Cherokees seek dismissal of suit; filing disputes Pope County casino foes’ assertion regarding ordinance

FILE — A roulette wheel spins at Cherokee Casino & Hotel in West Siloam Springs, Okla.
FILE — A roulette wheel spins at Cherokee Casino & Hotel in West Siloam Springs, Okla.

Cherokee Nation Businesses intervened in a lawsuit filed by an anti-casino group seeking to invalidate an endorsement issued last week by the Pope County Quorum Court for a casino license there.

The Cherokees also asked a Pulaski County circuit judge to dismiss the complaint filed against the state Racing Commission by James Knight on behalf of Citizens for a Better Pope County.

Knight claims in the civil suit -- filed Aug. 16 -- that the resolution passed on Aug. 13 by the Pope County Quorum Court supporting the Cherokees for a casino license is in direct contradiction to an initiated county ordinance passed by Pope County voters in November that said an election must be called to allow voters to decide if they want officials to back a casino applicant.

Knight did not answer a phone call Friday. When asked for comment about Cherokee Nation Businesses intervening in a lawsuit filed by an anti-casino group, Travis Noland, spokesman for Cherokee Nation Businesses, declined to discuss the matter. He instead said by email that the Arkansas Democrat-Gazette should refer “to the filing for our comments” in the lawsuit over the Pope County Quorum Court’s endorsement of the business for a casino license.

Cherokee Nation Businesses attorney Bart Calhoun said in the court document that the suit should be dismissed because the county ordinance is not binding on a state agency, the lawsuits failed to include members of the Pope County Quorum Court, and the ordinance is unconstitutional because it contradicts state constitutional Amendment 100.

"County voters cannot amend the constitution or state law through a county election," Calhoun said in the filing.

Amendment 100 of the Arkansas Constitution was passed by state voters in November, paving the way for new casinos in Pope and Jefferson counties and allowing Oaklawn Racing Casino Resort in Hot Springs and Southland Gaming and Racing in West Memphis to expand their gambling operations into full-fledged casinos.

[RELATED: See complete Democrat-Gazette coverage of casinos in Arkansas at arkansasonline.com/casinos]

Pope County voters overwhelmingly rejected the amendment at the polls.

Amendment 100 requires casino endorsements by local officials in Pope and Jefferson counties.

In the court filing, the Cherokees say that Amendment 100 granted discretion to two specific offices -- the office of the county judge and the county Quorum Court -- to choose which casino applicant to endorse.

"The initiated ordinance transfers the constitutionally granted authority from those two bodies to the voters of Pope County," Calhoun wrote in the court filing. "Not only does the ordinance prohibit the county judge and quorum court from issuing a generic letter of support, but it also requires the question of which potential applicant to support to be decided by the voters of Pope County. In direct contravention of Amendment 100, it completely eviscerates the Constitution's requirement that the county judge or the quorum court decide when, how, and who to support."

The Pope County Quorum Court at its Aug. 13 special meeting discussed the local ordinance but did not appeal it. Clayton McCall, attorney for Pope County, said at the meeting that the initiated ordinance is null and void because it contradicts Amendment 100.

McCall did not respond to a request for comment as of late Friday.

Calhoun also said in the court filing that the Quorum Court resolution supporting the Cherokee Nation Businesses for a casino license cannot be invalidated.

"A resolution has no legal significance unless otherwise afforded authority by Arkansas statute or the Arkansas Constitution," Calhoun wrote in the document. "Simply stated, as a resolution is generally not binding, there is nothing to void. In this case, the resolution has legal significance only because Amendment 100 affords it constitutional significance."

The Racing Commission earlier this year created a rule, and the Legislature passed a law to require that the officials be currently in office at the time the application is made.

The constitutional amendment says only that an endorsement is required. It does not say when the endorsement should be issued.

All five applicants for the Pope County casino license were rejected by the Racing Commission in June because they did not have letters of support from local officials.

One application, from Gulfside Casino Partnership, included letters of endorsement from previous local officials who issued their support in December right before leaving office.

Gulfside has since lost an appeal to the Racing Commission and filed a lawsuit against the Racing Commission and the state Department of Finance and Administration, saying the commission's denial was unconstitutional. Gulfside also requested an injunction barring the commission from issuing a casino license until the case is decided.

On Thursday, Pulaski County Circuit Judge Tim Fox moved the case from his court to Pope County Circuit Court. On Friday, Gulfside filed a motion asking Fox to reconsider and keep the case in Pulaski County.

Knight also sued County Judge Ben Cross and members of the Pope County Quorum Court last week. The suit asked that no casino be endorsed without first holding an election as required by the initiated ordinance.

Also last week, Justice of the Peace Joseph Pearson in Pope County, along with seven residents, filed a complaint with Pope County prosecutor Jeff Phillips alleging that Cross and some members of the Quorum Court held private, not public, meetings to discuss the competition for a casino license.

Cherokee Nation Businesses submitted a second application Thursday, just days after the Racing Commission opened a 90-day window for accepting another round of bids for a license in Pope County.

Amanda Clinton, spokesman for the Cherokees, denied a previous request from the Arkansas Democrat-Gazette to supply a copy of the newest application.

Scott Hardin, a spokesman for the Racing Commission, said the applications will be given to commissioners as they are received and would not be released publicly until after Nov. 18.

Last week, Cherokee Nation Businesses unveiled an updated proposal for a $225 million resort that would include 50,000 square feet of gambling with 1,200 slot machines and 32 table games, as well as sports betting.

The resort -- which is expected to be completed in one phase within 18 months -- also would feature a 200-room luxury hotel, a 15,000-square-foot meeting and conference center, a pool, an outdoor music venue, a recreational-vehicle area and dog park, and an outdoor water park.

At last week's Pope County Quorum Court meeting, Cross read from an "Economic Development Agreement" in which Cherokee Nation Businesses promised to pay an initial $38.8 million "economic development fee."

"I feel a signed contract is critical to the accountability process of any business deal," Cross said in an email. "A signed contractual agreement with [Cherokee Nation Businesses] ensures the county is protected and sets definitive parameters on the vendor as to what constitutes a good business partner."

SundayMonday on 08/25/2019

CORRECTION: When asked for comment about Cherokee Nation Businesses intervening in a lawsuit filed by an anti-casino group, Travis Noland, spokesman for Cherokee Nation Businesses, declined to discuss the matter. He instead said by email that the Arkansas Democrat-Gazette should refer “to the filing for our comments” in the lawsuit over the Pope County Quorum Court’s endorsement of the business for a casino license. An earlier version of this article incorrectly stated that Noland didn’t respond to messages.

Upcoming Events