[From the U.S. Government Printing Office, www.gpo.gov]
Coastal, Zone Impacts of the Dockside Casino Industry: The Mississippi erience Proceedings of a Workshop in Biloxi, Mississippi May 7-8. 1996 Exp . Coastal Zone Impacts of the Dockside Casino Industry: The Mississippi Experience Proceedings of a Workshop Held in Biloxi, Mississippi May 7-8,1996. Compiled by Mary S. Veal Biloxi, Mississippi Technical Editor David D. Burrage Marine Resources Specialist Mississippi Cooperative Extension Service Sea Grant Advisory Service Coastal Research and Extension Center Biloxi, Mississippi Published by the Office of Agricultural Communications, Division of Agriculture, Forestry, and Veterinary Medicine, Mississippi State University, Keith H. Remy, Senior Publications Editor Cover designed by George Taylor, Graphic Artist and Chief Illustrator FOREWORD In 1995, NOAA:s Office of Ocean and Coastal Resource Management, Coastal Programs Division, announced the intention to address a comprehensive technical assistance initiative for Coastal Zone Management Programs, with the goal of transferring data from local or regional coastal experiences to the national arena. Priority focus areas were identified and ranked. First in priority was Cumulative and Secondary Impacts of Development, with a proposed strategy to assist states in developing procedures to assess, consider, and control the impacts of growth and development. Following a briefing on the initiative and concurrent announcement of the availability of Section 308 funds targeted for the goal of "Furthering the National Dimension," Mississippi Coastal Zone Management (CZM) staff members began assessing the state's ability to support and advance the goals of the initiative through Section 308 funding. Ultimately, this assessment focused upon a first-year action project identified for the initiative - the establishment of a federal and state advisory group to discuss cumulative and secondary impact issues common to many coastal states and territories. Mississippi CZM staff reasoned that the burgeoning dockside gaming industry, which has the potential to affect all of the coastal zone states, fit this task quite well, and Mississippi's casino development experience could pro- vide valuable, transferrable guidance. Over the past 4 years, Mississippi has become uniquely qualified in dealing with dockside gaming impacts. Since March 1992, when voters approved legalized dockside gaming, an explosion of new development has occurred along the Mississippi Gulf Coast. Regional and national attention has focused on Mississippi as it has rapidly grown to one of the top three gaming areas of the country and the premier area for dockside gaming. Through a special grant proposal, the Mississippi Department of Marine Resources Coastal Zone Management Program requested and received funds to sponsor and host a dockside gaming confer- ence/workshop in support of the OCRM/CPD Technical Assistance Initiative. The Environmental Protection Agency's Gulf of Mexico Program was invited to cosponsor the workshop, and Mississippi State University's Coastal Research and Extension Center served as facilitator. The workshop featured national, regional, and local expert panelists who presented a broad range of issues dealing with cumu- lative and secondary impacts that can arise from the siting of dockside gaming in a coastal community. This publication of the workshop proceedings expands the workshop results to a wide audience and fulfills the goal of realizing a national perspective on cumulative and secondary impacts from growth and development, ACKNOWLEDGMENTS Many collaborators contributed to the success of this conference. Financial assistance and logistical support were provided by the U.S. Department of Commerce, National Oceanic and Atmospheric Administration through the Office of Ocean and Coastal Resource Management and the Mississippi- Alabama Sea Grant Consortium; the U.S. Environmental Protection Agency through the auspices of the Gulf of Mexico Program; the U.S. Department of Agriculture through the Mississippi Cooperative Extension Service; and the Mississippi Department of Marine Resources. Gratitude is also expressed to the following agencies and individuals who participated in the confer- ence: . Mississippi State Senator Tommy Gollott; Mississippi Gaming Commission; Mississippi Department of Environmental Quality; U.S. Army Corps of Engineers, Mobile District; U.S. Environmental Protection Agency, Region IV; Mississippi Office of Secretary of State; Mississippi Casino Operators Association; University of New Orleans; City of Biloxi, Mississippi; Gulf Central Seafood, Inc.; Gulf Coast Association of Realtors; Mississippi Coast Crime Commission; Mississippi Council on Compulsive Gambling; Gulf Islands Conservancy; Sierra Club Legal Defense Fund; Harrison County, Mississippi Wastewater Management District; Brown and Mitchell, Inc.; Mississippi State Senator William G. Hewes, 111; and the University of Maine School of Law. The knowledge and exper- tise provided by these participants were invaluable. The mention of trade names or commercial products herein does not constitute an endorsement or rec- ommendation. Any errors of omission or commission are those of the editors. TABLE OF CONTENTS FOREWORD ................................................................................... ACKNOWLEDGMENTS .......................................................................... v INRODUCTION: Mississippi Dockside Gaming Legislation .............................. ................. I SESSION 1: THE REGULATORY AND PERMITTING PROCESS .......................................... 3 The Gaming Commission Permit Review Process and Industry Enforcement .............................. 3 Wetlands Permitting - Coastal Program Consistency Review ......................................... 5 The Water Quality Review Process in Mississippi .................................................. 7 The COE Review Process .................................................................... 9 EPA's Role in Wetlands Permitting ............................................................ 12 The Mississippi Public Trust Tidelands Lease Program ............................................. 13 Recommendations for Changes in Permitting Casinos in Mississippi CoastalWetlands ...................... 14 SESSION 11. CUMULATIVE AND SECONDARY IMPACTS OF DOCKSIDE GAMING DEVELOPMENT ........ 16 Economic Impacts Direct Effects of the Dockside Casino Industry on the Coastal Economy ................................ 16 The Impact of Casino Gambling in New Orleans .................................................. 18 Economic Impacts From the Municipal Perspective ................................................ 21 Social Impacts Economic Dislocation of the Commercial Fishing Industry Social Impacts ............................... 24 Response of the Mississippi Coast Housing Market and Property Values to Coastal Development Trends ....... 25 Casinos & Crime: What the Statistics Reveal in Coastal Mississippi ................................... 26 Coastal Hazards Mitigation .................................................................. 27 The Incidence and Social Costs of Gambling Addiction in Mississippi .................................. 28 Environmental Impacts And Demands On Infrastructure Nonpoint Source Pollution Effects of Dockside Gaming ............................................. 30 Zoning and Land Use Changes in Environmentally Sensitive Areas: Citizen Concerns ...................... 33 Concerned Citizens to Protect the Isles and Point ..................... 7**-*-*,-** ............ 34 Cumulative Impact Concerns ................................................................. 35 Wastewater Treatment Infrastructure Expansion Requirements ........................................ 36 Engineering Solutions to Environmental Perturbations Associated with Dockside Casinos Development ........ 37 Highway and Transportation Needs in Coastal Mississippi ......................................... -38 SESSION 111. DEVELOPING THE "BIG PICTURE PARADIGM" - MOVING AWAY FROM INCREMENTAL MANAGEMENT ............................... 39 Methodologies and Mechanisms for Management of Cumulative Coastal Environmental Impacts ............. 39 The OCRM Role in Developing Cumulative and Secondary Impact Management Strategies ................. 46 vii INTRODUCTION Mississippi Dockside Gaming Legislation Mississippi State Senator Tommy Collott District 5 - Harrison and Jackson Counties The gaming industry is relatively new to Mississippi. The of Nevada was invited to Mississippi. He worked.with the first laws favorable to gaming were enacted in 1989. That Mississippi Senate throughout the special session familiar- legislation allowed cruise vessels on the Mississippi Sound izing the Senate with Nevada's gaming regulations. The to have gaming paraphernalia on board. Those vessels were Mississippi Senate took advantage of Nevada's expertise in required to cruise 1,500 feet from the boundary of the formulating legislation. Special care was taken to include Mississippi Sound. At that time, the vessels were, in inter- provisions to discourage undesirable people from partici- national waters and gaming could begin. The boats circled pating in Mississippi's gaming industry. Senator Miller's in the international waters while gaming occurred and then expertise and Nevada's experience equipped the returned. Because the vessels were licensed by the state of Mississippi Senate to propose and to pass effective gaming Mississippi, a problem occurred. There was no way to legislation. The next step was formulating the Gaming determine how much money the casinos were making in Commission through the Gaming Act. Mississippi deter- Mississippi and how much they were making in interna- mined that three people, to be appointed by the Governor tional waters. Therefore, in 1990, legislation made provi- and confirmed by the Senate, should constitute the Gaming sions for cruise vessels in the Mississippi Sound and river- Commission. boats on the Mississippi River. Regulations provided for A bonus of the gaming industry was the state's collection cruise vessels underway-making way (meaning that boats of $33.6 million in fiscal year 1993. In 1994, the revenue could cruise in the Mississippi Sound and return to their was $94.9 million. In 1995, the revenue climbed to $128 ports with gaming on board during that time). Senators million. The projection for fiscal year 1996 is $132 million. Gollott and Dearing introduced the legislation. Of that $132 million, $33 million will fund road construc- Representative Sonny Meredith, chairman of the Ways tion and infrastructure in the counties that have gaming. and Means Committee, expressed concern over the under- The Highway Department can issue $323 million in bonds. way-making way aspect of the bill. He believed that dock- The $33 million annual revenue will apply to the retirement side gaming would be more advantageous to the state. He of those bonds if and when they are issued. The bonds, feared that vessels entering the Arkansas side of the however, have not been issued for the gaming counties. The Mississippi River might be confiscated with all the gaming present revenues are funding the roads, setups, and any paraphernalia by the State of Arkansas. The Mississippi other expenses of roadways in those counties. It is possible House of Representatives was convinced that underway- that bonds will not have to be issued for the gaming coun- making way should be removed from the legislation. Both ties because of the incoming revenues. bills returned to the Senate. The first bill on the docket was The projected income for 1997 is $140 million, an the bill for the Mississippi cruise vessels on the Gulf Coast. increase from $132 million in 1996. Of the increase, 25% A battle ensued. Jackson County wanted to ensure that con- will fund road construction in the counties that have gam- struction of the vessels could take place in their county. ing. In cities and municipalities where gaming exists, taxes However, the county wanted to be certain they would not be on the casino earnings also contribute to the revenues. For affected by pollution as a result of sandblasting the vessels. example, in the City of Biloxi, legislation provides for an The bill with that provision went into conference. The bill additional 3.2% in local and private taxes. Of this, 20% is for the Coast, providing for underway-making way also directed to education. Another 20% is allocated for law went into conference. The second bill from the House (the enforcement. Revenues for the city of Gulfport are the Senate bill) had the underway-making way provision same. removed. This bill passed. Now the stage was set for dock- The county receives from each vessel 20% of the 3.2%, side gaming on the Mississippi River. Both bills passed. with 10% allocated to education and 10% allocated to pub- In June of 1990, Governor Ray Mabus called the lic safety. Then, 40% of the 3.2% is directed to the City of Legislature into special session. In the special session, the Biloxi for funding the infrastructure. All areas in Legislature enacted the Comprehensive Gaming Mississippi with gaming have similar allocations. In addi- Regulations Act. When the Senate was formulating the tion, tidelands funds have provided an allocation of more gaming regulations, Senator Hannon Miller was appointed than $10 million. Tidelands funds provide for the infra- subcommittee chairman of the Gaming Act (the Senator structure pertaining to the seafood industry and to sports was opposed to gaming), The Assistant Attomey-General fishing and marine-related activities. In the last 2 years, I more than $800,000 have been appropriated to build fishing Naturally, tourism is flourishing and is expected to grow. banks throughout the three coastal counties as well as in An international airport is projected to be located on the waters outside the State of Mississippi. Mississippi Gulf Coast in 15 years, bringing tourists from Casinos have contributed to enlarging the coffers in around the world. Those tourists can enjoy playing at the many ways. The Convention Center is Harrison County has already established 30-plus golf courses within a radius of been expanded as a result of revenues from hotels and 50 miles. With the mild coastal climate, golfing is a year- motels. The year before the inception of gaming, the 3% round pleasure. High-profile fishing also adds to the hotel and motel tax yielded a total of $700,000. The current tourism scene. Completing the charm of Coastal yield of that revenue is $2.7 million. More hotels and Mississippi is its rich history. motels are a direct result of the gaining industry. Recent The effect of casinos on unemployment rates has been legislation allowed the Coast Coliseum and Convention dramatic. Approximately 15,000 people work directly in Center to issue $10 million in bonds. One-third of the 3% the gaming industry, Another 15,000 people are employed that the Coliseum and Convention Center presently in other casino-related businesses. Tunica County has seen receives, will fund a 70,000-square-foot addition to the a tremendous impact. Before gaming, that county's unem- Center. ployment rate was between 23 and 25%. Currently, the rate Coastal ports have also benefitted from the effects of is less than 5%. In coastal Mississippi, the Harrison County gaming. Legislation this year was designed to increase the unemployment rate dropped from 8.7% to 5.2%. bonded indebtedness of the Biloxi Port Commission from All in all, gaming has exerted a positive effect on the $3 million to $ 10 million. The commission plans to build a Mississippi Gulf Coast. With the expansion and building of marina behind or in front of the Imperial Palace Casino. infrastructure, gaming interests can continue to locate here. The 240-slip marina will be funded by the lease from the The saturation point with regard to casinos probably will Imperial Palace, with the lease paying for the bonded not occur for another 10 years. Of the states involved in the indebtedness. The Port of Gulfport plans to double in size gaming industry, it seems certain that Nevada and using monies coming from both gaming and the port itself. Mississippi will be the two leaders. 2 SECTION 1: THE REGULATORY AND PERMITTING PROCESS The Gaming Commission Permit Review Process and Industry Enforcement Gary McGee Chief of Investigations Mississippi Gaming Commission With the casino industry in Mississippi, a Gaming trol over and within the casinos. Examples of the subjects of Conitnission was important. Before October 1, 1993, the investigation are owners, officers, surveillance directors, Mississippi Tax commission exercised temporary powers and stockholders. Within the casinos, key employees are pit and duties of the Gaming Commission. The Gaming bosses, shift managers, directors, security directors, or slot Control Act -had been passed by a special session of the technicians. Legislature in 1990. In April of 199 1, the Legislature appro- The purpose of the Gaming Commission is to implement priated $300,000 for the overall operation of the Gaming the Mississippi Gaming Control Act. The Commission pro- Commission, with 16 positions being authorized. Eleven vides a process for licensing and regulating legalized dock- casinos opened and were licensed; eight manufacturers and side gaming on the Mississippi River and any of its naviga- distributors of gaming products were licensed. After ble tributaries, and on the Gulf Coast south of the three October 1, 1993, the Gaming Commission was created as a southernmost counties. A gaming license is deemed a separate entity. The Governor, with the consent of the revokable privilege. The holder of the license has no vested Senate, appointed three nonsalaried commissioners rights in that license. The license is issued to the holder According to law, these commissioners are to meet on or (corporation or partnership). The law authorizes the execu- after the fifteenth of each month. The Mississippi Gaming tive director of the Gaming Commission to investigate Commission meets the first Thursday after the fifteenth of applicants and licensees. The executive director then makes the month and on special occasions when a need arises. a recommendation to the Commission on the suitability or The Executive Director of the Gaming Commission in denial of the applicant. The recommendations may have Mississippi is Gen. Paul Harvey. Gen. Harvey has been an conditions or limitations. After the director's recommenda- asset to gaming in Mississippi. The Commission operates tion, the commissioners have the full and absolute power on an annual budget of $11 million. Approximately 136 of and authority to approve or deny any application. The com- the 164 approved employee positions are filled. The missioners can limit, condition, restrict, revoke, or suspend Mississippi Gaming Commission licensed and opened 23 any license or finding of suitability that it has issued. In casinos between October 1, 1993 and August 1, 1994, a addition, commissioners can fine any licensed person for 100% increase over the number licensed prior to October 1, violations committed by the casino or its personnel. Along 1993. In Mississippi, 29 casinos are now licensed and open; with monitoring the casinos, the Commission also monitors and they employ 27,140 people. Casinos are subject to reli- the manufacturers and distributors of gaming products, censure every 2 years. making certain that they are in compliance with the Gaming The Governor is at the apex of the organizational struc- Control Act and its regulations. ture of the Gaming Commission. The three commissioners The legal geographic location for dockside gaming has are under the direction of the Governor, followed by the been discussed often. That location is defined as "in the executive director and division directors. The executive waters within the state of Mississippi, which lie adjacent to director of the Commission was authorized to create addi- the State of Mississippi south of the three most southern tional divisions to implement the provisions of the Gaming counties in the State of Mississippi." Recently, the Control Act. Consequently, Gen. Harvey created the fol- Mississippi Supreme Court rendered two decisions, one lowing divisions: Compliance, MIS, Police, Intelligence, related to a casino on a bayou and the other on a manmade Personnel, Administrative Training, Gaming Laboratory, canal. The Court stated that any river, such as the Wolf, Industry Relations, Research, and Public Relations. Tchoutacabouffa, Pascagoula; any manmade canal; or other The Enforcement Division and the Investigative Division bays are illegal for casino sites. The Mississippi Supreme were established earlier by the Legislature. The Court ruled, however, that the Bay of St. Louis and the Enforcement Division sends its agents out on a day-to-day Biloxi Back Bay are legal sites. basis ascertaining that all laws and regulations are being The second legal location for dockside gaming is on the followed in the casinos. Members of the Investigative Mississippi River or any of its navigable tributaries. Thus, Division investigate those people who have potential con- dockside gaming is legal in the following nine counties in 3 Mississippi: Adams, Claiborne, Coahoma, Hancock, the site development plan, Following the presentation, the Harrison, Issaquena, Tunica, Washington, and Warren. public is provided time to comment on the proposal. After A specific procedure must be followed in applying for a the hearing on the proposed site, the executive director will gaming license in Mississippi. offer a recommendation to the Commission, which will First, the applicant must provide the Mississippi Gaming then approve or disapprove the recommendation. The Commission with a written notice of intent. The informa- Commission may request additional information. tion in the notice identifies the exact site, the exact location The applicant is then subjected to in-depth background of the boat at the site, and related infrastructure plans. Maps and financial investigation. Corporate investigations are and pictures must also be included. Approval or disapproval also undertaken. Construction usually begins shortly after is given to publishing the notice of intent in a local news- site approval. paper for 3 consecutive weeks. If approval is given to pub- Following this process, a development plan consisting of lication, then gaming application and fingerprint cards are vessel specifications and design, shore development plans, provided. infrastructure plans, and an operation/implementation time- After the third week of publishing the notice of intent, the table is submitted. Detailed descriptions of the games to be applicant submits a written request for a site assessment, played are required. The executive director then makes a and this request is submitted to the executive director. The recommendation for issuance or denial of a license. If the applicant files the application, a $5,000 application fee, and license is approved by the Commission, the director moni- two sets of fingerprint cards. Upon receipt of the applica- tors the implementation of the approved operation imple- tion, the executive director will notify the board of supervi- mentation timetable and the licensee provides a monthly sors of the county of the proposed casino site along with the status report to the Commission detailing the progress. mayor of that municipality, if applicable. Before final approval can be given, the Gaming The Gaming Commission then conducts a hearing to Commission makes a final inspection of the vessel and determine whether to approve the proposed site and site reviews compliance with all federal, state, and local laws development plan for the casino. The hearing will consist of and regulations and ordinances before giving final presentations by the applicant, which include the specific approval. location of the property, the current use of any adjacent Gaming is an asset to Mississippi. Jobs created directly property, and the location of the nearest residential area, by the casinos number 27,140. Throughout the state, 50,000 church, or school. The complete site development plan additional jobs have been created as a result of the gaming should include all structures planned and the expected coin- industry. Gross revenues generated from gaming were $122 pletion date. Evidence is submitted that various agencies million in 1992, $790 million in 1993, and $1.5 billion in (U.S. Army Corps of Engineers, Coast Guard, Mississippi 1994. In 1995, revenues climbed to $1.7 billion. In January Department of Transportation, Mississippi Department of and February of this year (1996), gross revenues were $287 Environmental Quality, Department of Marine Resources, million. The gaming revenues from casinos on the Board of Supervisors, Port and Harbor Commission, Levee Mississippi River continuously exceed revenues on the Board, Mayor's office, City and County Planning Mississippi Gulf Coast. The economic future of Mississippi Commission, and Preservation Commission) do not oppose is bright. 