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Josephs: State, not city, has say on riparian rights for SugarHouse

PHILADELPHIA, Nov. 5 – State Rep. Babette Josephs, chairman of the House State Government Committee, said today that she believes the state would have to grant riparian rights to SugarHouse Casino before it can proceed with development and construction of a gaming facility along the Delaware River.

Josephs, D-Phila., recently sent a letter to Gov. Ed Rendell requesting he clarify his position on the issue after the governor, in a statement released last Monday, said he agreed with the city's position that the city has the authority to grant SugarHouse approval to construct along the Delaware River. The governor also noted in his statement that the city has begun the process to give that approval.

But Josephs said the governor's statement ignores the issue of riparian rights, which she said the state must grant before full construction of the casino can begin.

"The city of Philadelphia is essentially beginning a process to overstep the authority solely granted to the legislature to grant riparian rights," Josephs says in her letter to the governor. "As chair of the House State Government Committee, as an elected official, as a citizen of the city of Philadelphia, and as a constituent of yours, I strongly urge your support against what I believe is a calculated misreading of state law that will most assuredly be met with a legal challenge."

Josephs said she shares the governor's goal of reducing city wage taxes and statewide property taxes using proceeds from slots gaming. But, she said, so far the state and casino developers have ignored or dismissed many of the concerns of residents in the neighborhoods where the two proposed Philadelphia casinos will be located.

Now, she said, she believes the city and the casinos are also ignoring state and city law in their efforts to move forward quickly on the casino projects.

"It seems clear to me that under the City Code, approval for construction in these locations is subject to the approval of the federal and state government," Josephs said. "Despite his statement last week in support of moving forward on these projects, the governor's position on this overriding question is unclear."

Josephs said she wants to know if the governor does, indeed, believe that the city can license state land for private use, specifically for the construction of the casinos; and whether he believes the city of Philadelphia or the state of Pennsylvania has the authority to grant riparian rights to SugarHouse Casino.

Josephs said the issue will be considered during a meeting of her committee on Nov. 13, and she requested a response from the governor before that date.

ATTENTION EDITORS: The text of Rep. Josephs' letter to Gov. Rendell is attached below.

November 1, 2007

Hon. Edward G. Rendell

Governor of Pennsylvania

Room 225 Main Capitol Building

Harrisburg, PA 17120

Dear Governor Rendell:

The letter is written in regards to your press release of October 29, 2007 regarding the Sugarhouse Casino riparian rights application.

In the release you noted that "…The City of Philadelphia and its law department have concluded that the director of commerce has the authority, under state law, to grant Sugarhouse the right to erect approved structures along the Delaware River and has initiated the process to do so."

I am struck by the wording of your statement. It makes no mention of the point of contention at issue here – the underlying riparian rights that need to be granted in order for full construction to proceed. I believe that this is purposeful, as it is quite clear to me that it is the legislature of this Commonwealth, and not local governments, that control the destiny of state riparian rights.

The city of Philadelphia is essentially beginning a process to overstep the authority solely granted to the legislature to grant riparian rights. As chair of the House State Government Committee, as an elected official, as a citizen of the city of Philadelphia, and as a constituent of yours, I strongly urge your support against what I believe is a calculated misreading of state law that will most assuredly be met with a legal challenge.

Let me be clear. I share your goal of generating revenues in order to reduce taxes for property owners and to promote statewide economic development. However, I am certain that you concur that elected officials simply cannot condone, passively or otherwise, things that clearly run counter to proper governance. This is the case no matter how noble the reason may be.

In summation, the city of Philadelphia asserts that it can license the state lands for private use and the construction of a permanent structure for a licensed gaming facility. However, Chapter 18-100 of the City Code states in §18-101 - Bulkhead and Pierhead Lines - that this is "subject to the regulations of the Federal and State government..."

Your position on this is unclear. Similarly unclear are certain aspects of your position on the issue of the granting of riparian rights.

Consequently, I am respectfully requesting that you answer the following questions: Is it your position that the city of Philadelphia can license state lands for private use and the construction of a permanent structure for a licensed gaming facility, as it has concluded that it can? Is it the city of Philadelphia or the Commonwealth of Pennsylvania that has the legal authority to grant riparian rights to the Sugar House Casino?

On November 13, 2007 the House State Government Committee is positioned to meet to discuss this issue. Therefore, I respectfully request a response to this letter prior to November 12, 2007. I am confident that the research regarding these questions has already been undertaken by your administration.

Yours,

[signed]

Babette Josephs

cc: House and Senate State Government Committee Members

House Gaming Oversight Committee Members

Democratic House Leadership

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