History

The plan the slow down or stop the building the Sugarhouse casino has taken an interesting turn.

History.

Pennsylvania’s top agency on historic matters has called for more extensive archaeological work at the property, on the Fishtown-Northern Liberties border. Initial work has uncovered 182 American Indian artifacts, including an arrowhead, a drill, and fragments of waste from making stone tools.

A state archaeologist called the find “significant.”

“Things like that are pretty darn rare, especially in an urban environment,” said Mark Shaffer, an archaeologist with the Pennsylvania Historical and Museum Commission.

The intense curiosity about the past has come up as a result of SugarHouse’s request to the Army Corps of Engineers to build into the water.

SugarHouse needs federal permission to dredge, fill in more than an acre of water, and build a stone embankment. An archaeological review is part of the process.

The state’s historic commission already is urging that one section of the property – a 30-by-50-foot plot that yielded the American Indian relics just inches from the surface – be excavated completely and considered for listing in the National Register of Historic Places.

Douglas Mooney, an archaeologist and president of the Philadelphia Archaeological Forum, said the discovery was “exceedingly rare.”

“In all of Philadelphia County, there are only a dozen known, recorded Native American sites,” he said.

I imagine once they start dredging the river (if it gets that far), some endangered snail or something will turn up. Then it’s over for the casino.

Bill Shaw @ Writemarsh is for taking a time out.

To not give the area the historical significance it deserves is both egregious and appalling…to rob the people of Pennsylvania any historically poignant landmarks, for the sake of greed, is a slap in the face to the heritage that we, as Pennsylvanians, and more importantly, myself and the scores of families that were raised and played in the Fishtown section deserve.

So, in this case, I’m all for stopping “progress”…let’s support the archaeological significance of the area and give the little hamlet with the funny name it’s just due…we may just find that the area’s rich history is worth more than any casino business’ money could possibly buy.

 

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Tax Relief

Tony Phyrillas throws the bullshit flag.

The governor dangled the prospect of property tax cuts in front of reluctant legislators to get the votes he needed to bring 51,000 slot machines to the Keystone State.

Was it worth it? You be the judge. Go to the governor’s Web site, http://www.governor.state.pa.us and click on the button that says “Property Tax Relief” to review a spread sheet that predicts how much residents in each of the state’s 501 school districts can expect in property tax cuts.

For me, it’s somewhere between $120 and $302, depending on how much the casinos take in this year. Let’s play it safe and stay with the minimum number.

Four years after Rendell promised “historic property tax relief,” I get back $120 on my school taxes! I’m paying $500 more in school taxes today than four years ago. I’m already in the hole and I still don’t have my check from Rendell.

At first I thought that may have been per $100,000 of home value (or something).

No.

It just is.

Feh.

But we have casinos!

If the Republicans in the House had any guts they’d demand MORE relief before table games show up… and not just promises.

 

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Casino Revenues

Four out of the top five best profiting slots are in Pa.

“Pennsylvania has been very strong right out of the box,” said Joe Weinert, vice president for Spectrum Gaming, a casino research firm, told The Morning Call of Allentown for Sunday editions.

In the group’s latest report, being released Monday, Pennsylvania casinos held four of the top five spots on the East Coast for money grossed per slot machine in fall 2007.

According to the report, the Mohegan Sun at Pocono Downs generated $403 per slot machine per day between Sept. 1 and Nov. 30, 2007, more than any other East Coast casino.

The Mohegan Sun in Connecticut came in second at $390 per machine, followed by three Pennsylvania casinos: Philadelphia Park at $369 per machine, the Meadows at $347 per machine and Harrah’s Chester at $322 per machine.

The industry’s target for slot machine profits is, on average, $250 to $300 per machine per day, according to Weinert. In that range, the casino has enough machines to accommodate demand, without having too many and adding to overhead costs.

It’s not clear if that’s before tax or after tax. With the rate being 55% on revenue, if it’s before tax, they’re clearly making a ton.

 

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Mayor Michael Nutter: Up Close and Personal Interview, Part 1

Mayor Michael Nutter: Up Close and Personal

Upon analyzing the candidacy and subsequent victory of incoming Democratic Mayor Michael Nutter, a veteran political observer remarked: “If Michael Nutter lived in Chester County, he’d be a Republican.”