4 Wetlands Permitting - Coastal Program Consistency Review Dave Ruple Chief of Wetlands Mississippi Department of Marine Resources The Mississippi Coastal Program is a joint state and fed- additional marina space. In some cases, industrial spaces eral too] that has been approved by the State of Mississippi are now taken up by dockside gaming activities. It is impor- and the U.S. Department of Commerce. This tool provides a tant to balance these pressures and seek ways to revise the mechanism by which the state manages its coastal resources Program to accommodate future industry. in the coastal zone of Mississippi. The coastal zone of Wetlands permitting begins with the submission of a per- Mississippi is defined by the three coastal counties: Jackson, mit application to the Department. These permit ' applica- Harrison, and Hancock. Glade Woods is the Executive tions cover a variety of regulated activities that are spelled Director of the Mississippi Department of Marine out in the Coastal Wetlands Protection Law and in the Resources, which administers the Mississippi Coastal Mississippi Coastal Program. Within the program and the Program. law, certain activities and entities are exempted from need- The program incorporates all the provisions of the ing to secure permits, although activities must comply with Coastal Wetlands Protection Law that were passed in 1973. provisions of the Mississippi Coastal Program. One of the In addition, the Coastal Program agencies include: the most important aspects of the program sometimes drawing Department of Marine Resources, the Department of fire, is the Coastal Wetlands Use Plan. This is a zoning of Environmental Quality, and the Department of Archives and the public waters of the state along the Coast, establishing History. The wetland permitting activities that accompany use districts allowing for certain activities in certain zones. most dockside gaming facilities on the Coast are covered by In addition, a set of guidelines for regulated activities out- regulative activities that are described in the Coastal lines specific ways that certain regulated activities are to be Wetlands Protection Law of 1973 and the Mississippi conducted along the Coast. Furthermore, provisions for fed- Coastal Program. The Coastal Program was adopted by the eral consistency, (any federal action or activity in the state in 1980 as its coastal management policy. coastal zone, whether a license or permit or plan) call for The public policy of wetlands protection (defined in the compliance with enforceable policies of the Mississippi Coastal Wetlands Protection Law) serves as a foundation Coastal Program, The final permit decisions are determined and basis by which the Department manages the resources. by the Commission on Marine Resources when that body The guidelines and plans of the policy are described in the considers recommendations on a project that is evaluated Mississippi Coastal Program. The Department seeks to bal- by the staff of the Department of Marine Resources. ance the preservation of coastal resources in their natural Subsequently, the Department staff carries out the recom- states with the alteration of those resources for the public mendations and the wishes of the Commission based on its benefit. In seeking a balance of development and environ- findings; this would be either a recommendation of denying mental protection, important goals of the Coastal Program a permit request or an approval for one. are protection of the environment, the enhancement of cer- The Wetlands Use Plan is a tool that has been utilized, tain resources for the public benefit, and economic develop- not only for casino development along the Coast, but also ment of water-dependent industries along the Coast. When for overall development. It serves to set aside specific areas the program was initially developed, many sites along the for certain types of development. The predominant uses Coast were primarily reserved for those commercial and within the use plan are "C" zones, which are for commer- industrial activities that require waterfront locations for sit- cial, recreational, marinas; "I" zones, which are for indus- ing. trial, commercial, and manufacturing water-dependent The advent of gaming has affected this program, and activities; "S" zones, which are for areas that are leased by attempts have been made over the past 4 years to accommo- the Secretary of State's office; and "P" districts, which are date a degree of gaming development while keeping in mind preservation areas. Over the past 4 years, the Department the other developmental needs of waterfront sites on the has attempted to utilize the provisions of the Use Plan and Coast. The passing of the gaming legislation created a new the entire Coastal Program in managing the state's water-dependent industry on the Coast, so the Department resources and in trying to accommodate an orderly devel- adapted the program to accommodate this industry. Now the opment along the Coast. Department has permitted 18 casino sites on the Coast. The One very important aspect of the Mississippi Coastal permitting of those casino sites in some marina-designated Program and coastal programs in general across the nation areas and industrial areas has created an added pressure for are the provisions for federal consistency. The provisions 5 cause a joint effort whereby all federal actions in a coastal relative rate at which some of the dredge spoil areas are zone have to comply with all of the provisions of the being utilized. One of the concerns of casinos is the best approved state and federal coastal management program. way to accommodate maintenance dredging activities after The Department of Marine Resources staff that deals the casino barges are in place. There is no evaluation of with casino and other permitting activities has decreased wastewater treatment. In addition, the displacement of from five to three members. Since the Commission deals some of the traditional uses in the coastal zone by the casi- with all of the other development and related regulated no industry is an important consideration. The issues of activities that occur along the Coast the decrease in mem- storm water runoff, drainage, and drainage patterns within bers has caused pressure. In 1992, approximately 400 all the cities along the Coast are matters of concern. The actions relating to wetland permits, violations, or wetland increaged development alon2 the Coast, with subdivisions determinations were taken by the staff. Last year, that num- and the filling of some nontidal wetlands, affects drainage her approached approximately 650. Obviously, the work- patterns. load has increased dramatically with the increased develop- Accommodating this new waterfront industry presents a ment along the Coast. When evaluating wetland permits, it challenge. However, the tools are in place to achieve a bal- is important to look at secondary and cumulative impacts of ance between environmental and public purpose wetlands the dockside casino industry on the Coast. Some areas of protection that is defined in the Coastal Wetlands particular concern are the dredging that is proposed and the Protection Law. 6 0 0 0 0 The Water Quality Review Process in Mississippi Robert Seyfarth Mississippi Department of Environmental Quality Office of Pollution Control The Mississippi Department of Environmental Quality is patterns or water movement that may create some water the state agency that regulates the environmental require- quality problems, such as stagnant situations? In particular ments of the Federal Clean Water Act and the Clean Air for casinos, the agency conducts an evaluation of the basin Act. Three agencies are within the Department of in which the vessel may be sitting looking for any water Environmental Quality. The Office of Geology regulates quality problems related to the design. Will an alteration to mining. The Office of Land and Water Resources issues the natural ecosystem occur that will cause problems? Is the permits for water usage, (surface and ground water usage), project consistent with any adopted water quality manage- and the dam safety program. The third agency is Office of ment plans that are in place? For example, across the state, Pollution Control, which is comprised of a number of divi- numerous wastewater plans have been developed that con- sions. These divisions address matters like air pollution, template regional wastewater systems. Consistency with solid and hazardous waste, ground water, surface water those plans is important. Another area of concern and (which includes issuance of permits), and issuance of dis- importance is storm water management. Because casino charge permits for municipalities and industries. projects propose large paved areas for parking and other The Water Quality Management Branch handles the impervious type surfaces like roofs, storm water becomes a development of the state's water quality criteria for surface significant issue. In addition, the regulations allow the waters and water classifications and is responsible for the Department to evaluate other factors necessary to protect state's nonpoint source pollution program. This agency has water quality. worked closely with the Department of Marine Resources Many factors influence permit denial. Regulations speci- on the Coastal Nonpoint Source Program that evolved fy factors that may trigger denial of water quality certifica- through the Coastal Zone Management Act. The Federal tion. Denial of water quality certification is significant Clean Water Act requires states to conduct a water quality because the federal agency (in this case the Corps of certification program. The Act also requires states to certi- Engineers) cannot issue a federal permit. As a result, the fy that federally-permitted activities, which may result in a project cannot be built. One instance that might trigger discharge into waters of the state, will comply with applic- denial would be a project's altering of the ecosystem. able discharge limitations, water quality standards, and Another example is waters not supporting designated uses, other requirements. or a feasible alternative existing that the applicant could use Over the years, the agency has gradually developed a that would reduce impacts to water quality. Furthermore, process of reviewing projects. The type of federal permit denial could occur if a project were to have adverse impacts that is most frequently dealt with is the dredge-and-fill per- to rare, threatened, or endangered species or to any habitat mit issued by the U.S. Army Corps of Engineers. or outstanding resource waters. Likewise, if the project Regulations in the Department clearly define the review caused adverse cumulative impacts, or if the project did not process. A number of things are considered in the review, adequately address the nonpoint source runoff during con- First, the agency looks for feasible alternatives to what is struction or storm water management, a permit would be in being proposed. Although all projects are reviewed in a like jeopardy. The project not receiving required wastewater manner, the agency does determine if an alternate location permits would certainly trigger denial. Finally, denial is feasible. Perhaps things can be done to minimize the would occur if the project would cause significant environ- impacts of the project, with particular regard to the footprint mental impacts. that may impact wetlands or waters. After that determina- For casino projects, several things have been particularly tion is complete, other effects are analyzed to attempt to important in the review for water quality. First is the avoid- determine what can be done to mitigate those impacts. ance of wetlands. At this point, only about 0.3-acre of wet- Likewise, the agency evaluates the direct impacts of the lands has been filled along the Gulf Coast. The small figure project (the effects of the construction of a project) and is a result of the diligence of the state and federal regulation attempts to determine the secondary impacts of the project agencies in avoiding development in wetlands. However, in terms of the water quality standards or classified uses. most of the easy sites have been developed. The avoidance Next, compliance with the water quality standards and of wetlands will become a more critical issue as more pro- classifications is analyzed. Also, the agency determines the jects are initiated. degree of physical, chemical, and biological impacts of the Another area of concern is wastewater treatment. project. Are there going to be any impacts to circulation Because very large developments with land-based features 7 (such as hotels) are being built and planned, the agency for the facility to be built. Eventually the industry operates. must ascertain that the capacity to treat the wastewater However, the casino industry is on a different timetable. exists. It also must ensure that the development does not The construction takes place 24 hours a day 7 days a week. affect water quality standards. Finally, the impacts of Construction is completed quickly. The speed of construc- dredging and disposal of dredge material are concerns tion has created difficulties for the agency in checking and applicable particularly to casino projects. verifying the conditions of certifications. Casino development has affected the workload of the Because of the increase in workload, the Legislature has agency employees. Two full-time workers review these been very kind to the agency this session. The legislators projects, and until the advent of gaming, two employees approved an increase in the number of positions in the could review all Section 404 projects statewide. These very agency, particularly in the area of monitoring Mississippi large casino projects are on fast schedules. When very large waters. Efforts to accelerate the monitoring process should industries locate in Mississippi and undergo a permitting lead to better water quality in the coastal community. and a review process, it generally takes months and months 8 The COE Review Process Ronald A. Krizman Regulatory Branch U.S. Army Corps of Engineers, Mobile District The U.S. Army is indirectly involved in gaming permit- waters of the United States include not only those naviga- ting in the State of Mississippi. In the early days of the ble waters, but also the tributaries, sloughs, and even wet- country, the Corps was the federal agency that surveyed and lands that may be found behind one's home. These wet- mapped navigable waters of the United States. Later, the lands fall within the jurisdiction of Section 404 of the Clean Corps began maintaining navigable waters and even built Water Act. Therefore, casino builders who locate in coastal them. In the late 1800's, Congress passed a law that Mississippi need not only a Section 10 permit for locating a required that anyone doing work in navigable waters in the casino that floats on navigable waters but, also a Section United States, must first have a Department of the Army 404 permit for some of the amenities (parking lots, hotels, permit issued by the Corps of Engineers. As a result, the golf courses, etc.) that may impact other "waters of the Army became involved in its first regulatory mission. Then, United States," including wetlands. Presently, wetlands are when the National Environmental Policy Act of 1968 and probably one of the most controversial aspects of the whole the Clean Water Act of 1970 came into being, the Corps' Corps permitting program. mission in the regulatory arena was increased. A particular soil, the hydrology keeping the soil wet, and Today, the Corps' activities are really fourfold. One vegetation growing in the wet soil are the criteria for wet- activity is the evaluation of the Department of the Army lands. These kinds of areas are considered jurisdictional permit applications. Another is the making of decisions on wetlands of which a Corps permit would be required either those particular permits. The third is the investigation and to fill or excavate. resolution of any violations of several laws, sections of The first of the three criteria is vegetation. If the vegeta- which the Corps administers. The fourth activity is making tion includes plants that would typically grow in a wet soil wetlands and navigability determinations. and these are the predominant vegetation, the criterion is The Mobile District of the U.S. Army Corps of Engineers met for that category. Cypress trees and lizard tail vegeta- is one of 30-plus districts spread throughout the United tion typically grow in wetlands. Another typical wetlands States and overseas. In every way, the Mobile District is site contains pitcher plant bogs, mulberry bushes, and pines. one of the largest of the Corps' districts. The regulatory Another factor in determining wetland jurisdiction is boundary within the Mobile District encompasses the State whether the soil is a hydric one; that is, are the spaces of Alabama south of the Tennessee River watershed, as between the soil particles typically filled with water as well as the eastern one-third of the State of Mississippi, opposed to air. If the soil develops anaerobic conditions, including 98% of its coastal area. Any casino industry that then the second criterion to consider the area a jurisdiction- comes into the coastal area of Mississippi has to apply to al wetland is fulfilled. The Natural Resource Conservation the Corps of Engineers for a permit. The casinos that are Service, formerly called the Soil Conservation Service, operating or locating on the Mississippi River in navigable publishes soil maps that delineate the various types of soil waters will be working with either the Memphis or the found within an area. The soils are delineated in those maps Vicksburg Districts. Section 10 of the River and Harbor as hydric or not. Therefore, looking at soil maps published Control Act of 1899 is one of the basic laws that the Corps by the Natural Conservation Service often determines administers. Any work in, over, or under a navigable water whether a site is likely or not likely to be wetland. dictates a Corps permit. Some types of work that normally The third and most difficult factor to determine is the occur in the navigable waters and require a permit are: hydrology. Hydrology keeps the soil wet and the wetland dredging, bulkheading, and building piers. plants thriving. There are some definitions or some criteria The Corps becomes involved in areas outside of naviga- used to determine whether the hydrology is met. However, ble waters because of Section 404 of the Clean Water Act. hydrology determination is somewhat of an inexact science The Corps is responsible for the permitting through Section because it is viewed as a spot-in-time as opposed to an over- 404 of that same act, which states that any dredging or fill- all year-round look at any particular site. If the three crite- ing of waters in the United States requires a Department of ria are met, the Corps designates the area to be a jurisdic- the Army permit issued by the Corps. The term "waters in tional wetland, and any development must be accompanied the United States" is a more encompassing term than "nav- by a Corps permit. igable waters." Navigable waters are those associated with There are 36 various "Nationwide Permits." The permits interstate commerce. The Mississippi Sound and the relate to any work performed within a wetland area that Mississippi River are considered navigable waters. The individually or cumulatively has a very insignificant 9 impact. Those Nationwide Permits are issued by the Chief mental assessment (EA) is developed to determine exactly Engineer's Office, in Washington, DC, and typically are what the environmental impacts of that particular project valid throughout the United States. Many of them are aids will be. If there are significant environmental impacts, an to navigation and fish and wildlife activities. It is not environmental impact statement (EIS) would be made always necessary to apply to the Corps for permission to before a permit decision occurred. Finalizing an EIS is a pse these permits. For example, the placement of a crab trap lengthy procedure. The formality of holding meetings and or crab pot in navigable waters is a structure within naviga- public hearings takes time. Finally, when a decision is made ble waters being used for a purpose. Therefore, one of the by the District Engineer, the EPA (which has the federal Nationwide Permits covers that kind of activity to prevent oversight for the Clean Water Act) has the authority to veto the Corps from being inundated by permits for crab traps. the Corps' decision. A veto seldom occurs. In fact, in the When a road project involves a road crossing (and less than last 18 years since the Clean Water Act and the Corps 200 linear feet of road would cut across a wetland) a became involved in that Act, only one instance in the Nationwide Permit would apply. Thirteen of these 36 per- Mobile District involved the EPA vetoing a permit decision mits-actually 14 of 37 now-require advance notification. by the Mobile District Engineer. The Corps must be informed of the intent to use these 14 Another law administered by the Corps is Section 103 of particular Nationwide Permits. The Corps is allotted 30 cal- the Marine Protection Research and Sanctuaries Act of endar days to inform the applicant whether the project 1972, which is often termed the "Ocean Dumping Act." If meets the criteria of the Nationwide Permit program. Those a dredging project does not have a place for disposing mate- Nationwide Permits can be used for both Section 10 and rial except in federal waters, a Corps permit is needed for Section 404. the transportation of the material from state or state waters Another type of permit is the "Regional Permit." These into the federal ocean waters. are for projects that have more impact than projects covered Some changes in Corps permitting have occurred recent- by Nationwide Permits. For example, there is a Regional ly. The number of Nationwide Permits has increased in the Permit covering up to 2,500 cubic yards of dredging, as last 2 years. Existing Nationwide Permits expire next long as the dredged material is placed at an upland site. In January. The Chief of Engineers office in Washington will that case, a "General Permit" or "Regional Permit" can be publish new Nationwide Permits before the existing ones used. In Mississippi, a working agreement with the expire. Furthermore, additional new Nationwide Permits Mississippi Department of Marine Resources allows the will be published at the same time. Excavation of "waters of issuance of these permits in the name of the Corps. A one- the United States" requires a permit today. Until 3 years stop permitting process occurs by the applicant going to the ago, a wetland could be excavated digging 50 feet deep, and Mississippi Department of Marine Resources. These per- a Corps permit would not be needed if the material was not mits are for minor impact projects, either in navigable allowed to fall back into the existing wetlands. As a result waters or in wetlands. The timeframe for issuing these per- of a Department of the Army settlement of a lawsuit, regu- mits is 10 to 14 days. lation of excavation was begun. Thus, a Section 404 permit Another type of permit is called the "Letter of Permission is required not only to fill wetlands, but also to excavate Permit" used when a navigable water only is involved. An wetlands. Regulation of pilings has changed in the last 2 or example is a commercial pier or something similar that 3 years. In the past, pilings outside navigable waters were would impact only other navigational users. Issuing those not regulated by the Corps. Now, however, pilings can be types of permits is coordinated with the various state and regulated. Because people went to extreme lengths trying to federal agencies, as well as with the users of the navigable avoid needing a Corps permit, parking lots were being built water in the area. Issuing a Letter of Permission takes frorn on pilings. The Corps now regulates structures built on pil- 2 weeks to a month. ings that would normally have been placed on fill material. The larger permit and the most controversial one is the The Clinton Administration has been responsible for a "Individual Permit." The Mobile District has a policy stat- number of regulatory initiatives. While Mr. Bush was pres- ing that any new casino siting will initially be evaluated as ident, a "no net loss" goal for wetlands existed. While an Individual Permit. These large projects can cause big President Clinton has a no net loss goal, he has added an impacts. Individual Permits must be published with a 30- additional goal: "higher quality wetlands." There is an day public notice explaining the proposal. Federal and state Administration goal to expect a permit decision within 90 agencies, as well as the general public interested in any of days unless certain conditions arise. Exceptions might be: the resources, comment on the particular public notice rec- endangered species issues, resource problems, or the need ommending either denial, modifications, or expressing con- for an EIS. Otherwise, the President's goal is a 90-day per- cerns. mit decision. Today, the number of days spent on a typical Public hearings are possible depending upon which permit is probably about 118 to 120 overall. That figure issues arise during the public comment period. If the should be reduced to 90 days. Currently, the only appeal District Engineer feels that a public hearing is needed to from a Corps District Engineer's decision is through a fed- better answer concerns, a hearing is planned. An environ- eral court. President Clinton will be establishing an appeal 10 procedure for two things: a permit denial from the party istration declared that all federal agencies will use the same who was denied the permit, and wetland jurisdiction deter- (Corps) wetland criteria. As a result, some of the controver- minations. Today when engineers perform a wetlands iden- sy has dissipated. tification on someone's property and state that it is jurisdic- Finally, the Clinton Administration has proposed and tional wetland, a permit is needed to impact those wetlands. encouraged the use of mitigation banking. After trying to Right now, the only way to avoid that decision is to appeal avoid and minimize impacts to wetlands, the next step is to federal court. However, under the new appeal procedure compensating for those wetland impacts to meet the goal of it will be appealed to the Corps District. no net loss. That compensation is called "mitigation bank- Flexibility in permit decisions is helpful to the Corps. ing" and it is something that the Mississippi coastal coun- Not all wetlands are created equal. A low-quality wetland ties are looking forward to, to prevent tiny mitigation sites does not require spending much time determining whether that will probably have little chance of succeeding. there are alternatives to impacting those low-quality wet- However, a large area of wetland creation or wetland lands. Weiland criteria in the past have been the basis for improvement used for mitigation would assist the pen-nit- controversy, especially in the early 1990's. Different feder- ling agencies and the recipient of the permit. al agencies had various definitions of a wetland. The Corps The goals of the Corps' regulatory program are to protect is the federal agency that delineates wetlands. At times, the the waters in the United States and to provide for clearly EPA and Fish and Wildlife Departments did not agree with definable development making fair, reasonable, and timely the Corps because they had their own criteria for determin- permit decisions. ing a wetland. Therefore, in 1993, the Clinton Admin- EPA's Role in Wetlands Permitting Mike Wylie U.S. Environmental Protection Agency, Region IV Rapid development in coastal Mississippi has caused