Raw deal seen on coast

Raw deal seen on coast
As casinos lead Mississippi's recovery, some fear poor, elderly ignored
By Dahleen Glanton
Copyright by The Chicago Tribune
Published August 29, 2006

BILOXI, Miss. -- The bright, flashing marquees have returned to this stretch of Highway 90 known as casino row, providing an economic boost to the Mississippi Gulf Coast, where Hurricane Katrina left a wide swath of destruction.

A year ago Tuesday, barges from the water-based casinos washed across the four-lane highway, landing on apartments and shops before the buildings were ripped from their foundation and swept away by the powerful storm surge. Broken slot machines lay amid piles of furniture and clothes scattered along the road--the remnants of lives torn apart and an indication of the work that lay ahead.

But in the year since Katrina hit, the Gulf Coast is creeping toward recovery, anchored by an eager casino industry that poured hundreds of millions of dollars a year into the state's economy before the storm.

Beyond the glitter of the casinos, however, is a region still devastated by the hurricane that destroyed or severely damaged more than 134,000 homes, left more than 200 dead and thousands without jobs. It is an area plagued by poverty where critics said recovery efforts have ignored the elderly, working class and poor while focusing on the revival of tourism.

When the state's largest casino, the Beau Rivage, opens Tuesday, nine of the 12 casinos that were operating on the coast prior to Katrina's onslaught will be up and running, providing more than 13,000 jobs. The rest are still undergoing renovations and at least three new projects, totaling more than $3.5 billion, are being planned on the Gulf Coast.

It was difficult for residents such as Cynthia Smith to look beyond the devastation of a year ago and see a future. Like many residents, she had clung to life in the rising floodwaters.

"I lost everything and I didn't know whether I would have a job," said Smith, 47, of Gulfport, who recently returned to her job as a supervisor in the $10 Boutique at Beau Rivage. "But there are people worse off than I am. They have nowhere to go, no job and children who don't have families."

Small Mississippi towns along the Gulf Coast--Waveland, Pass Christian and Long Beach--were almost wiped out in the storm. Now, the state is looking to casinos once again for a lifeline and casinos are more than willing to offer it.

The proliferation of casinos on the coast has been controversial in this Bible Belt state since the first one opened a decade ago. Leading the opposition are religious groups, which argue that casinos bring increased crime, addiction and other problems, and preservationists, who fear casinos and high-rise condominiums will destroy the coastline's scenic beauty.

Following Katrina, Gov. Haley Barbour persuaded the Legislature to allow land-based casinos in the state, eliminating the requirement that the barges float on water. As a result, gaming officials said they have been flooded with calls from investors who want to build. And some landowners are rushing to place their property on the market.

Some gambling foes said they fear the coastline will end up looking like the Las Vegas strip.

"What people want is a quick shot in the arm, but they are short-sighted and not even taking the time to consider the economic implications, let alone the social concerns," said Rev. Mike Barbera, director of Citizens for a Healthy Long Beach which opposes casino development in that city. "My concern is that there will not be any diverse building--just gleaming, self-absorbing casinos."

Larry Gregory, executive director of the Mississippi Gaming Commission, said the state lost $500,000 a day in tax revenue when the casinos closed.He also defended the state's casino industry.

"From the very beginning, Mississippi has not wanted to look like Vegas or be like Vegas," said Gregory. "Our goal is to be a family-oriented place and a first-tier recreational resort that offers things other than gaming. Casinos put people back to work and that's the beginning of what's needed so these communities can get back on their feet."

MGM Mirage, which operates casinos in Las Vegas, has invested more than $500 million to rebuild the upscale Beau Rivage casino and hotel. Like many businesses on the coast, the company helped its 3,800 employees with funds for housing, child care and other needs.

Critics, including Derrick Johnson, president of the Mississippi State Conference of the NAACP, said the state has lost sight of other serious concerns that resulted from the storm, such as low-income housing. More than 39,000 people still live in government trailers.

A report issued last week by the Mississippi NAACP and the Initiative for Regional and Community Transformation at Rutgers University said the working class is being left out of the recovery because the state requested a waiver allowing $5.1 billion in federal Community Development Block Grants to be diverted to uninsured or underinsured homeowners who want to rebuild. Meanwhile, the 47 percent of Gulf Coast residents who lived in rental housing are left out.

"The renters' market has been ignored, leaving thousands of people displaced," said Johnson.

The governor's office has detailed recovery plans for the region, including separate plans developed by the 11 towns most affected by the storm.

Gavin Smith, director of the governor's office of recovery and renewal, said the plan includes $100 million to build subsidized housing. Another $30 million in state and federal funds is being used to provide housing and financial assistance to people who might have "fallen through the cracks."

There is no denying that casinos and high-rise condominiums will be a big part of the region's future, he said, noting that the largest concentration will be in Biloxi and Gulfport.

"Whether to allow casinos is a tough question that communities are going to have to ask," he said. "Casinos can bring jobs and money, but it is also important to recapture the architecture and history of the area. It's a delicate balance."

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dglanton@tribune.com