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Newark alters regulations to pave way for potential downtown casino

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Officials are holding out hope that state legislators can authorize a referendum to approve gaming in North Jersey next year

NEWARK - City officials are doubling down on their hopes for a casino downtown, though it will likely be some time before they know if their bet pays off.

The Municipal Council on Wednesday voted unanimously to approve a number of amendments to the Newark Downtown Core District Redevelopment Plan, including a clause that allows for "licensed casino or gaming."

Officials such as County Executive Joseph N. DiVincenzo and Mayor Ras Baraka have come out strongly in favor of a casino, which they envision as a centerpiece of a busy downtown that could one day include a convention center as well as entertainment and shopping venues.

Whether that ever comes to fruition, however, is largely out their hands.


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The amendments to the downtown plan allow for the gaming only if state legislators approve a constitutional amendment that would allow for a referendum on whether to allow casinos in Essex, Hudson and Bergen counties. State law currently only allows for the operation of casinos in Atlantic City.

Assemblyman Ralph Caputo (D-Essex) proposed the amendment earlier this year in hopes of getting the question on the ballot this year. Senate President Stephen Sweeney (D-Gloucester), however, led a group of South Jersey legislators that scuttled the effort over concerns about the casinos' potential impact on Atlantic City's floundering gaming industry.

On Thursday, Caputo said he intended to resume the effort after this year's elections, in hopes of putting it to residents who head to the polls for the 2016 presidential election.

"Some people in South Jersey believed this was not the right year. The issue is still valid," he said. "Our job here is to save the gaming business. We're not out to hurt anyone, we're out to save the industry."

While Newark's move will have little effect in the short term, it could help as it negotiates with developers who may also be considering gaming investments in Jersey City or the Meadowlands.

Proponents of the plan say the North Jersey casinos could help draw gamblers who may now be heading to New York, Pennsylvania or Connecticut. Still, many acknowledge three casinos could potentially oversaturate the market, and that one or more of Bergen, Essex and Hudson counties could eventually come up empty.

"It just puts (Newark) in the position that in the event we approve it, and the voters approve it, they'll be in a position to compete," Caputo said.

Earlier this year, Newark and Essex County officials said they had already been in contact with developers, floating locations such as the currently vacant Riverfront Stadium as potential gaming sites.

Newark Deputy Mayor for Economic and Housing Development Baye Adofo-Wilson said that the allowance for a casino is only a small piece of the new development plans, which also clears a path for the 120,000-square foot Triangle Park and capacity for over 2 million square feet of development.

"The purpose of the amendment to the redevelopment plan is to encourage dense, pedestrian-oriented development, which may include commercial, residential, mixed-use, and retail," he said in an email.

Initially adopted in 2004, the plan has gone through multiple changes this year as the city hopes to capitalize on growing investment in the downtown area.

In February, the council voted to transfer a number of properties to the Newark Housing Authority in order to clear the way for the creation of the long-awaited Triangle Park.

Dan Ivers may be reached at divers@njadvancemedia.com. Follow him on Twitter at @DanIversNJ. Find NJ.com on Facebook.

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