between the casino industry and federal regulators because impacts on the state's infrastructure, its citizens, and on the regulators investigate areas that can be quite sensitive in state's environment. The effects are both good and bad. The nature. The stage is set for a dispute when the job of regu- Mississippi Legislature legalized dockside gaming on the lators is to grant a permit, deny a permit, or recommend Mississippi River and along the Mississippi Gulf Coast. another site for the casino. After alternative sites are evalu- Because both the EPA and the Corps have regulatory ated, regulators evaluate the effects of the discharge to other authority over waters of the United States, friction between environmental standards. Bucking water standards and the groups sometimes occurs. The 404 Permit Program is a using a toxic discharge in fill material are in violation of the conflict resolution process considering environmental Clean Water Act. In addition, an assessment is made in rela- issues, weighed alongside the public's interests. The Clean tion to significant degradation to the waters of the United Water Act passed in 1972. The Act was a result of a con- States. If a project might cause significant degradation to tinued degradation of our nation's waters. The degradation waters, the permit is going to be denied. Regulators look at was a result of insults to the environment. One of the assessment of appropriate steps to minimize impacts of the biggest examples of that degradation was the Cayahoga discharge. River, an Ohio river emptying into Lake Erie at Cleveland, Because of continuing development on the Coast, efforts that in the 1970's was depicted in newspapers in flames. to minimize and mitigate impacts have special significance. Objectives of the Clean Water Act are the restoration and If EPA, NMFS, or Fish and Wildlife Service believe that a maintenance of the chemical, physical, and biological project does not comply with the guidelines and the Corps integrity of the waters. That mission statement has caused does not agree with that decision, another interesting con- great joy and much consternation since its inception in flict resolution process called the Section 404(a) elevation 1972. EPA was created before passage of the Act in 1970. process is utilized. In 1993, a new memorandum of agree- The waters of the United States are defined as the: naviga- ment between the agencies (Fish and Wildlife, the Corps, ble waters, interstate waters, intrastate waters, tributaries, and EPA) was formulated. In the Section 404(a) elevation territorial seas, and wetlands. There is an overlapping juris- process, a dispute over a particular project results, docu- diction between state statute and gaming statute in the menting and evaluating problems with the environment. If Federal Clean Water Act authority. In the early 1990's, the a permit has unacceptable adverse impacts, EPA's 404 pro- rationale was that the dockside casino was to be sited in cer- cedure is set into motion. tain areas that overlap Corps jurisdiction, but there would If a discharge, an excavation, or any kind of secondary also be secondary development coupled with the footprint cumulative impact associated with the project has impacts of that casino. That thinking caused great consternation on the inshore water supplies, shellfish beds, fishery areas throughout the federal family because evaluating the foot- (including spawning and breeding areas), wildlife areas, or print of the casino is one thing, but secondary and cumula- recreational areas, EPA will be compelled to go to our tive impacts of upland development to ensure that casinos 404(a) authority. This authority may be used before and remain, cause additional concern. Casinos should be evalu- after the fact. This very time-consuming project usually has ated on a broader scale. a short timeframe. Political pressures intervene. However, One of EPA's roles in Section 404 is reviewing permits Congress has left this seldom-used procedure in place. EPA that the Corps has accepted. EPA, Fish and Wildlife and the Corps jointly administer the enforcement program Service, NMFS, and several other agencies review and of Section 404. make specific recommendations to the Corps of Engineers. On the Mississippi Gulf Coast, EPA has conducted two Section 404 guidelines were written by EPA in 1975 and enforcement actions against casinos, One involved environ- updated in 1981, creating specific guidelines that must be mental remediation processes. The other one resulted in a followed to be in conjunction with the Corps' compliance penalty. EPA enforcement in Tunica County involved three for a permit. These are some of the guidelines to which enforcement matters (three penalties including environmen- every casino, operator, or anyone applying for a Section tal restoration). A significant penalty was issued by the 404 permit must adhere. However, under President Vicksburg Corps of Engineers against a casino. The casino Clinton's plan, additional flexibility is provided by issuing industry on the Coast has tried to do right by complying Nationwide Permits. with Section 404. Direct impacts to wetlands have been The first step in the permitting process is the evaluation minimal. However, secondary and cumulative impacts have of possible alternatives. In the beginning, friction exists been significant. 12 The Mississippi Public Trust Tidelands Lease Program Margaret Bretz Public Lands Specialist Office of the Mississippi Secretary of State In the State of Mississippi, the Secretary of State is also after all applicable permits have been obtained by the appli- the land commissioner; therefore, public lands, except cant. agency lands, are under his administration. One of the two Next, a site-specific appraisal for each of these leases is great land trusts that the state owns is the public trust tide- obtained. The appraiser uses a three-part approach. First, he lands and submerged lands. (The other is the Sixteenth arrives at a value based upon direct comparison of the prop- Section School Land Trust.) Since these tidelands and sub- erty, return on value of the property, and percentage gross merged lands are publicly owned, compensation must be casino revenues of the property. The appraiser then recon- paid when some private exclusive use is made of these ciles these three figures to arrive at fair market rental value. lands. The Secretary of State established an office here on Finally, this figure (which was determined by independent the Coast in 1988, and thereafter adopted rules for the appraisal) is nonnegotiable. The figure is presented to the administration, control, and leasing of public trust tide- lessee, and in each instance, the figure has been accepted lands. This tidelands lease program was in effect in March and the lease executed. of 1992, when casino gambling was approved in Harrison Other terms of the lease are negotiable to a certain extent. County. If there are provisions that the lessee would like to include, Between August 1992 and August 1994, 10 leases were they are included if possible. Some provisions are statutori- executed for casinos. Regulations specify that the leases be ly mandated. Although the law allows a term of up to 40 granted only to the adjacent upland owner or his assignee, years, terms of the leases have been limited to 10 years, so the applicant for the lease must own or control the adja- with one instance of 15 years. A statutorily mandated rent cent uplands. The policy has been to preclude any new review and an adjustment every 5 years is included as a pro- commercial leases off publicly funded sand beaches in the vision of each lease. Public access to the leased areas is coastal counties. The policy has had the effect of confining required if the lessee is able to provide it. In addition, the additional development to the previously disturbed or lessor recognizes that the lessee can take reasonable mea- impacted areas, ports, and harbors along the Coast and the sures to protect the security of his property. The lease may area of downtown Biloxi, including the Broadwater, the old be terminated upon the suspension or cancellation of the Sea & Sirloin Steak House, and Point Cadet. casino license. The state secures an indemnity and hold The applicant must submit an application, an application harmless provision in each of the leases. Moreover, liabili- fee, and a survey, which shows everything that is to be ty insurance is required of the lessee. placed on the waters and waterbottoms to be leased and on Although the lease program was in place prior to the pas- the adjacent uplands. Every lease requires the lessee to sage of casino gambling on the Coast, the revenues, as one abide by all applicable state, federal, and local regulations might expect, have increased dramatically with the 10 casi- or statutes; any zoning ordinances; and any governmental no leases. The revenues from the tidelands are spent as regulations that may apply to the activity. directed by statute. The revenues are used first for the The lease process is usually triggered by the receipt of administration of the Public Trust Tidelands Act and, see- the public notice of the proposed project from the ondly, to replace any lost tax revenues. To date, none have Department of Marine Resources. The office responds by been lost. Finally, the balance of the lease revenues is dis- advising that a lease will be required for the use. The bursed to the Department of Marine Resources. Mississippi Department is notified when a lease application is received law provides that the DMR use these monies for new and and proceeds with its permitting process. In addition, the extra programs of tidelands management including preser- office coordinates with the Department to ensure that a vation, conservation, public access, and public education. lease is not authorized for an activity that is not permitted Recently, the Legislature has made the fund expenditures by the regulatory authorities. The lease is not issued until part of the DMR appropriation process. 13 Recommendations for Changes in Permitting Casinos in Mississippi Coastal Wetlands Richard McLaughlin Associate Professor of Law and Director Mississippi-Alabama Sea Grant Legal Program University of Mississippi Law Center In 1994, NOAA's office of Ocean and Coastal Resource guage is cloudy and needs to be clarified and tightened. Yet Management issued a report that was part of its ongoing another discretionary recommendation encourages the evaluation of state coastal management programs. That Commission to better define water-dependent activities and 1994 report was somewhat critical of the way the State of water-dependent industry. This issue is discretionary Mississippi permitted casino development within the because broad leeway has generally been granted to states coastal zone. In particular, the NOAA evaluation expressed like Mississippi to make the determination of what is concern regarding how the state was allowing casinos in defined as a water-dependent activity or industry. There is certain areas that were designated in the formal coastal pro- probably no legal problem with the way the state currently gram for other uses, such as commercial fishing ports, defines water-dependency. recreational marinas, and water-dependent industries. In Most people acknowledge that casinos have to be viewed addition, the report expressed some concern regarding the as water-dependent activities because the Mississippi legis- procedures that were used to allow adjustments in the lation has required gaming to exist only on floating struc- Coastal Use Plan. The procedures were deemed inadequate tures. However, water-dependent status does not mean that and the report suggested that the state re-evaluate its current casinos should be placed without limits all along the Coast. regulatory program to see if any changes were warranted. For example, casinos should not be located on sites suitable Upon that recommendation, the Department of Marine for water-dependent industry. Sites suitable for water- Resources contacted the Mississippi-Alabama Sea Grant dependent industry are those sites that are located adjacent Legal Program at the University of Mississippi Law Center. to navigable channels, which are suitable for commercial The Department of Marine Resources asked whether or not water-borne commerce. Casinos do not need a position the legal program would be interested in taking on the pro- adjacent to a navigable channel that would support water- ject of evaluating the current regulatory structure and pro- borne commerce. In fact, those locations are very limited in viding some recommendations. The Sea Grant Legal number. They are unique. Allowing casinos on those sites Program accepted the challenge and, in April 1996, submit- prevents other industries that are truly water-dependent ted its findings. from locating there. Consequently, the Commission on The recommendations of the legal program can be divid- Marine Resources should re-evaluate the definitions of ed into two basic categories. The first category is composed activities that can be allowed on sites suitable for water- of entirely discretionary recommendations. The reason that dependent industry and close any loopholes that may allow they are discretionary is that the state in these areas is in casinos to be placed on industrial sites. Similarly, the general compliance with existing federal and state law. Commission should tighten the definition on water-depen- Therefore, the recommendations may clarify or improve dent activities to ensure that nongaming activities such as certain aspects of the management of the coastal zone, but theaters, child care facilities, and hotels are not placed on changes are not absolutely required. Examples in this first floating structures over the state's submerged water bot- category include a recommendation that the Commission toms. Generally, those services are already prohibited from on Marine Resources more diligently ensure that all appli- being located on floating structures. However, there have cants provide detailed descriptions of all associated and been a growing number of requests to situate those kinds of secondary developments that are likely to occur. The activities on vessels. The policy therefore needs to be tight- Commission should then make sure that these impacts are ened and clarified. fully considered in all of the permitting decisions that are The second general category of recommendations com- ultimately made. prises those that are not discretionary. They are not discre- Another recommendation in the discretionary category tionary because they will bring the state into compliance encourages the state to re-examine the jurisdictional defini- with existing state or federal law. An example of a nondis- tions within the coastal program. For example, some confu- cretionary recommendation would be for the state to rede- sion exits regarding whether or not a recreational marina fine the "commercial" designation within its Use Plan in the that is dredged from an upland area does or does not fall Coastal Program. The Use Plan is similar to a zoning map. within the jurisdiction of the Coastal Program. The lan- The entire coastal zone is mapped and certain zones are 14 delineated where particular activities can take place and mon law rules in the State of Mississippi. The rule has been other activities cannot occur. Most casinos are located in applied on dozens of occasions by the State Supreme Court these commercially designated zones. The Coastal Program in the zoning context, and although the Supreme Court has allows in those commercial zones, according to express lan- not yet ruled on this issue in the context of adjustments to guage, seafood processing, commercial fishing ports, recre- the Coastal Program, a Chancery Court in Harrison County ational marinas, and associated development, has done so. Recently in regard to a casino site on the Biloxi Nowhere in the Coastal Program are casinos or casino- Back Bay, the court approved the "mistake or change in cir- related development mentioned. Clearly, there is a differ- cumstance" test. As a result, the Commission on Wildlife, ence in the impact between a commercial fishing port or a Fisheries and Parks applied the test and found that because seafood processing plant and a casino and all the related there was a mistake in the original zoning, an adjustment to casino development that is adjacent. Casinos were placed in the Coastal Program could be made. The report recom- the commercially designated zones because they were the mends that the Commission on Marine Resources adopt the most suitable locations at the time. Many of the casinos test as well because it is widely perceived that the State have been placed on what were once seafood processing Supreme Court will require the test if it is confronted with plants or commercial fishing facilities. These sites may, in this issue in the future. fact, be uniquely suitable for casinos. However, the state Finally, the last nondiscretionary recommendations cannot ignore the express language within the Coastal involve a state statute known as the "One-Stop Permitting Program. If the state wants to have casinos within this com- Act." This act requires that all agencies with related or mercial designation, it should amend the Coastal Program interrelated jurisdiction or authority cooperate to the great- to allow casino development within that designation. If the est extent possible in processing and issuing permits. The state does not choose to do that, there is a possibility that a purpose of the One-Stop Permitting Act is to avoid the sit- legal challenge may arise at some point in the future, with uation that was quite common several years ago in which an someone challenging a permit saying that the state is allow- applicant had to go to several agencies to get a permit. This ing an activity that is expressly prohibited within the was viewed as inefficient, inconvenient for the permit Coastal Program. applicant, and a waste of money because many duplicate Another nondiscretionary recommendation is that the expenses by various agencies occurred. Commission on Marine Resources provide full written find- Currently, there is little cooperation or coordination ings of fact and law whenever it renders a permit decision. between the State Gaming Commission and the This requirement of full written findings is clearly required Commission on Marine Resources. In particular, there is under the State Coastal Wetlands Protection Act, as well as not the kind of coordination that is required under the One- in Administrative Procedures within the state. The require- Stop Permitting Act. On the contrary, in some instances, the ment, in fact, was the reason why a recent decision by the Gaming Commission will grant a preliminary permit based Commission on Wildlife, Fisheries and Parks was over- on its own very specific criteria, even in those circum- turned by Chancery Court in Harrison County. The stances where it is very unlikely that the particular prelimi- Commission failed to make formal written findings when it nary permittee will be able to receive a permit from the made a permit decision. Commission on Marine Resources, the U.S. Army Corps of The last few nondiscretionary recommendations will Engineers, or the Secretary of State's office. Rather than probably be viewed by some observers as controversial. streamlining and coordinating the permitting process, the The first is a recommendation that the Commission on current approach pits one state agency against another. If Marine Resources clarify its requirements for adjustments the Gaming Commission makes a preliminary decision, it in the Coastal Use Plan. On several occasions, casinos have puts undue economic and political pressure on the second requested adjustments in the Use Plan to allow a casino to state agency. Certainly, this is not the intent of the One-Stop locate within a zone that had been previously designated as Permitting Act. In fact, the two agencies should be working a zone that prohibited casino-like activity. There is no together, information should be shared, public hearings express requirement within the Coastal Program that a test should be consolidated rather than held separately, and a be used requiring an applicant to either show a mistake in single application process should be developed. If these the original zoning plan or a change in circumstances of the steps are not taken, there is a chance that potential litigation neighborhood or the neighboring area before they grant an will occur to force agencies to comply with state law. adjustment. However, this so-called "mistake or change in Mississippi should evaluate ways to implement these rec- circumstance rule" is one of the most well-entrenched com- ommendations. 15 SECTION 11. CUMULATIVE AND SECONDARY IMPACTS OF DoCKSIDE GAMING DEVELOPMENT Economic Impacts Direct Effects of the Dockside Casino Industry on the Coastal Economy Bruce Nourse Past President-Mississippi Casino Operators Association Officer/Director-Mississippi Gaming Association Direct effects of the dockside casino industry on the "Casino penetration" is the number of households that coastal economy have been positive. There are some nega- make casino visits each year. It has grown steadily since tive aspects: the effect on infrastructure and the crime rate. 1990, when other states began legalizing gaming. However, the problems are caused by an increase in Seventeen percent of all households had gambled in 1990. tourism, more residents, and more construction. The That number grew to 27% in 1993. By 1995, 31% of all increase in crime is in large part attributed to gang and households in the United States had gambled at some point. youth criminal activities, as well as the fact that we have How popular is gaming in the United States? In 1995, the 50,000 more tourists on the Gulf Coast than before gaming. number of U.S. casino visits was 154 million. That is a 23% Therefore, a comparison of crime statistics now with pre- increase over 1994 and three times the visits in 1991. Of the gaming crime statistics will reveal an increase without 154 million people visiting casinos in 1995, 58% of them question. ne positive aspects, though, seem to outweigh went to places other than Las Vegas and Atlantic City. They the negative factors. went to casinos that were convenient for them. The average In 1973, the economy of Biloxi was depressed. Someone gambler likes the convenience of a local casino. He does with a college degree did not have many options. Many col- not want to travel halfway across the country. In 1995, gam- lege graduates moved to other areas where an industry and ing visits even surpassed visits to amusement parks. a lifestyle were more attractive. Then, when dockside gam- Furthermore, the total number of all spectators present at ing came to the Coast, it gave people who left this area sports events in 1995 (including baseball, NFL, NBA, because of the depressed economy, the opportunity to NCA, NHL, and golf tours) was only 25 million more than return. the number of those visiting casinos. Gaming is growing in Some basic information about gambling will be helpful popularity as an entertainment option in the United States in understanding the industry. Gamblers, in fact, are really today. just a slice of America. They are above the national average The gaming industry employs nationally, directly and in education, income and employment; gamblers have a indirectly, more than a million people. Casino employees median income of $41,000 a year with 19% of them hold- alone received over $7 billion in salaries and bought homes, ing college degrees. Forty-four percent have white collar cars, paid taxes, and got off welfare and Aid to Families jobs, and more than half of them are women. with Dependent Children. What is America's attitude about gaming? Studies have Nationally, looking at various spots where gaming has shown that in 1995, 91% of those surveyed said that gam- been legalized over the last few years reveals some very ing was an acceptable form of entertainment. Only 9% said positive figures. Of course, the negative factors exist also. that gaming was not acceptable for anybody. Of the 91% In Joliet, Illinois, crime has increased and infrastructure who believed gaming to be acceptable, 61 % responded that problems exist. On the other hand, property values have gaming is acceptable for them. Thirty percent said that it is increased 23%. In Illinois, tax revenues from the 10 river- acceptable for other people but not necessarily for them. boats reached $236 million in 1995, surpassing the legisla- Therefore, the conclusion is that many people in the United ture's projection of $20 million. In Missouri in 1995, gam- States do not necessarily feel that gaming is for the morally ing provided $55.9 million in tax revenues specifically for corrupt. the education system. In Louisiana, the 11 riverboats in 16 1995 paid taxes of $204 million. Of the $40 billion earned Casino Magic is investing about $30 million in its property by the casinos nationally, $1.5 billion were paid in tax rev- over the next year building a hotel, and a whole new entry- enues to the states and local governments where casinos way. Eventually, the casino will construct a very high-end exist. Those are positive aspects that cannot be denied. The shopping mall with a high-end hotel on top of that. The casino industry increases capital investment, (e.g. $525 mil- Golden Nugget and Imperial Palace are under construction, lion by Golden Nugget in Biloxi). Casinos increase num- and at the same time many businesses and new businesses bers of jobs. are being built. In Mississippi, 29,000 new jobs have been created by this The Development Commission projects hotel occupancy industry. Of course, the tax revenues to the state and local trends at 70%-plus. That is figured at $60 per night totaling government are increased. Mississippi has been positively $83 million in sales in 1995 and an 8.7% increase over affected by gaming. Mississippi's present governor was 1994. In 1995, apartment occupancy ranged from 90 to elected when this industry was in its infantile stage and he 95%, with an average monthly rental of $416. Office occu- was in the Governor's Mansion throughout the growth of pancy levels are at 90% or higher. Restaurant sales totaled gaming in Mississippi. The Governor stated that he had $165 million in 1995, a 4.3% increase over 1994. Average inherited casino gaming. Mississippi's economy was stag- sales price of residential real estate in Harrison County has nant before gaming. This industry played a great part in risen from $68,500 in 1992 to $84,000 in 1995. That is a stimulating the economy. The industry rose to the challenge 23% increase in sales price of residential real estate since with no hint of corruption or scandal. That is, in large part, the advent of gaming. due to the Mississippi Gaming Commission, Gary McGee, The University of Southern Mississippi Division of and his staff. Business Administration's Mississippi Gulf Coast Mississippi's governor stated that the Mississippi gaming Economic Report indicates that the periods of rapid growth industry has created 29,000 direct jobs and 20,000 indirect in 1993 and 1994 on the Mississippi Gulf Coast reveal that jobs. The casino companies are building and investing in the economic variables examined appear to point toward a Mississippi. More than 70% of the casinos' customers come stabilization of economic activity in 1995, in contrast to the from out of state, so money is not simply recycled within rapid growth periods of 1993 and 1994. The economic our state. Mississippi is second in the nation in casino thread that seems to be running through the past growth square footage and third in gross gaming revenues. The appears to be in large part, a result of the gaming industry. Governor stated that the free market is a wonderful appara- Although not shown in this report, annual average employ- tus. He continued saying that the strong will survive for the ment from 1992 to 1994 in the service sector or gaming sec- greater good of the industry. Lastly, he said, "Let the casi- tor increased by an unprecedented number from 15,600 to nos thrive and watch the success." This response was from 29,300, a growth of more than 87%. The largest portion of a governor who enjoyed the benefits of what he calls the this new employment was located in the gaming industry. "Mississippi miracle," the incredible turnaround of the An increase in jobs tied directly and indirectly to this indus- state's economy in the last 4 years. The Governor gives try has made a major impact on the coast economy. The credit for one-third of the Mississippi miracle to the gaming gaming industry in Mississippi has been beneficial to industry. Mississippi. It seems that this industry is here to stay, and The Harrison County Development Commission (a coun- the properties in the year 2000 are going to be larger. While ty of a fixed population of about 183,000 and Metropolitan there will be fewer casinos, they will be a department store Statistical Area of about 350,000) projects a 5.3% job of entertainment. They will offer something for everyone growth, which includes about 11,000 new jobs in this coun- within every budget. In the year 2000, Mississippi will con- ty since 1991. The Commission projects $700 million in tinue to see an increase in all economic indicators. At some new construction costs during 1996 and 1997. That con- point in time, Mississippi will be up there with some of the struction figure is not restricted to the casino industry. best economic states in the country. 