Cherokee Nation Businesses, which seeks a license to build and operate a casino in Pope County, has received even more endorsements from local officials, just before it submits its application to the state.
Ben Cross, the county judge, announced Wednesday that he had written two letters of endorsement for Cherokee Nation Businesses -- one in support of a casino license for property outside of Russellville and another for a potential site within the city limits of Dover. On top of that, the Dover mayor issued his own letter of support.
Amendment 100 -- approved by voters in November 2018 to allow a new casino in Pope and Jefferson counties, and allow the expansion of gambling at the racetracks in Hot Springs and West Memphis -- requires that the new casinos have the endorsement of county officials. Amendment 100 also states that an endorsement issued by a mayor must be accompanied by a letter of support from the county judge or a resolution by the county Quorum Court.
Cross -- who promised in his campaign that he would not endorse a casino unless it was the will of the people -- said Wednesday that he issued the support letters "after an exhaustive review by legal counsel to the county in an effort to further mitigate litigation expenses to Pope County taxpayers."
On Aug. 13, the Pope County Quorum Court issued a resolution supporting Cherokee Nation Businesses for the license. On Oct. 28, the Quorum Court repealed a 2018 initiated county ordinance that required county officials to get permission from voters before they endorsed a casino candidate. No election was ever called.
The next day, Oct. 29, a circuit judge tossed out a lawsuit against the county that was filed by the anti-casino group Citizens for a Better Pope County, which contended that the Aug. 13 endorsement violated the ordinance because no election was held. The judge ruled that the ordinance was unconstitutional.
"After local control was ruled unattainable in a court of law, and our entire team of legal counsel all agreed on the appropriate path to remove the county from continued litigation expense, it became a procedural and fiduciary responsibility for me to act upon, and complete, the advice of counsel, acting as the sole individual ultimately responsible for the expenditure of taxpayer funds under the law," Cross said. "It is now upon the state appellate levels of the judiciary to complete the legal review of all that has transpired and deliver the appropriate rulings."
Cross said the second letter, for Dover, was necessary after Dover Mayor Roger Lee endorsed a Cherokee casino there.
Lee said in the letter that a casino would give Dover -- a small city of about 1,400 people 10 miles north of Russellville -- the opportunity for "jobs, economic growth, and overall financial stability."
"Only one municipality in Pope County has met the constitutional provisions set forth by Amendment 100," Cross said. "Accordingly, I have issued separate, but virtually identical letters to encompass both the intended location in unincorporated portions of Pope County, as well as, the city of Dover, which has met the legal requirements pursuant to the law with a mayoral letter of support."
NEXT: APPLICATION
Chuck Garrett, chief executive officer of Cherokee Nation Businesses, said Wednesday that he was grateful to the Pope County Quorum Court and Cross for their "proactive and diligent efforts to comply with the constitution, and create jobs and opportunities for economic growth through our project."
"On Friday, we will submit an amended application to the Arkansas State Racing Commission that includes both the Hob Nob Road and Dover locations," Garrett said. "We are excited about the potential opportunities and look forward to continuing our work with elected officials to determine what is best for the county."
The Cherokees, along with four other applicants, had submitted an application earlier this year to the state Racing Commission. But the applications were rejected because of questions raised regarding local leaders' endorsements.
On Tuesday night, the Pope County Quorum Court's newly created planning board issued Cherokee Nation Businesses a construction and operation permit to build a casino resort north of Hob Nob Road just outside of Russellville.
The permit essentially forces Russellville to honor the new permit if the land is annexed into the city in the future.
"The permits issued yesterday by the Pope County Planning Commission will ensure that construction and operations for Legends Resort & Casino Arkansas commence upon issuance of the casino license," Garrett said.
Kelly Jett, the founder of the pro-casino group Pope County Majority, cheered Cross' decision to write the letters.
"At this stage in the process making sure any further litigation is avoided for the purpose of stalling the issuances of a license to Legends and to stop the unnecessary spending of taxpayers' money on frivolous lawsuits, a better choice could not have been made," Jett said.
"We are thankful for the [counsel] the Quorum Court has retained and their willingness to act according to their guidance. We are also very excited to see that Mayor Lee of Dover has issued a letter of support for Legends to potentially build in Dover. It's a breath of fresh air to see Pope County officials working together for economic growth and development in Pope County," Jett said.
Multiple messages to Russellville Mayor Richard Harris were not returned as of late Wednesday.
RUSSELLVILLE SUPPORT
Russellville has been conducting its own search for a casino operator, even though any endorsement would require the county's backing.
The Russellville City Council's gambling committee on Oct. 14 recommended supporting Kehl Management of Dubuque, Iowa, over two other contenders. An official resolution on Kehl is on the agenda for the City Council's meeting on Nov. 21.
Russellville's Community Gaming Evaluation Committee was set up at the beginning of September because Cross had negotiated an economic development agreement with Cherokee Nation Businesses that included an upfront $38.8 million payment that would be distributed to nonprofit organizations, the county and some municipalities -- but not to Russellville.
Kehl Management proposed to pay $178.3 million over 30 years in economic benefits to the county and various nonprofits over and above the net casino tax required by law.
That agreement promises an "upfront investment" of $40 million, with $20 million paid to Pope County. The remaining $20 million would be paid in $10 million installments over the next two years.
Russellville City Clerk Gina Skelton did not honor requests made Wednesday by the Arkansas Democrat-Gazette under the state Freedom of Information Act for copies of proposed ordinances -- one concerning annexation and another repealing a 1901 ordinance prohibiting gambling within the city limits -- submitted by Harris and listed on the City Council's agenda for next week's meeting. Skelton said she could not forward the documents until she received permission from the city attorney's office.
MORE APPLICATIONS
The state Racing Commission's second window for applications for a Pope County casino license closes at 5 p.m. Monday, but the commission decided last month to wait until two lawsuits are resolved before ruling on the applications.
The lawsuits include the one from Citizens for a Better Pope County that was tossed out by a circuit judge on Oct. 29 and another filed by Gulfside Casino Partnership of Mississippi against the state Racing Commission.
On Nov. 25, Pulaski County Circuit Judge Tim Fox is to hold a hearing on Gulfside's challenge of the rejection of its license application by the Racing Commission.
The second window for applications was opened after all five applicants for the Pope County casino -- Gulfside, Cherokee Nation Businesses of Oklahoma, Kehl Management, Warner Gaming of Nevada and Choctaw Nation Division of Commerce of Oklahoma -- were rejected by the Racing Commission in June because none contained endorsements from current officials.
Gulfside claims that its application met the constitutional requirements because, unlike the others, it included letters of endorsement from local officials issued right before those officials left office in December.
Other lawsuits and complaints are ongoing concerning the awarding of a casino license in Pope County:
• James Knight on behalf of Citizens for a Better Pope County sued the state Racing Commission, over the Aug. 13 endorsement by the Pope County Quorum Court.
• The Office of the Prosecutor Coordinator in Little Rock appointed Little Rock lawyer Jason Barrett to review a complaint filed by Hans Stiritz, on behalf of the anti-casino group Concerned Citizens of Pope County, alleging that Pope County officials held meetings that violated the Freedom of Information Act to discuss casinos.
• Jacksonville lawyer William J. Ogles filed three complaints with the state Ethics Commission against Pope County Justices of the Peace Caleb Moore, Doug Skelton and Ernie Enchelmayer.
Metro on 11/14/2019