Gambling on the future

On one hand, the state’s top lawmakers are for the first time voicing support for legalized casinos as a way to pump revenue into the state’s dwindling coffers, not to mention create much-needed jobs.

But where do you build something like a Foxwoods or a Mohegan Sun?

With Milford the latest town eyed for a resort casino, neighboring communities fearing potential traffic, crime, and other spillover effects are wondering how to get in on the decision.

“I have a lot of concerns,’’ said state Senator Karen Spilka, a Democrat from Ashland. “I’m beginning to hear from constituents, primarily Holliston and some Hopkinton, who are also very concerned about it being in such close proximity.’’

Any resort casino would have to leap a number of hurdles, based on draft legislation. In addition to winning one of a limited number of state licenses, it would need approval from the host community’s residents in a townwide referendum.

But Spilka says surrounding towns must be allowed to weigh in as well. “It should be the broader community that welcomes the casino, as well as share in some sort of mitigation,’’ she said.

Without such legislative language, neighboring towns that oppose a casino could be out of luck, according to a specialist on the industry.

“There’s not a lot they can do,’’ said Clyde Barrow, a University of Massachusetts at Dartmouth professor and director of its Center for Policy Analysis. “They can use environmental impacts as a way to challenge it, lobby the Legislature, and that’s about it.’’

Barrow said that while Milford, as host community, stands to reap somewhere between $8 million and $20 million annually from the host fee and local taxes, neighboring towns aren’t guaranteed anything. There might be a mitigation fund for adjacent communities, said Barrow, if they can show they need to hire more police or take on other expenses because of the casino.

Milford officials have voiced openness to the proposal for a resort casino on 200 acres along Interstate 495, between routes 85 and 16. The developers of the Crossroads Resort Project don’t have all of the details worked out, in part because any casino legislation is expected to include reams of restrictions.

At a meeting last month with Milford’s Board of Selectmen, developer David Nunes of Colorado and partner Bill Warner, head of Warner Gaming in Las Vegas, estimated the project’s initial cost as $750 million to $800 million, and said it could eventually accommodate 5,000 slot machines, about 2,000 hotel rooms, a dozen restaurants, a convention center, a nightclub and retail businesses that combined would generate roughly 7,000 jobs.

Nunes said he and Warner are the only investors at this point, but he doesn’t foresee any problems in coming up with the needed cash. They have hired Credit Suisse, which has worked on several new casino projects, to assist with lining up investors, he said.

“When the Legislature lays out what is the type of proposal they’ll be looking for, that’s when we’ll begin to bring in sources of equity and debt into the project,’’ Nunes said. “Being as far out as we are right now, we wouldn’t want to structure a deal today.’’

Nunes said he has options to buy more than 200 acres, divided among a variety of landowners. He said he could not reveal the exact parcels because of nondisclosure agreements.

Although Foxwoods and Mohegan Sun have struggled during the down economy, Nunes said, the Crossroads situation is entirely different.

“We will build to scale, and by building to scale we’ll build what is required in Massachusetts today and continue to develop,’’ he said. “We’ll be able to build what the market will support moving forward.’’

Barrow, at UMass-Dartmouth, added that it takes 18 to 24 months to build a casino, at which point the economy should be recovering. “So you’d be opening up right into the growth phase of the business cycle,’’ he said.

Palmer, for example, which would likely compete with the Milford proposal geographically for what is expected to be only two or three casino licenses statewide, has already passed a referendum, he said. Mohegan Sun is behind the Palmer proposal and is “much further along in the process,’’ said Barrow, but Milford is “an excellent location.’’

Brian Herr, chairman of the Board of Selectmen in Hopkinton - speaking only for himself, because his board hasn’t taken a position - said he opposes expanded gambling anywhere in the state.

“I agree there would be an increase in revenue,’’ he said. “There would [also] be an increase in costs.’’

Andy Porter, chairman of the Holliston Board of Selectmen, said he supports having a casino in Massachusetts but not at this location.

“That doesn’t mean you can put them anywhere,’’ said Porter, adding the Milford project would be right next to Holliston conservation land.

Some businesses may embrace the Milford casino proposal because it could help their own revenues grow.

“It’s certainly a project that we’re very excited about and the potential is extremely impressive,’’ said Barry Feingold, president and chief executive of the Milford Area Chamber of Commerce.

“We’re talking about job creation, development of the infrastructure for the area, revenue for both the business community, the local government, and all of course would lead toward a significant improvement in the quality of life in the Milford area.’’

Even so, Feingold said he sees so many positives only if the towns can deal with the changes. Direct access to I-495 would be key, he said.

Jack Lank, president of the United Regional Chamber of Commerce, which represents 16 communities including Franklin, Bellingham, and Medway, said he thinks the Milford casino would be good for the region, not just because of the revenue and casino jobs but also because of the extra jobs that would follow across the area.

“As we’ve witnessed with what has happened down in Connecticut, the local stores, the local mom-and-pops, the pizza shops, and small restaurants, they all prosper because people on their way to or from one of these casinos, they have to eat,’’ he said.

If a casino or two is to be built in Massachusetts, Nunes and Warner might have some strong arguments for why Milford is their winner.

To address water and sewer issues, they have talked about digging their own water well, and at the recent Milford selectmen’s meeting said that a waste-water treatment plant is already included in their budget.

They also hope to prevail upon the federal government to help out with direct access to I-495, which could cut down on some of the local traffic arguments.

As chair of the Legislature’s Joint Committee on Economic Development and Emerging Technologies, Spilka gaveled a hearing last week on 17 bills related to expanded gaming.

Spilka said that among other things she is concerned about a rise in gambling addiction and the toll that would take on children and families, as well as the impact on schools and traffic.

“I’m trying to be open to all sides,’’ she said. “I understand that it will generate revenue for Massachusetts, several hundreds of millions of dollars, and God knows we need it.’’

Lisa Kocian can be reached at lkocian@globe.com.