It’s not often that cash strapped cities refuse to except free money, but that was the case this week when a minority of Toledo City Council members blocked the receipt of a over $1 million from Penn National Gaming.
“This is a million dollars that is not owed to us,” said Councilman Mike Craig. “I can’t believe we are sitting here arguing over this.”
However the minority won when Council members voted only 8-4 to accept the payment, nine affirmative votes were needed.
Penn National Gaming wants to reimburse the city $1.3 million for infrastructure improvements the city invested in on the property that was purchased by Penn for the Hollywood Casino Toledo.
A road, storm-sewer line and public bicycle path were built on the site but Penn National plans to tear those improvements up to make room for the $250 million 200,000 square foot casino.
Councilman Mike Collins raised the concern that the city could face a potential lawsuit from Penn National or the state of Ohio.
The council will revote on the issue at its next meeting, after Mayor Mike Bell’s administration signed a covenant saying it will not sue the city and Penn National Gaming wrote a letter absolving the city from any liability.
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