01:00 AM EDT on Friday, June 2, 2006

BY BENJAMIN N. GEDAN
Journal Staff Writer

WEST WARWICK -- The Town Council on Tuesday will hold a closed-door strategy session in advance of high-stakes negotiations with Harrah's Entertainment on a host-community agreement.

Harrah's, in tandem with the Narragansett Indian Tribe, has been lobbying the General Assembly to endorse its casino project for years. But Town Council members have not met with Harrah's leaders since last June, and negotiations over the host agreement ended in 2004 and never restarted.

Tuesday's session was planned prior to the yesterday's vote in the state Senate approving legislation to place a constitutional amendment on the November ballot asking if a privately run casino should be allowed in Rhode Island. The House approved the measure last Thursday.

The host agreement would govern Harrah's annual payments to the town, including possible compensation for police and fire protection, as well as utilities and assorted other services.

"Our big concern is the dollar amount," council Vice President Edward A. Giroux said yesterday. "I'm going to squeeze every last dime I can out of our good friends, the Narragansetts and Harrah's. They're going to be business associates."

In negotiations, Giroux said, the town may also press for guarantees that homeowners near the casino would be compensated for any lost property value.

Council member Peter F. Calci Jr., a casino opponent whose ward includes the industrial park where Harrah's hopes to build the resort, said he will use the negotiations to press the Las Vegas company to limit any impact from the project on his constituents.

"We'll be looking for the best financial agreement," Calci said, "but it is incumbent upon myself to guarantee the quality-of-life issues."

In the negotiations, which could begin as early as next week, the town will be represented by lawyer John D. Lynch Jr., of the Warwick law firm Lynch & Friel. Last May, the council dismissed William A. Poore, of Providence-based Poore & Rosenbaum, who negotiated 10 draft agreements with Harrah's two years ago.

That 4-to-1 decision riled council member Leo J. Costantino Jr., a casino opponent who suggested that Poore had been punished for fighting aggressively in the interest of townspeople. Yesterday, on the eve of new talks, Costantino renewed his objection. "Bill Poore did a great job," he said. "He drove a hard bargain. I saw no reason to change."

Lynch declined to discuss the coming talks. The council president, John J. Flynn, did not return calls for comment.

Negotiations over the host agreement broke off in 2004 after the state Supreme Court declared unconstitutional a bill setting a statewide referendum on the casino plan. Last year, in an advisory opinion, the court ruled against a revised bill, again delaying negotiations.

The negotiations will not mark the first time Lynch & Friel has helped advance the casino project. Last June, the law firm sparked controversy when it filed a brief with the Rhode Island Supreme Court in support of casino legislation. The council had never endorsed the so-called friend-of-the-court brief.

In addition to restarting negotiations, Harrah's plans small group meetings with townspeople to discuss the casino project. Company executives, at a community forum in April, promised such meetings.

"The next area of focus is getting the community's input on the project," said Joshua N. Fenton, a Harrah's consultant.

Frank Lombardo, of the group West Warwick Citizens Against The Casino, said community input should also be welcome at Tuesday's council strategy session.

"It's interesting to see that they're having it in executive session," Lombardo said. "If you're honest about it, show your cards. There should be some sort of forum where the public hears it."