S.J. allows casinos to operate in parking lots
Al Fresco program will be expanded to give more businesses the opportunity to move outside
First there was outdoor dining, then outdoor haircuts and now coming soon to San Jose — outdoor gambling.
That’s right. San Jose will be the first Bay Area city to allow casinos to shuffle their cards outside.
In a decision early Wednesday morning, the San Jose City Council agreed to allow casinos to expand their operations into their private parking lots and approved additional retail and personal service businesses, such as art studios and dry cleaners, to move onto public sidewalks and into parklets. The city’s two card rooms — Bay 101 and Casino Matrix — must get written approval from city administrators before they can start welcoming customers back to their outdoor card tables.
The move comes as some businesses now have faced more than six months of closures in the wake of the COVID-19 pandemic that has wreaked havoc on many establishments and triggered layoffs, bankruptcies and more.
Councilwoman Maya Esparza was the only council member to vote against allowing the card rooms to operate outside, citing health and public safety concerns.
Before the pandemic, Bay 101 and Casino Matrix were expected to generate $18.9 million for the city in tax revenue. But forced closures have caused a $13.5 million hit to that tax base, according to a memo from Council member Raul Peralez, a proponent of the casinos’ expansions.
Given the current economic crisis and substantial budget shortfalls projected for the city in the years to come, Peralez said the city should “leave no stone unturned when it comes to creating desperately needed tax dollars for our community.”
“We know that we’re planning on them generating a substantial amount of revenue … and the more months that they go out of service, the less we’ll be able to generate,” Peralez said during the meeting.
The move to allow casinos to open tables outside comes just two months before a ballot measure goes before voters to expand the number of card tables permitted within the city and increase taxes on card rooms from 15% to 16.5%.
This week’s council decision marks the latest amendment to San José Al Fresco, a plan introduced by Mayor Sam Liccardo and Council member Dev Davis in early May to help businesses struggling from the economic fallout of forced closures and reduced operations amid the pandemic. Here is some more general in
formation about the plan and where the program stands four months after it was first introduced.
What types of businesses will be allowed to move outside?
• Restaurants
• General retail
• Gyms and fitness studios
• Education services and training
• Personal services such as nail and hair salons
• Dry cleaners
• Art studios
Where can businesses, upon approval, set up shop outdoors?
• Private parking lots
• Public sidewalks
• On-street parking spaces
• Public streets that the city has closed to vehicular and bicycle traffic
• City-owned parking lots
• Public parks and public plazas
However, not all types of businesses are allowed to operate in all of those settings.
For instance, casinos will be limited to their private parking lots.
When can businesses take advantage of the city’s relaxed rules for outdoor operations?
The city’s rules expire Dec. 31 or when the city is no longer deemed to be in a local state of emergency, whichever comes first.
What steps need to be taken before a business can operate outside?
Any business looking to move its operations outside must complete forms for the Santa Clara County Social Distancing Protocol and file it with the county.
Once that has been done, businesses need to register or apply for Al Fresco operations with the city.
Applications are free, and in many cases — such as private parking lots and sidewalks — businesses can start using the space as soon as registration has been completed.
Other sites, such as public parking lots and park spaces, require the city to review the application and authorize the move before it can take place.