BRENDA BLAGG: No sure bet, yet

Controversy over Pope County casino lingers

The saga continues in Pope County, where the local Quorum Court has now endorsed a proposed casino operator.

The endorsement theoretically clears the way for Cherokee Nation Businesses to secure a state license to operate a lavish casino resort just north of Russellville.

A potential operator must have an official buy-in from the county judge or Quorum Court to get that license.

The Quorum Court's action came last week in a called meeting amid serious charges that court members had met privately beforehand.

A special prosecutor will handle a formal complaint filed against county officials alleging they violated the state Freedom of Information Act, which requires open meetings of most public bodies.

Meanwhile, a decision by the Arkansas Racing Commission last week not to reconsider its denial of a license to a different casino operator was met with immediate litigation that promises to delay any casino breaking ground in Pope County.

There can be only one license granted in Pope County under provisions of Amendment 100, which state voters approved in 2018.

The amendment allowed expansions of casinos in Garland and Crittenden counties connected to local horse and greyhound racetracks there and permitted the creation of new casinos in Jefferson and Pope counties.

All three of the other developments are under construction, but the Pope County project has been shrouded in controversy since the get-go.

First off, voters within that county soundly rejected the amendment approved statewide authorizing a casino there.

They also passed a local ordinance requiring a public vote before a casino can get a license from the state. The idea was for voters to instruct the Quorum Court on whether to endorse a project.

And then, in their final days in office, the former county judge and the former mayor of Russellville gave their endorsements to Gulfside Casino Partnership, the Mississippi-based operator that has now sued the state Racing Commission over its denial of a permit. (The mayor must sign off, if the casino is within city limits.) Those two endorsements came months before the Racing Commission opened a period for filing casino license applications.

The commission later ruled the endorsements had to come from the people who held those offices at the time of a casino's application current officeholders at the time of the application. Gulfside contends the state Constitution makes no such requirement. That's why it is suing the commission, claiming its endorsements from lame-duck officials were valid.

There has been intense competition in Pope County among five different operators for the current officeholders' favor.

All of the operators have courted the officeholders and the community, where two distinct citizen groups have organized for and against a casino there.

The pro-casino group even encouraged the Quorum Court to ignore that local law about a public vote, which a majority of the court did last week.

Cherokee Nation Businesses came out the winner as the Quorum Court officially endorsed their permit application.

The company, which plans a $225 million resort just north of Russellville, sweetened the deal by signing a $38.8 million economic development agreement.

That upfront investment will go to 17 different entities. Pope County will get $27.6 million while five small cities will get amounts ranging from $242,427 to $3.3 million. Notably, Russellville, the county seat, isn't included in the agreement.

More upfront money is promised to rural fire associations and to educational and nonprofit organizations like the Arkansas Tech University Foundation and local arts centers.

There are also promises of ongoing annual contributions to a charitable foundation established by the county, the Russellville Economic Development Alliance and Arkansas Tech University Foundation.

All this sweetener is on top of the economic benefits and tax receipts expected from any casino, including new jobs and enhanced tourism.

The Cherokees' proposed Legends Resort and Casino would feature 50,000 square feet of gaming, a 200-room luxury hotel, a 15,000-square-foot meeting and conference center, a resort pool, an outdoor music venue, a recreational vehicle park, a dog park and an outdoor water park.

The project is supposed to be completed in one phase within 18 months and would create about 1,000 direct jobs.

Then there's the $38.6 million inducement that's to come up front in a cashier's check.

The latter agreement is contingent upon "the successful resolution of all litigation or administrative challenges relating to the issuance of" a casino license for Pope County.

In plain language, that means stay tuned. There is much yet to be sorted out in this ongoing saga.

Commentary on 08/21/2019

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