BANGOR (AP) – After several months of negotiations, the city sealed a $30 million development deal that will allow Las Vegas-based Capital Seven LLC to create a “racino” if state voters give their approval on Tuesday.

Capital Seven had irked the city by entering into negotiations with neighboring Brewer and had faced some eleventh-hour competition from an Iowa casino management firm.

Capital Seven were visibly relieved after the council’s 5-3 vote Thursday approving the deal at City Hall.

“I’m glad this is behind us,” said spokeswoman Victoria Scott, mother of Capital Seven owner Shawn Scott.

Capital Seven’s plan for the city-owned racetrack calls for the construction of a “racino,” the gaming industry’s term for a racetrack with slot machines.

The agreement both parties have ratified calls for construction of gaming, hotel and conference space – if Maine voters give slots the thumbs up.

“This agreement will ensure that this development takes place in Bangor and should provide, once implemented, a minimum of $2.1 million a year for investment in our region’s economic future,” said Councilor Michael Crowley, who voted in favor of the agreement.

Mayor Nichi Farnham and Councilors Frank Farrington, Richard Greene and John Rohman also voted in favor of the deal, while Councilors Anne Allen, Gerry Palmer and Dan Tremble were opposed. Councilor David Nealley did not participate because he is employed by Capital Seven.

If Maine voters give their approval, Bangor will be ready to move ahead with its project. Residents in Scarborough, home of the only other racetrack, will vote in a local referendum on Tuesday.

Most of the people who spoke at Thursday’s meeting were against the plan.

State Rep. Patricia Blanchette, a former mayor and councilor, said she had “very, very serious concerns” about the company. She said councilors were not putting all their cards on the table for residents to see.

“There’s more to this than what the public’s been told – you know it and I know it,” she said, referring to the city’s background investigation of Capital Seven. “I think you’re buying a pig in a poke,” she added.

Among those who urged the city to hold off on the deal were representatives of Kehl Management Co.

Late Wednesday, the Iowa-based casino management and development firm announced its interest in bringing a racino to Bangor Raceway. Kehl promised the city a better deal.

Dan Kehl, vice president of the family-operated Iowa company, attended the meeting to reaffirm his company’s interest.

“We’d like to be there if Capital Seven is unable to fulfill its obligations to the city,” he said.

AP-ES-10-31-03 1518EST



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