Whether the Mayor takes that as the compliment it was meant to be, it’s fair to say that there is a level of cautious optimism about Philadelphia’s future, a hope not felt since the days of former Mayor Ed Rendell. Back then, Rendell was taking over after the disastrous administration of Wilson Goode, one in which Philadelphia suffered one black eye after another, culminating in international embarrassment when the City incinerated an entire square block during the MOVE crisis. It took several years under Rendell’s tenure, but Philadelphia climbed back from the abyss and experienced a cultural and business renaissance. It was short lived, however, after the Street Administration took the reigns in 1999. Plagued by corruption scandals and bureaucratic incompetence, John Street and an intransigent City Council turned the clock back on all progress the city had achieved. Philadelphia has once again become a national laughingstock

What does Mayor Nutter inherit after the eight years of Mayor Street’s stewardship? A City of Brotherly Love that is anything but brotherly. Philadelphia’s plight once again is a national headline, with the city owning the highest rates of murder, violence and poverty in the nation. Children and police officers are mercilessly gunned down, residents are fleeing, and businesses, facing some of the highest taxes in the nation, are not just moving out, but worse, many will not even consider Philadelphia when they need to expand or relocate.

The challenge to revive Philadelphia is an unenviable and monumental task. Only an extremely strong-willed leader willing to buck the entrenched special interests and pay-to-play business culture will be able to turn America’s fifth-largest city around and once again make it shine.

Is Michael Nutter up to the job? Can he work with City Council to push through business friendly initiatives? Can he find a way to effectively negotiate the four municipal unions’ contracts which expire in just months—and in doing so, can he make the city pension fund solvent? Can he make Philadelphia safe again in the mold of New York City?

Freindly Fire recently sat down with Mayor-elect Nutter to discuss the vision of Philadelphia’s new leader:

FF: At the Greater Philadelphia Cultural Alliance Annual Meeting, you had promised to name your Cultural Director to a cabinet-level position. Have you made that decision?

MN: We are going to open an Office of Art and Culture. It will be a real office, real people, and real responsibilities to better coordinate art and culture in Philadelphia…to promote it the way it should be. It’s a big business for us here in the city, with 31,000 people whose livelihoods depend on it. But it’s also big in the region, and it’s a way to bring the region together. We need to expand art and culture beyond just the perceived downtown activity. We also want to highlight the various activities in our schools, in our neighborhoods and in other public venues. But, no, I haven’t named anyone to that post yet.

FF: With regard to the Boy Scout-City controversy, is there a way to rectify this issue? (The city has eliminated the $1/year lease provision for the Boy Scouts’ offices in a landmark Philadelphia building, under the rationale that the organization discriminates because it won’t allow homosexual scouts and scout leaders). The Boy Scouts do such a wonderful job with young boys, especially minorities, who would otherwise be out on the streets. This issue plays to the heart of public opinion in that the City seems to care more about persecuting Boy Scouts than it does about its streets awash in blood. What can be done to preserve their good work? Would you reverse this decision?

MN: The optimal solution is for the local Boy Scouts to change their policies so that they are not discriminatory against anyone for any reason whatsoever. Short of that…the other discussion going on is that they should pay full market rate for rent for their property because the government should not subsidize discriminatory practices. So as far as I’m concerned, it’s really one or the other: change your policy, or pay full market rent.

FF: One of Philadelphia most famous businessman, Le Bec Fin’s Georges Perrier, expressed his immense frustration with City Hall when a proposal to ban foie gras arose. His words echo the sentiment of many: “Philadelphia’s school system is in shambles. We have the highest violence and murder rate of any city in the United States—and the highest poverty rate. The city is filthy and dirty. There are homeless and beggars everywhere. Parking is a huge problem. For everything we (the business community) pay in taxes, what do we get for it? Absolutely nothing. Don’t they have anything better to do? Do your job!” Specifically, how will you address the concern that the City focuses on irrelevant issues and refuses to tackle the major problems head-on?

MN: Elected officials, whether in the legislative body or executive branch, don’t write the stories. For every foie gras story, there could also be a story about the efforts to lower business taxes in Philadelphia, efforts to reduce crime, support for public education, ethics laws that have been put into place—I did some of that work when I was in office. There are a million things going on in the city. No disrespect, but the media often times—all the time— decides what goes in the paper, what goes on TV and the radio, and what the current conversation is. I want to change some of the current conversation.

Unfortunately, I couldn’t agree with Georges more about those statistics and the context of what he lays out. What I am seeking to change is the last part of what he said—about not getting anything for their tax dollars. We have to change that. We have to let people know what the are getting for their money, how services are delivered, and how they are going to be improved in my administration. But one of the most important issues here is communication. We have to change the level of communication between City government and the citizens and business community. One of the first rules of the political business I’m in is that you either define yourself, or you get defined by someone else for other circumstances. We have allowed ourselves to be defined by circumstances, other people and perceptions, many of which are not necessarily correct, but left unchallenged, become the fact.

