Underground Atlanta developer Dan O’Leary is rolling the dice again on a plan to bring video gambling to Georgia, which he says will benefit the beleaguered HOPE scholarship program and give the state an economic boost.
O’Leary wants to build a $1 billion complex at the Optical Fiber Solutions industrial site along I-85 near Norcross that he said could boost revenue for the Georgia Lottery-funded HOPE program by 40 percent in its first phase. The plan was first reported Tuesday by the Associated Press.
It's O'Leary's second try at a Georgia Lottery-tied gaming project. He pitched a smaller hotel and gaming complex at Underground in 2009, but the plan went nowhere under then-Gov. Sonny Perdue.
The Georgia Lottery board of directors, appointed by the governor, can legally approve video gaming in the state without the Legislature, O’Leary said.
The lottery board declined to act three years ago but then-Attorney General Thurbert Baker gave an advisory opinion that the lottery board could approve the gaming terminals.
There is a potential opening for O’Leary in part because of challenges facing HOPE. Lottery revenue hasn’t kept up with demand for HOPE or the state’s popular lottery-funded pre-K program.
But O’Leary might face an uphill battle with Gov. Nathan Deal, who threw cold water on the idea of expanding gambling in Georgia in October after a Georgia Lottery study suggested 10,000 gaming terminals at various sites could generate $1 billion in state revenue as soon as 2014.
O’Leary said he met with Deal in January as a courtesy to inform him about his proposal. The governor was cordial, O’Leary said, but did not indicate approval or opposition to his proposal.
"This could be a huge shot in the arm for Georgia in so many ways," O'Leary told The Atlanta Journal-Constitution.
The developer has an option to purchase 122 acres of the site, and he said he can open the first phase of the project within 18 months, pending approval.
O’Leary said the purchase of the property and development of a hotel, retail and entertainment complex is tied to his ability to win approval of gaming terminals.
The terminals resemble video slot machines, which are hooked into a centralized computer system that would be regulated by the lottery board. Supporters compare the games with instant-win tickets that are sold by the lottery and offer immediate payouts. The machines would spit out receipts that can be redeemed for money.
Deal’s office didn’t immediately comment on the specifics of the proposal. In an earlier interview Tuesday with the Associated Press, the governor said he generally doesn’t think Georgia is “compatible with a casino-type environment.”
“That’s a discussion that we have not had with the lottery board,” he said when asked about his views on video lottery terminals. “I have some concerns about it, obviously. I do not support the casino-type concept. I don’t think that is good for our state. And I’ve also said I do not support other forms of gambling that some have suggested as a revenue measure.”
O’Leary is careful not to call his project a casino and said it wouldn’t expand gambling in Georgia. State law bans Las Vegas-style card games like poker, but the state lottery charter doesn’t specifically outlaw video lottery terminals.
The lottery board didn’t immediately comment. The board’s chairman, James Braswell, has said he believes his agency has the legal authority to add the machines. But he has said it couldn’t do so without a broader discussion with politicians and the public.
O’Leary projects the development to draw 5 million visitors each year.
The first phase of the development, estimated to cost $400 million, will feature a 24-story hotel with 500 rooms, the gambling floor and a parking garage, he said. The second phase would have another hotel tower with an additional 1,000 rooms, a 5,000-seat theater and another parking garage.
O’Leary said he has a letter of intent with Dover Downs, a company that operates a hotel and casino with video lottery terminals in Delaware, to develop the project. The Delaware Lottery says it has raised $2 billion from video lottery terminals at Dover Downs and other casinos since 1995.
O’Leary said the development wouldn’t look like Las Vegas. “This is going to be posh, classy, conservative development,” he said.
The developer estimates his project will generate 2,500 jobs and $700 million in annual revenue, half of which would go to the lottery.
Charlotte Nash, who chairs the Gwinnett County commission, said she was intrigued by a recent visit to Dover Downs.
In an interview with the AJC, Nash said O’Leary has not submitted plans or zoning proposals to the county. She said state-level issues must be resolved before Gwinnett can consider any proposal.
When the time comes, Nash said county officials will weigh the benefits against any costs, including new infrastructure or expanded services.
Though she did not endorse the project, Nash said the county will consider it seriously. “Any project that involves creation of a substantial number of jobs in these economic times, I think we have to consider it,” she said.
Shiv Aggarwal, chairman of the Gwinnett Village Community Improvement District and owner of the Global Mall, said he would be “very happy” if such a project came into the area.
“By all means, it’s going to be a very positive step,” he said.
Norcross Mayor Bucky Johnson, who had not heard about the potential development until Tuesday, was hopeful the project could revitalize an area in desperate need of renewal.
“As far as major intersections along I-85 and 285, this is the only one in the north metro area that doesn’t have anything big,” Johnson said. “You put $1 billion in one place like that, then a lot of things tend to get built up as well. … It would certainly have a spillover affect into this part of the county.”
Staff writers David Wickert, Arielle Kass, Joel Anderson and The Associated Press contributed to this article.
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