Confidential Report Raises Questions, Eyebrows Over Selection of Virginia Casino Developer

Virginia State Sen. Lashrecse Aird has been a champion for bringing a casino to Petersburg, but has expressed dismay over the City Council's promising the project to the Cordish Companies. (Image: Nicolas Galindo/Richmond Times-Dispatch/Associated Press/Alamy)

Last Wednesday, the Petersburg City Council unanimously chose Cordish Companies as the developer for its proposed casino project. That decision faced criticism from at least one local politician. Now, a report revealed Monday from the Virginia city’s financial advisor is fueling further questions about how that selection was made. 

The confidential report, which was sent from financial advisor Davenport & Co. to the city council on the same day that it made the decision to pick Cordish as its developer, was viewed by The Progress-Index.

Cordish is the developer behind Live! casinos in Maryland and Pennsylvania, and Seminole Hard Rock properties in Tampa and Hollywood, Florida. 

Report Praised Cordish, but Made No Final Recommendation

According to The Progress-Index, the report does identify Cordish – which is partnered with Bruce Smith Enterprises for its proposal – as the most financially viable of the five bidders under consideration for the casino project. However, Davenport & Co. also recommended that the city ask a series of questions to each vendor before it would make a final recommendation on which company to choose.

The report suggested that Cordish, Bally’s, and Rush Street Gaming were the three most viable projects, ranking them ahead of proposals from Penn Entertainment and The Warrenton Group. Additionally, Davenport & Co. praised the Cordish proposal based on its likelihood of achieving funding, the amount of development and investment it would bring to Petersburg, and the fact that the proposal included guaranteed upfront and on-time payments.

“Davenport believes that The Cordish Companies’ proposal ranks first when aggregating the three key factors that we considered,” the report read, according to The Progress-Index.

But while the report does offer praise for the Cordish project, it falls far short of what at least one city councilor said in the wake of Wednesday’s vote. 

After the vote, most of the Petersburg City Council declined to comment on the decision. However, Ward 5 Councilor Howard Myers emailed the Progress-Index, saying that Davenport & Co. has urged the council to choose Cordish in its report.

According to The Progress-Index, the Davenport report featured specific questions for each of the five potential vendors, and in particular, had a series of questions for the three leading contenders, including Cordish.

“Davenport would like to have responses to these questions before presenting a firm and final recommendation to the city,” the report read.

Senator Blasts City Council’s Hasty Decision

After the city council meeting on Wednesday, Virginia State Sen. Lashrecse Aird (D-Petersburg) harshly criticized the choice of Cordish. On Friday, Aird – who sponsored legislation that would create a necessary November casino referendum in Petersburg, and who has generally supported the Petersburg casino project – released a blistering statement blasting the decision:

The statement focuses on a couple of major issues. First, there is the matter of a letter signed by Petersburg City Manager John Altman Jr. saying that the city council intended to pick Bally’s, pending outside factors, a letter first reported bt The Virginia Mercury. 

The letter was addressed to Bally’s Senior Vice President Christopher Jewett but was never sent.

According to the city council, the letter was signed under duress due to pressure from the General Assembly, which wanted the council to pick a particular bidder or risk losing the project. Some lawmakers allegedly were ready to pull their support for SB 628, legislation that would make Petersburg an eligible host city.

“The letter of intent signed by the Manager was never formally authorized by City Council; was not executed freely and voluntarily; and was not delivered to Bally’s but instead was signed and returned to the sender in response to a demand as a condition of allowing SB 628 to proceed,” a city council resolution reiterating its support for Cordish stated. 

Aird disputed that characterization, saying that she has worked “in good faith” with the city council on the casino project.

“To have what was an honest collaboration characterized as ‘demands’ and that actions taken by the Council were made under ‘duress’ is a blatant and transparent revisionist history aimed at distracting from Council’s original intent – as demonstrated in previous years – to christen an operator that met their personal priorities while deprioritizing positive outcomes for the City,” Aird wrote.

Labor Union Feeling the Squeeze?

There are also questions over the relations each bidder has with labor unions. Unite Here Local 25 says Cordish is the only bidder with which it doesn’t have a positive relationship. 

The union had previously opposed a Petersburg casino project when the city picked Cordish in its first attempt at a casino project in 2022. Cordish had an agreement with the Seafarers Entertainment & Allied Trades Union rather than Unite Here.

“Choosing to move forward with a developer without receiving a public commitment to good jobs is deeply concerning,” Aird wrote in the statement. “Any economic development project of this scale proposed in the City of Petersburg, or our Commonwealth, should bring wealth and good jobs to the workers in our community.”

While the process by which the Petersburg City Council chose Cordish remains unclear for now, one city councilor is promising answers later this week.

“I’m about to tell it ALL!!,” Ward 1 Councilor Marlow Jones wrote on his Facebook page on Friday. “Y’all keep thinking city council is shady. You might wanna look above and beyond reach! Stay tuned as soon as set it up with a meeting place it will be public and I’m naming all involved with a detailed timeline!”