Are there crime problems here in Philadelphia? Absolutely. Are most people involved in them? No. Are the problems and challenges in our education system? Yes. Do most kids go to school everyday? Yes. Are there job issues in the city—do we continue to lose some small amount of population and some jobs? Sure. But are new people opening businesses every day, and are businesses and people moving into the city? Absolutely. I am trying to be an advocate of fair, balanced and accurate reporting of both sides. Better communication out of City Hall, better engagement, and a better relationship with the news media is (an important) part of getting the message out. Of course, we also need to deliver. We owe people a high quality of service. They’re paying their taxes. We owe people a response when they call us—they deserve an answer. That’s why I want a 311 system, to offload some of the calls from 911, but also to have a great tracking system through CityStat to measure what we do and how we do it, and drive performance at the ground level so that people actually know what they’re getting for their tax dollars.

FF: Geno’s steaks owner Joey Vento’s said, virtually word for word, the exact same thing as Perrier, but his beef is the City’s “discrimination” suit regarding a store sign asking patrons to order in English. With all the problems the City faces, what are your thoughts on the merits of this case, and how will you address this kind of issue as Mayor? Did Vento discriminate, and if yes, how so?

MN: I think that the sign sends the absolute wrong message in a city that is trying to encourage a multicultural environment and encourage immigrants to come to Philadelphia. We have conventions and tour activities coming here, and a number of those individuals may not speak English but they would like to order. So if you’re not turning anyone away, what’s the point of the sign in the first place? I think it’s more of a topical issue related to immigration, and views about that, but I think it’s bad for the city. It draws negative attention to Philadelphia, and it makes us look small minded and parochial—for the fifth-largest city in the country, the center of democracy, and (a city of ) tolerance, based on how we got our start with Billy Penn coming here. It’s just one more (example) of giving ourselves a black eye.

FF: But to clarify, while you may not agree with the sign, if Vento didn’t discriminate against anyone, should the case have been brought in the first place by the City’s Human Relations Commission? Does it have merit in a legal sense?

MN: That’s what they do (the Commission). I think that, based on the role and mission of the Human Relations Commission, which is to work on these kinds of issues, it’s appropriate for them to have taken that action and…(the case) should work its way through the system. At some point in time, we’ll all go back to our lives and try to work on really important things, like lowering the crime rate, getting kids in school, creating jobs and cleaning up the corruption in the city.

FF: Let’s talk about the Convention Center. The Convention Center expansion will be built with union labor only. First, do you agree that this is the most effective use of taxpayer dollars? Second, the percentage of blacks in these unions is quite low; their numbers are much higher in the non-union workforce. Doesn’t that conflict with the City’s policies against discrimination, and how can that be tolerated? Does this amount to economic apartheid?

MN: I think the issue with most public projects is that you have to adhere to the prevailing wage standards, and in some instances the non-union companies don’t. The larger issue for me is that most of the projects that get built in Philadelphia, both public and private, are usually done (with) unions. They have a training program, there is a quality of work issue…so what I’m focused on is “how do we get more African-American, Latinos, women and others into the trades in the first place”, and make sure there is not, by happenstance, coincidence or direct effort, any obstacles placed in the way of people who want to participate in the incredible economic opportunities by getting a trade, being able to take care of themselves, and having a life sustaining work opportunity. So diversity in the construction trades, in the workforce, is a prominent issue in the city and very important to me.

FF: Even though there are more blacks in the non-union workforce than unions?

MN: I don’t know that to be the case. I haven’t seen any numbers about African-Americans in the union and non-unions workforce. I think what we can tell from observation on most work-sites is that you will not see a significant number of African-Americans, Latinos, Asians and women, and that has gone on for far too long. It is my goal to change that.

FF: Four municipal union contracts expire this year, just months after you are sworn in as Mayor. Many analysts say how you handle the unions will be a telltale sign of how successful your Administration will be. What are your thoughts as you head into negotiations?

MN: My thoughts are that I am going to have a fair, open, and honest dialogue with all four union leaders, and that I come at this from the perspective that those four leaders and myself have a primary responsibility to negotiate fair and reasonable contracts for our public employees, and those contracts have to be fair and reasonable to the taxpayers who pay the bill. Somewhere in that discussion I think we can reach agreement on making sure that our public employees receive fair wages, stable rates for their health care benefits, and that the full package is affordable to the taxpayers. It’s not easy, but it’s certainly doable if we’re all working in the spirit of cooperation and honesty.

FF: Let’s assume that you reach an impasse in the negotiations. Are you willing to take a strike, and if so, take your case directly to the people?

MN: Let’s assume that we have a fair and reasonable contract negotiation. I’ll worry about what happens six months from now when I get there.

Chris Freind can be contacted at CF@TheBulletin.us

Part Two of Freindly Fire’s exclusive interview with Michael Nutter will discuss the city’s underfunded pension, crime, public education, casinos and waterfront development.