17 The Impact of Casino Gambling in New Orleans Janet Speyrer Director, Division of Business and Economic Research University of New Orleans The Louisiana Legislature allowed a land-based casino in visitors who were coming were not planning ahead to gam- New Orleans in 1992; the casino actually opened at a tem- ble. When asked if they were planning to gamble, if they porary 76,000-square-foot site on May I st of 1995. Because brought money to gamble and, ultimately, if they did gam- of poorer than expected performance and other factors at ble, tourists answered, for the most part, "no." Some the time, the casino downsized to 62,000 square feet and tourists might visit the casino to play, but it was not some- laid off about 500 workers. Continued poor performance thing they planned ahead to do. Visitors who do not plan and an increase in costs at the permanent site (the ahead to gamble cannot, in general, extend a stay that would Rivergate, at the foot of Canal Street) caused Harrah's lead to positive economic impact. In addition, these tourists Casino to declare bankruptcy on November 22, 1995. The were not, generally, big players. casino generated $88.7 million of revenue for the period It is also true that having clusters of activities like those that it operated. Actually, Harrah's (because they were get- in the Biloxi-Gulfport area allows people to move from one ting $59 per admission) was still earning about $2,300 per casino to another enjoying a variety of gaming entertain- square foot per year in revenue. So, one question is "why ment. In New Orleans, people do not come to hear one jazz did it not perform up to expectations?" What kinds of things singer or one jazz group but to hear a variety of jazz music might have caused the project to be sustainable in the long on the whole. People do not go to Branson, Missouri run? because of one country singer, but rather because of groups One problem was that the taxes were much higher at that of them. People want to have a variety. Moving from the location than in any other place in the country. The tax on land-based casino in New Orleans to one of the riverboats the win was 25% of gross revenues at the temporary site. was not convenient because of the distance. For the permanent site, which would encompass more than One other problem was that most of the people who went 200,000 square feet at the foot of Canal Street, the tax was to Harrah's casino were residents and existing visitors, not going to be a minimum of $100 million and about the same new visitors, and there were not as many visitors as resi- rate beyond. Therefore, the tax rate at the permanent site dents. About 65 to 75% of the people who visited Harrah's has been estimated to be between 40 and 47% at a perfor- temporary site were residents. And the fact is that the resi- mance level consistent with the kind of performance that dents, especially the higher income suburban residents, tend was occurring at the temporary site (but increased because to frequent the riverboats in their neighborhoods or go to of the increased gaming space). Mississippi instead of going downtown to a casino. Another Another problem was that, in the legislation, Harrah's problem resulted from the long regulatory delays. People was not allowed to offer any free food. Hotel rooms were just underestimated Mississippi's growth. New Orleans was also disallowed. In the casino business, complementaries playing catch-up at the time because Mississippi was are important, but were excluded because the existing already offering hotels and other kinds of entertainment. tourism industry in New Orleans was strong and New Orleans just "missed the boat," literally, on entertain- Louisianans did not want to upset that balance. As a result, ment and hotels. At the same time, many felt that the invest- the legislation was very restrictive for this casino.These rea- ment that was going into the downtown area was not J Usti - sons for failure are only part of the story, however. First of fied based on the numbers. Instead of the casino getting 65 all, the temporary casino site was on Basin Street. Basin to 70% of visitors (as planned) and the remainder residents, Street is not on the main path of tourists. It is actually very the casino had been experiencing the reverse. close to a subsidized housing development in an area that When analysts looked further into casino performance, has not been one of the best kept, historically, and not one several other findings were noted. The revenue was off; the of the newest and most tourist-oriented areas of the city. numbers were only less than half of the projected figures. The permanent location at the foot of Canal Street was a Also, the number of visitors was off; only a third of the more desirable location. In fact, many people wondered original projected number visited the casino. The implica- why Harrah's even bothered to open at the temporary site. tion is that the market may not have been sufficient to sup- The temporary site was not Harrah's choice. They were port the huge capital investment that was being called for at forced to open a temporary site at the old Municipal the gigantic Rivergate site. Alternatively, Harrah's may Auditorium on Basin Street in order to get the operational have just overestimated the activity at this temporary site. license for the permanent site. River City Casinos (two boats) were operating downriv- One other problem was that the New Orleans convention er from the downtown area. The original investment called 18 for $40 million per boat. However, the operation ended up riverboats and the New Orleans riverboats really were not spending $280 million on two boats and went broke in less doing as poorly as many had thought. These revenue-per- than 9 weeks. Again, the investment could not be support- square-foot figures do not tell the whole story, but certain- ed by the local gaming market. In the riverboat industry, ly reveal some interesting facts. First of all, the most originally 15 riverboat licenses were allowed in Louisiana healthy boats were those operating in Shreveport and then as a whole with nine in the New Orleans area. This indus- those in Lake Charles. Shreveport faced slightly different try was governed by some interesting rules. First, all boats regulations; but both Shreveport and Lake Charles were (except the ones on the Red River) had to sail. The boats attracting significant numbers of Texas visitors. Estimates had to be new and contain a maximum of 30,000 square feet show that up to 85% of gaming visits come to these areas of gaming space. The tax rates were high, with 18.5% of from Texas. This is an important factor; it means not only gross revenue going to Louisiana and $2.50 or $3.00 per positive casino performance but also positive economic passenger (or 6% of net gaming proceeds in the West Bank impact because money is coming from outside the state. of Jefferson Parish) going to the local governments. The tax The Lake Charles numbers are slightly lower (than in rate can be between 25 and 35% on a given boat, depending Shreveport) because the casinos there face substantial com- on its revenue per passenger. Legislation allowed for those petition from the nearby Grand Coushatta Casino on an boats to begin operating in 1991. The first boat, the Star, Indian reservation. The Grand Coushatta Casino is actual- started operating in October of 1993. This was followed ly land-based and some people are going farther to the quickly by Player's International in Lake Charles. Coushatta Indian reservation to gamble instead of staying in It is interesting to note that the New Orleans area was Lake Charles. originally scheduled to have nine boats. Five boats were The future of gaming in New Orleans is uncertain. First scheduled to be in New Orleans, and four boats would oper- the bankruptcy proceedings continue. There is a question of ate in the surrounding parishes. Looking at New Orleans whether a casino can operate profitably at the Rivergate site now, one can see only four boats remaining in the area, with at the foot of Canal Street given the high taxes and the big only two in the city: one downtown (Flamingo), and one at existing debt, the restriction on free food, and restrictions the lakeshore site (Bally's Belle of Arew Orleans). The on hotels. At this point, the Legislature is not inclined to Treasure Chest is in Kenner and the Boomtown Belle is on give the gambling industry anything. Gov. Foster has not the west bank of Jefferson Parish. One other important fact only offered a statewide referendum on gambling but also is that the Flamingo, which started as the Queen of New said that he would support the anti-gambling movement. Orleans with 20,000 square feet, expanded to 30,000 square Therefore, it doesn't seem very likely that concessions will feet, because of good initial performance. However, the be given. The question is not just "Can the casino operate Flamingo downsized to 20,000 square feet in January of profitably at the Rivergate site?" but "Can a casino at the this year. Figures for the Flamingo show that revenue per Rivergate site do for the State of Louisiana and for the local square foot actually increased in the first quarter of this economy what it was predicted to do?" year. The second issue is the multipart referendum in the fall. The total revenue for Louisiana riverboats alone was One part deals with whether or not to allow Harrah's to $1.05 billion in 1995. In the coastal Mississippi area, rev- open. Even if the vote is "no," Harrah's may be here for 30 enues were $716 million. New Orleans' revenue exceeded years or more because that's the way the contract reads. If that of the Coast, even with all of the Coast's highly-clus- the contract is upheld in the Courts, Harrah's may be tered activity. Mississippi's river casinos earned another $1 allowed to stay even if it is voted down. Many people sug- billion. Thus, the total revenue figure is $1.7 billion for gest that the vote will not be negative, but that there is some Mississippi compared to $1.05 billion just for the riverboats question about the economic viability of the project. in Louisiana. Some believe that this shows that the Another part of the referendum on the ballot will be Louisiana market is very strong, because this Louisiana rev- whether to have riverboat gambling. This vote will take enue figure does not count the $89 million in revenues from place in 43 parishes, including those with riverboats and the Harrah's, or the revenues from the three operations on surrounding parishes. Many people thought the referendum Indian reservations that are also doing very well and on riverboat gambling was a "done deal," that there was expanding at this time. To show that the trend does contin- definitely going to be riverboat gambling because of the ue, in the first quarter of 1996, the riverboat casinos in boats' positive impact on the parishes where they operate. Louisiana made $303 million, while all of Mississippi made However, it is unclear what impact the vote by those in sur- $461 million in casino revenues. rounding parishes will have. Even if the vote is "no," river- Some problems do occur in comparing revenue per boat gambling can continue until the casino licenses are up square foot per year on boats that have to sail with boats (2 to 4 years). that are dockside. In particular, a problem occurs when Another issue for the future is the fact that as of May 1, comparing boats that have to sail and that have a maximum 1996, a single board governs all gambling activities (river- square footage of 30,000 with boats that are unlimited in boat gambling, video poker, land-based casinos, the lot- space. However, there is a sense in which the Louisiana tery). However, there are currently no approved commis- 19 sioners. Consequently, many people who are operating in Planning Commission but paid for by the gambling inter- the industry wonder what they are supposed to do in the ests of each riverboat and land-based casino. Six major uni- meantime. Getting people appointed to this kind of board versities with more than 30 researchers are involved. The takes quite some time. studies are ongoing and will be finished soon. The studies Dean Tim Ryan, of the College of Business of the include the effects on tourism, existing businesses, minori- University of New Orleans, and Janet Speyrer have been ties, the revenue and expenditure of the local government; asked to head a panel of people from different universities pathological gambling and its impact on social agencies and to study the impact of casino gambling activity in New churches; crime and the criminal justice system; and real Orleans. This study is being commissioned by the City estate values and land use. 20 Economic Impacts from the Municipal Perspective David Staeffling Director of Economic Development & Cultural Affairs City of Biloxi, Mississippi To say that the gaming industry has been a natural cata- fact that the City of Biloxi had 30 to 40 years of deferred lyst for the City of Biloxi is a tremendous understatement. maintenance at the time this development occurred. The A more inherent economic catalyst could not have come to deferred maintenance included the areas of water, sewer, the city. The casino industry categorically touches every drainage, police, fire, education, and recreation. This was element of the city, including wholesale retail trade; food, not the fault of any administration. The city simply had no beverage, entertainment, and lodging industries; and partic- money. At best, it could barely maintain its basic services. ularly housing (single-family, multi-family, and commer- In 1992, the city could not buy tires for the police cars. cial). The amount of development for a city of fewer than Now, police cars are being bought in volume. Needless to 50,000 people is unprecedented anywhere in the United say, the revenue that came with this industry has been sig- States of America. In the first 3 years of development, since nificant. A 3.2% diversion comes from the state to the city the advent of dockside gaming in August 1992, $400 mil- and county. Twenty percent of that fund goes into the lion in development has occurred. Today, $600 million in school system; 20% of it goes into public safety, fire and new development is underway. This trend is not expected to police; and 60% of it goes into the general fund for the city. stop in the next 10 years. All of the market conditions are To make the proper investment of the public dollars, the paramount to underwriting a casino development. city had to evaluate the transition that had really occurred in Conditions show much upside potential. terms of the market forces imposed on the city and what Biloxi prepared a waterfront plan, which focused on could be expected in the future. The city commissioned a preservation enhancement. The plan evaluated the land-use professional consultant firm with a tremendous background element pertaining to that plan and incorporated an array of in land use planning that focused on the discipline of real land uses that would support comprehensive redevelop- estate development and had a detailed knowledge of the ment. At the time of formulating the plan, all the land on the technical operation of a municipality, particularly as it per- outer perimeter of the peninsula was very distressed. Long- tained to water, sewer, drainage, and transportation. The term economic decay existed with no real upside potential purpose of the study was to help the city focus on spending for redevelopment. Although this plan focused on preserva- tax dollars wisely. As a result, a needs analysis in the city tion enhancement, it also focused on market analysis in land was undertaken. The analysis considered the capacity use as it pertained to the city and its future. This plan was required to take on the new development with the popula- adopted and ratified by the City Council, and it became tion increase, growth trends, and economic development. ordinance. The other element that really helped the casino The elements of this comprehensive plan focused first on initiative was the fact that Biloxi has been a gaming desti- a base map system. A base map system is a parcel-by-par- nation since the 1850's. A successful casino industry exist- cel delineation of all the land in the city. It also focused on ed until 1964, when the federal government shut it down. setting up this base map system in a high-tech electronic Consequently, the idea did not cause a social problem. format, a GIS system, that would set up attribute tables and The development process occurs with a change in land assign the appropriate attribute values as far as all the infor- use from a lower-value use to a higher-value use. Of course, mation and data that affect land use, water, sewer, drainage, all of the geography delineated for gaming was on the land-use improvements, and anything the city needed in waterfront district and was the most distressed property of terms of doing the proper analysis and studies and making the city. Consequently, a convergence from the lowest pos- choices on the development process. Included in that sys- sible land use into the highest possible land use occurred. A tem was all the hydric soil within the city to make sure that high quality of development comes with this industry. The the wetland delineations and impact analysis were done industry has presented tremendous opportunity for the city. properly. Land-use inventory was important, with the city However, the city held certain things sacred. The heritage, evaluating undeveloped land and looking at market forces cultural values, and the character of the city have always to determine what would be the best future land use for that been very important in the underwriting process in this particular land. development. The totals are a billion dollars of develop- The transportation factor is a major element. On a normal ment in a 3/@-year period, $400 million complete, and $600 weekday, 10,000 to 15,000 people not from Biloxi come to million under development right now. This development town. On the weekend, 150,000 visitors are here. Traffic was a tremendous task for the city. Another factor was the has increased dramatically. The city is dealing with many 21 agencies to help people get from one destination to another vice provided in the city: police, fire, education, transporta- as quickly as possible with the least inconvenience. tion, water, sewer, drainage, and recreation are evaluated. The other element of focus was the goals and objectives The city decides what the cost will be for development. element of the plan. The city commissioned the best polling Once that cost is established, the gaming entity and the city corporation in the southeastern United States, MRI then participate in the impact cost. Casinos pay on the front Corporation, and consulted a tremendous sampling of the end. The Golden Nugget is the largest casino outside of Las population in terms of attitudes and behaviors related to Vegas and Atlantic City. The City of Biloxi declared at the perceptions of the problems in the city. In addition, the poll beginning of negotiations that the corporation will provide asked how people thought the city should resolve those the city with the capital needed to make sure that the city problems. has the proper capacity to handle the development in its First, the people wanted to be safe. They wanted total entirety on a short-term and a long-term basis. security and wanted to be able to get from one destination One of the most talked about issues is our wastewater to the other safely. They also wanted very little increase in management system. Needless to say, wastewater manage- crime. Over the last 3 years, the city has invested more than ment is a concern of Mayor Holloway and the administra- $30 million in public safety, particularly in the police tion. The Keegan Bayou treatment facility, which handles department. Fifty new police cars were bought, and 60 new all of East Biloxi, where most casino development is locat- police officers were hired. The city invested heavily in edu- ed, has been upgraded. Currently, the plants treat about 6 cation and training, and has the best-paid police officers in million gallons of wastewater per day. A new construction the State of Mississippi. People apply for positions in the project will increase the capacity to 8.5 million gallons a police department from six or seven different states. day, leaving room to expand to 12 million gallons a day if The budget has increased from $4.5 million in 1992 to the need ever arises. This project will be completed in about $14 million this year. In 1995, the city had a 24% reduction 20 months. The Keegan Bayou plan currently meets all of in crime (rape, murder, robbery, larceny). The only increase the requirements of standards set forth by the federal gov- in crime was traffic crime; primarily accidents. Certainly, emment. Stricter requirements are on the way, but the new with 150,000 visitors on weekends and an extra 10,000 or facility will be able to meet them. 15,000 during the week, more fender benders will occur. Overall, the casino industry has been an environmentally More DUI's have been noted, and the city has doubled the friendly industry. The city has been performing smoke test- size of the DUI task force. The net result of the reinvest- ing of its sewer lines in east Biloxi to determine if any leaks ment has been a 24% decrease in crime. exist in the old system. Millions of dollars in infrastructure The other biggest concern based on the polling was work is being done to repair the inadequacies, particularly water, sewer, drainage, roads, and transportation. Forty mil- on the casino row area. Another important reason for smoke lion dollars have been invested in that particular public testing is to find points of infiltration where rainwater gets works element of the community. The comprehensive plan into the system. Rainwater does not need to treated. will indicate where the priority matters are. Fortunately, The City of Biloxi is working closely with the Harrison Biloxi is in very good financial condition. Most of this work County Wastewater Management District analyzing the has been done on a cash budget basis. Upon completion of impact of the food and beverage industry. The gaming this plan next month, the city will take many long-term cap- industry has a significant part of the food and beverage ital projects that are required and put them in a long-term industry in each of its facilities. Outside the gaming indus- financing program (bonds) and complete them quickly. try, the food and beverage industry has had a good experi- Underwriting a casino development involves certain pro- ence in increasing their growth. cedures. First is a predevelopment conference with all of Several contractors perform consultant analyses looking the architectural engineers and design personnel, as well as for problems. The analyses focus on minimizing the size of the people representing the executive management owner- screen openings in the sink and floor drains to allow mini- ship of the corporate entity. The city has a master plan mal amounts of grease and wastewater to be discharged into process. It is about a 35-page document that underwrites all the system. Restaurants must remove all the food that can the disciplines needing to be addressed for the city to under- be physically removed through the garbage disposal system write the