The Colorado Springs Gazette final

C.C. council seeks to eliminate casino device fee exemptions

BY NORMA ENGELBERG

Was designed to promote economic development and the establishment of local casinos

Soon after state electors approved limited stakes gambling in Cripple Creek, the city council approved an ordinance exempting a portion of the fees it charges for the first 50 devices operating in each casino.

This was designed to promote economic development and the establishment of local casinos.

For each of those first 50 devices, casino owners pay $50 in the first quarter, $100 in the second quarter, $225 in the third quarter, and $225 in the third quarter. Casino owners pay $300 per quarter for each of their remaining devices.

On Oct. 20, Cripple Creek City Council unanimously approved an ordinance on first reading that will eliminate the exemption, so that casinos will pay the full $300 per device each quarter. Finance Director Paul Harris said this change would net the city at least $360,000 per year.

The ordinance states that “the City finds this measure (the exemption) is no longer necessary because gaming establishments are well established.”

Larry Hill, Triple Crown Casinos chief executive officer and Cripple Creek Casino Association board member, asked council to add a one- or two-year sunset clause to the ordinance to give the association time to discuss ways to diversify the city’s revenue stream.

Mayor Pro Tem Tom Litherland said he doesn’t like sunset clauses and that it’s time to stop the exemption. The rest of council agreed, except for Missy Trenary who recused herself because she works for one of the casinos.

The ordinance also transfers the responsibility for counting devices from the city clerk’s office to the finance department. A second ordinance would have raised the device fees by as much as 33%. Device fees haven’t been raised in 31 years, but council decided to table the ordinance to the last meeting in March.

This allows the city and the casino association time to explore options for increasing revenue such as creating a metropolitan district, a business district or, perhaps allowing retail marijuana businesses to operate in the city and pay taxes.

Additionally, Council voted to allow the city to participate in the Colorado Opioid Settlement. Interim City Administrator Ray White said at this point in the case, the settlement would net about $22.8 billion and Colorado’s share could be around $300 million. Of that amount, whatever it comes to, Teller County would receive 0.6219%. Cripple Creek’s share would be about 17.3% of the county’s share, he said.

“The initial distribution would be in July 2022,” White said. “We have no idea how much that will be but, at some point, we will get some money. We just sign it and wait.”

This settlement only pertains to prescription opioids and not street drugs. Litherland said fentanyl-laced street drugs will soon be making their way into the city, but White said Police Chief Bud Bright will tell him they’re already here.

Also, White announced that the development incentive program is generating interest in housing development.

“Another 30-home project has come in and there are other projects in the pipeline,” he said. “It’s doing what we wanted it to do.”

Harris said Teller County’s October’s COVID-19 rates are still “gloom and doom,” with new cases already exceeding the number of new cases in September. To date, 54% of county residents are fully vaccinated. The weekly COVID-19 report is available on the city website, cityofcripplecreek.com.

In other business, council approved: • The appointment of Joe O’conor as the new fire chief. He is currently finishing his obligation to Peachtree City,

Georgia, Fire and Rescue and will take up his duties in Cripple Creek in early January.

• A payback agreement between Maurice and Lois Woods and the city to collect money from other developers who tie into a water main being installed by the Woods on Second Street to serve a five-home project.

• An agreement with the Woods for economic inducements and development incentives for the five homes mentioned in the previous agreement. City Attorney Erin Smith said this agreement memorializes the water and wastewater tap waivers and the costs of certain materials.

• Recognition of the Gold Camp Victorian Society for cleaning up the children’s section of the Mount Pisgah Cemetery.

Additionally, Council voted to allow the city to participate in the Colorado Opioid Settlement.

PIKES PEAK COURIER

en-us

2021-10-27T07:00:00.0000000Z

2021-10-27T07:00:00.0000000Z

https://daily.gazette.com/article/282840784259006

The Gazette, Colorado Springs