April 28, 2008 09:44 pm
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By Roger McKinney
rmckinney@joplinglobe.com
COLUMBUS, Kan. — The Cherokee County Commission on Monday signaled it is on board with Penn National Gaming’s plan to scale back its initial investment in a state-owned casino in the county.
The County Commission approved an amendment to its pre-development plan with Penn National. Commissioner Rodney Edmondson said by phone that the company wants to build a casino, restaurant and parking lot as its initial investment. He said a hotel and parking garage would be built in future years under the plan.
The casino company’s president said earlier this month that it wants to start with a $150 million investment, phasing in the remaining $100 million required by state law over 15 years. The initial investment would include the $25 million state license fee.
Eric Schippers, public affairs vice president for Penn National, said previously that the reason for the new plan is competition from the $301 million casino and hotel being built nearby by the Quapaw Tribe of Oklahoma. Schippers said the market is not large enough to support two projects of $250 million or larger, at least in the short term.
The tribe’s Downstream Casino Resort is being built just off Interstate 44, where Oklahoma, Kansas and Missouri meet. The 12-story hotel that is under construction is visible for miles by travelers on the interstate. The casino is set for a July 5 opening, with the hotel scheduled to open in the fall.
Penn National’s development is planned just north of the tribal development, in Cherokee County.
Penn National’s president told The Kansas City Start that if the state didn’t agree to the new plan, he wouldn’t rule out pulling out of the project altogether.
David Cooper, the county’s attorney on casino issues, said by phone that he doesn’t yet know if the Kansas Lottery Commission will go along with the plan.
“They’ve not expressed opposition,” he said. “We’ll know for sure in a week.”
Cooper referred to the May 5 deadline for the Lottery Commission to approve a contract with Penn National.
“That’s a hard-and-fast deadline,” he said. “It can’t be extended.”
Cooper said he expects a special meeting of the Kansas Lottery Commission to be called on Monday or before on the issue.
Cooper said the county’s lawsuit against the U.S. Interior Department is “in limbo.” The lawsuit alleges that the federal agency didn’t do proper environmental assessments before allowing land owned by the Quapaw Tribe to be placed into trust for use as a casino. The lawsuit also sought to halt construction on the tribe’s casino and hotel.
Edmondson said the County Commission would forward the amended pre-development agreement to the Kansas Lottery Commission with the message that the county board supports Penn National’s proposal.
The question
Kansas Lottery Director Ed Van Petten has said that the issue the Lottery Commission must resolve is whether the state law allowing state-owned casinos allows the contract manager to phase in the required investment.
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