Norfolk Casino returns to single-phase timeline after urban turmoil
Date: 2023-08-07 Author: Kirill Zagoruyko Categories: CASINO
HeadWaters is a $500 million project that Norfolk voters sanctioned in a local referendum during the 2020 presidential election. The presentation of the casino came from the Pamanki Native American tribe and billionaire gaming industry veteran John Yarbrough.
Norfolk was one of five cities identified by Virginia legislators in 2020 as potential locations for commercial casinos. The gambling law is designed to help a handful of cities fix their poor economic conditions.
Nearly three years after Norfolk residents backed HeadWaters' plan with 65% support, little has been done on the 13.5-acre construction site adjacent to the city's Harbor Park minor league baseball stadium. The reason for the latest delays was the confusion of city officials and casino developers regarding the proposed phased construction timeline for the resort.
Last month, the tribe and Yarbrough withdrew the casino application from the city's Architectural Review Board. Representatives from HeadWaters cited mixed messages from the Norfolk City Council in the decision to cancel the building permit request.
Sides back in unison
It was originally planned that the construction of HeadWaters would be one-stage, but in early July, the developers changed the schedule to include two stages.
The first phase was to include a 90,000-square-foot building including the casino space, resort lobby, restaurant, sports bar, and parking lot. The second phase was to include a 300-room hotel and resort-style amenities such as a spa, additional restaurants, a rooftop pool, and an event center.
Local authorities pushed back the deadline on the grounds that the agreement between the city and the developers did not include permission for a phased construction schedule. Virginian-Pilot reports that the two sides have once again reached a consensus and are currently reworking the one-stage construction plan.
While we confirm the preliminary communication that provided for a phased design approval process, we do not have such amendments to our agreements that would allow this,” Norfolk City Manager Patrick Roberts wrote in a July 14 letter to the casino development team. "In addition, the City will not consider amendments to our agreements that could result in the final project being smaller than what was agreed in 2020."
On July 25, HeadWaters officials met with city leaders to correct the misunderstanding. Following discussions, a joint statement was released reaffirming that "both parties remain fully committed" to the casino's 2020 plan approved by residents.
Rivers benefit from upstream delays
Norfolk and Portsmouth are two of the five cities allowed for casinos under the 2020 Virginia Gambling Bill. The two adjacent towns on Hampton Road are separated by the Elizabeth River.
Portsmouth voters also approved their casino project during the November 2020 election. City casino developer Rush Street Gaming wasted no time in building and opening its Rivers Casino Portsmouth gaming establishment.
Rivers Portsmouth opened on 23 January 2023. Since then, the casino has been marketing its activities and increasing its market share in the Hampton Roads area.
Since opening, Rivers Portsmouth's 1,420 slot machines and 81 table games have generated gross gaming revenue (GGR) of approximately $119.8 million. Rivers' best month to date comes in February, the casino's first full month of operation, when GGR topped $24.6 million.
In addition to slot machines and tables, Rivers Casino Portsmouth has a bookmaker called BetRivers. The casino does not offer on-site or resort-style facilities.
Norfolk was one of five cities identified by Virginia legislators in 2020 as potential locations for commercial casinos. The gambling law is designed to help a handful of cities fix their poor economic conditions.
Nearly three years after Norfolk residents backed HeadWaters' plan with 65% support, little has been done on the 13.5-acre construction site adjacent to the city's Harbor Park minor league baseball stadium. The reason for the latest delays was the confusion of city officials and casino developers regarding the proposed phased construction timeline for the resort.
Last month, the tribe and Yarbrough withdrew the casino application from the city's Architectural Review Board. Representatives from HeadWaters cited mixed messages from the Norfolk City Council in the decision to cancel the building permit request.
Sides back in unison
It was originally planned that the construction of HeadWaters would be one-stage, but in early July, the developers changed the schedule to include two stages.
The first phase was to include a 90,000-square-foot building including the casino space, resort lobby, restaurant, sports bar, and parking lot. The second phase was to include a 300-room hotel and resort-style amenities such as a spa, additional restaurants, a rooftop pool, and an event center.
Local authorities pushed back the deadline on the grounds that the agreement between the city and the developers did not include permission for a phased construction schedule. Virginian-Pilot reports that the two sides have once again reached a consensus and are currently reworking the one-stage construction plan.
While we confirm the preliminary communication that provided for a phased design approval process, we do not have such amendments to our agreements that would allow this,” Norfolk City Manager Patrick Roberts wrote in a July 14 letter to the casino development team. "In addition, the City will not consider amendments to our agreements that could result in the final project being smaller than what was agreed in 2020."
On July 25, HeadWaters officials met with city leaders to correct the misunderstanding. Following discussions, a joint statement was released reaffirming that "both parties remain fully committed" to the casino's 2020 plan approved by residents.
Rivers benefit from upstream delays
Norfolk and Portsmouth are two of the five cities allowed for casinos under the 2020 Virginia Gambling Bill. The two adjacent towns on Hampton Road are separated by the Elizabeth River.
Portsmouth voters also approved their casino project during the November 2020 election. City casino developer Rush Street Gaming wasted no time in building and opening its Rivers Casino Portsmouth gaming establishment.
Rivers Portsmouth opened on 23 January 2023. Since then, the casino has been marketing its activities and increasing its market share in the Hampton Roads area.
Since opening, Rivers Portsmouth's 1,420 slot machines and 81 table games have generated gross gaming revenue (GGR) of approximately $119.8 million. Rivers' best month to date comes in February, the casino's first full month of operation, when GGR topped $24.6 million.
In addition to slot machines and tables, Rivers Casino Portsmouth has a bookmaker called BetRivers. The casino does not offer on-site or resort-style facilities.
