Neighborhoods that stood to lose $3 million in community impact funds for a steampipe relocation project needed by the new Horseshoe Casino got some good news today – now they’re only giving up $2.4 million over two years to the pay for the project.

The Horseshoe Baltimore Casino and Veolia, the French company that uses the steampipe, agreed to contribute to the project, decreasing the community’s contribution by $566,211, according to Keisha Allen, president of the Westport Community Association.

Allen said today she’s glad to hear about the deal, brokered by the mayor’s office, but stressed that this is not the outcome she would have preferred.

“We should have gotten all of it. We didn’t really agree with what they were doing,” Allen said. “At least the mayor’s office somewhat heard our plea.”

Under the terms of the agreement worked out by the city, CBAC Gaming (the investor’s group majority-owned by affiliates of Caesar’s Entertainment Corp.) will contribute $1 million.

Veolia will contribute $500,000 and the city-owned Baltimore Development Corp. (BDC) will chip in $437,317.

With the announcement of the deal, Allen also noted, the city has disclosed that the cost of the relocation project increased from $3 million to $4.37 million – or 45%.

Community Questions Use of Funds

Community leaders were shocked in August to learn that the steampipe project was getting any of the funds promised to communities for the purpose of mitigating the impact of the new casino.

“The city is using money for things that were never intended by the state legislature,” James Alston, a member of the Local Development Council (LDC) created to set priorities for the funds, had said at the time. “This money is supposed to go to the communities, not for the city’s or the casino’s needs.”

The grumblings started back in 2012 when The Brew revealed that the city was going to give away the first three years of local impact funds – $ 6 million – to CBAC for roadway infrastructure costs in the immediate vicinity of the casino.

City officials described the project as unanticipated but important, because the 45-year-old steam line could pose a safety hazard to gamblers crossing Warner Street to enter the casino.

The steam line originates at the city’s BRESCO trash-burning plant in South Baltimore and runs downtown where it serves federal office buildings, municipal office buildings, the Baltimore Convention Center, Mercy Hospital, the University of Maryland Medical System and other institutional customers.

The network is under long-term lease with Veolia, the French-owned transportation and energy conglomerate.

Asked in August to respond to objections to the city’s use of the funds, Mayor Stephanie Rawlings-Blake said she “had no choice” but to tap into the community impact fund pool.

“There is no magic pot of money for this to come from,” she said.

What the Documents Say

Documents point to the casino as the responsible party for the steampipe work – in particular the ordinance the mayor signed into law on Mar. 13, 2013 specifying that any party making subsurface changes on Warner Street would have to pay for them.

But City Solicitor George Nilson and the attorney for the Horseshoe Casino never responded to The Brew’s questions about those documents.

Some residents and LDC members remained unhappy about the city’s use of the funds – today announcement of the deal comes after a tense December meeting of the LDC, which ultimately approved the use of the funds for steampipe project by a close vote.

As for how the communities now will use the additional funds available, Allen said “that is yet to be determined.”

“It could go towards public safety, community economic development or transportation infrastructure,” she said, adding that the subject will be taken up at the LDC’s April meeting.

“I assume we’ll vote on it.”