Clock is ticking for casino companies

June 09, 2007 05:49 pm

By Roger McKinney
rmckinney@joplinglobe.com
COLUMBUS, Kan. — The clock is ticking toward a 90-day deadline for companies to submit proposals for a state-owned, destination casino in either Cherokee County or Crawford County.
A news release from the Quapaw Tribe of Oklahoma indicates there may be competition for the state contract for operating a casino.
With Friday’s canvass of votes in Tuesday’s Cherokee County casino referendum election, the election is certified with the Kansas Secretary of State, said spokeswoman Stephanie Wing.
The Cherokee County Commission’s canvass added 18 “yes” votes to the total and added four “no” votes, said Cherokee County Clerk Sandy Soper. That makes the official total 4,681 “yes” votes and 2,058 “no” votes.
Penn National Gaming, with business partner Kansans for Economic Growth, has announced plans to submit a proposal to manage a state-owned casino and hotel complex near the Interstate 44 exit to Baxter Springs. State law requires the manager to invest at least $225 million in construction of a casino complex and to pay an additional one-time fee of $25 million for the privilege of holding the state contract.
So far, Penn National Gaming is the only company to publicly announce its plan to submit a proposal to the state.
John Berrey, chairman of the Quapaw Tribe of Oklahoma, on Friday released a written statement in response to a Globe inquiry about the tribe’s plans.
“The Quapaw Tribe is seriously contemplating applying for a license to participate in this state partnership venture,” Berrey said in the statement.
The tribe in mid-July plans to begin construction on the $200 million phase one of its Downstream Casino Resort, located on 235 acres in Kansas, Oklahoma and Missouri near where Penn National proposes to build its casino.
“We are extremely excited that Cherokee County has taken this important step toward economic development,” Berrey said of Tuesday’s vote.
Sally Lunsford, spokeswoman for the Kansas Lottery, said since Crawford County voters had approved a casino referendum, the 90-day deadline would start after a positive Cherokee County election was certified.
Ninety days from Friday would place the proposal deadline at Thursday, Sept. 6. Lunsford has said the lottery commission would not reveal the identities of the companies that submit proposals until that deadline had passed.
According to the state law that allows state-owned casinos in four areas of the state, the state lottery would have another 90 days to negotiate contracts with the companies that submitted proposals, which would be forwarded to the Lottery Gaming Review Board, which would then have 60 days to choose the management company, by Feb. 3, 2008.
Lunsford said details of proposals submitted to the state would not be made public until a manager is selected, using the exemption to the Kansas Open Records Act allowing sealed bids or specifications to remain closed until a public agency approves one.

Canvass details
Cherokee County Clerk Sandy Soper said the additional votes were a result of counting provisional ballots that weren’t part of Tuesday’s total. She said three provisional ballots weren’t included in the final, official total because the voters registered too late to vote in the election.

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