 

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Re: Father Mafioso

Well… so much for the vow of poverty.

On a take-home pay of $880 a month, the Rev. Joseph Sica amassed debts of $218,000.

And he owed the vast bulk of the money — $148,000 — to a bank headed by his friend, Louis DeNaples, owner of Mount Airy Casino Resort.

How Sica qualified for credit cards, auto and personal loans on a Roman Catholic priest’s income, and what he spent all the money on, are mysteries unaddressed by the bankruptcy court papers that document his financial hole.

Even the man prosecuting Sica for allegedly lying to a grand jury investigating DeNaples can’t explain it, saying he was unaware that DeNaples’ bank, First National Community Bancorp of Dunmore, Lackawanna County, was a principal creditor.

 

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Casinos, Casinos, Casinos

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Full steam ahead for Sugarhouse.

The Pennsylvania Supreme Court went over Philadelphia’s head yesterday and cleared the way for construction to begin on the $550 million SugarHouse casino in Fishtown and Northern Liberties.

 

Finding “deliberate inaction” in City Council’s longstanding failure to vote on SugarHouse’s zoning and land-use requests, the court took it upon itself to issue the go-ahead.

 

SugarHouse officials said after the ruling that they expected to start construction in weeks.

 

The 6-1 decision also is likely to hasten the groundbreaking for the Foxwoods casino in Pennsport. Like SugarHouse, Foxwoods has been pushing for Council approval.

 

The city “ultimately has no discretion to preclude gaming,” the court’s opinion stated. “We conclude that the undisputed documentation establishes the deliberate inaction by Council for the purposes of delay.”

Not surprising, really.

In somewhat unrelated news…

The Pennsylvania Gaming Control Board fined Philadelphia casino investor Peter DePaul $100,000 last year for making political contributions to state politicians, which is illegal under the state’s 2004 slots law.

 

Now Mr. DePaul, a Philadelphia developer and investor in the proposed Foxwoods casino, is fighting back. He filed a lawsuit Wednesday with the state Supreme Court to overturn the portion of the slots law that bans such contributions.

 

His suit claims the ban on donations is “an overly broad and unlawfully discriminatory infringement of the rights of free expression and association” granted by the state constitution. He wants the court to declare that section of the slots law unconstitutional.

Amen. Mr. DePaul has every right to give political donations to anyone he wants.

Casino watchdogs have every right to monitor political donations to see which policitians are getting money from special interests.

What’s going to happen now? Well… maybe some of that money is going to filter into the political process by different means. Let’s be realistic.

Keep it above board.

 

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Montco Political Miscellany

From the Pottstown Mercury (no link)

THORNS to Joanne C. Olszewski, a Whitpain Democrat, for waiting more than two weeks to resign her post as Montgomery County jury commissioner after allegations of illegal gambling taking place at a business Olszewski owns were made public. An elected official connected to the judicial system should not be involved in any illegal activity. While formal charges against Olszewski were not filed until this week, it is clear from Olszewski’s statements to authorities that she knew that keeping video slot machine machines at the bar she co-owns in Flourtown was illegal. Olszewski, first vice president of the Montgomery County Democratic Party, last month stepped down as co-chairman of the election campaign for Democratic commissioner candidates Ruth S. Damsker and Joseph M. Hoeffel III after the Montgomery County District Attorney’s Office announced its ongoing investigation into illegal gambling devices. Olszewski should have stepped down from her county job on the same day. Montgomery County Democratic Party officials should have also asked Olszewski to resign from her political posts until the criminal case is resolved.

In related news…

First Assistant District Attorney Risa Vetri Ferman said Oct. 3 the office is proposing to hire an additional detective and an investigator whose focus would be illegal gambling devices.

 

However, she said, these two new positions would not cost taxpayers any additional money.
The office has applied for a $250,000 grant from the Pennsylvania Gaming Commission.

It’s been another banner week for Montgomery County Democrats. Seems every time they look a MontcoGOPer is in the press doing good things, fighting crime, busting crime, saving students lives, etc….

Here’s a set of videos.

 

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Montco Poker Bust

Police in Montgomery County busted a raft of illegal poker machines in the county yesterday.

Sources say prosecutors executed search warrants at more than a dozen bars including one owned by a prominent elected official in Montgomery County. Sources say the major player is Connelly Vending which owns the machines and at least one arrest is expected and nearly two million dollars in cash was seized along with several machines.

Engage speculation machine.

If there’s an elected official busted, odds are it’s a GOPer. Expect there to be loud calls for “a cleaning of the house” from the Democrats. Gnashing and wailing, even.

Update: The elected official is Democrat Jury Commissioner, Joanne Olszewski.

 

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