Thursday, June 23, 2011

Bingo trial: Ronnie Gilley says two defendants fought his gambling development at first

Ronnie Gilley (The Birmingham News/Joe Songer)Country Crossing developer Ronnie Gilley testified this afternoon that two of the defendants in the State House vote-buying case initially fought his project.
Gilley also testified that he never thought about electronic bingo until someone from the lieutenant governor's office called in 2007 and asked if there would be an interest in making the gambling machines part of his development.
The brash and controversial casino promoter took the stand for the prosecution this afternoon. Prosecutors got about an hour into his testimony before the trial broke for the day. Gilley described the early days of Country Crossing development and how investors were clamoring to be part of the project once he brought in electronic bingo.
"Money was chasing me," Gilley said.
Gilley is a key witness for prosecutors, who claim he worked with VictoryLand owner Milton McGregor and others to buy votes for gambling legislation. Prosecutors allege Gilley and McGregor offered legislators campaign contributions and business opportunities to change their votes on gambling legislation.
McGregor and Sen. Harri Anne Smith, also a defendant in the case, initially opposed the project, Gilley testified.
Gilley said McGregor in 2008 was backing a bill that would have allowed his tracks and other locations, not including Country Crossing, to have gambling machines. Smith, an independent from Slocomb, was pushing a bill aimed at stopping Country Crossing from having electronic bingo machines.
Gilley said Smith later withdrew the bill and he co-hosted a fundraiser for her. Gilley said he did not speak to Smith before she withdrew the legislation
"I came to the fundraiser and handed her a check. She hugged my neck and we buried the hatchet," Gilley said.
Gilley said the check was for $5,000. Smith later went to his office and returned the check, Gilley testified. Testimony ended for the day after Gilley described the fundraiser.
elevenarrested-1005.jpgRonnie Gilley was one of 11 people arrested in October, but he struck a deal with prosecutors, pleaded guilty and cooperating with the prosecution. (The Birmingham News / Joe Songer )
Smith is accused of changing her stance on Country Crossing as a result of campaign contributions from Gilley. Her defense has contended she changed her mind because polls showed the project was popular.
During his testimony, Gilley provided a history of the Country Crossing project, at times deviating into the sales-pitch he so often made at the State House.
Gilley said that, in 2007, he originally had envisioned developing "Little Nashville," which he said would be a retirement community with a country music theme. But Gilley said the real estate market tanked, and the project with it.
But Gilley said in the middle of 2007 someone from the lieutenant governor's office called to ask if there was interest in putting electronic bingo machines in Little Nashville. He did not name the person with the lieutenant governor's office or say what their interest was.
Gilley said he had no idea what electronic bingo was at the time. He discussed it with his chief financial officer, Chuck Taylor, who Gilley said had some connections to McGregor's accountants.
After talking to Taylor, Gilley, said he came to the conclusion that it would be a "great idea" to include bingo in the project. Gilley said he had interest from financial investors almost immediately.
"We had money chasing us," Gilley said.
Gilley said he tasked his lobbyist Jarrod Massey with getting gambling legislation passed. Gilley said Massey would be paid up to $500,000 per year for each bingo casino that they built. Massey also pleaded guilty and will testify for prosecutors.
Gilley is expected to testify Friday about how Smith and McGregor started being proponents of County Crossing.
Defense lawyers will hammer Gilley on his credibility when prosecutors conclude their questioning.
McGregor lawyer Joe Espy in opening statements disparaged Gilley as a crook. Defense lawyers have argued Gilley is the one behind any wrongdoing and is now trying to shorten his prison stay by helping prosecutors

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