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Backers Vision 10 Night Clubs, a Dozen Hotels,
PGA Golf Courses and Gambling in Downtown
Butte, Montana; 
-
Potential $1 billion Development Hinges 
Changing Montana's Gambling Laws
By Charles S. Johnson, The Montana Standard, Butte
Knight Ridder/Tribune Business News 

Feb. 21, 2003 - HELENA, Mont.-- A bill will be introduced at the Legislature soon to authorize creation of a "music and entertainment district" to allow wide-open gambling at some proposed new major casinos in the national historic district near uptown Butte. 

Backers of the proposal also are discussing with state officials other aspects of what they privately are touting as a potential $1 billion development for the Butte area in the 150-acre historic landmark zone. 

They are also telling lawmakers and others that their plans include building 10 nightclubs or theaters for live musical performances by well known musicians -- Carly Simon is one mentioned -- as is done in Branson, Mo., along with a dozen hotels for the anticipated influx of tourists. Other potential aspects of the development mentioned by the project backers include building three PGA golf courses in the area and constructing high-altitude training camp facilities for National Football League and National Basketball Association teams, possibly including a new stadium that would seat 10,000 or 15,000 people. 

Those pushing the plan are telling state officials it will create construction and permanent jobs and improve the stagnant Butte economy, draw tourists and provide new tax revenue for the state as well as for Butte. 

Gambling has played a big role in the Mining City's history over the years, with some Butte establishments offering open gambling when most of the rest of the state banned it. 

The key to the proposal is changing Montana's limited gambling laws to accommodate the wide-open gambling, including slot machines, blackjack and possibly other games such as craps now banned in Montana, they are telling state officials. Project backers also would be looking to remove the current limits of 20 video gambling machines per establishment for the entertainment zone so they could install hundreds of machines and remove cur rent limits on bets and winnings. 

Montana gambling law allows some live games such as poker, keno and bingo. Current laws also allow up to 20 video poker and keno machines per establishment. 

Legislators, state officials and others in the Capitol have been tight-lipped about the proposal. Most of those who would talk did so only on condition of anonymity. 

Evan Barrett, the executive director of Butte Local Development Corp. who is promoting the idea, has been quietly introducing one of the project promoters, Barrett M. Singer, who describes himself as an urban redeveloper from West Palm Beach, Fla., in private meetings with state officials and legislators. 

Evan Barrett and Barrett M. Singer, contacted separately by the State Bureau on Thursday, refused to talk about the project or legislation. Singer said there would be an announcement Monday. 

State officials have been told there is a group of potential investors for the Butte project, but those involved "want to be low key." 

Backers are said to have been quietly buying up options on liquor licenses in Butte and land in the zone in anticipation of the bill becoming law. 

Gov. Judy Martz said Wednesday she was aware of a potential project but could not say anything at that time. 

On Jan. 6, Sen. Dan Harrington, D-Butte, dropped in the request to draft a bill to "authorize music and entertainment districts." He declined comment. 

Sources said the backers of the project want a prominent Republican to sponsor the bill. Republicans control both the Senate and House, and Martz is a Republican. 

With the Legislature concluding its 38th of the scheduled 90 days, the bill had yet been introduced as of Thursday. 

A private Helena lawyer, Cort Harrington, has been retained by the developers to draft the bill and submit it to the legislative staff when it's ready. By using a private lawyer, sources said, the bill as it is being written isn't a public record during the drafting as it would be if a Legislative Services Division lawyer or researcher wrote the bill. The bill will become public after the Legislative Service Division approves it. 

Gene Huntington, administrator of the state Justice Department's Gambling Control Division, confirmed that backers of the Butte project met with him and others in the department two weeks ago. 

"They want to create a district as economic development and they want to look at a different standard of gambling," Huntington said. "They were trying to figure out what our regulatory and tax policies are." 

The project promoters were definitely interested in changing the law to include "banked games," such as blackjack and slots, he said. 

Huntington said Gambling Control Division officials, seeking to get an idea of what might be proposed for such an entertainment zone, have been looking at the Web site information on special gambling areas in old mining towns in Colorado. One is Black Hawk, which has 20 casinos, including the Black Hawk Casino by Hyatt that has 1,186 gambling "devices," including slots. 

Under the promoters' plans, the wide-open gambling would be allowed only within the "music and entertainment district" in Butte, not in other Butte-Silver Bow establishments not in the zone nor in the rest of the state, sources said. 

The backers also have talked about changing the tax on gambling, now at 15 percent of the money bet in machines, minus the pay outs, for the zone. Sources said backers are proposing a 3 percent tax on the gross revenue of the casinos and other businesses in the zone. 

If the bill becomes law, Huntington said it would have an impact on what gambling can be offered at Montana's seven American Indian reservations under the federal Indian gambling act. 

Creation of the wide-open gambling district in Butte would give Indian reservations the right to offer the same wide-open gambling. 

"Anything prohibited (by the state) isn't subject to negotiation (with the tribes)," he said. "Things we regulate are subject to regulation." 

Other laws that the bill might propose changing include the state's restrictions on liquor licenses, which are necessary to have gambling machines, sources said. At present, Montana prohibits out-of-state owners of liquor licenses and prevents multiple owners of a liquor license. 

-----To see more of The Montana Standard, or to subscribe to the newspaper, go to http://www.mtstandard.com 

(c) 2003, The Montana Standard, Butte. Distributed by Knight Ridder/Tribune Business News. 


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