project. In addition, the city requires the entity to as well as implement proper housecleaning techniques to coordinate all of the applications and all the submissions prevent excess solids getting into the system. Restaurants (the Corps of Engineers, the EPA, DMR, all the flood plain should install and increase the size of their grease traps to applications with FEMA, and FEMA construction require- allow sufficient capacity for the amount of volume that is ments). The city requests that submitted site plans be pre- being handled through the operation. sented to scale, delineating all of the projects. The city has recently received approval from FEMA for Two analyses occur. The land-use analysis occurs when a hazard mitigation grant that was applied for 6 months ago. applicants want a zoning change, or they have a number of The grant will focus on a comprehensive stormwater drain- variances that they want for the development project itself. ing analysis for the city. The focuses of that analysis will be Then, there is the impact analysis. All the elements of ser- inspecting inventory; determining the adequacy of all exist- 22 ing drainage pipe structures, major ditches, channels, box analysis that segregates the city into districts. When a culverts, bridges and the various flood frequencies; and development occurs in the city, an electronic floor map will analysis of existing stormwater flow with existing and demonstrate what needs to be assessed with that develop- future land use. ment, Extensive field surveys will be conducted to determine Another element is updating our mapping system, wbich the size, location, and flow lines of major pipe systems, has been addressed through the city's comprehensive plan- including cross-sections, streams, and open channels where ning process. One of the problems of stormwater drainage necessary. Particular emphasis will be in the area where the analysis is the watershed effect and existing gravitational city experienced flash flooding in the last 2 years. flows. Many of the areas normally seen that historically Mitigation measures will be developed and imposed, have been retention/detention areas now have parking lots including construction costs to alleviate those problems and rooftops on them. Water is also appearing in some areas identified in the underwriting study of the problems. In that had no problems before, addition, the city will have a stormwater drainage impact 23 Economic Dislocation of the Commercial Fishing Industry George Sekul Gulf Central Seafood, Inc. Biloxi, Mississippi Biloxi abandoned the seafood industry when dockside to tie up. It will be called "Lighthouse Fishing Pier." It was gaming came. Very little thought was given to what was financed by the tidelands tax, which the casinos have paid going to happen when the casinos took over the front beach for the most. The state relegated a half a million dollars to area. Neither congressional leaders in Washington, the the Port Authority in Biloxi. That money will be used to Governor, nor local supervisors and politicians thought of build this facility. the impact. One after another, seafood processing plants were sold to One exception was Supervisor Bobby Eleuterius and gaming interests. The seafood industry is not completely some of his staff. They convened a seafood industry task gone in spite of the casinos buying most seafood plant prop- force. This task force was astounded about what was to hap- erty. It is estimated that between 40 and 50 million pounds pen to the City of Biloxi 's seafood industry. A search was of shrimp are processed in Biloxi every year. It is hoped undertaken to find a place where some commercial fishing that the planned piers will provide our fleets (our transient docks could be located. Soon most waterfront property fleets as well as our local fleets) a place where they can owners felt they had a potential casino development site. secure their boats and feel safe about leaving them at night. One particular area was owned by the city and the Biloxi It probably would have helped with planning if the city had Port Commission. Those groups thought that casino devel- asked for a place to accommodate the seafood industry ear- opers would buy their property. lier, That time is past. Now the Coast is looking forward to This particular property is being considered again after 2 the three docks that are being built. There is still additional years. Three 270-foot piers will be built for commercial space there; the city owns 5 or 6 more acres. There is room docking spaces. These will not be used for offloading, nor to expand (if tidelands lease money could be used). Perhaps to get ice or fuel, but the piers will be a place for the boats the commercial fishing fleet can be revitalized. 24 Social Impacts Response of the Mississippi Coast Housing Market and Property Values to Coastal Development Trends Woody Bailey Gulf Coast Association of Realtors Most real estate agents along the Coast will agree that the that time frame. In 1991, they sold 735 new homes in three casino experience has been favorable and exciting. In 1992, coastal counties. In 1992, the number rose to 1, 154. Then in the average sales price of a house was $68,483. By 1994, 1993, the number was 1,719. The peak occurred in 19,94, the figure climbed to $83,621. That is a 22% increase in the when it was 2,122. Then in 1995, the number dropped to existing market. For 1995, the prices leveled to roughly 1,678, bringing a softening in the market. In the first quar- $84,000. The total number of residential sales were 1,708 in ter of 1996, total sales in the three-county area was 484. 1992, and 2,366 in 1994 (which brings the figure up 38%). Annualized, that figure would be 1,946. The number is However, in 1994, a big upturn occurred in the market. In approaching the 1994 level. Many people sense a new wave addition, some pent-up demand influenced these numbers of activity, and the number of people moving into the area. Of course, the Golden Nugget and Imperial Palace affect In 1995, the residential sales declined to 2,008 (15%). that activity, with additional people moving into the area Sales ratios have also increased. In other words, what does with those two casinos. The year 1996 appears to be a good a house sell for? What is it listed for, and what does it actu- year, with promise of approaching the 1994 banner year. ally sell for? The ratio rose steadily from these numbers When gaming came to the Coast, many people felt they had from 1990 to 1994 and went from 91.9 to 95.7%. That is the more opportunities in the job market. Therefore, many res- "sold to listed price ratio." Then in 1995, that figure went to idents felt they could move to a bigger home or build a new an even 95%. So, despite the drop in residential activity, the home. The psychological impact and the improvement in ratio has remained quite strong. the marketplace affected the real estate business. Overall, In 1991, the number of residential real estate agents in real estate has been favorably affected by gaming. The our area was 441. In 1995 that number of agents rose to long-term outlook (barring any problems nationally regard- 659. Many people entered the real estate business during ing interest rates) looks good for the Gulf Coast. 25 Casinos and Crime: What the Statistics Reveal in Coastal Mississippi Bob Waterbury Executive Director Mississippi Coast Crime Commission The Crime Commission deals with 10 crimes, three of counties. Fifty-five percent of all the reported crimes come which are crimes that the FBI does not worry with. from these two cities. Those two cities with 55% of the Everyone is concerned with violent crimes such as homi- crime have only 35% of the population, and that's what a cide, rape, robbery, and assaults. Those are the four types lot of people like to attack Gulfport and Biloxi on. evaluated to determine trends. Property crimes are also What are the leading crimes on the Coast? Larceny/theft tracked. These are the ones that juveniles are- highly comprises 41% of all the crimes on the Coast. Juveniles are involved in (65% of the crimes are committed by juveniles). highly involved in that type of crime. Number two is the Burglary is one of the property crimes. Larceny/theft is fastest growing crime-assaults (16%). Number three is another. And auto theft is the other. Auto theft is kept sep- burglary, both residential and commercial (15% of all the arate and distinct. Those are the seven crimes that the FBI crimes on the Coast are burglary). Number four (14%) is reviews, and they receive information on a voluntary basis. DUI, driving under the influence. The fifth leading crime in The Commission added three other crimes that included numbers is drugs (8%). Those five crimes represent 94% of arson, which is a fast-growing crime, drugs, and DIJI. the total crimes on the Coast--29,090 crimes of the 31,067 People do not like to tell others what their crimes are, reported last year. how many there are, and what is happening in their locale. From 1993 to 1995, crime went up 30% percent on the It took the Commission 6 months to finally get 10 chiefs of Coast. That is partly because of better equipment for our police, three sheriffs, the highway patrol, and the FBI to law enforcement, higher salaries, more enforcement per- share their statistics. Now, television stations, radio sta- sonnel, and more arrests being made. Biloxi now has one of tions, and print media, eagerly await the report each month the best salary structures in Mississippi. Mississippi has detailing what the crimes are, the numbers, and the trends. some of the best law enforcement in the world with the The first year raw data were submitted voluntarily was poorest salaries. Gulfport had 65 law enforcement people 1993. Over 23,000 crimes were reported in 1993 from the just a few years ago before gaming, now there are 165. three coastal counties. Crime, for the first 8 months in 1993, Those people are out there now going after drugs and was almost identical with the first 8 months of 1992. It went DUI's, therefore the numbers of arrests are increasing. to 30,964 in 1994. Statistics show a 29% increase in crime What are the causes for the crime increase on the Coast? on the Coast comparing 1993, when the casinos started, to Number one, wherever you have a population increase, 1994, when they were finished. In 1995, total crimes on the many tourists, and a lot of people, you are going to have a coast numbered 31,067. That is a big number, but not much crime increase. What is number two? More gangs, more bigger than 1994 (one percent, in fact). The crime increase peer pressure, and more involvement in gangs. Number has stopped.* three is drugs. Sixty-five percent of the crime is committed The census in 1990 showed 312,000 people in the three by juveniles. Seventy percent of all the people in prison in coastal counties. Another U.S. Census Bureau analysis in Mississippi come from single-parent families, The worst 1994 showed the population went up to 335,449. Before cause of crime is family deterioration. Many kids do not casinos came to the Coast in 1992, the population was respect parents and teachers, the police, or anybody. This is decreasing, unemployment was high, roads had problems, not just the Mississippi Coast. This is universal. nothing was really moving. In 1995, Harrison County had 20,457 of the 31,067 total crimes. Gulfport and Biloxi are the two biggest cities on the Mississippi Gulf Coast. *EDITOR'S NOTE: Subsequent to Mr. Waterbury's pre- Gulfport is the second biggest city in the state and will sentation and prior to printing this document, there was an eventually become the biggest. Biloxi will be number two increase in certain types of crime that contradicts his or close to it. Gulfport last year had 9,374 crimes, by far the premise that "the crime increase has stopped." There was largest number. Biloxi had 7,712. That's 17,086 just in no way this could be foreseen and underscores the problems those two cities from the total of 3 1,000 for the whole three inherent in tracking crime statistics. 26 Coastal Hazards Mitigation Jerry Mitchell Director of Planning and Policy Mississippi Department of Marine Resources For our purposes here, "coastal hazard" concerns evacu- number of other problems became evident. Coast Guard ation of boats. The issue of moving some of these casino approval to move these vessels is required. That takes time, boats in the event of a storm or catastrophic event, such as preplanning, and careful execution. Barges with no propul- a hurricane, really came forward in 1992, when Hurricane sion need to have a tug and crew to be moved, and these Andrew crossed the Florida Peninsula and passed south of often come from distant sites. The Highway Department the Mississippi Coast. The Bureau of Marine Resources will not raise the lift spans on the bridges when winds are (BMR) was not really concerned about casino boat evacua- more than 30 knots. Those were some of the earlier consid- tions. There were only three casino boats operating at the erations. time in coastal Mississippi. Most all these boats were river- Also, there is a resident population in coastal Mississippi type that had steerage, propellers, and motors so they could of more than 300,000 people. The consideration of evacu- be easily moved around. So, during Andrew, they were ating these 300,000 people in addition to possibly 100,000 moved to the Back Bay of Biloxi, Gulfport Lake, and the tourists compounded the situation. The highway bridges Industrial Seaway. need to be open to move the vessels, and if the bridge is Later, a number of additional casino boats came on line; open, the resident and tourist population cannot evacuate. some of the riverboats were phased out and replaced by All these situations had to be worked out in advance of an restored barges that were more than 50,000 square feet in evacuation. The BMR had to coordinate the evacuation size. The BMR was approached by the Harrison County with that of the Highway Department, the county Civil Civil Defense Council, the City of Biloxi, and the City of Defense, state Civil Defense, the Emergency Management Gulfport to address evacuation of casino boats and barges, Agency, and the Coast Guard. not only the three riverboats operating at the time but those The disruption of electrical power in coastal Mississippi larger boats that were coming on line. The BMR was also a potential problem, with the power lines extend- approached their funding source (NOAA) and asked for ing across the Back Bay of Biloxi. When de-energizing help with planning the movement of casino vessels in the electricity to municipalities and homes, traffic signals (that event of a hurricane. A study was undertaken and finished are needed to evacuate the coastal population) would not in July of 1994, looking at a number of different movement function. scenarios. There were nine or ten boats at the time. One Approximately 32,000 commercial and recreational option was for the the vessels to remain in place. Another vessels would also need to be moved to safer waters. If a option was evacuation to a remote site outside of the Back casino vessel was grounded or sank in the channel, it would Bay of Biloxi. A third option was evacuation to the play havoc with evacuation of these vessels as well as other Industrial Seaway. Some of the boats had designed their casinos. Should casinos be required to evacuate to sites on mooring structures to withstand 155 mph winds with 15- Back Bay or the Industrial Seaway, there is a greater risk foot storm surges at their sites. Some of the other boats from problems caused by the evacuation than from the would go to the high sea. The Mississippi Gaming actual storm threat (regardless of the hurricane's eventual Commission requires that each vessel have a hurricane strength.) evacuation plan as part of the permit application or permit Essentially, what was determined was that removal of the approval. Therefore, most all the boats had a hurricane vessels in an orderly fashion to protected waters was a evacuation plan. virtually impossible task. On June 30, 1994, the Gaming Evacuation sites in the Back Bay of Biloxi for the eight Commission voted to require the use of permanent moor- or nine vessels that should be moved, were examined and a ings as a license requirement for each coastal casino. 27 The Incidence and Social Costs of Gambling Addiction in Mississippi Rob McKinley C.A.D.C. Gambling Program Coordinator Pine Grove Recovery Center Most people can gamble for fun and recreation. Some paid approximately 65% of their taxes. The unemployment people can't. Prevalence estimates across the country show rate was estimated at 26%; when gambling came in it that problem and pathological gamblers range from a low of decreased to 4.5%. U.S. Highway 61 runs down through the 1.7% in a 1989 study conducted in Iowa to 7% in a 1995 Mississippi Delta from Memphis to Tunica to Vicksburg study conducted in Louisiana. The number of lifetime prob- and beyond. Prior to legalized gambling, the car count from lem and pathological gamblers increased in Iowa from Memphis to Tunica averaged about 3,500 a day. In January 1.7% in 1989 to 5.4% in 1995 (Volberg, 1995). The rapid 1995, that amount increased to 23,000 per day. The number expansion in the availability of legalized gambling in Iowa of hotel rooms in Tunica County jumped from 40 in 1994 appears to have substantially contributed to these increases. to 1,500 in 1995. Retail sales in the fiscal year ending June The last nationwide prevalence study was conducted in 1994 jumped 299% from the previous year (Ragland, 1974 and showed that 69% of the respondents wagered in 1995). one or more types of government-approved gambling There are approximately 30 casinos and 130 bingo halls (Kallick and Kaufmann, 1979). Mississippi State in the State of Mississippi. In 1995, gross revenues totaled University studied a sample of 1,500 American adults $1.72 billion. The state is ranked second in casino square across the United States in 1995 and found that 61% footage in the United States behind Las Vegas, Nevada. wagered in one or more types of government-approved Gambling is an ancient and universal human activity gambling (Cosby, 1995). Because studies have been few, with origins dating back as early as 3000 B.C. in ancient accurate information on statistics as to how many real prob- Babylonian civilizations and Chinese cultures. Dice were lem and pathological gamblers are in Mississippi is not introduced in approximately 300 B.C. and loaded dice have available. been found at excavations at Pompeii. In Lydia, dice were Approximately $482.6 billion were wagered in the given in times of famine to distract people's minds from United States in 1994. Gambling industry gross revenues hunger. Roman soldiers cast lots for Christ's robes and were estimated at $40 billion during the same year. This invented roulette by upending a chariot wheel. In Colonial compares with recorded music gross revenues of $12 bil- times, gambling was condemned as an immoral act; how- lion, theme park gross revenues of $6.1 billion, and film ever, early Americans continued to bet on horse races, dog and box office gross revenues of $5.4 billion (Harden and and cock fights, and lotteries. Society supported an Swardson, 1996). antigambling rationale, but gambling continued to be a pop- The gaming industry has done positive things for ular activity. In early America, colonies employed lotteries Mississippi. It has created approximately 30,000 direct and to finance roads, bridges, schools, and hospitals. As the 30,000 indirect jobs (Krutcher, 1996). The industry has 19th century progressed, horse racing was established on aenerated a substantial amount of tax revenue and created the East and West Coasts and gambling laws were tight- numerous capital investments. Bob Mahoney, a restaurant ened. The first casino in the United States was opened in the owner in Biloxi, Mississippi has been quoted as saying of middle of the Nevada desert by Bugsy Segal in 193 1. That the gaming industry, "We knew it was going to be good, but first casino was in Las Vegas, presently known as the gam- we didn't know it was going to be this damn good" (Smith, bling mecca of the world. In 1984, New Jersey legalized 1996). casino gambling in Atlantic City. In 1989, Iowa passed a A recent U.S. News & World Report economic ranking of law allowing riverboat gambling on the Mississippi River the 50 states ranked Mississippi as number eight. It reports and, in 1991, had it's first riverboat casino (McGurrin, that the billion-dollar-per-year gaming industry has touched 1992). Mississippi legalized dockside gambling in 1990, off an economic boom. A good example of this is Tunica, and the state's first casino opened in 1992. Mississippi, which was touted by The Reverend Jesse It is estimated nationally that 3 to 5% of adults are con- Jackson in a 1985 Jet magazine article as "America's sidered pathological or problem gamblers. The essential Ethiopia," with poverty comparable to that of a third-world features of pathological gambling are: a continuous or peri- nation. It was judged as the poorest county in the poorest odic loss of control over gambling; a progression in gam- state in the nation (Cheers, 1985). The main industry in bling frequency and amounts wagered and the preoccupa- Tunica prior to legalized gambling was agriculture, which tion with gambling and in obtaining monies with which to 28 gamble; and a continuation of gambling involvement Gamanon meetings, helping the gambler to see their dis- despite adverse consequences (APA, 1994). Many people honesty, defenses, and various manipulations, and working view pathological gambling as a behavioral disorder since toward reconciliation. The other form of treatment, inpa- there are no external signs and symptoms of the illness such tient or residential, involves basically the same educational as red eyes, slurred speech, alcohol on the breath, or track components but is indicated when the gambler needs a safe marks on the arms. This view, however, is erroneous. It has place in which not to gamble; or when their symptoms are kept many people from seeking the help they so badly need. more severe such as suicidality, depression, anxiety or other To the contrary, there are many components associated psychiatric problems that need supervision. Other addic- with pathological gambling that are very similar to the tions, such as alcohol or drugs, and previous UnSuCceSSfUl symptoms associated with alcohol or drug addiction. These attempts at outpatient treatment can also warrant the need include cravings, withdrawal symptoms such as restless- for inpatient treatment. ness, irritability, depression, anxiety, and increased toler- We all have a responsibility in seeing to it that our fami- ance (e.g. needing more of the substance [money] or activ- ly, friends, and loved ones get the help they need. If you ity [gambling] to get the desired effect). There also appears have questions, you can 'call the Pine Grove Recovery to be a physiological response (e.g. increase in adrenalin, Center at 1-800-321-8750 or the National Council on endorphins) that would suggest the action phase in gain- Problem Gambling at 1-800-522-4700. bling is similar to the rush or high that is obtained when using cocaine or other drugs. This "action" is what the gam- References bler becomes addicted to and seems to provide some expla- nation for the occurrence of physical withdrawal symptoms American Psychiatric Association. 1994. Diagnostic and that gamblers experience during initial abstinence. Statistical Manual of Mental Disorder, 4th Edition. Pathological gamblers in the desperation phase are not Washington, DC. gambling because it is fun, they are gambling to overcome Cheers, M. 1985. Shocking Plight of Black Life in Tunica a craving that is beyond their mental control. Mississippi. Jet Magazine.Vol. 68, pp 26-31 Pathological gambling is a four-phase disease. The initial phase, called the winning phase, is usually marked by a big Cosby, A. 1995. United States Survey of Gaming and win or series of wins. This solidifies the mindset that the Gambling in the United States. Gaming Research gambler can do it again. They will pursue this false hope Group. Mississippi State University, Mississippi State, until they lose everything they have. The second phase is Ms. called the losing phase. It is marked by unreasonable opti- Harden, B, and A. Swardson. 1996. Forget Baseball; mism, increased preoccupation with gambling, prolonged Gambling is America's Favorite Pastime. Washington losing episodes, and chasing (going back the next day or the Post, Washington, DC. March 3, 1996. next week to try and recoup losses). The third phase, called the desperation phase, is marked by bailouts (borrowing Hattiesburg American. 1994. Mississippi Overtakes New from family or significant others in an attempt to get out of Jersey in Gambling. Hattiesburg, MS. May 13, 1994. debt, increases in amount and time spent gambling, inabili- Kallick, B., and C. Kaufmann. 