The Casino Local Development Council (LDC) went to the brink of disapproving Mayor Stephanie Rawlings-Blake’s decision to use $1.5 million in community impact funds to pay Horseshoe Casino for relocating a steam pipeline.

Following a 7-6-1 vote last night that blocked approval of the allocation, the LDC  took a 15-minute recess. When it returned, it approved the steampipe funds with the caveat that the city reimburse the LDC for any surplus money found in its budget.

The surprise move by a group that previously rubber-stamped the mayor’s spending priorities underscores growing public disapproval of the way that gambling impact funds are being spent by City Hall.

Analyzing the current budget, The Brew determined that fully 80% of community impact funds are not going to the community – as mandated by state legislation – but used to benefit the gambling facility. Mayor Rawlings-Blake has justified the pipeline expenditures as necessary because there was “no magic pot of money for this to come from.”

So far, $9 million has been awarded by the mayor and Board of Estimates to casino operator, Caesars Entertainment, for roadway and steampipe improvements, all to be paid from future impact funds.

LDC member and State Del. Luke H. Clippinger led the attack last night on the steampipe expenditure, saying the city had waited until the “11th hour” to fund the relocation and then grabbed impact funds for “a problem that is ultimately their problem” as owner of the underground line.

“This cost should not be born by the LDC,” Clippinger insisted.

Calling for a vote, LDC chairman, state Sen. William C. Ferguson IV, permitted Alex Dixon, Horseshoe vice president, to vote on the matter.

This drew a rebuke from Amy Mutch, who said the casino should not be allowed to vote on a matter that financially benefited it.

Even with Dixon’s vote, the pipeline failed to garner the 8 votes needed for approval.

Clippinger then recommended a recess, which ultimately led to the decision to approve the expenditure.

Note: This payment represents the first installment for the pipeline; a second $1.5 million installment from community impact funds is set for fiscal 2017.

Community Policing Requested

The mayor’s request for $1.6 million for police protection of the casino sparked concern and criticism from several members as well as from Councilmen Eric Costello and Edward Reisinger whose districts overlap in South Baltimore.

Reisinger said the original plan was for “officers to come into the neighborhoods, Pigtown, Sharp-Leadenhall and other areas,” while Costello said he would only approve police funding if the boundaries of a casino mini-district were extended into the neighborhoods.

Capt. Brian Hance conceded that city police are currently stationed in a small perimeter around the casino. Asked if the department planned to extend those boundaries, Hance would only say that his superiors “will review it.”

Don’t Like it, But Approved it

Although several LDC members complained that the police had been asked to come to last night’s meeting prepared with details about crime around the casino and policing strategies, the group nevertheless approved the police budget.

A $250,000 allocation for another year’s worth of traffic enforcement officers around the casino also drew complaints.

“I see traffic enforcement doing absolutely nothing,” said Mutch, while fellow LDC member, Samuel Himmelrich, described traffic officers stationed around the casino during Ravens football games as doing little more than “waving” motorists into the casino’s parking garage.

After noting its “clear displeasure” about the expenditures – then hearing that the Department of Transportation, which deploys the traffic officers, was satisfied with the current arrangement – the group approved the $250,000.

At the end of the meeting, Barre Circle resident Bill Marker chastised the council for failing to tackle what he called the “illegal use” of impact funds to aid the casino.

He said he has requested incoming Maryland Attorney General Brian Frosh to look at the impact allocations and determine how they square with the intention of the state legislature.

In November, Ferguson presented a letter from Sandra Brantley, a lawyer for the legislature, saying that the use of impact funds for police and fire protection at the casino “arguably” was of benefit for the community at large.