City gets four casino bidders

Only Gulfside opts to spurn Russellville’s review process

Slot machines are shown at Saracen Casino Annex in Pine Bluff in this 2029 screenshot from video.
Slot machines are shown at Saracen Casino Annex in Pine Bluff in this 2029 screenshot from video.

Four applicants -- including one that already holds an official county endorsement -- submitted proposals for a Pope County casino by the noon Wednesday deadline set by the Russellville City Council's gaming review panel.

The four casino operators -- Cherokee Nation Businesses of Oklahoma, Kehl Management of Iowa, Warner Gaming of Nevada and Choctaw Nation Division of Commerce of Oklahoma -- were among five that earlier this year submitted applications to the state Racing Commission, which awards casino licenses.

The lone holdout Wednesday was Gulfside Casino Partnership, which sued the Racing Commission after all applicants were rejected in June because none contained endorsements by current local officials.

"The response was what was expected," Russellville Mayor Richard Harris said.

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

Amendment 100, approved by voters in November, allows one new casino each in Pope and Jefferson counties, and allows the expansion of gambling at the racetracks in Hot Springs and West Memphis.

The constitutional amendment requires county official endorsements, as well as from city officials if the casino goes in a city. The commission's rules state the officials must be in office at the time application is made.

The city's Community Gaming Evaluation Committee was given the full proposals Wednesday and the public can either access the documents in person at City Hall or they will be posted soon to the city's website on the "Casino Information" page dedicated solely to the selection process, Harris said.

The committee was set up on Sept. 5 to offer residents an "open and transparent process" after allegations of secret meetings before the Pope County Quorum Court's surprise endorsement in August of Cherokee Nation Businesses.

The city also was excluded from sharing in $38.8 million that would be distributed by Cherokee Nation around Pope County under a proposed agreement with the county.

Chuck Garrett, chief executive officer of Cherokee Nation Businesses -- which proposes to build a $225 million resort outside Russellville -- said Wednesday that the company is looking forward to being awarded the Pope County casino license by the state Racing Commission.

"Today, in the spirit of continued transparency, we are pleased to provide public officials and the community at-large with an additional resource containing details of our operating history and proposed world-class project," Garrett said. "We are honored to have received the resolution of support of the Pope County Quorum Court following their comprehensive vetting process in which we and all other potential operators participated."

The state Racing Commission opened a second application window after the county endorsed Cherokee Nation. That window closes on Nov. 18.

Gulfside's initial casino license application included endorsements of officials who have since left office. The Racing Commission ruled earlier this year that the endorsements can come only from officials in office at the time the application is submitted. The Legislature also passed Act 371, which took effect in March and requires the same thing.

But Amendment 100 does not state when those documents have to be dated or submitted.

"Gulfside submitted its application to the Arkansas Racing Commission in May and was the only applicant that complied with every requirement of Amendment 100, including receiving support from Pope County and Russellville officials," said Casey Castleberry, Gulfside's attorney.

Janie Dillard, senior executive officer of the Choctaw Nation company, said in a news release that the company is "pleased to finally have the chance" to unveil its plan to provide a $247 million "world-class resort" to Pope County.

"I have seen first-hand how our properties can positively change communities and generations for years to come. Our goal is to bring jobs and have an economic investment in the community just like we currently do in rural southeastern Oklahoma. We look forward to engaging with the community and working alongside local businesses to bring an amazing experience to Arkansas," she wrote.

Warner Gaming CEO Bill Warner said the company was "excited to submit" the proposal for the $250 million Hard Rock Arkansas resort.

"Our unique concept for this entertainment, sports and recreation destination will draw on an internationally-recognized brand while also celebrating the regional character and beauty of Arkansas," Warner said. "Should the state, county and city bestow upon us the privilege of developing the gaming license for Pope County, we are ready and able to deliver."

Robert McLarty, spokesman for Kehl Management, said the company "looks forward to telling the story" of the proposed $247 million River Ridge Casino Resort, a "world-class, family-owned, community-centered business."

"We believe our vision for a Pope County casino -- that starts with an exciting property and entertainment venue but adds our strong charitable community foundation support, economic development investments and long-term partnership with the citizens of Pope County -- is the best fit," McLarty said.

The city's committee will hold a conference call at 9 a.m. Friday to choose a venue for the public forum Monday for the casino applicants to present their proposals.

The conference call is open to the public and those wishing to join the call can contact the mayor's office for instructions.

The final applicant will be selected by the committee by Oct. 14, and the recommendation will be placed on the City Council's Oct. 17 agenda.

The city's endorsement alone does not meet the stipulations of Amendment 100, which states that if the casino is to be placed inside a city limits, the county judge or Quorum Court also must issue an endorsement.

Metro on 10/03/2019

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