The Roanoke City Council held an extensive public hearing on Monday (Aug. 17) night regarding the potential development of the Berglund Center into an entertainment district featuring a casino and hotel.
A developer expressed interest in transforming the Berglund Center last autumn; however, their identity remains undisclosed. The recent meeting failed to provide any clarification.
City officials emphasized the need to address over $31 million in deferred maintenance at the 10,500-seat arena owned by the city. The Council is contemplating turning the venue into an entertainment district featuring slot machines, table games, and a hotel following an approach by a casino developer last October, whose identity remains confidential.
The Council acknowledged receiving $75,000 from the casino company in February but are bound by a non-disclosure agreement preventing disclosure of the fund’s source and utilization. The funds will not be used for a lobbying contract aimed at pushing a bill to designate Roanoke for a casino.
Roanoke Casino Projections
Marc Nelson, the city’s economic development director, outlined the potential benefits of a casino and hotel at the Berglund Center.
Nelson projects that a casino hotel at the Berglund Center, requiring a minimum investment of $300 million, could generate annual gross gaming revenue (GGR) of $135 million to $180 million, leading to $15 million to $25 million in local gaming taxes for Roanoke.
Nelson predicts the creation of 800 to 1,000 permanent jobs with annual average wages of $55,000. The city’s economic advisor mentioned plans for constructing a parking garage for on-site development, along with a hotel and public greenspace.
The casino developer is expected to address necessary repairs at the Berglund Center to elevate its status as a premier touring venue. The city would retain ownership except for the 46,000-square-foot Special Events Center, slated to be included in the casino hotel’s amenities.
City Councilor Phazhon Nash, leading the entertainment district task force, shared survey results indicating 36% of residents supporting a casino to preserve the Berglund Center, with 27% in opposition and 36% uncertain.
“We have the opportunity to shape the future of the Berglund Center,” expressed Nash.
Berglund Center Needs
Berglund Center General Manager Robyn Schon informed the Roanoke City Council about the urgent requirement to replace 28 air-handling units (AHUs) costing an estimated $9 million, necessary for the HVAC system’s functionality.
This equipment has to be replaced sometime soon. I don’t know that we can wait another three to five years,” remarked Schon.
Additional repairs needed at the Berglund Center include an estimated $5 million for the main electrical panel, $3.6 million for the roof, a $2 million boiler, and $2 million for repaving and resurfacing.