Joe’s Stone Crab owner Steve Sawitz distinctly recalls his grandfather’s admonitions decades ago against bring casino gambling to Miami. The move could be the “downfall” of independent business, his grandfather cautioned.

That warning resonates with Sawitz today as legislation to allow resort casinos is debated in the Florida Legislature and casino companies jockey for position in the market. Although he acknowledges Joe’s could benefit from casino traffic because of the nearly 100-year-old landmark’s reputation, Sawitz fears that a mega resort with dozens of restaurants and a shopping mall would put many of his neighbors out of business.

“There is not one good reason for them to want you to go outside of that casino,” said Sawitz, the fourth generation of his family to run the Miami Beach restaurant, which also has a location at the Forum Shops in Las Vegas — a far different market, he said. “It’s hard to compete with comped meals and drinks. You’ve got to show me a place where restaurants and retailers outside of the casino do well. I’m not risking my sweat equity of 100 years in their promises.”

The debate over whether Genting’s Resorts World Miami or a destination resort project by Las Vegas Sands would be good business for existing retailers and restaurants has divided the Miami community. Some see it as the death knell for small mom-and-pops, while others envision a windfall of new customers and revenues.

The issue has come to a head since Genting purchased The Miami Herald and surrounding property for nearly a half billion dollars last year, then unveiled plans for the massive, $3.8 billion Resorts World Miami. Under the terms of the agreement, The Miami Herald can remain in its current quarters rent-free through May 2013.

Genting has tried to gain support by touting projections of two to three million new visitors annually and the addition of about 45,000 direct and indirect jobs. For local restaurants and bars, Genting offers the chance to participate in a WorldCard rewards program that would encourage casino guests to visit local businesses.

“Miami has so many unique cultural attractions and we want to promote them,” said Jessica Hoppe, senior vice president of governmental affairs for Resorts World Miami. “We want our customers to go and experience South Beach because we want Miami to thrive and grow. We fully believe that a rising tide lifts all ships.”

That pitch has already drawn interest from more than 50 Miami-Dade restaurants and bars, including Tony Chan’s Water Club, City Hall the Restaurant, Truluck’s Seafood, The Daily and Wall nightclub. Others like The Forge and Garcia’s Seafood Grill are interested not only in the loyalty program, but also in opening an outpost at Resorts World Miami.

“It really does go to show that these folks are serious about sharing the wealth,” said Shareef Malnik, whose family has owned The Forge on Miami Beach for 45 years. He has a handshake deal to bring an outpost of The Forge to Resorts World Miami. “Genting will be a magnet. If it makes our city better, I will get my fair share of increased business over the long run.”

Luis Garcia, whose family owns Garcia’s Seafood Grill and Garcia’s Wholesale, hopes he can convince Genting to create a fisherman’s wharf on the project. But even without that, he thinks tourists will leave Resorts World Miami to visit his restaurant on the Miami River.