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Originally published April 7, 2009 at 12:00 AM | Page modified April 7, 2009 at 1:33 AM

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Kirkland considers annexation, keeping Casino Caribbean open

As Kirkland considers annexing neighborhoods and adding 33,000 residents to the city, the city also is working on legislation that would grandfather in the existing Caribbean Casino.

Seattle Times Eastside reporter

Kirkland Annexation

Finn Hill, Juanita and Kingsgate neighborhoods

The casino is one piece of a complex annexation that the City Council is considering today. The council is expected to vote on whether to put annexation of Finn Hill, Juanita and Kingsgate neighborhoods on the ballot for this fall, which would add around 33,000 residents to Kirkland's current population of 48,000. Residents of those neighborhoods would vote for or against being added to Kirkland.

Some Kirkland residents believe annexation is too expensive for the city, but city officials say the financial impact is neutral. Kirkland also is under pressure to start annexation by January 2010 in order to qualify for a 10-year, sales-tax credit from the state, said assistant city manager Marilynne Beard.

The Growth Management Act also encourages cities to annex and the county has been struggling to serve the area, she said.

City Council: The public hearing begins at 7 p.m. today in Kirkland City Council Chambers at City Hall, 123 Fifth Ave., Kirkland.

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The Casino Caribbean sits on the edge of Kirkland in unincorporated King County. There, the kitschy, palm-bedecked cardroom can do business, unlike in the city, which bans cardroom gambling.

But as Kirkland considers absorbing the Kingsgate neighborhood that includes the casino as part of an annexation, the city also has asked the state legislature to grandfather the casino in and allow it to remain open. No new cardrooms would be allowed.

But a casino is not exactly in keeping with Kirkland's image as a well-to-do suburb with a quaint, downtown waterfront.

"What's tackier than a casino?" said Kirkland resident Deirdre Johnson, who lives in South Rose Hill and is upset over the potential annexation. "We're Kirkland, for God's sake."

The casino owner, through a spokesman, declined to comment on the issue.

City officials say the council wants the choice to keep the casino — and its revenue. If taxed at 20 percent as allowed under city ordinance, the city could get $500,000 to $1 million yearly in taxes that would help with annexation, said assistant city manager Marilynne Beard. The business is now taxed by King County.

"It obviously helps the financial situation if we allow them to continue to operate," she said. "It's not an insignificant amount of money and would help provide services to the area."

The legislation requested by the city gives the council a choice, and it still is being discussed, Beard said. No decisions have been made. The bill has passed the Senate and is eligible for a vote in the House any time, said a spokeswoman for the House Democratic Caucus.

At midday at the Casino Caribbean recently, the dark room was partly full. Clients, mostly men, clustered around card tables for poker and blackjack. Fake palm trees, neon pink and blue lighting and speakers thumping Madonna's "Ray of Light" provided the backdrop to a competitive-poker tournament in one room.

The casino has been just about a mile from the Kirkland boundary since 2005 and was first proposed in 2004, when annexation was already being discussed. At the time, then-mayor Mary-Alyce Burleigh said she did not support gambling in Kirkland. Burleigh, now a City Council member, said it's still not her preference and she is opposed to new card rooms.

But she said she hasn't heard of any issues at the Caribbean. She also feels the city has an obligation to go forward with annexation, though would like to make sure the city does not become dependent on the casino revenue, she said.

Bea Nahon, treasurer of the group Citizens for a Vibrant Kirkland, which opposes annexation, said she'd like to have the city discuss gambling more.

"In the past, the City Council has said no to gambling," she said. "At every opportunity they've said, 'No, we're not allowing gambling in Kirkland.' And now maybe they will."

Jim McElwee, who also is the chair of the Kirkland Alliance of Neighborhoods, pointed out that Kirkland banned cardrooms in 1999.

"Personally, I don't want any casinos in my community. I've drawn my line at the bingo parlor," he said. "If our community values say we prefer not to have casinos and yet we allow them, I think that's being hypocritical."

Nicole Tsong: 206-464-2150 or ntsong@seattletimes.com

Copyright © 2009 The Seattle Times Company

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