Casino legislation, T parking project boost hopes for an economic revival

For decades, developers have looked toward the country’s oldest public beach and the 35-acre dog track as sites to generate new revenue for the city. Along the beach, more than 1,400 condos and apartments were built in the 1980s. But with recessions hitting real estate hard in 1991, 2001 and 2007 - and causing angst among developers and buyers - just 82 new condos have been built during the last 20 years.

Still, even in this unsteady economy, a plan to expand parking at Wonderland Station in Revere and the possibility of casino gambling at Suffolk Downs in neighboring East Boston could propel an economic rebirth of the area.

Until recently, the idea of a new parking garage at the T stop or a casino seemed remote. But last fall, the state committed to building a $50 million, 1,900-car parking garage at the Wonderland station by 2011.

Revere Mayor Tom Ambrosino says the expanded parking will help accelerate plans to build a $500 million neighborhood on an 8-acre state-owned site behind the T station.

The development would include a 14-story, 100-room luxury hotel, a 145,000-square-foot office building, and 902 luxury condos.

The site, which stretches for four-tenths of a mile, is currently a parking lot and sits less than 50 yards away from the ocean.

“The whole point of this development is to generate real estate taxes,’’ said Ambrosino.

According to Revere developer Joe DiGangi, who is the lead investor in the mixed-use project, the new neighborhood could provide about $6 million in additional taxes a year to the city. Also, he projects that up to 800 jobs would be created at the site.

Ambrosino said the additional revenue could be used to lower property taxes, and to overhaul the city’s water and sewer system as well as to build a new elementary school. Meanwhile, DiGangi says the project would attract empty-nesters and commuters, and restore the beach to its former days of grandeur.

“There’s always a demand for oceanfront property,’’ said DiGangi, who estimated that it could take as long as a decade to build the entire project. DiGangi said his corporation, Eurovest Development, will build in phases, beginning with the hotel and office building. DiGangi has a letter of intent from New York-based Mirbeau Inn to build a spa and hotel at the site, which is fully permitted by the city and state. “The hotel and the office building will drive the appetite of those who want to live here.’’

While Ambrosino and DiGangi believe that the $500 million development is viable in the current market, both say real estate prices along the beach could jump if the state legalizes casino gambling.

While Governor Deval Patrick’s proposal to legalize gambling two years ago was rejected by the Legislature, the cash-strapped state is now taking a serious look at the idea. And, later this month, House Speaker Robert A. DeLeo, a Democrat from Revere, plans to introduce legislation to legalize casino gambling in the state. Besides casinos, DeLeo also plans to propose that slot machines be legalized at race tracks in the state. Patrick still supports legalizing casinos but opposes slot machines at tracks.

Still, even if the Legislature approves both proposals, there is no guarantee that Wonderland Greyhound Park will stay open past July 31, said Wonderland president Dick Dalton. Massachusetts voters approved a ballot question in 2008 to ban live dog racing, and Wonderland has stayed open by offering simulcast races from other dog and horse tracks. But state law allows Wonderland to simulcast only until July 31.

Dalton would not rule out slots at Wonderland if the state legalizes the machines, but said the park’s officials prefer to build a full casino at Suffolk Downs. In 2008, the two race tracks entered a joint venture agreement concerning potential gaming at the Suffolks Downs site.

“I think concentrating it in one area will create more jobs, and will create more capital investment rather than splitting it into two competing entities a mile away from each another,’’ said Dalton.

Barring the possibility of slots at the park, Dalton believes Wonderland could have a markedly different look in a couple of years. Dalton says the park will probably be redeveloped for retail or commercial use. The 35-acre site is appraised at about $15 million, according to the city. “Probably in this market, it’s more likely that it would end up to be big- box tenants,’’ said Dalton.

“Once we know for certain the direction that [the casino-slot machine legislation] takes, then we’ll take appropriate actions here. The last thing we want and I’m sure the city wants is this to be a vacant, inactive property for any length of time. And, for us, we have great incentive.’’

DiGiangi, the Revere Beach developer who has spent $4 million so far on obtaining necessary permits for his project, believes a nearby casino could only help his venture. Meanwhile, he is confident that the new 1,900-car T garage - which would provide 600 leased spaces for his development - along with the lure of a 20-minute subway commute to Boston, and the hope for an improved economy in two years could make the timing of his first construction phase in 2012 a sound investment.

Real estate prices along Revere Beach have dipped during the latest recession, but still, inventory is low and prices are starting to rise, said James Butler, who manages rentals at the Waters Edge apartments next to DiGangi’s proposed development. Out of the existing 1,109 condos on the beach, just 14 are for sale, with the average price set at $281,000.

Butler also believes that the area is not overbuilt and could handle another 1,000 luxury units. “Where else can you go and buy a luxury unit on the water for $500,000? If these were built in Boston they’d be double the price,’’ he said.

Just steps from the beach, at the Bagel Bin Deli on Shirley Avenue, a dozen regulars debated the merits of the proposed development and took sides.

Jim Jiovanni opposed the development and said more condos would bring more traffic along the beach. “We’re going to end up putting up a toll booth on the boulevard because of the traffic,’’ he said.

But Tony Barbaro, who already owns a condo on the beach, said real estate prices will go higher if a casino is built at Suffolk Downs. “If they start to have gaming here I might buy another condo,’’ he said.

Steven Rosenberg can be reached at srosenberg@globe.com.