The majority investor in an Adams County gaming project doesn’t think there is anything controversial about a legal agreement he signed with the Cumberland Township Board of Supervisors.
Mason Dixon Resort & Casino co-investor Joseph Lashinger said he has worked out revenue-sharing arrangements with municipalities in “every project that I’ve ever been a part of across the United States. Lashinger has amassed nearly two decades of service in the gaming industry, including six-year run as vice president and general counsel with Penn National Gaming.
“There is nothing that anyone should be concerned about,” Lashinger said regarding the April 5 “Memorandum of Understanding” he signed with Cumberland Township. The legal agreement guarantees the township a minimum of $1 million in annual revenue shares from the proposed $75 million project Mason Dixon project at the Eisenhower Inn, with $1 million representing about one-third of the township’s yearly $2.6 million budget. Township supervisors voted unanimously April 5 to support the project, citing the financial guarantee, as well as other economic benefits.
“It has been my role going into a municipality that the municipality should be made an economic partner,” said Lashinger, an attorney and former member of the Pennsylvania House of Representatives. “Everywhere I’ve been, I’ve worked that type of agreement,” added Lashinger, who has held high-ranking positions with Hollywood Casino, Penn National Gaming, and the Chester Downs project in Delaware County.
Lashinger and Gettysburg businessman David LeVan, who will assume full-ownership if the project is awarded a license by the state’s Gaming Control Board, are looking to convert the 300-room Eisenhower Inn & Conference Center along Business 15 in Cumberland Township into a “slots resort,” with 600 slot machines and 50 table games. No new construction is planned as part of the project, and Mason Dixon is competing against three other proposals for the license.
Opponents of the Mason Dixon project have argued that Lashinger signed the MOU with Cumberland Township — not LeVan — and that the contract was approved during a mid-afternoon meeting Monday, April 5., when the public was largely unavailable. Four people attended the meeting. Supervisors unanimously approved the agreement in a 4-0 vote, with board member Debra Golden abstaining because of her previous professional relationship with LeVan.
Concerned Citizens of Cumberland Township spokesman Al Ferranto told the township’s board of supervisors last week that it did not “do due diligence in vetting the MOU.”
Board Chairman David P. Waybright explained that the legal pact originated from “concerns that the board had over the proposed resort.” Overall, the legal agreement requires “detailed” land development plans, requires the developer to pay for all legal and engineering expenses, and sets aside two scholarship funds.
Still, Ferranto argued that the board “should not testify on the township’s behalf” Aug. 31 during a Pennsylvania Gaming Control Board hearing, and that little is known about Lashinger, aside from recent media reports.
Mason Dixon spokesman David La Torre countered that “from day one, Joe Lashinger has been identified as a principal” in the project, as far back as mid-November, when the gaming plan was made public.
“There was no investigation into the Mason Dixon ownership,” said La Torre. “Our ownership breakdown has been online for three months for the whole world to see.”
Under a state gaming formula that determines local government share, it would take $50 million in Mason Dixon Casino revenues to generate $1 million annually in local tax revenues for Cumberland Township.
The local share, according to the MOU legal document, will be paid to the township before Feb. 1 of each year, “for any use by the township in any manner, for any purpose, at the sole discretion of the township.” If revenues don’t total at least $50 million, Mason Dixon will make up the difference, per the agreement. A recent economic impact study conducted by a Philadelphia firm predicts more than $80 million in gross annual gaming revenues, as a result of the project.
Cumberland supervisors are also requiring a sewer and landscaping plan, roadway upgrades, building dimension blueprints, traffic and parking studies, detailed signage and lighting plans, and wastewater treatment plans. All expenses will be paid by the developer, per the Memorandum of Understanding. Additionally, Mason Dixon will set aside $5,000 in scholarship funds each year.
The agreement is binding, so if LeVan is awarded a license, it will remain in effect if the 100-acre Eisenhower Inn property is ever sold, or transferred to new ownership. Also, as “potential impacts (of the project) become known,” amendments to the agreement are negotiable.
The 56-year-old Lashinger, who lives in Florida with his family, is the majority owner in the Eisenhower Inn project, with 76.48 percent ownership, and he has 98 percent ownership in Mason Dixon LP, the group that would own and operate the project. But Lashinger said in a previous interview that LeVan will take over the project “completely,” upon licensure. The state is expected to render a decision later this year, or early in 2011.