1979. The Micro and Macro ty to pay mounting debts, and illegal acts). The fourth Dimensions of Gambling in the United States. Journal phase, called the hopelessness phase, is when the gambler of Social Issues 35:7-26. often becomes hopeless, depressed, and even suicidal and can face divorce, loss of job, and complete emotional break- Krutcher, N. 1996. State's Tourism Was Not So Secret down. Hopefully, this is when they seek help, if they seek it Weapon. The Clarion Ledger, Jackson, MS. Feb. 25, at all, when there is often no money to get help. 1996. Fortunately, there are many resources for help available, McGurrin, M. 1992. Pathological Gambling: Conceptual, such as Gamblers Anonymous, Gamanon, treatment cen- Diagnostic and Treatment Issues. Professional ters, state mental associations, state councils on compulsive Resources Press. Sarasota, FL. gambling, and The National Council on Compulsive Gambling. Many times, problem or pathological gamblers Ragland, L. 1995. Gaming Big Plus to Some River need treatment. The most common form of treatment is Counties. The Clarion Ledger. Jackson, MS. Jan. 23, done on an outpatient basis. This treatment usually involves 1995. a gambler participating in educational sessions about patho- Smith, D. 1996. Gambling Facts and Figures. The logical gambling, group therapy with other pathological Washington Post. Washington, DC. March 3, 1996. gamblers, education on and participation in Gamblers Anonymous groups, taking a financial inventory, and Volberg, R. 1995. Gambling and Problem Gambling in beginning financial restitution. Treatment also includes get- Iowa - A Replication Survey. Gaming Research. ting the family involved in the treatment process, attending Roaring Spring, VA. 29 Environmental Impacts and Demands on Infrastructure Nonpoint Source Pollution Effects of Dockside Gaming Cathy Z. Hollomon Mississippi State University Coastal Research and Extension Center The economic and financial gains that have been realized runoff or percolation through soil layers. Common sources in coastal Mississippi with the advent of dockside gaming of nonpoint pollution include agriculture (both crop and are well documented. Little attention, however, has been livestock farming) silviculture, stormwater runoff, failing paid to the cultural or environmental impacts that have also individual septic systems, surface mining', landfills, and resulted from the dockside gaming industry. As such, the hazardous waste sites. National Oceanic and Atmospheric Administration's Office In coastal Mississippi, stormwater runoff and failing sep- of Ocean and Coastal Resource Management funded a pro- tic systems are the dominant forms of nonpoint source pol- ject through the Mississippi Department of Marine lution contributing to the degradation of the environment. Resources to assess the status of one important environ- Stormwater runoff occurs when pervious surfaces e.g., mental impact - nonpoint source pollution in the native soils, are paved or built on and become impervious Mississippi Sound. Because both Mississippi and Alabama surfaces. When rainwater falls on an impervious surface, recognize the benefits that the resources of the Sound have sheet wash carries pollutants such as oil, grease, antifreeze, to both states, they teamed together and coordinated an etc. to nearshore waters. Herbicides and pesticides from effort to evaluate the overall problems and to ultimately lawns and golf courses, when used in excess, are also car- implement a regional management strategy to work toward ried in runoff waters adding nutrients and toxins to resolving these problems. nearshore waters. Failing septic systems are problems for This project is part of a larger, more comprehensive individual homeowners as well as for the environment. study the coastal zone management agencies of Mississippi Individual homeowners are concerned because a failing and Alabama are conducting. The purpose of the project is system may cause sewage to back up into their homes. to evaluate and document types and sources of nonpoint Environmental concerns exist when the native soil is not source pollution that result or potentially result from the properly treating the sewage and untreated or partially treat- gaming industry. The study is not intended to collect new ed sewage enters the water table, potentially contaminating data or information, but rather to utilize data and informa- private drinking water wells, rivers, bayous, or nearshore tion that already exists. The object is to assess where we waters. stand, document the status of the problem, and identify the Historically, the object of stormwater management was gaps or holes in the data. The intent is that this infori-nation, to convey floodwater away from a developed area. The pur- or lack of information, will become part of the management pose was to prevent flooding within residential areas or plan being developed jointly by the coastal zone manage- business communities. Little consideration was given to ment agencies of Mississippi and Alabama. what was occurring downstream. The focus was to channel Specifically, the objectives of the project are to (1) assess the floodwaters out of the area as quickly as possible. It is water quality conditions pre- and post-dockside gaming, (2) now widely recognized that stormwater management has document the use of stormwater management practices, and many other important functions. (3) evaluate the effectiveness of existing stormwater man- When a stormwater management system is designed, agement practices. installed, and is operating properly, it not only serves as Nonpoint source pollution is recognized nationwide as a major contributor of contaminants to rivers, waterways and Active mines are now considered sources of point pollution. The mines inshore waters. Nonpoint source pollution has no distinct are required to manage all runoff on-site. The discharge from that runoff is point of discharge that can be controlled through programs considered point source and is regulated accordingly. Old or abandoned such as the National Pollutant Discharge Elimination mines, however, are exempt from these regulations and are commonly System. It is a diffuse flow that enters waterways by surface sources of norpoint pollution. 30 flood storage but also as a pollutant remover and sediment Grassed swales should be incorporated as one element of a trap (as wetlands and floodplains do naturally). stormwater management system rather than the sole In Mississippi, the statutes regulating stormwater man- stormwater management system. agement are weak. Stormwater management is only Detention basins are another type of stormwater manage- required during the construction phase of new develop- ment used by several of the casinos. A detention basin is an ments where the land disturbance is greater than 5 acres. impoundment that traps and ponds water for a designated Anything less than 5 acres does not require stormwater period of time with slow release back to the environment. management. Requiring stormwater management for the The pollutant-removal capabilities are minimal. In some of construction phase only means that the stormwater man- the detention ponds, however, wetland plants have started agement is temporary. As soon as the development is com- to establish, allowing the nutrient and pollutant uptake to pleted, stormwater management is no longer required. increase. The detention basin's pollutant removing capabil- However, if the development is impacting a wetland area, a ities are low to moderate. That, of course, would increase Section 401 Water Quality Certification is required as part with the increased detention times and the presence of wet- of the regular wetland permitting process. This provides a land plants for pollutant removal. There are few environ- mechanism for the Mississippi Department of mental concerns unless the detention basin is built in a wet- Environmental Quality to condition the Water Quality land area. Detention basins are a recommended practice Certification to require stormwater management practices. particularly if wetlands are incorporated into the design. But when a project occurs outside of a wetland area, there A retention basin is an infiltration reservoir or basin that is no authority to implement or enforce stormwater man- provides complete on-site storage and treatment of a spe- agement practices after construction is completed. cific volume of stormwater runoff. One of the casinos has Many communities and municipalities are starting to incorporated this kind of stormwater management into the develop their own stormwater management requirements. overall design of its landscaping plan and created a park- They realize the importance of retaining and controlling like atmosphere complete with fountains near its RV camp- stormwater on-site. The first half-inch of runoff must be ing area. This system provides complete on-site storage and temporarily retained and treated. The first half-inch of treatment of most of the runoff waters. The retention runoff contains more than 90% of the pollutants washed basin's pollutant removal is considered moderate to high. from impervious surfaces. In proper stormwater manage- The environmental concerns are few provided it is not con- ment, that first half-inch of runoff is separated out and treat- structed in a wetland area. ed, the remainder of the runoff is retained for nutrient Modular parking pavement is another type of storinwater removal and sediment control purposes. These waters are management that several casinos installed. Modular parking then slowly released back into the environment. pavement consists of concrete grids or other structural units The casinos in coastal Mississippi have all complied with alternated with pervious fillers such as sod, gravel, or sand. existing rules and regulations concerning stormwater man- It provides a hard, tough surface that can be driven on, but agement. The question is, however, are the rules and regu- remains somewhat permeable to rainwater. Unfortunately, lations enough and are they effective? Not all stormwater field observations showed that the modular pavement was management practices function equally. Schueler et al. installed only along the perimeters of the parking areas. The (1992) presented a technical assessment of the capabilities majority of the parking area was solidly paved with con- of several common stormwater management practices. The crete. Runoff from the large concrete areas was flowing ability to remove pollutants, any environmental concerns, over grassed swales or directly into discharge pipes. The or any special considerations concerning each stormwater modular pavement appeared to be filtering rainwater only, management practice was assessed. it received none of the runoff from the parking areas. Grass swales are the predominant stormwater manage- An exfiltration trench provides below-ground retention ment practice utilized by the majority of the casinos. A of stormwater for slow release into the soil. Stormwater grassed swale is basically a channel covered with grass that runoff is temporarily stored in a trench filled with coarse conveys runoff waters. The grasses help to remove pollu- aggregate and allowed to exfiltrate through the trench walls tants and sediments in the runoff waters. Grass swales make for disposal and treatment into the native soil. One casino an effective stormwater management practice in lieu of curb utilizes this type of stormwater management. An exfiltra- and gutters in single family residential areas or possibly tion trench that has been properly designed and installed along medians of highways, but the effectiveness to handle can be a fairly effective stormwater management practice. the runoff of large impervious surfaces such as parking lots Pollutant removal capabilities of exfiltration trenches are is limited. Grass swales provide minimal treatment of presumed moderate. However, at one of the casinos sur- runoff waters. The degree of treatment depends on the con- veyed for this study, the exfiltration trench is located adja- veyance time through that swale. Pollutant removal and cent to the beach. The groundwater elevation is near the sediment trapping are increased if check dams are installed surface and may even fluctuate with the fide. The treatment to retain or slow the flow of water. The environmental con- capabilities of this type of system in that location are ques- cems are minor, there is little destruction or impact. tionable. The risk of groundwater contamination is high. 31 Exfiltration trenches are commonly recommended with pre- cent of its soils classified unsuitable. Suitable soils are low- treatment. If there is preliminary treatment of runoff filter- est in Hancock County at only 8%, whereas, in Harrison ing through an exfiltration trench, the quality of discharge and Jackson counties suitable soils reach almost 40% and should be improved. 35%, respectively. Another significant source of nonpoint pollution to Marginal soils are high in Hancock (41 %) and Harrison Mississippi's nearshore waters is failing septic systems. (28%) counties and relatively low in Jackson County (8%). Failing septic systems allow untreated or improperly treat- If marginal soils turned out to be unsuitable for under- ed sewage to enter adjacent water bodies. This source of ground absorption, more than 90% of Hancock County pollution is not a direct result of the casino industry. Any would be unable to support an individual septic system. industry that results in the increased level of residential and Yet, based on 1990 census data almost 50% of its residents commercial development that is currently being experi- are dependent on septic systems. In Harrison County where enced along the coast would cause this type of pollution to there are more extensive municipal collection and treatment increase. The Mississippi Coast does not have the infra- facilities, 19% of the households are dependent on individ- structure (municipal treatment systems) necessary to sup- ual systems. In Jackson County, 27% of the households port the rapid growth. Therefore, people are dependent on have septic systems. These numbers are extremely conser- individual septic systems. If the systems are not functioning vative because the census does not reflect the tremendous properly, untreated or improperly treated sewage enters the growth in population currently being experienced along the groundwaters and adjacent waterways. coast. The most common type of individual septic system is the septic tank with underground absorption field. The tank The conclusions from this study are: serves as primary treatment where solids are separated from (1) The dominant sources of nonpoint pollution are liquids. A clarified liquid is then discharged from the tank stormwater runoff and failing septic systems. to the drain field where it slowly percolates through the soil. (2) All existing casinos have complied with existing rules The degree to which the effluent is purified is dependent on and regulations governing stormwater management. the physical and chemical characteristics of the soil and the elevation of the groundwater table. Coastal plain soils (3) The stormwater management techniques implemented inherently are not good for this type of treatment, yet it is by the casinos were designed to manage increased flow the treatment method most often utilized. associated with parking lot development; there are min- Soil suitabilities for the three coastal counties were deter- imal pollutant removal capabilities designed into the mined based on soil profile data and groundwater table ele- structures. vations from county soil surveys. The soil suitability cate- (4) There is no baseline water quality data to compare pre- gories are (1) suitable (those soils capable of supporting and post-casino development. Numerous studies have underground absorption), (2) marginal (soils that may or been conducted throughout Mississippi Sound and up may not be suitable), and (3) unsuitable (soils that inherent- the coastal.rivers, but there have been no systematic or ly have characteristics that preclude them from being effec- comprehensive studies that can be used as baseline five). Soil suitabilities for underground absorption within data. the three coastal counties are low. In Hancock County, 50% of the soils are considered (5) Although stormwater management practices are unsuitable because of high groundwater table elevations required at casino development sites, there are no and the prevalence of wetlands, marshes, and peat soils. requirements to monitor the water quality at the outfalls Thirty-two percent of the soils in Harrison County are con- of the structures to determine the effectiveness of the sidered unsuitable, and Jackson County has more 57% per- system. 32 Zoning and Land Use Changes in Environmentally Sensitive Areas: Citizen Concerns Terese P. Collins Gulf Islands Conservancy, Inc. The Mississippi Gulf Coast is a unique and dynamic ordinances were drafted to regulate casino development. waterfront community that once was called the "Riviera of These ordinances dealt with sign sizes, height requirements, the South." The coastline of Mississippi is approximately parking lots, landscaping, setbacks, and other details. In 70 miles long, with undeveloped baffier islands located just spite of the ordinances, most casinos have asked for and south of the shoreline. The Bay of St. Louis is a large unde- received variances to the zoning laws. veloped bay on the western end. Biloxi, is located on a At the state level, the Coastal Management Plan and the peninsula with a bay on its east and north sides. On the east Wetlands Use Plan are charged with protecting wetlands end of Mississippi's coastline is the Pascagoula River, with and directing development towards areas suitable for com- its large mouth and vast wetlands. The Mississippi Gulf mercial and industrial development. However, developers Coast is a hidden treasure that is being discovered because who do not have property in a zone designated for com- of the phenomenal growth and development in the last 3 mercial development continually request changes to the years. The development, however, is affecting the natural Use Plan. They request that general-use districts be changed resources and beauty of the Coast. to allow casinos. General-use districts are designed for res- Achieving the balance between growth and preservation idential and recreational activities. is difficult. People have been attracted to the area because Casino developers seek that land because the property is coasU Mississippi has the natural resources to sustain the less expensive, and casino resorts need large tracts of land. economy and offer a pleasant atmosphere for its residents. State and local agencies, as well as federal agencies such as Now, the new casino industry has posed challenges for the U.S. Army Corps of Engineers, are not considering the those who appreciate the natural beauty of the coastline. cumulative and secondary effects of these developments; The Mississippi Coastal Program is the state's plan that was rather, they are looking at project-by-project development. implemented to balance the needs of development with the This tunnel vision approach is hurting the Mississippi Gulf needs of the environment. Because of continued efforts to Coast. obtain adjustments and changes to the Coastal Program, it While the Mississippi Coast needs commercial develop- is beginning to leak like a sieve. And so are other local, ment, a balanced approach to growth and development with state, and federal laws, which everyone thought would pro- consideration of the natural environment is important. That tect our quality of life and control development. environment which sustains seafood, wildlife, fisheries, The local zoning, state, and federal laws have not served flora and fauna, and people has been responsible for attract- as adequate protection of the noncommercial areas, or the ing residents and visitors for 300 years. It is time to address natural beauty and resources of Coastal Mississippi. After the impacts of this tremendous growth and development lengthy debates and many public hearings, local zoning before it is too late. 33 Concerned Citizens to Protect the Isles and Point Nonnie DeBardeleben Pass Christian, Mississippi As plans were being made for casino development in designed to locate in commercial areas began expanding coastal Mississippi, each municipality was required to into the specific areas that made the Gulf Coast special. establish zones where the casinos could locate on the beach- Those special areas are predominantly residential, recre- es. Although legalized gambling was no longer an option, ational, or environmentally sensitive. municipalities could fail to designate areas for develop- In 1993, the Concerned Citizens was created to oppose a ment. Therefore, all the cities on the coast from Biloxi to specific casino site in the midst of a residential area at Bay St. Louis decided on their own zones for development. Henderson Point in a community that has existed since the It was assumed that the state and the federal regulations in early 1800's. The position of the organization is not anti- the permitting process would limit the proliferation of development. However, the organization does oppose development outside these established commercial areas. unsuitable commercial development in areas designated Initially, the casinos did locate in the designated areas. general use by the Coastal Use Plan. The problem faced by However, as the availability of commercial and industrial Henderson Point citizens is the possible granting of prece- areas have declined, the more recent operators have begun dent-setting variances and permits. Although the casino to seek casino sites and site approval in areas that have been developer in the area withdrew the application, and considered appropriate only for residences, marshes, wet- Henderson Point was unofficially declared an "unsuitable lands, and estuaries - the areas that have made the site," there is no final legal designation to protect Mississippi Gulf Coast unique. These specific locations Henderson Point. were naively assumed by citizens to be either unappealing The organization will continue to object through the per- sites for casino development or areas that would be protect- mitting process to any precedent-setting permit that could ed by the Coastal Use Plan. In the Bay St. Louis area, four adversely affect Henderson Point. In hearing after hearing, casino permit applications are pending. Only one of the four developers initiate more innovative and creative methods to permit applications is in an area with a commercial desig- circumvent the specific issues that the Coastal Zone Plan nation. The entire rim of Bay St. Louis is designated gener- was created to protect. Communities considering legislating al use for residences, estuaries, or marshes. this industry should consider a method that will allow a Localities considering the development of the casino commission to deny a permit without being constantly chal- industry in their areas should formulate a way to both pre- lenged. serve the uniqueness of the communities and to allow the In Mississippi, the Gaming Commission has the authori- industry to thrive at the same time. When enabling legisla- ty to deem a site unsuitable. However, the Commission has tion is drafted, the rights of the individual citizens and resi- only exercised that authority once. In addition, the Gaming dents should be considered. Residents of Mississippi con- Commission does not consider the Coastal Use Plan in des- cerned about the environment have discovered that the ignating a site for a casino, in spite of the fact that the power of casino money has prevailed. No agency will Coastal Use Plan has legal status. It would seem logical that accept the responsibility for defining the circumstances that an allocation in an area that is designated a preservation warTant a variance. Instead, permits and variances are area in the Coastal Use Plan should constitute an automatic issued one-by-one in a piecemeal manner, without consid- denial of site approval by the Gaming Commission. eration of the overall cumulative effects of the industry on However, the Gaming Commission addresses only the the future of the Gulf Coast. With one permit and one vari- legality of the site according to gaming law. ance, minimal long-term effects occur. However, the cumu- Communities considering gaming legislation should lative effects of all the permits, in conjunction with the sec- think of the future. Evaluating licensing procedures and ondary effects of the upland's development, reveal an infra- actual gaming legislation is not adequate. Communities structure under stress. should take the necessary steps to ensure that the citizens' Groups like the Concerned Citizens to Protect the Isles quality of life and the cultural heritage of the area will be and Point organized because the industry that first was preserved. 