Despite initial fears, gambling has improved economy for Lincoln City

Wednesday, March 29, 2000 | 10:23 a.m.

But, given the source of the study, some residents and city officials remained skeptical.

Trumpeting the results, Delores Pigsley, the tribal chairwoman, said the study proves that initial concern about the casino's social and economic impact was unwarranted.

"What our study reveals is that contrary to those earlier concerns, the Siletz tribal government and our Chinook Winds Casino are making significant positive contributions."

The tribe paid the consulting firm ECONorthwest about $36,000 for the study.

Some city officials, including City Councilor Lori Hollingsworth, declined to talk about the study's specifics because they hadn't seen it.

"One thing I think is curious is the casino did the study and the casino found it to be positive," Hollingsworth said.

Eight tribes operate casinos in Oregon, grossing an estimated $250 million to $300 million a year, said Robert Whelan, senior economist for ECONorthwest.

Whelan said earnings vary depending on one crucial factor: location. In 1997, Whelan estimated the Confederated Tribes of Grand Ronde, with the casino closest to Portland and the Willamette Valley, generated $82 million in gross revenue. In contrast, the Chinook Winds Casino made about $28.7 million.

The Siletz tribe and casino pumped $35 million into Lincoln County and stimulated $2 million in profits for small local business owners in 1998, the study said. And the tribe supported 1,493 full-time jobs, or about one of every 11 jobs, in Lincoln County.

Moreover, according to the study, the casino in 1998 attracted 475,000 visits from tourists who otherwise would not have come.

"It helps keep travel up during winter time," said Crystal Phillips, a cashier at Lincoln Plaza Shell, near the casino at the north end of town on Highway 101.

But Lisa Voelker, a 20-year Lincoln City resident who owns a jewelry shop, said she knows many business owners in town "and I don't know of anyone jumping up and down because of increased business."

Voelker, who tried to prevent the casino as part of a group called No Casino, said she's still waiting for the gaming center to have a positive impact on local small businesses. However, she is pleased that the tribe spent $317,000 on environmental programs in 1998.

The study also claimed that property values would be about 12 percent lower without the casino. But Leslie Green, a broker and co-owner of Century 21 Pacific Shores Properties, a real estate agency on Highway 101, said she hasn't noticed increased values.

As for new business? Police say three new ones have come to town: pawn shops.

"To my knowledge, there had never been a pawn shop in Lincoln City," Sgt. Mark Hopkins said.