Virginia: Petersburg Mayor says city faced political pressure to choose a particular developer for casino project

Petersburg Mayor Sam Parham reaffirmed the city council's stance on Wednesday that Petersburg faced political pressure from the General Assembly to choose a particular casino developer or risk losing the opportunity to have a casino altogether.

The city council had claimed that the city faced coercion to choose a specific casino developer. Parham said: "We have a council of seven that is unified on the fact that we told the truth." 

The dispute arose following allegations against Sen. Lashrecse Aird, D-Petersburg, suggesting her involvement in pressuring the city to select a particular casino developer. Aird, however, rejected the characterization of events, labeling it as "revisionist history." Mayor Parham, in response, maintained the council's position.

The council's resolution passed on April 24 implied that Petersburg's city manager, John "March" Altman Jr., was coerced into signing a letter indicating the city's partnership with Bally's Corporation for the casino project. Parham highlighted the council's assertion that Altman signed the letter under duress, fearing potential repercussions from the General Assembly.

The council resolution claims Altman Jr. only signed the April 17 letter to avoid having the General Assembly kill legislation allowing Petersburg to have a casino.

"We don’t do this to appease any groups or take any type of favors or any type of slanted deals out of Richmond, we do this for the people of Petersburg," Parham stated.

Subsequently, the Petersburg City Council unanimously selected The Cordish Companies as its casino partner, reiterating its preference for the Maryland-based developer, which it had chosen in 2022 for a previous casino attempt. Parham stated: "I don’t know if there were some problems in Richmond with Cordish. I don’t see how because they have a solid, family-run operation. They take care of their employees."

Amidst allegations and counterclaims, opponents question the fairness of the casino developer selection process in Petersburg. The city's decision to select Cordish has drawn criticism from some quarters, including Unite Here, a hospitality workers' union with ties to Bally's.

The union, a contributor to Aird's 2023 Senate campaign, has threatened legal action against Petersburg officials, alleging violations of Virginia's transparency laws in their closed-door decisions on the casino.

The forthcoming November ballot referendum will provide Petersburg residents with an opportunity to voice their opinions on the proposed casino development, marking a critical juncture in the city's ongoing saga.

Meanwhile, discussions within the General Assembly regarding the Petersburg casino have brought to light concerns about the selection process and the need for transparency and fairness in future casino projects across Virginia. Del. Paul Krizek, D-Fairfax, has advocated for legislation mandating a competitive process to ensure impartiality and accountability in developer selection.

“Any casino process needs to be conducted in as public a manner as possible with competition from the industry so that the public gets the best product. That takes care of these problems," Krizek stated.