34 Cumulative Impact Concerns Bob Dreher Sierra Club Legal Defense Fund Beyond the theoretical concern about the effects of the ing proposed permits for these areas, the Corps of growth and development of the casino industry on the qual- Engineers has limited its evaluation to the effects of the ity of life and natural values, a legal matter looms. A law- dredging in locating a barge and the effect of any fill that suit is pending in the Federal District Court for the District may be involved. That has been the extent of the involve- of Columbia. The litigation focuses on the use changes and ment of the Corps of Engineers. siting of casino facilities in unsuitable residential neighbor- The issues not investigated by the Corps of Engineers are hoods and undeveloped areas. the basis for litigation. The Corps has not focused on cumu- The Environmental Protection Agency has stated that the lative effects of future projects. Instead, the Corps has con- cumulative effects of casino development along the sidered only the loss of wetlands that has occurred from Mississippi Gulf Coast are profound and will forever existing casinos. With each individual casino, the Corps has change the Mississippi Gulf Coast. One casino in particular ruled that each individual impact has been minimal. wants to locate north of the Bay of Biloxi in an area that is Citizens fear that areas of high wetland value will be devel- closer to I- 10 to attract business from travelers. To locate in oped later and will cause incredible damage to the environ- that area means using a site that is in a general use district, ment. In the federal lawsuit, which challenges the first per- involving wetlands and a pristine area. mit to be issued for a Back Bay area, the Corps asserts that The agency responsible for studying the environmental casinos pose no threatening cumulative effect to the natural effects of issuing 404 Permits for casinos is the Corps of environment. The Corps also admitted that it did not con- Engineers. Because some coastal dredging is necessary in sider future casino projects or secondary impacts, like golf placing barges in their sites, this body has issued 404 courses and hotels. The federal lawsuit challenges the Permits for each casino in existence. The dredging effects Corps' failure to consider these impacts. The natural of the casinos along the established waterfronts may be aspects threatened include water quality, migratory birds, minimal. Although the commercial use changed, the current and fishery values (95% of the commercial fishery of the commercial waterfront had limited natural values. Gulf Coast originates in nursery areas in coastal estuary However, even the limited values deserve protection. In wetlands). Careful planning could prevent damage to the contrast, the Back Bay of Biloxi and the Bay of St. Louis natural environment. are relatively pristine areas. In issuing permits and evaluat- 35 Wastewater Treatment Infrastructure Expansion Requirements Baxter Wade Executive Director Harrison County Wastewater Management District The Harrison County Wastewater Management District Furthermore, oil and grease clog up sewer lines in an is divided into five service areas. Each service area includes attempt to reach the plant. The area has a grease trap ordi- a wastewater treatment plant. Seventy-five percent of the nance. In addition, it has a sewer use ordinance. The limit casinos in Harrison County are in the service area of the on the sewer use ordinance of BOD is 400 milligrams per Keegan Bayou Plant, one of the smallest plants in the coun- liter. The oil and grease limit is 150 milligrams per liter. ty and the second oldest plant in the state. Initially, the casi- The first site testing of a casino revealed at least a 26,629- nos were small riverboat operations. Then, the Grand milligram count per liter of oil and grease. The laboratory Casino in Gulfport opened with dimensions the size of a quit tabulating at that point. The BOD was 4,700. The TSS football field and a wastewater discharge of a quarter of a was 4,500. Of all the casinos tested, the lowest BOD count million gallons a day. The need for enlarging the waste- was 1,600; the lowest TSS count was 1,210. BOD limits water treatment system was obvious. should be 400, and oil and grease limits should be 150. The estimated cost of developing the first stage of enlarg- One solution to the problems was the development of a ing the system was $40 million. The fact that the casinos are "grease police department" to check to see that industries dockside and tied to the county only by ropes caused appre- do not exceed the oil and grease limit of 150. If the limit is hension in allocating funds to accommodate an industry violated, a fine is levied. Because BOD levels are harder to that could easily leave. However, after a 2-year period, the control, a deal was made with most food establishments, $40 million was budgeted for expansion of the system. including grocery stores, restaurants, and casinos, to allow The casino industry is accompanied by ancillary devel- establishments to buy higher limits of BOD not to exceed opment associated with the casinos. Long Beach, Pass 1,000 milligrams per liter. These surcharges offered latitude Christian, and Gulfport and the area north of it are growing without abuse. Fines and surcharges exceeding $168,000 rapidly. Businesses that offer services to the casino industry collected have helped to operate the plants and keep them in are responsible for much of the growth. The additional compliance with regulations until larger facilities could be growth, obviously, adds to the need for wastewater treat- built. ment expansion. This small Keegan Bayou treatment plant designed to Treatment of casino waste poses some problems. Along treat 3.4 million gallons a day is actually treating 5 million with volume, the strength of the waste is a factor. gallons a day. Seven operating casinos discharge waste into Overloading a wastewater treatment plant is caused by too this plant. much wastewater or wastewater that is too strong. Strength In an effort to keep up with the growth, the wastewater is measured in terms of BOD (biological oxygen demand). treatment plants will be expanded as quickly as possible. The average household contributes wastewater measuring Construction will begin on the Keegan Bayou Plant in July. approximately 130 in BOD. The presence of the large casi- The contractor will receive $2,500 a day for every day that nos caused the BOD loading to go up, and problems the project is finished ahead of schedule. In contrast, the occurred with the collection system delivering the waste- same amount will be deducted daily if the project is not water to the treatment plants. completed on time. The growth in the economy is a result BOD, suspended solids, and oil and grease affect the of the gaming industry. Wastewater treatment plants will function of the system. Oil and grease cannot be treated. keep up with the growth of the Gulf Coast. 36 Engineering Solutions to Environmental Perturbations Associated with Dockside Casino Development Larry Lewis Brown and Mitchell, Inc. The engineering and environmental consulting firm of Dredging and maintenance dredging can also affect Brown and Mitchell, Inc. has worked with casinos along the water quality. Some dredged material may not be suitable Gulf Coast since 1992. The involvement of the firm has for open water disposal and upland disposal is required. varied, depending on the issues associated with the dock- Casinos have minimized dredging to reduce the cost of side casino development. In some case, the firm has pro- upland disposal and designed vessels that do not require vided both the civil engineering and environmental consult- deep water. ing services; in other instances, the firm has been involved To date, casinos have caused minimal impacts to wet- with only the environmental issues. lands. Sites have been selected in areas that avoid wetlands, When considering the effects of dockside gaming on the and special designs have been used to avoid filling of shal- environment, one must consider both the living and nonliv- low water bottoms. Filling of water bottoms has been ing parts of the environment. One must also evaluate the avoided by constructing pile-supported structures that go effects in terms of primary or secondary impacts and the over the water without filling the water or water bottoms. duration of impacts (i.e. short-term, long-term, or cumula- Other measures to reduce impacts to the coastal environ- tive). ment include landscaping features, traffic safety features, Based on recent assessment of the environmental pertur- and design features that complement the natural scenic bations associated with dockside casinos, it appears that the quality of the Mississippi Gulf Coast. One of the most inter- major impacts relate to water quality. The solutions to esting approaches to protecting the natural environment potential water quality impacts as well as solutions to other was an effort to protect several live oak trees that would impacts are discussed here. have been otherwise destroyed at a casino hotel site. The Because casinos require large areas of impervious sur- trees, which were more than 150 years old, were carefully faces for parking and because of the high annual rainfall on prepared and moved by an urban landscape consultant to the Coast, stormwater management features are extremely new more protected areas of the site. critical. Engineering designs have been developed to detain It is obvious that dockside casinos can cause impacts to and retain stormwater runoff, as well as incorporating the coastal environment. To date, care has been taken to impervious pavers in selected areas of the site to provide for avoid major impacts to the environment. Impacts have also site drainage. Grassed swales and raised inlets have been been limited to minor impacts because most of the sites effective in providing for detention and natural treatment of developed to date are sites that have been previously devel- stormwater. In some cases, stormwater has been routed to oped. As the casino sites continue to grow, and as previ- natural depressions and ponds to allow for treatment and ously undeveloped sites are developed, the impacts will storage of stormwater prior to discharge. Some of the ponds increase. While current regulations appear to be adequate to have been vegetated with emergent aquatic plants and dec- require certain environmental safeguards, consideration orative fountains have been installed to provide additional should be given to developing more comprehensive guide- treatment. lines to assist casinos in preparing site plans. 37 Highway and Transportation Needs in Coastal Mississippi Mississippi State Senator William G. Hewes, III District 49 - Harrison County The introduction of the gaming industry in Mississippi Table 1. Mississippi Gulf Coast Traffic Counts. has affected the infrastructure of each community where 1991 1"4 Increase casinos are located. Highway and transportation needs are Harrison County - US 90 @ Jackson Co. Line 22,130 37,000 67% not unique to the Mississippi coastal communities. Both Harrison County - US 49 @ Stone Co. Line 10,460 13,450 29% east and west and north and south transfers are needed. Harrison County - 1- 10, 2 mi. E. of US 49 34,730 42,210 22% Challenges exist in relieving the pressure of heavy traffic, Hancock County - 1-10 @ Louisiana Line 24,690 32,000 30% not only in securing funding but also in time needed for Jackson County - I- 10 @ Alabama Line 25,830 33,480 30% completion of these big projects. In order to relieve the pressure from U.S. Highway 90 and Pass Road, another east-west corridor is needed (Figure Although, the accidents rates on the coast are not as high as 1). Some investigation has focused on the area near the rail- those in the Tunica area, numbers of Coast accidents have road line that would span the entire stretch of the coast. risen (Table 2). The infrastructure on the. Coast is better Problems involve funding and rights-of-way with the rail- developed than that of the other growth areas. road. A north-south route, to be tied in with Interstate 10, is Three years ago the Legislature decided to focus on roads needed to relieve traffic pressure and to serve as an evacu- in high impact areas instead of following the routine road ation route. Three north-south corridors were presented to program. The high impact areas are Tunica, Philadelphia, the last legislative session. Only one was approved and con- and the Gulf Coast. The funds to these areas will be approx- struction will begin soon. imately $325 million in bonds with an appropriation of The rate of growth in counties with gaming has been phe- approximately $32 million a year for a 7-year period. nomenal. In 1991, a traffic count on a road that is the direct In addition, the Legislature has authorized the route through Desoto County from Memphis to Tunica was Department of Transportation to undertake a study to deter- 380; in 1994, 4,000. The count increased by 953%. mine a number of issues with regard to future growth. In Consequently, accident rates on all the congested roads November, the Department of Transportation must have have risen dramatically. prioritized the areas of greatest need for road construction. On the Coast, most statistics deal with Highway 49, The study will consider evacuation routes, traffic conges- Highway 90, or Interstate 10 in the counties of Hancock, tion, accident rates, alternative modes of travel, and exist- Harrison, and Jackson (Table 1). The increase in traffic ing intermodal and commercial travel structure (road, rail, coming from Louisiana and Alabama is significant. air, and water). Considering tourism-oriented and gaming-related activi- ties, it is not surprising that coastal roads are heavily trav- eled. Though it will be expensive and will take time, it is 49 George important to meet the challenge and invest as quickly as S ne possible in efficient and safe roadways. r 59 Ha 67 Jackson Table 2. Mississippi Gulf Coast Traffic Accidents. 43 Hanco 10 1991 1"4 Increase Hancock County - US 90 181 266 47% 0 Hancock County - I- 10 88 78 -11% Harrison County - US 49 637 1,019 60% Harrison County - I- 10 297 465 57% Figure 1. Counties impacted by casino traffic on Mississippi Jackson County - US 90 859 1,230 43% Gulf Coast (Mississippi Gulf Coast Gaming Program). Jackson County - I- 10 163 435 167% 38 SESSION 111. DEVELOPING THEIIBIG PICTURE PARADIGM" - MOVINGAwAYFROM INCREMENTAL MANAGEMENT Methodologies and Mechanisms for Management of Cumulative Coastal Environmental Impacts Barbara Vestal Associate Director, Marine Law Institute University of Maine School of Law Three factors distinguish Mississippi's dockside casino only of more casinos, but also the impacts of more hotels, gaming development from most other coastal development. more retail malls, and widened roads associated with that The first factor is the speed at which development is occur- casino development. ring. The magnitude of the funds involved is the second dis- There are at least four reasons why is this a good time to tinguishing factor. For example, in Mississippi, the tide- stop and look at the big picture. First, very simply, there is lands lease fee for a casino may be $200,000 to $700,000 still time to develop a management strategy. It is not too per year. In other states, the annual lease fee for a marina late. may be in the range of $3,000. The third unusual factor is Second, the easy sites have already been developed. The the high degree of apparent consensus among residents that old seafood processing sites and already disturbed water- casino development has been good; it is generally perceived front parcels have been redeveloped. Casinos are now eye- as a major catalyst for economic development in a former- ing sites on the Back Bay, an area of residences and previ- ly depressed area. ously undisturbed wetlands. These wetland sites present Despite the apparent success to date, it is important to much more difficult environmental issues, and conscious focus on where Mississippi should go from here. If 29 casi- decisions need to be made about whether casinos and relat- nos are good, does it necessarily follow that 35 or 40 or 50 ed development should be permitted on those sites. are necessarily better? Some local officials suggest coastal The third reason for doing the analysis now is that this Mississippi has yet to see the upside limit; they envision may be a politically opportune time to make a midcourse growth for another 10 or more years. I would like to sound correction in the state legislation. The enabling legislation a more cautionary note. It seems to me that the people of set up a very difficult situation by declaring casinos to be coastal Mississippi should be wrestling with very difficult water-dependent uses and requiring them to be water-based. issues of sustainability and the impacts of incremental It funneled them into the most environmentally sensitive growth. lands in the state. And apparently that was done for no good There are numerous examples of rapid growth destroying policy reason except that it was an incremental drafting the very thing that brought people there in the first place. change, from "underway-making way" to "stationary but But experience over the last 20 years has taught us that gov- still floating." emments can put reasonable limits on growth. It may be possible to a-mend the law so that future casi- So the critical question is when will casino development nos would no longer be considered water-dependent uses become too much of a good thing? And more importantly, and could no longer be water-based. New casinos would how does one identify that point before it has already been have to be constructed on less environmentally fragile exceeded? How can casino growth be managed to reap the uplands. Of course, a whole new set of environmental reg- economic benefits while protecting a unique cultural her- ulations would be required to identify which uplands would itage such as the traditional waterfront industries. And how be appropriate. Tightening the siting regulations in this way can the environment be protected from significant degrada- might hold a certain attraction for at least two groups: citi- tion? Finding the right balance is complicated by the fact zens concerned about the environment and casino industry that traditional water-dependent uses, cultural heritage, and representatives who are concerned about oversaturation of environmental quality are typically not adequately protect- the market. ed if one relies only on the private market to make resource Finally, this is an opportune time to stop and analyze allocation decisions. cumulative impacts because a little planning now may help Mississippi's casino gambling is now at a critical junc- preserve local character. Mississippi and Nevada may be ture. This is the time to undertake an analysis of the cumu- well ahead of the curve now, but as other states see this suc- lative impacts. This analysis should assess the impacts not cess and try to emulate it, keeping market share may depend 39 on retaining the local character and the natural beauty of the 2 and 4). Some scientists try to define cumulative effects so place. If casinos all look alike, patrons will be inclined to go they are limited to only Pathways 2 and 4; environmental to the one closest to them. Mississippi may need to plan to legislation typically does not make that distinction. For reg- retain the uniqueness of its coastal area to keep a competi- ulatory and management purposes, all four of these path- tive advantage for its casinos. ways can result in cumulative effects. Thus, for all of these reasons, it is important to analyze Because of a concern about continuing environmental and manage cumulative impacts of continued casino-fueled degradation, practitioners are increasingly stressing consid- development. One might question the precise definition of eration of cumulative impacts. For the last 20 or more years, "cumulative impacts." There are actually many slightly dif- major development has been reviewed using a site-specific ferent variations, depending on the context. For this paper, approach, with the assumption that if the impacts on that cumulative impacts are defined as "the overall impact on single site were not too bad, the development would be the environment which results from the incremental acceptable. As a society, we have been willing to accept a impacts of various activities when added to other past, pre- little degradation at each site, and generally have not looked sent, and reasonably foreseeable future actions." So cumu- beyond the site to see how that "minimal" impact from one lative impact assessment evaluates a combination of devel- site combines with "minimal" impacts on other sites in the opment activities to determine what impact they have on the ecosystem. We have also accepted the idea that develop- environment when one considers the development that has ment below a certain threshold did not need to be reviewed already taken place, development that is taking place simul- because the impacts would be minimal, without really taneously, and development that it is reasonable to believe thinking about how all those minimal impacts might com- will take place in the future. bine to affect ecosystem function. Figure 1, from the Canadian Environmental Assessment But many environmental managers have concluded that Research Council, illustrates different ways to experience this approach is fundamentally flawed. Numerous small cumulative effects. They can be impacts from one process actions and choices can together gradually alter the struc- (e.g., an increase in impervious surface area from the con- ture and function of an ecosystem. It is insufficient to look struction of one single family home after another) or from only at direct, site-specific impacts. We cannot ignore how two or more processes affecting the same resource (e.g., all of those "minimal" losses combine to affect the ecosys- increase in impervious surface area from construction of a tem as a whole. marina parking lot; shading of aquatic vegetation from con- The solution is not to do away with traditional environ- struction of a dock; habitat disturbance from increased mental assessment of direct impacts but rather to broaden recreational use of waters; propeller dredging of shallow the assessment to consider cumulative impacts as well. bottom; discharges into the water from recreational boats). Environmental managers have to look at impacts over time The impacts can be simply additive if they are so close in - past, present, and future - because the environment is a time or in space that the effects overlap (Pathways I and 3). dynamic system. The scope of analysis must expand Or there can be magnification or synergistic relationships beyond the immediate site to consider the effects over a where the actions interact to produce something more com- larger ecological community. And most critically, instead plex than simple addition of incremental impacts (Pathways of focusing on the proposed disturbance, the assessment should focus on how the proposed action will affect valued environmental functions. Finally, the process should not PATHWAY I PATHWAY 2 PATHWAY 3 PATHWAY 4 stop with assessment; managers must develop a manage- ment plan based on the assessment. These concepts are summarized in Figure 2, a conceptu- al framework developed by Evan Vlachos in which "new emphasis" corresponds to cumulative impact assessment. Instead of focusing on a species, cumulative impact assess- ment looks at the ecosystem. Instead of being a snapshot at PERSISTENT DDITIONS COMPOUNDING EFFECTS one time, it looks at how the system evolves over time. And FROM ONE PROCESS INVOLVING TWO OR MORE PROCESSES instead of being segmented, it attempts to take a holistic approach. Cumulative impact assessment is not intended to replace analysis of direct impacts, but is intended to sup- PATHWAYS THAT LEAD TO plement it so it more fully considers the full range of envi- CUMULATIVE EFFECTS ronmental impacts. Instead of just inventorying how many of a particular species will be affected on the site at the time Figure 1. Basic functional pathways that contribute to cumu- of construction, curnulative impact assessment looks at the lative effects. Source: Peterson, et al., Cumulative Assessment broader picture. It requires a determination of how the site in Canada: An Agenda for Action and Research, Canadian fits into the larger ecosystem. The managers must assess Environmental Research Council 5 (1987). whether the proposed development is likely to affect larger- 40 Procedures New Emphasis where and how to draw the line. They are looking at con- ional) (Alternative) cepts such as requiring common community piers, denying a private pier application if it is within a certain distance of Species oriented Comm u n ity /ecosystem- a public facility, or revising construction standards to oriented require mesh construction to minimize shading. Linea r/extra po lative Non-linear/nonmonotonic Different state and federal agencies have developed their 6 Causal Interactive/mutual own guidance on how to consider and minimize cumulative causation effects in a host of development contexts. In general, influ- 0 Individua)istic/segmented & Holistic/integrative encing decisions on the grounds of adverse cumulative 0 "Snapshot" 0 Evolvingidynamic impacts seems to be most difficult for agencies like the U.S. 0 Hierarchical/classificational - Contextural/relevance Fish and Wildlife Service and the National Marine selective Fisheries Service, perhaps in part because those agencies Structural 0 Functional are merely recommendatory to the actual permitting agency, the Army Corps of Engineers. These federal permit Figure 2. Conceptual frameworks for impact assessment. reviewers tend to be operating in a vacuum; it may not "feel Source: Vlachos, Assessing long-range cumulative impacts. In right" to allow continued degradation with each site, but Environmental Impact Assessment, Technology Assessment and Risk Analysis, 68 (1985). they don't really have any institutional help with drawing the line. More successful initiatives have been developed by state coastal programs because they can approach these ques- scale ecological processes, particularly when one takes into tions from a prior planning, management, and goal-setting consideration development that has already taken place, perspective rather than solely from a regulatory perspective. current development, and development likely to follow. It For example, New York State's Coastal Management requires a determination of which ecological functions are Program has a program for advanced designation of areas of most valued by society (e.g., migratory bird habitat, water significant coastal fish and wildlife habitat using an ecosys- quality suitable for recreational activities, commercially tem analysis to identify important habitat areas. The desig- important fisheries, biological diversity) and how this pro- nation includes a supporting narrative, which identifies posed development might affect those valued functions. actions that, if allowed, would degrade the habitat, such as An example may make this more concrete. In New construction of walkways and docks. The first set of habitat England, a couple of federal resource agencies and some designations was approved as part of the Coastal state coastal programs have -discussed the need to apply Management Program, thus allowing the state to review heightened cumulative impact analysis and management federal actions, such as Corps permits, for consistency with strategies to review elevated walkways and piers on vege- the state program. In one instance, a private owner proposed tated wetlands. These agencies are concerned about a pro- to construct a 795-foot elevated walkway and dock in a des- liferation of large docks (some proposed to be up to 800 feet ignated habitat. It received all federal and state permits, but long) that serve - individual homes. Instead of allowing the coastal program successfully used federal consistency dredging to obtain a sufficient depth of water, some regula- provisions to object. The preplanning to designate impor- tors had fallen into a pattern of approving raised structures tant habitats and identify the type of development that over wetlands to span seaward to reach a depth of water suf- would cause unacceptable effects was critical to the state's ficient to dock a boat. When evaluated on a site-specific ability to draw the line against continued incremental basis, these applications were generally approved because degradation. they were found to have only a minimal impact. But now Cumulative impact assessment is not relevant only to that many have been built and it is foreseeable that more multiple small developments. It is also commonly required will follow, some regulators are beginning to worry about for multiple large projects such as multiple hydropower cumulative adverse impacts. These new docks present par- projects in a single watershed, issuance of multiple oil and ticular problems because most of the sites adjacent to open gas leases, and the construction of multiple large-scale water have already been developed. These new sites tend to recreational facilities, such as marinas, in a relatively small be on marshes, a significant distance from open water. The area. possible cumulative effects of concern to reviewers include: Thus, in concept, cumulative impact analysis is an shading of submerged aquatic vegetation, leading to dimin- important supplement to traditional