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Council, Legislators Fail in SugarHouse Challenge

PHILADELPHIA-The Supreme Court denies challenges to the casino developer's ability to build on land under the Delaware River.

By Gina Passarella | Updated on June 17, 2009

PHILADELPHIA-The state Supreme Court held up its August 2008 decision in HSP Gaming v. City of Philadelphia as cause to deny challenges by a group of state legislators and Philadelphia City Council over whether the city, and not the state, can grant SugarHouse Casino a license to build on submerged lands beneath the Delaware River.

In Fumo v. City of Philadelphia, the court said its earlier ruling that found the state delegated to the city its power to license the land under Act 321 of 1907 meant the two groups’ arguments failed.

While the ruling, issued by Chief Justice Ronald D. Castille, found that the state legislators had standing to claim the city’s Commerce Department’s issuance of the license was improper because only the General Assembly can grant such rights, it found the claim was without merit based on HSP Gaming . The court ruled the legislators do not have standing to challenge the issuance of the license under the theory that the Commerce Department didn’t require HSP to produce a proper deed or title.

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