Slots Line News - January 24, 2006

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Pompano May Spare Enormous Slot Tax 

Pompano Beach leaders may give the Pompano Park Harness Track a break on the planned $250 tax for each newly installed slot machine.  The tax may be dramatically reduced to a more reasonable $50; a fee much more comparable to the $30 fee charge on a pinball machine installation.

Two weeks ago, city officials were convinced of delaying the activation of the $250 fee.  Today, for the second time this month, they will attempt to establish a fee for each of the 1,500 machines recently installed by Pompano Park Harness Track. 

Dick Feinberg, track general manager, says the delay was requested because they were “caught unaware.” Feinberg admits, “We were a little bit surprised.”

Track executives met in private with the city manager to discuss the fee. On Monday, C. William Hargett Jr.’s spokeswoman said the city manager would like to see the city cut the $250 tax down to $50.  The $50 tax “more accurately reflects the cost of regulating slot machines. 

With 1,500 new slot machines, the harness track made the decision to install the maximum number legally permitted by the state of Florida.  A $250 annual tax per machine would generate $375,000 each year for the city treasury.  The $50 tax would only bring in $75,000 each year. 

Any change to the occupational fee will not effect the agreement, reached in May of last year. that Pompano Beach will receive an additional 1.7 percent of yearly revenues generated by all slots machines; an estimated $2,875,000 per year.   

At the beginning of meetings on Monday, many commissioners were clearly left in the dark about the provisional agreement. 

Commissioner George Brummer was in total disagreement of the idea that the $250 occupational fee was unreasonable.  “It doesn’t strike me as enormous.  Consider what each machine, supposedly, produces in the course of a year.”  Brummer’s district encompasses the harness track.  

Mayor John Rayson is still trying to decide between what he considers “two different stories.”  As city managers insist the $250 tax is average, Pompano Park cries out its violation of the negotiation previously reached. 

At
7 p.m. this evening, commissioners are scheduled to vote on the issue during their City Hall meeting. 

In response to his meeting with the city manager, Feinberg said, “We have issues and the city managers know it and there may be more than what’s in black and white.” Feinberg did not feel obligated to make any comments beyond that.  Feinberg insists that he had no clue of what Hargett’s proposal would be.  

Once the currently under construction, 157,000 square-foot “racino” is completed at the end of this year, track executive anticipate slot machines to be fully operational.  However, the track has a wealth of work to complete before that date, including a promised traffic study.  

Brummer has also demanded that Pompano Park Harness Track sponsor lane additions to
Powerline Road.  Powerline is the main access road that leads to the track.   

Pompano Park Harness Track is but one of the four pari-mutuels recently permitted to install slot machines in Florida.  The other three are Dania Jai-Alai, Gulfstream Park, and Hollywood Greyhound Track.

Dania Beach has also demanded that their pari-mutuel conduct a traffic study, though they have not yet decided on enacting an occupational fee. 


According to the City Manager of Dania Beach, Ivan Pato, they are currently “looking at all the options.”  Pato says his city is “working on primarily having a plan in place to address the public safety impacts.”  Pato also say that traffic concerns are very high on the priority list.  

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