environmental impact ished density of the vegetation, erosion, and loss of func- analysis. The much harder question is whether it actually tion; habitat fragmentation, particularly affecting migratory can be done. In making the transition from theory to prac- waterfowl that need an unobstructed distance to land or take tice, there is a very real danger of getting overwhelmed by off-, increased human disturbance; and enhanced access for the interconnections and range of issues to be considered. predators. The Marine Law Institute, working with the National These regulators have not reached any easy answers on Marine Fisheries Service, with funding from NOAA's 41 Coastal Ocean Program, studied this question over the last 2. Decision Factors couple of years. We concluded that some agencies have made significant gains in the way they assess and manage . . . In evaluating the public interest and making incremental impacts. To be sure, there is no single method- recommendations, PMR shall consider and make ology or set of methodologies that will work in all situa- findings on the following: tions. But there are evolving methodologies that can serve (a-c omitted) as models, and gradual progress is being made on several d. Precedent setting effects and existing or fronts. potential cumulative impacts of similar or other Cumulative impact assessment shouldn't be such a for- development in the project area; eign concept. Many agencies already have the express legal authority to consider cumulative environmental impacts in e. The extent to which the proposed activity making permitting decisions. In fact, some are required to would directly and indirectly affect the biological consider cumulative impacts. These agencies include the integrity and productivity of the coastal wetlands U.S. Army Corps of Engineers, agencies that are preparing communities and ecosystems; Environmental Impact Statements, and many state coastal f. The full extent of the project, including impacts permitting programs. However, despite that authority, many induced by the project, both intended and of these agencies have limited their focus to direct, site-spe- unintended but reasonably anticipated; cific impacts, and given only very cursory review to cumu- lative impacts. (g-m. omitted) Within states, cumulative impacts are considered a few Figure 3. Misssissippi's coastal wetlands cumulative impact different ways. Approximately nine state wetlands permit- standard. (Mississippi Coastal Wetlands Protection Law, ting programs require some consideration of incremental Rules, Regulations, Guidelines, and Procedures, Section 2, impacts. Florida is probably the leader in its wetlands legis- Part I.E.2 Basic for Decisions.) lation. Florida has frequently used cumulative impacts as a ground for permit denial or for imposing conditions on approval. That state has detailed guidance on types of pro- jects to be included in the cumulative impacts assessment, applicable geographic boundaries, and how to project rea- sonably expected development. sideration of cumulative impacts is the 404 Water Quality Mississippi is probably more typical in its provisions. Program administered by the Army Corps of Engineers. Mississippi's Coastal Wetlands Protection Act establishes The 404 Guidelines (Figures 4 & 5) state the Corps will protections for coastal wetlands and their ecosystems, to allow no discharge into the water unless there will be no preserve them in a natural state, "except where a higher unacceptable adverse impact, either individually or cumula- public interest consistent with public trust purposes would tively. The Guidelines acknowledge that cumulative effects be served" (Miss. Code Ann. 49-27-3). The regulations of small effects can result in a major impairment and they specify factors to be considered in reviewing permit appli- place an affirmative duty on the Corps to gather information cations. Figure 3 is an excerpt from that provision. One of and consider it in permit decisions. Additional regulatory 13 factors to be considered is "precedent- setting effects and guidance letters also address consideration of cumulative existing or potential cumulative impacts of similar or other impacts in permit decisions. However, various studies have development in the project area." It also requires consider- concluded that despite the Corps' legislative mandate, it ation of "the full extent of the project, including impacts rarely undertakes more than a very cursory cumulative induced by the project, both intended and unintended but impacts assessment. There is some regional variation. reasonably anticipated." Even though Mississippi has these In a few instances, the Corps has been aggressive in provisions, like many other states, if there is no additional using its cumulative impacts authority to deny a permit, and guidance on how to apply these provisions, their use tends it has been upheld. One such example involved the Fox to be cursory at best. River in Illinois, an area already extensively developed for Some states require consideration of cumulative environ- recreational boating. Fox Bay Partners proposed a 512-boat mental effects through mini-NEPA statutes; incremental recreational marina, which would include a health club, effects are considered in determining whether a state envi- restaurant, and parking facility. ronmental impact statement is required, and in evaluating The Corps denied the permit, finding there would be a those impacts. California, New York, and Washington State significant, cumulative adverse impact. It considered mari- take this approach. Many more states use nonwetlands nas, boat launches, and private boat docks already permit- coastal development permitting or statewide comprehen- . ted, and similar foreseeable future projects. Its principal sive planning systems to get a handle on cumulative concern was the increase in large power boat traffic and the impacts. likely effects on the aquatic ecosystem. The Corps was One of the primary federal programs that requires con- upheld on appeal. Its findings were buttressed by an EIS, 42 (g) Determination of cumulative effects on the aquatic [d]redged or fill material should not be discharged ecosystem. into the aquatic ecosystem, unless it can be (2) Cumulative effects ... should be predicted to demonstrated that such a discharge will not have an the extent reasonable and practical. The permitting authority shall collect information and solicit unacceptable adverse impact either individually or information from other sources about the cumulative in combination with known and/or probable impacts on the aquatic ecosystem. This information shall be documented and considered during the impacts of other activities affecting the ecosystem decision-making process concerning the evaluation of of concern. individual permit applications, the issuance of a General permit, and monitoring and enforcement of 40 C. F. R. � 230. 1 (c) (1993). existing permits. 40 C.F.R. � 230.11(g) (1993). Figure 4. U.S. Army Corps of Engineers 404 Guidelines deal- Figure 5. U.S. Army Corps of Engineers 404 Guidelines on ing with discharge into the water. determination of cumulative effects. which found that the existing boating activity was "too to help with setting priorities on how to use limited plan- overpowering" for the aquatic environment. About the ning and review resources. same time as the decision, the Corp s adopted a policy of A U.S. Fish and Wildlife methodology is more of an "no net gain," allowing new boating facilities only as older ongoing process, which uses sophisticated models and facilities for a similar number of boats were removed from multi-agency collaboration, such as in the Chesapeake Bay the area. This is a relatively rare instance, but shows that Estuary. Another model, developed by a group of wetland courts will uphold denials based on cumulative impacts if scientists in Louisiana, uses a landscape conservation they are well documented. approach to reverse the incremental decline in wetland If state and federal agencies are mandated to consider cumulative effects, one might wonder why they tend not to do it. One of the major problems is that it is very difficult to do through end-of-the-line permit decisions. Most envi- ronmental degradation is gradual; there is no straw that 0 the absence of practical, widely-accepted causes the system to crash. Scientists and permit reviewers methodologies cannot draw arbitrary lines; the community needs to estab- lish minimum standards and goals through resource- 0limited scientific knowledge about causes focused comprehensive planning. Then permit decisions and effects can be made that are consistent with those goals. In additiori to a misplaced reliance on permitting, our sur- vey of environmental managers identified several other 0a narrowed interpretation of agency areas that present problems for cumulative impact assess- responsibilities ment and management (Figure 6). The first problem they identified is an absence of easy-to-use, widely accepted *the absence of socially-established goals for methodologies. Such a simple solution will probably never the resource be achievable. Instead managers have to customize from several models that vary, depending upon the agency man- ejurisdictional constraints which impose date, agency resources, time constraints and goals. For inappropriate geographic and subject-matter example, some models are designed to consider cumulative limits on impact assessment and man- impacts in permit reviews when the reviewer has to com- agement ment within 30 days and can only use a site visit and exist- ing data. uncertainty about the defensibility or Another model, EPA's synoptic approach, is designed to fairness use existing data to produce maps that allow a comparison of relative environmental risks of allowing development in Figure 6. Historic difficulties of considering cumulative one landscape subunit as opposed to another; it is designed impacts in regulatory reviews. 43 function of bottomland hardwood forested wetlands by It stresses the need for continued movement in the fight securing corridors to reconnect forest patches. direction; it emphasizes the importance of not allowing any There are no simple solutions; environmental managers movement away from the goal, even though it might be have to use creativity to determine how they can reach their minimal. goals with available resources. But much recent work has A fifth problem facing environmental managers is inap- been done which can provide some guidance. propriate jurisdictional constraints. These can be geograph- The second problem identified by environmental man- ic constraints, such as political boundaries, which have no agers is limited scientific knowledge about causes and relationship to ecosystem boundaries. Or they can be juris- effects. There is always a gap between what scientists will dictional constraints; for example, the agency may only be say th ey know and what environmental managers want to allowed to consider the impacts from structures to be con- know. There are, however, at least two scientific trends that structed below mean high water, but may not consider the bode well for cumulative impact assessment: water impacts of associated upland facilities. There are a (1) Scientists are placing more emphasis on ways to myriad of planning efforts that attempt to span these bound- extrapolate from very detailed data in ways designed to aries such as various watershed protection approaches, simplify the complexities. Examples include more empha- including the National Estuary Program. sis on indicators of ecosystem health, use of indicator A final problem environmental managers face in efforts species or guilds, and the synoptic approach for wetlands to consider adverse cumulative effects is uncertainty about assessment. These techniques are designed to avoid deci- the defensibility or fairness of doing so. There is frequently sion-making paralysis caused by believing there is never a misperception that it is somehow unfair or illegal to deny enough information on which to act. a permit application when a similar use has already been (2) There is a growing availability and affordability of permitted. Some people assert that if an agency allowed the powerful tools to collect, manipulate, and depict data, such first and second, it can't very well deny the tenth - or the as GIS systems, remote sensing, and computer models of twenty-fifth. Although case law varies from state to state, estuarine processes. our study found it was unusual for courts to take this restric- A third problem, identified through the comments of tive position. Most courts hold that agencies retain the flex- environmental managers, is narrowed interpretation of ibility to respond to changed environmental conditions and agency responsibility. It seems as though until 1990 or so, have the right to incorporate lessons learned from prior there was a self-fulfilling prophecy involving the defensi- experience, so long as they comply with due process bility of aggressive use of cumulative impacts standards. requirements. Thus, if there is an environmental problem, Agencies were not aggressive and predicted courts would after appropriate legislative or rule-making processes, never support denials based on cumulative impacts; the review standards can be tightened up. Similar later projects courts were never put in a position of reviewing agency can be reviewed under the new standards, and evaluated in denials so did not rule such denials were defensible. light of the then existing environmental conditions, as they Agencies tended to voluntarily utilize less than their full may have been changed by the earlier projects. authority. It is only in the last several years that the courts To summarize, we concluded that environmental man- have had the opportunity to develop a parallel body of case agers can increase the likelihood of effectively addressing law addressing how aggressively agencies can use cumula- incremental environmental effects by focusing on the fol- tive impacts concepts. In either case, our study found that lowing factors: since the judicial review is usually for an abuse of discre- (1) Adequate Definitions of Key Terms. As there is no tion, the agency will generally be upheld whether it common usage in the literature, each statute must define approves permits after a cursory cumulative impacts review key terms such as cumulative impacts, effects, and reason- or denies the application on the basis of well-documented ably foreseeable, and provide guidance on how to measure adverse cumulative impacts. them. The fourth problem environmental managers wrestle (2) Consideration of Multiple Types of Impacts. The with in trying to manage cumulative impacts is an a absence assessment must consider not just multiple casinos, for of socially-e stabli shed goals for the resource. Permit example, but also related impacts from additional restau- reviewers cannot just rely on their own comfort level to rants, retail shops, residences, and increased traffic determine when one more is too many. Similarly, scientists spawned by the casino development. cannot pick a point on the continuum as being unaccept- (3) Broadened Geographic Scope. The assessment able. Socially-establi shed resource goals are necessary to needs to span a watershed, ecosystem, multi pie-ecosystems draw the line below which the resource may not be degrad- or a similar biologically-defined area of sufficient size to ed. If society sets that line higher than existing conditions, encompass major factors that may cause variation in the restoration or improvement is required. effects on the resources of concern. The best goals are positive and very long term, such as to (4) Extended Temporal Scope. The assessment should restore the functioning of particular wetlands within 50 take into consideration past development, going as far back years. It keeps in perspective that progress will be gradual. as the records will permit to identify change from the base- 44 line, and also consider probable future development, pro- three: assessment to project impacts, management. to imple- jecting ideally at least a generation, based on pending per- ment strategies to minimize or reverse negative impacts, mit applications, local plans, and projected likely similar and monitoring to detect environmental changes and deter- applications in future. mine if the assessment was correct. (5) Use of Extrapolating Techniques. It is important to But, as with most resource management efforts, at the use techniques to simplify complexity. This might involve heart of the matter is a fundamental issue of whether the using indices of ecosystem health such as indicator species, community has the political will to protect particular valued change in impervious surface area, or change in submerged resources. Our study indicated that if the will is there, the aquatic vegetation. mechanisms can be devised to bring us much closer to man- (6) Goal-Setting and Comprehensive Planning. A aging cumulative environmental impacts. But if the politi- community consensus on resource goals is crucial to estab- cal will is lacking, adequate assessment and management of lish a decision-making context for permitting programs. cumulative impacts is unlikely. Similarly, comprehensive planning and advanced designa- tion can relieve pressure on permit programs by directing development to areas where it is likely to have fewest Adapted from: Vestal, Barbara, Alison Rieser et a]. 1995. Methodologies adverse effects. and Mechanisms for Management of Cumulative Coastal Environmental Impacts. NOAA Coastal Ocean Program Decision Analysis Series No. 6. (7) Integrated Monitoring, Assessment, and Manage- Available from NOAA Coastal Ocean Office, 1315 East West Highway, ment. Environmental managers need to make use of all Silver Spring, MD 20910. 45 The OCRM Role in Developing Cumulative and Secondary Impact Management Strategies Joseph A. Uravitch Associate Director Office of Ocean and Coastal Resource Management The control of cumulative and secondary impacts of Nonpoint Source Pollution Program under Section 6217. A growth and development have been major issues in coastal third amendment by Congress Put together something states and territories. Addressing cumulative impacts is called the Coastal Zone Enhancement Program. This is probably the number one to number three issue for most of where cumulative and secondary impacts are addressed. the states and territories of the United States right now. The Congress basically felt that there are a number of significant office of Ocean and Coastal Resource Management coastal issues that states ought to address. (OCRM) will be cosponsoring workshops to pull together In 1990, they added a competitive funding section called the information from across the country that states have the Coastal Zone Enhancement Program and outlined been developing over the past 4 to 5 years. national coastal resource management objectives that need- The Office of Ocean and Coastal Resource Management ed to be reviewed by states to enhance the existing authori- of the National Oceanic and Atmospheric Administration ties of their programs. These included the following: (1) to (NOAA) administers the Coastal Zone Management protect, restore, or enhance the existing coastal wetlands Program and the National Estuarine Reserve System, which base or create new coastal wetlands; (2) to increase oppor- are both under the Coastal Zone Management Act and tunities for public access to coastal areas; (3) to address the NOAA's National Marine Sanctuary Program. The Coastal cumulative and secondary impacts of population growth Zone Management Program was established in 1972, when and urban development in coastal. areas (26 out of the 29 the Coastal Zone Management Act first passed, with the coastal states and territories with approved programs directive to preserve, protect, develop, and where possible thought that was a priority issue that needed to be addressed restore or enhance the resources of the coastal zone. It is by their state); (4) to prevent or significantly reduce threats one of the first programs to look comprehensively at what to the life and destruction of property by eliminating devel- happens along the coastal area and at that broad spectrum of opment or redevelopment in high coastal hazards areas and uses and activities from development to conservation. managing development in other hazard areas; (5) to identi- The Coastal Zone Program is voluntary, and has done fy and develop special area management plans to manage rather well in terms of getting state participation. Twenty- coastal areas with special needs (Mississippi is a good nine states out of thirty-five coastal states and territories in example of having used the special area management plan- the United States have federally approved coastal zone pro- ning process with a number of, its ports); (6) to promote the grams. Another five are presently in the process of devel- wise use of ocean resources; and (7) to assist in the placing oping coastal zone programs. The next program scheduled of energy facilities and government facilities along the for approval is that of the State of Texas, soon to be fol- coast. lowed by the State of Ohio, and then sometime further Here's the way the process worked. Once Congress put along by Georgia, Minnesota, and Indiana, probably in that the program in place, guidelines were developed and all of order. At this point, well over 93% of the U.S. shoreline is the state programs went through an assessment process to currently managed by a federally-approved coastal zone review the issue areas. Wetlands, cumulative and secondary program. impacts, and coastal hazards were the top three priority The program is important because people have really areas. Once states identified what their problems were, they recognized the importance of coastal resources. And from a were then required to develop strategies as to how, over a 5- political perspective, it's been a bipartisan recognition of year period, they would begin to address those particular the importance of coastal zone management. problems. Cumulative and secondary impacts were proba- The Coastal Zone Act Reauthorization passed the House bly one of the major areas in which federal money was 2 weeks ago by a vote of 407 to zero. What's important spent by states to try to get a grasp on this problem. Most about reauthorization is what it will do to the program. In state coastal management programs do have legal authority 1990, Congress made a number of significant amendments to consider cumulative impacts in permitting decisions. to the Coastal Zone Management Act. One was to basically Many states have policies in local land use plans that are provide new incentive funding to get the rest of the coastal applicable to cumulative impacts. However in actual prac- states and territories involved in coastal zone management. tice, these programs review only the immediate and direct Another was to work jointly with EPA on a Coastal impacts on coastal resources. They've acquired a variety of 46 obstacles in putting guidelines together. The first is the planning and management approach to protect natural absence of methodologies that are practical and widely resources with more science-based efforts that involve col- accepted. The second is limited scientific knowledge per- lecting and utilizing resource data on geographic informa- taining to causes and effects. The third is the inability to tion systems. develop sufficient information to assess resources. And Alaska is developing a methodology to quantify the finally, there is insufficient coordination among regulatory impacts to fisheries habitat in one of its rivers. Various agencies. coastal states and territories employ other systematic Despite all these difficulties, many coastal states and ter- approaches to improve the cumulative impacts. ritories have utilized the Enhancement Program to improve As part of Mississippi's enhancement strategy, the the primary existing plan frameworks, including improve- Coastal Program proposes to clarify its existing wetlands ment of coordination mechanisms, expansion of the scope authority, and to identify and manage activities that cause of state environmental impact review requirements, incor- indirect impacts associated with stormwater runoff and sed- poration of cumulative impact language into existing envi- imentation from construction, altered natural hydrology and ronmental programs and recommendations, modification of related water quality problems. Clarification of this author- permit procedures, and improvements of baseline data and ity would result in modification of permit review guidelines monitoring capability with a greater emphasis on nation- to include management of indirect impacts. And further, wide approaches. there was a memorandum of understanding with relevant California, for example, is in the midst of pursuing devel- state and federal agencies to address agency coordination. opment of a regional review permitting process. The state is OCRM will be going forward with an assessment of what conducting a demonstration project to review the regional the states have accomplished over the past 5 years, getting cumulative impacts to resources and to make recommenda- an analysis of that information, and getting it out to people tions on how to better consider cumulative impacts in local so it can be of some use. The other important change will be permitting processes for coastal development. This may coming out of the reauthorization of the Coastal Zone result in new monitoring data collection and/or better coor- Management Act. Congress has given OCRM the authority dination. to allow the states to spend competitive funds under this Other approaches that coastal states and territories are program (Enhancement Program) or take up to 2 years to pursuing through the Enhancement Program include (as in actually implement program changes. the case of North Carolina) combining a comprehensive 47 INIOAA SERVICES CTR LIBRARY 3 6668 14112932 2 Printed on Recycled Paper Distributed by David D. Burrage, Extension Marine Resources Specialist, Mississippi Cooperative Extension Service Mississippi State University does not discriminate on the basis of race, color, religion, national origin, sex, age, disability, or veteran status. Extension Service of Mississippi State,University, cooperating with U.S. Department of Agriculture. Published in furthance of Acts of Congress, May 8 and June 30, 1914. Ronald A. Brown, Director 70391 (500-4-97)