Billion-dollar gamble in Butte

A Florida developer has big plans for Butte

After months of rumors, speculation and options taken out on parcels of Butte property, the Butte Local Development Corp. and Florida devel oper Barrett Singer, president of Foxx Industries, have unveiled an ambitious project with a staggering $1.8 billion price tag.

By Leslie McCartney of The Montana Standard

Under his plan, Singer plans to use several tracts of land in Butte to house three professional golf courses, a high-altitude training facility, a football stadium and an entertainment district. That district would feature 40 music halls with acts from the 1960s and 1970s and 10 casinos offering wide-open gaming — from slot machines to roulette.

Planners say it will bring in 70,000 tourists and gamers regularly who will need rooms, food and want to spend their money here during their stay.

However, the entire package hinges on passage of legislation to OK the so-called entertainment district.

Introducing full-service gaming in a halfsquare-mile area in Uptown Butte also is what makes the project financially attractive to Wall Street banks, according to Singer.

“ This is why financiers like it,” Singer said.

However, he would not name investment firms or other people involved other than his partner Robert M. Tormey, a businessman from Ohio, citing confidentiality.

“ We have no signatures yet, and I’m not at liberty to say,” Singer said.

Called “ Destination Montana! Where the Stars Shine Brightly Under the Big Sky,” the project has been in the works for the past nine months or so.

“ This is not Las Vegas; it’s not glitzy,” said Singer at a meeting Friday morning in Butte. “ This will be a Currier and Ives postcard when we’re done.”

According to the developers’ timeline, con struction could start in spring 2004 and be fin ished as soon as 2006.

Foxx Industries would build the project but lease the buildings to casinos and entertainers. Singer said that the company has already spent in the “ mid-six figures” to secure options on build ings and land. It has taken options on 12 Uptown buildings, but Singer declined to name them.

“ We’ll control the tenants in the district,” Singer said.

And the project promises to sprinkle cash on various government entities, from schools to local and state government. This money, he says, would come from gambling machine fees, room fees, ticket fees and impact fees, among others. Singer also said that property taxes would amount to $32 million a year.

Local governments around the state would also get a cut, Singer said.

Evan Barrett, director of the Butte Local Development Corp., said that the project would fully energize not only Butte, but also all of south west Montana, with jobs and prospects luring res idents from Whitehall, Deer Lodge and Boulder. He also said that Singer and his partners have not sought money from the county or state in the form of grants, loans, free land or tax breaks.

Singer, 55, said he has been a Florida developer for more than 30 years and has built shopping centers, affordable housing, apartment buildings and other smaller-scale projects in the West Palm Beach area. He added that was active in move ments to revitalize that area in the late 1980s and 1990s and sees similarities between that city and Butte.

He readily admits he has not shepherded a project this large or costly, but downplays any difference.

“ It’s just a few more zeros at the end,” he said.

He is also fully confident that he will be able to get financing for the project. He said that he and his partners have to show money and commit to building the entire project — not just casinos — to proceed.

Singer originally came to Butte for another reason — an idea to sell Montana beef to China to be shipped from the Port of Montana. At that time he discovered the Uptown area with the help of Barrett, and fell in love with the Uptown’s architecture. He started forming an idea along the lines of Branson, Mo. That town has had great success with its musical venues and visitors, which Foxx wants to re-capture in Butte.

He added that the Butte project is more than just gambling — with emphasis on recreation and music venues.

However, Singer and Barrett reiterated that the dream depends upon passage of leg islation, which is being drafted by a Helena lawyer. They would not say who would carry the bill, but that they are talking to various legislators. The bill — which is site-specific to Butte and no other city in Montana — will likely be debated for several weeks in the session.

“ With the legislation passed, the project will go forward in its entirety,” Singer said.

If not, he said, he’ll return to Florida. But he said that he is attracted to Butte because of its unique historic district and recreational opportunities and the excitement of devel oping such a large-scale project.

Barrett added that the project represents a departure from Butte’s past and although everyone wants to see the Montana Resources’ mine reopen, the role mining has played in Butte has dimmed.

“ What is Butte’s future?” he asked. “ This sets the tone of Butte’s future.”

— Reporter Leslie McCartney may be reached via e-mail at [email protected].

http://www.mtstandard.com/newslocal/lnews1.html

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What the leaders say about proposal

By the Standard Staff

“ The concept is certainly very intriguing, but we haven’t seen the legislation and we haven’t gotten any reaction from the community. It’s a little early to say how we feel about it now. The few people I’ve had a chance to talk to seem positive about it, but I’m sure there’s both positive and negative out there.”

