City Council reviews $250M funding for Cordish casino project and associated capital needs

The Petersburg City Council convened on June 17, 2025, to discuss significant financial strategies related to the upcoming casino project and its implications for city capital projects. The meeting focused on a financial plan that aims to responsibly manage an estimated $250 million in capital projects over the next five years, primarily funded through anticipated revenues from the casino.

The council began by acknowledging the successful vote that allows Cordish Companies to proceed with the casino project. Financial advisors from Chamura Economics and Analytics presented their analysis of projected revenues, which include guaranteed payments from Cordish and ongoing revenues from various taxes associated with the casino operations. The guaranteed payments are set to provide a stable income stream over the next eight years, while ongoing revenues are expected to grow significantly by fiscal year 2035.

A key point of discussion was the recommendation to fund one-third of the capital projects through cash reserves, while borrowing for the remaining two-thirds. This approach aims to maintain financial stability and ensure that the city does not overextend itself financially. The financial advisors emphasized the importance of waiting for guaranteed payments to arrive before committing to project expenditures, thereby ensuring that the city remains in a strong cash position.

The council also reviewed potential expenditures associated with the casino, which are projected to rise from $2 million in fiscal year 2026 to $9 million by fiscal year 2029. The financial advisors highlighted the need to balance these costs against the expected revenues to avoid any shortfalls.

In terms of next steps, the council plans to establish a line of credit of $30 million to facilitate immediate project funding while maintaining a reserve of $15 million from the initial payments. This strategy is designed to provide flexibility in project execution without jeopardizing the city’s financial health.

The meeting concluded with a commitment to revisit these financial strategies during the council's retreat in August, allowing for further discussion and refinement of the proposed plans. The council members expressed their intent to ensure that all financial decisions align with the city’s long-term fiscal goals and community needs.