Gina Passarella is staff writer for The Legal Intelligencer.
PHILADELPHIA-HSP Gaming, the parent company of the planned SugarHouse Casino, doesn't want to wait any longer to start construction of its facility on the riverfront in the Fishtown section of Philadelphia. The company last week filed a petition for review with the Pennsylvania Supreme Court along with an application for summary relief against City Council, the city of Philadelphia and the city planning commission to compel the approval of necessary zoning and permits.
Cozen O'Connor, Sprague & Sprague, Lamb McErlane and Levine Staller Sklar Chan Brown & Donnelly filed the petition on behalf of HSP Gaming. The company wants the high court to force City Council to put into action ordinances it passed before the licenses were given that created the new zoning classification Commercial Entertainment Districts.
“Despite this court's holding [denying the city's ability to put a referendum question on the May 15 ballot], City Council has continued to refuse to implement the gaming board's decision by failing to designate the approved zoning at sites selected by the gaming board for the casinos, and has defied the decision of the [Pennsylvania] Gaming [Control] Board, as upheld by this court,” the company said in its petition.
It said City Council “has thrown roadblocks in the orderly development” of gaming in Philadelphia and “intentionally delayed” the process despite all of the requirements being met.
In a press conference held by SugarHouse gaming at a hotel along the waterfront, the company's attorney, Stephen A. Cozen, said HSP Gaming had plenty of opportunity to take legal action along the way but chose instead to work with the community groups. “Unfortunately, for whatever the reason, City Council has continued to take the position that its job is to frustrate, not facilitate,” Cozen said.
HSP suggests in its petition that the Supreme Court find that no other actions by City Council are needed for gaming to proceed. “Moreover, the gaming board having made its decision as to the location of the site, City Council's role under the CED Ordinance to enact the HSP bills is merely ministerial because all of the policy decisions regarding the location of the casinos were made and set forth in the [Pennsylvania Race Horse Development and] Gaming Act and by the gaming board,” HSP said in its petition.
In an application for summary relief, the gaming company requested an expedited briefing schedule and asked that the court appoint a master. The company wants a writ of mandamus or an injunction directing the city and the City Planning Commission to deem the bills enacted within 10 business days of the date of the court's order. The company also wants a master to be appointed with continuing jurisdiction over the matter.
Much of HSP Gaming's petition was directed at what it said were the attempts by Councilman Frank DiCiccio to halt SugarHouse's development as long as it is at its current site, according to the petition. Cozen asked at the press conference that attendees listen to the response of the city's administration in the next couple of days, guessing that it would support SugarHouse's position.
City Solicitor Romulo L. Diaz Jr. said in an interview the administration has indicated on numerous occasions that it is in favor of gaming. While the mayor has taken into consideration the needs and concerns of residents in the Fishtown area, it has “been mindful of the fact that there is some practical deadline.”
Diaz said he wants the city to maintain certain power over gaming in Philadelphia, such as local police power. He said, however, that SugarHouse has been very forthcoming and has tried to work with residents throughout this process. “We ought to get on with it,” he said.
Diaz said he called City Council President Anna Verna today to suggest that council hire its own attorney on this matter. A spokeswoman for Verna said Verna hasn't had the chance to review the “voluminous lawsuit,” but City Council will have outside counsel for the case. It already had James W. Christie, president of Christie Pabarue Mortensen & Young, on retainer for previous SugarHouse matters and he will handle this one as well, the spokeswoman said. Christie said he was contacted yesterday by city council and will take the case. He said he couldn't comment on the substance of the suit because he hasn't yet reviewed the documents.
City Council needs separate counsel on gaming issues because of its divergent views from the administration on gaming.
In its petition for review, HSP Gaming said DiCiccio specifically controls the actions of the council through his position as the council member for the district where SugarHouse is set to be located. “Under a tradition known as 'councilmanic prerogative,' zoning legislation that affects property within any councilmanic district will not be passed by City Council unless the Council Member representing that district approves the legislation,” according to the petition.
At the press conference, Cozen said there shouldn't be such a prerogative. “Councilmanic prerogative means you're held hostage by a group of people who don't want you to do something,” he said.
HSP Gaming brought the petition and request for summary relief under the Pa.C.S. Section 1506, which gives the Supreme Court jurisdiction over all things gaming. Cozen said he thinks the court alternatively has jurisdiction under its King's Bench powers.
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