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In the summer of 2003, the Confederated Tribes of Coos, Lower Umpqua and Suislaw Indians selected a site one mile to the east of Florence as the site of their casino. A local group, People Against a Casino Town (PACT). Announced that they will file a lawsuit September 15, 2003 blocking the construction of the casino. PACT draws its support from the retirees who have settled in Florence over the last two decades.
According to the United States Census Bureau, the city has a total area of 14.3 km² (5.5 mi²). 12.7 km² (4.9 mi²) of it is land and 1.5 km² (0.6 mi²) of it is water. The total area is 10.71% water.
As of the census of 2000, there are 7,263 people, 3,564 households, and 2,145 families residing in the city. The population density is 570.0/km² (1,476.3/mi²). There are 4,174 housing units at an average density of 327.6/km² (848.4/mi²). The racial makeup of the city is 95.88% White, 0.28% African American, 0.92% Native American, 0.55% Asian, 0.14% Pacific Islander, 0.56% from other races, and 1.67% from two or more races. 2.37% of the population are Hispanic or Latino of any race.
There are 3,564 households out of which 16.9% have children under the age of 18 living with them, 48.6% are married couples living together, 9.3% have a female householder with no husband present, and 39.8% are non-families. 34.4% of all households are made up of individuals and 21.7% have someone living alone who is 65 years of age or older. The average household size is 2.02 and the average family size is 2.52.
In the city the population is spread out with 16.8% under the age of 18, 5.0% from 18 to 24, 16.0% from 25 to 44, 23.9% from 45 to 64, and 38.2% who are 65 years of age or older. The median age is 56 years. For every 100 females there are 84.8 males. For every 100 females age 18 and over, there are 82.1 males.
The median income for a household in the city is $30,505, and the median income for a family is $36,784. Males have a median income of $30,962 versus $23,878 for females. The per capita income for the city is $18,008. 14.4% of the population and 10.0% of families are below the poverty line. Out of the total people living in poverty, 25.9% are under the age of 18 and 8.3% are 65 or older.