Casino Consultants: No Negative Impact on Housing Values

How will the proposed Foxwoods Massachusetts casino affect property values in and around Milford? Two consultants, including one hired to represent the town's interests, say it will have little to no effect.

Appraisal Research Consultants, of Chicago, hired to represent the town, issued a report July 29 that found no adverse impacts on real estate values in other communities within one, three, five and 10 miles of comparable casinos.

According to its data, 501 households are within a mile of the proposed casino site in Milford. The median value of the homes in that band is $334,641 — the highest value of any segment surrounding the casino.

"While there is always the potential for a specific property to be adversely affected by an adjoining or a nearby property, the marketplace indicates that broad effects that diminish value across neighborhoods are unlikely," wrote William Miller, vice-president of Appraisal Research Consultants.

The findings generally matched those of the casino-appointed consultant, Gaming Market Advisors.

According to Appraisal Research Consultants, home values within two miles of the Hollywood Casino in Aurora, IL increased 31.3 percent between 2000 and 2013, a higher percentage than the broader market.

It found LaPorte County, home to the Michigan City, Indiana casino, had home values that increased by 34.3 percent over those years, slightly higher than the metro Chicago increase.

Skeptics of the data, introduced to the public Wednesday at the final informational meeting on the casino, say it is so qualified in the reports that no conclusions can be drawn. Critics also pointed out that the data did not draw from any sources in New England, including the Foxwoods Resort Casino in Connecticut.

Both studies looked at comparable casino developments, specifically commercial gaming resorts. Appraisal Research Counselors examined five operating casinos in Illinois, Iowa, and northern Indiana, then compared the sales data of houses within the mile-radius distances to appreciation rates for the respective states between 1991 and 2013.

Gaming Market Advisors, of Las Vegas, examined specific zip codes around 10 casinos, examining Census tracts rather than mile-distances. The casinos evaluated in this study all were newly opened, in the last five years, to highlight the most recent data available, according to the report.

Skeptics disagreed with the conclusions drawn from the data.

Jeff Howard, a resident of Zain Circle, within a mile of the proposed casino site in Milford, said the results seem to contradict earlier statements by Scott Butera, the Foxwoods Massachusetts executive, who he said had predicted value losses for the closest homes.

"Yet suddenly we have consultants here tonight saying no problem, your property values may go up?" Howard said.

At the meeting, Butera said the quality of the resort and efforts to mitigate traffic impacts should not impact the housing values. If it does, he said, funding will be made available for the affected homeowners. "If it goes the other way, we're working with the community on mitigation measures."

In a statement, the Metro West Ant-Casino Coalition said the disclaimer published by Gaming Market Advisors in its report discounts the validity of its own claims. The disclaimer reads, in part: "Gaming Market Advisors has made its best effort to secure accurate information, however, much of the information contained in this report was received from third parties, which Gaming Market Advisors did not validate or verify.  Accordingly, Gaming Market Advisors makes no warranty, real or implied, regarding the data contained in this report."

The Anti-Casino coalition includes elected representatives in Medway, Holliston and Hopkinton. Brian Herr, a Hopkinton selectman, is the chairman.

"Foxwoods continues to paint a rosy picture minus the factual information the residents of Milford deserve," Herr said. "If the consultants are confident in their analyses, then why not stand by their data?”