National City Voters May Be Dealt In on Card Room Decision

George Hardie, who earlier this week lost a bid to build a card room for legalized gambling in Cathedral City, apparently has persuaded National City officials to call a special election in February so that local residents can decide if they want a card club in their city.

National City Mayor George Waters said Thursday that Hardie, who is mayor of Cathedral City, has agreed to pay the cost of the Feb. 6 election, which could be as much as $40,000. Waters said he has met with Hardie “two or three times” to work out an agreement on the election.

“But nothing is 100% certain. The council will act on this at our Oct. 17 meeting, when Mr. Hardie will make a presentation,” Waters said.

Proposed 80-Table Club

If the City Council authorizes the election, voters will be asked to decide whether Hardie can include an 80-table club on the ground floor of a high-rise hotel he plans to build on National City’s waterfront. If approved, it would be the largest gaming room in the county. The council has already approved Hardie’s plans for the hotel, Waters said.

Four days ago, voters in Cathedral City rejected a proposal by Hardie and his allies to build a card room in a $25-million resort hotel that would be built on desert land owned by Hardie. Cathedral City is between Palm Springs and Indian Wells. Hardie is already a managing partner in the 170-table Bicycle Club gaming room in Bell Gardens in southeast Los Angeles, the largest in the state.

Waters, who said he was not aware of Hardie’s defeat in Cathedral City, said that he and other City Council members have not taken a position on the National City ballot.

“My position is that I’m going to give the public the opportunity to tell me what to do,” Waters said.

But, he added: “My feeling is that you have bingo, Lotto and horse racing, and people like it. That’s gambling, too.”

National City Crime Rate

Waters said he was not concerned that legalized gambling might increase crime in National City, which has the highest rate of violent crime and overall crime in San Diego County.

According to the San Diego Assn. of Governments, National City averaged 13 violent crimes per 1,000 population during the first six months of this year. This represented an 18% increase over the same period in 1988, said Sandag spokeswoman Donna Walko. Countywide, the average for the first half of this year was 7.1 incidents of violent crime per 1,000 population.

National City’s overall crime rate was 98.6 crimes per 1,000 population during the first six months of this year. Police Chief Stan Knee acknowledged that, although the figure is high, it represents a 6% decrease in overall crime over the same period in 1988.

Waters said that a visit to Bell Gardens by the City Council convinced them that crime would not be a problem if the card room is approved by voters.

“We know that they (Bicycle Club) have their own security force. It won’t impact our Police Department,” Waters said. “I talked to the mayor of Bell Gardens, and he told me that the police have been there (Bicycle Club) no more than two times in about five years.”

Bell Gardens City Manager Claude Booker agreed that Hardie’s card club has not contributed to an increase in local crime.

‘Take Care of Own House’

“There has been no increase in major crime, like I hear people talk about..... . . . They keep a very large security staff on the premises and take care of problems. They tend to take care of their own house pretty good,” said Booker.

Waters estimated that the city will get $2 million in revenue each year and that 500 new jobs will be created if voters approve the card room. On Friday, Hardie said he is in escrow on the property along San Diego Bay, where he and other investors have proposed to build the hotel.

Despite having the highest crime rate in the county, National City ranks third in total revenue. Most of the city’s revenue comes from sales taxes derived from the auto dealers that line the Mile of Cars on National City Boulevard.

The mayor said he is not sure if Hardie will build the 375,000-square-foot hotel if the card room proposal is rejected by voters. National City voters outlawed card rooms 40 years ago.

Hardie declined to say if he would pull out of the hotel project if voters reject the card room. But he said that hotels alone “generally are marginal in terms of economic investment.”

“The idea (for the hotel) was put together for this blighted area, which is currently a slaughter house and junkyard for cars. The hotel initially did not pencil in as a viable economic investment. Some sort of financial anchor was needed, and that was the card room. That’s where I was brought in,” said Hardie.

Some Opposition

Waters said a survey commissioned by Hardie of 400 local residents indicated there is strong support for the card room. However, the gaming club is opposed by former Mayor Kile Morgan, and a coalition, which includes several clergymen, has been formed to defeat the measure.

Morgan said he opposes the card room because “I’m opposed to gambling.” Hardie said he is “distressed” that the proposed card room has evolved into a moral issue.

“There is no reference in the Bible to gambling. It’s a free-choice issue. The people should have the right to go bowling, to a football game, shopping on Sunday or go play cards if they want,” said Hardie.

He added that critics are wrong when they compare card rooms to Las Vegas gambling. He said he is in the business of renting seats in his card room, not gambling.

“In Las Vegas, you play against the house. In California, it’s illegal for the establishment to participate in a game in any way. We’re in the seat rental business. You pay $2 or $3 every half hour to play. It’s nothing like gambling some place else. I resent people telling me that what I’m doing is not right,” Hardie said.

Mike Broderick, manager of the gaming registration program at the state attorney general’s office, said the card room measure would only have to be approved by a simple majority for it to pass. If it is approved, all owners, investors and managers associated with the card room would have to undergo a background check by the state in order to obtain gaming registration certificates.

Dealers hired by the game room usually have to register with the city and have to be cleared by local police departments, Broderick added.