Judy Jacobson, Butte-Silver Bow chief executive

“ I think it’s exciting, and I think that if — or I should say when — it does pass, the jobs it’ll create with in the hotel and gaming industries will also lead to other types of jobs. I think this will be a place where people will want to work, they’ll want to recreate. And it will tie in with our min ing heritage. Once and for all, we’ll be able to do some of the things we’ve always wanted to do with the headframes and the trails and linking all our historic sites for the tourists and for ourselves.”

Pam Haxby-Cote, Butte-Silver Bow community development director

“ I think Butte is a good fit for the project. We’ve got the land for redevelopment. We’ve got skilled people who need new jobs. We’ve got an appetite for entertainment. I’m glad the lid is off on the details so we can find out what the community thinks. We’ll all need to be on the same page for this to be successful. Like any develop ment, there will be some negatives, and we’d have to retool a couple of projects in East Butte and get the right financial assurances. Personally, I could deal with the impacts and the changes to our way of life. I favor taking a shot at the legislation, and we’ll see what happens.”

Jon Sesso, Butte-Silver Bow planning director

“ I don’t know if I’ve got an opin ion until I know what the town wants since I was elect ed to repre sent the people. I think the project has some great potential for the community, but it also has some impacts that are unknown.”

Mike Kerns, District 1 commissioner; council chair

“ It’s inter esting ’85 kind of overwhelm ing ’85 a very ambitious project. I’m certainly in favor of eco nomic growth, but there are a lot of things that have to be looked into first. I’m definitely in favor of soliciting as much public comment as possible.”

Joe Lee, District 2 commissioner

“ I think it’s an awe some oppor tunity. I think it’s great. In a way, it would be like win ning the lot tery. What he’s propos ing to do would be a big boost and would solve some of our economic problems. I definite ly want to know what the public thinks about this though.”

John Sorich, District 4 commissioner

“ I certainly endorse anything that’s going to be a boon for the tourist industry around here. I have no problems with the concept of open gam bling, but my two concerns right now are: 1) ButteSilver Bow must make sure that the proposed impact fees will in fact cover the actual impacts — all of them — water, sewer, streets, fire, and police. 2) With respect to the golf courses proposed on the south end of the town, I have some strong concerns about the source of the water that would be used to irrigate those courses and who that might affect, whether it’s groundwater or reser voir water being used.

Charlie O’Leary, District 5 commissioner

“ It’s a slippery slope in a sense. Butte and the surrounding area are obviously starving for economic development. It would solve that problem, but it would also create a bunch of other challenges. This would change the whole area for ever. It’s not like a company coming in and creating a couple 100 jobs. It’s too big of a project to say, `Run with it’ without hearing from the community.”

Rocko Mulcahy, District 12 commissioner

“ I think it’s very interest ing, and if it does go through, we’re going to have to monitor very closely the develop ment of it. It’s such a huge investment that it should boost the economy generally in Butte quite substantially. A rising tide floats all ships.”

Laura Lee Dunlap, District 9 commissioner

“ This is something I’ve always thought we should pursue. I think the Uptown should have been an entertainment district with wideopen gambling a long time ago. I think it would be great. Whatever bad there could be would be out weighed by all the new money that would be in town and new buildings and a new tax base. It would change peo ple’s points of view. We’re still in that boom-bust of mining, and that’s something we’ve got to get away from. We can’t live on mining anymore.”

Mike Sheehy, District 10 commissioner

“ This is exactly what Butte needs and what southwest Montana needs and we’ve voted to support it. We’ve got to take our future into our own hands and this would bring job growth in every sector. There are 1,200 hotel rooms in the area now and we could be looking at 24,000 to 25,000 eventually. That translates into a lot jobs, and not just in the hospitality field. Everybody benefits.”

Virginia Karlsen, Silver Bow Area Hospitality Association board member and owner of the Red Lion Hotel

“ The tavern owners have dif ferent concerns about being able to compete with full-blown gambling and we’ll be meeting with them Monday. The neighborhood bars would probably still keep their neighborhood clientele, but other places depend more heavily on gambling to stay open. They seem to be willing to work with us though and listen to our concerns, so we’re keeping an open mind. It looks like an awfully ambitious project, but if they have the investors and market it right they could make it fly. We’ll be along for the ride. If it’s good for Butte, it’s good for all of us.”

Bill Brown, Butte-Silver Bow Tavern Association president and owners of BB’s Casino

“ The magnitude of it is mindboggling but we need to do some thing. If we don’t, we may as well turn out the lights and leave. Every time someone has an idea around here, someone beats it down. If it ends up being just half of what they propose it would still provide some good paying short term jobs as well as long term jobs. I haven’t seen anyone come up with any other revenue ideas.”

John Forkan, Montana State Building and Construction Trades Council president

“ We’ve voted unanimously to support the project and assist them in any way possible. I think they have their ducks in a row. They are a strong entity and very viable. It’s a win-win situation for the state and the county.”

Linda Guptill, Butte Chamber of Commerce president

“ I think as a whole it’s going to help not only the new items coming into town, but ripple throughout the community. This means that all the businesses in Butte are going to benefit from this coming in. I think we need to keep an open mind. It’s not just centered around gambling, but around recreation as a whole and it will not just benefit Butte, but sur rounding counties. It will be a great economic impact.”

Tom Blaz, Butte’s First Interstate Bank branch manager

“ I think the concept in general is really good. You look out there on Montana’s and particularly Butte’s horizon and you don’t see much. Butte’s been beat up with all that’s happened with Montana Power and Touch America. I think we’re a community looking for an identity. You look at how the con cept has played out in Black Hawk, Colo., and Deadwood, S.D. It seems to have worked very well. Anything that can help draw a crit ical mass to the Uptown business district is really good. We have a unique historic district that we need to promote.”

Jim Kambich, Continental Public Lands Trust president

http://www.mtstandard.com/newslocal/lnews11.html

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Meetings planned On Destination Montana

Public meetings are planned to introduce and discuss the $1.8 billion Destination Montana project:

Monday, Feb. 24, at 11 a.m. — A welcome and intro duction of developer Barrett Singer and the project are planned at The Garden, 55 E. Granite St.

Monday, Feb. 24, 7 p.m. — Butte Tavern Association will meet at the Comfort Inn, 2777 Harrison Ave., to dis cuss the new entertainment development and smoking ordinance.

Monday, March 3, 7 p.m. — A forum, sponsored by The Montana Standard, will be held in the Montana Tech auditorium.

The Butte-Silver Bow commissioners will also dis cuss the plan at a future meeting.

For details on Destination Montana, write: Destination Montana, PMB No. 132, 3336 Harrison Ave., Butte 59701

http://www.mtstandard.com/newslocal/lnews111.html

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What state officials say of the project

By the Standard Staff

Here’s what members of Butte’s legislative delegation have to say about Destination Montana:

“ This potential $1.8 billion investment will invigorate the economy of Butte and the state of Montana. It is important to also recognize that this is a multifaceted project, with gambling being only one facet. I will work at the Legislature to pass the neces sary legislation to move the project ahead, and look forward to work ing with all of you to make this project a reality.”

— Rep. Jim Keane

“ This proposal emphasizes Butte’s rich history and utilizes our natural assets. A package of music, theater, gaming, outdoor recre ation and old-fashioned hospitality can make southwest Montana a destination point again. I support the Butte Local Development Corp.’s efforts to launch the Destination: Montana project. If it takes legislation to secure the nec essary funding, then I pledge to do everything in my power to advance that legislation. Destination: Montana promises to bring needed jobs and economic stability to the Butte area. Butte is up to the task. Let’s get to work to bring the Legislature in line.”

— Rep. Brad Newman

“ Gambling has always been a lightning rod for criticism and I anticipate a problem with this in the Legislature. Whether we can get this bill through the Legislature remains to be seen, but the Butte delegation will be working hard to get the votes we need to pass the required legislation. The number of jobs involved in this project should give us all hope that we can bring our kids home and keep our kids in Butte. I would like to thank Barry Singer and Evan Barrett for bringing this project forward and showing us all that there is a bright economic future for Butte and Montana.”

— Rep. Larry Cyr

“ We in the state Legislature have our work cut out to make this all happen. I promise you that I will do all I can to make this dream come true. Montana is faced with some very serious problems, including cuts in education funding, both K- 12 and university funding, and health care cuts — this is what the doctor ordered to help not only Butte, but the state of Montana.

— Sen. Dan Harrington

“ I want to thank all of the parties who have worked over the past months to bring this Destination: Montana Economic Development package together. We all have a great deal of work ahead of us, and I promise my total commitment and full energy in this exciting endeavor.”

— Sen. Deb Shea

“ At this point in our economy I am in support of any proposal to add jobs to Butte, including the Destination: Montana project. I am optimistic that the Butte dele gation can successfully pass the needed legislation for the develop ment to move forward. It is impor tant for the people of Butte to real ize the magnitude of this proposal, and how its success will change our community. I urge anyone to contact the Butte delegation with their thoughts and ideas as the leg islation moves forward.”

— Rep. Steve Gallus

http://www.mtstandard.com/newslocal/lnews111.html

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