The seven-member Arkansas Racing Commission will hear pitches Thursday from representatives of two companies competing for a license to build a multimillion-dollar casino in Pope County, the latest step in what has been a contentious process.
The meeting will be closed to the public but televised by Arkansas PBS. State officials originally planned to bar reporters as well from attending the presentation, which was to be held in the attorney general's office, but they relented Friday night.
Attorney General Leslie Rutledge's spokeswoman, Amanda Priest, said Friday night that the meeting will be held in another location that will be disclosed soon and credentialed reporters will be allowed to attend.
The presentations are by Oklahoma-based Cherokee Nation Businesses and Mississippi-based Gulfside Casino Partnership.
In the past week, a reporter for the Arkansas Democrat-Gazette had asked Larry Walther, secretary of the Arkansas Department of Finance and Administration; Scott Hardin, spokesman for the finance department; and Priest for permission to be present for the pitches. The Racing Commission is part of the finance department.
The covid-19 pandemic has brought changes to government meetings, with the aim of protecting those attending. Social distancing is required, masks are encouraged and videostreaming has allowed participants to join in remotely.
Reporters are allowed to attend meetings of the Arkansas Fish and Game Commission, Arkansas Highway Commission, Arkansas Board of Education and Higher Education Coordinating Board, which are also videostreamed.
Reporters are allowed to attend the videostreamed meetings of the Arkansas House, and a limited number of reporters are allowed to attend Arkansas Senate and legislative committee meetings.
Hardin said Friday night in a text message that the Racing Commission's meeting location has been changed and reporters will be allowed to attend because "while the initial plan was to make the livestream available to media, concern expressed by the Democrat-Gazette along with an intent to remain fully transparent [led] to a change of venue.
"This will allow media to effectively observe every aspect of the meeting and remain within the appropriate social distance guidelines," Hardin wrote.
"A livestream by Arkansas PBS will remain available to the public," he said. "Due to an overwhelming interest in the Pope County casino license, there may not be a facility in the state that would allow us to accommodate the crowd and social distance. This is the key meeting we've been working toward since the applications were first accepted in May of 2019."
Hardin said the Racing Commission normally meets in the Medical Marijuana Commission's conference room in a state building south of the state Capitol.
Priest said the attorney general's office offered its office for the Racing Commission meetings. She said the commission approached the attorney general's office and asked for a larger conference room that would safely accommodate up to 10 people in accordance with the governor's directive amid the pandemic.
"The Racing Commission has hosted two meetings at the Attorney General's Office, one on April 15, 2020 when Webex [conferencing software] was attempted for the meeting and due to technical difficulties, failed," Priest said. "The other was on May 7, 2020."
During that May 7 meeting, the Racing Commission voted to accept an application on a "good cause" basis from Cherokee Nation Businesses. The attorney general's office provided the public with only telephone audio with no video option.
The May 7 decision was a repeat of action taken April 15. Attorney John Tull had complained in a letter to the commission that its votes April 15 should be voided because the group violated the Arkansas Freedom of Information Act by allegedly reaching a decision in private before a public meeting.
The April 15 meeting was held remotely by video, and technical difficulties hampered discussion of agenda items, board Chairman Alex Lieblong said.
Representatives of Cherokee Nation Businesses and Gulfside Casino Partnership told commissioners May 7 that litigation is inevitable no matter which company is awarded the license.
At one point during the May 7 meeting, Lieblong told his fellow commissioners that "at this time I'd like to make sure the commission has my thanks because we've all had a very good record of not talking to the press.
"I think when we started this we made an agreement the only ones who would be talking to the press for us would be our attorneys," Lieblong said.
"Somebody might've caught me in an off-cuff remark, but if they did it was really off-cuff. But other than that I've not given any interviews. I don't think anyone else has and I appreciate that. I know you're all getting pressure from different sides."
Before these remarks, he noted, "I remember some people trying to ask me about [what is now Amendment 100 to the Arkansas Constitution], say something about it before, and I said, 'I think it is not proper. I am on the Racing Commission and, if it gets passed [by voters in November 2018], we are going to do it, so I would never make a comment on it."
Amendment 100 authorized the Racing Commission to issue casino licenses in Jefferson County and Pope County; allowed the expansion of gambling at racetracks in Hot Springs and West Memphis; and allowed sports betting at the casinos. A year ago, the commission granted a casino license to the Downstream Development Authority of the Quapaw tribe for a casino in Jefferson County and later transferred it to Saracen Development LLC. That casino is under construction.
Lieblong didn't return two telephone calls from the Democrat-Gazette last week. He has rarely returned this newspaper's phone calls regarding the commission's consideration of casino licenses.
FREEDOM OF INFORMATION ACT REQUEST
In response to this newspaper's request under the Arkansas Freedom of Information Act for any records or tapes of the commission that would indicate when the agreement was made not to talk to reporters, Hardin said in a written statement that "there are not any records responsive to your request other than the audio file from the meeting at which Chairman Lieblong made the remarks."
Hardin said that Lieblong "was not referencing a formal vote of the Commission or an agreement that had been reached via discussion.
"He was simply implying commissioners understood it was in the best interest of all parties to direct media inquiries to the commission's attorneys due to litigation and other factors that began early in this process and continue today," he said in his statement .
"Attorneys representing the Commission work in coordination with DFA's [Department of Finance and Administration's] Communications Division to provide accurate and timely responses. From day one, commissioners understood individual speculation by seven people in stories throughout the media could be harmful in carrying out the responsibilities assigned by Amendment 100," Hardin said.
The casino licensing process formally launched May 1, 2019, when applications were accepted for the licenses in Jefferson County and Pope County, he said.
Asked whether the attorney general's office had advised commissioners not to speak to reporters about the casino license applications, Priest said, "Our office only began representing the Commission in August 2019 and has not advised the Commission about speaking to the press."
COMMISSIONERS' COMMENTS
Commissioner Butch Rice of Beebe didn't return two calls from this newspaper last week. But the other five commissioners did respond to at least a few questions:
• Commissioner Steve Landers of Little Rock said in a brief interview last week that he would talk to a reporter about casinos only at commission meetings.
"I'll talk to you at a meeting and open forum," he said. He said he was referring to the commission's regular monthly meetings.
• Commissioner Bo Hunter of Fort Smith said in a brief interview that "we have been advised not to comment on that at all," referring to the consideration of a casino license in Pope County.
He declined to say who gave him that advice.
"I really don't have any information," Hunter said.
• Asked whether there was agreement among the commissioners not to talk to the press, Commissioner Michael Post said last week in an interview, "I don't have an agreement like that."
Post, of Altus, acknowledged, "I don't like talking to the press in general about anything."
Asked if he preferred one of the Pope County casino applicants over the other, he said, "I have no opinion of one applicant over the other."
Post said he has received hundreds if not thousands of emails from around Pope County, and that some people want a casino while others don't.
"Both sides are very passionate about their opinion," he said.
While most of the commissioners own horses that race at Oaklawn Racing Casino Resort, Post said the commission is composed of experienced and intelligent businessmen, who have the aptitude to make a good decision on which company to select.
• Commissioner Denny East of Marion said it's not accurate to suggest there was an agreement among the commissioners to not talk to the press.
He said he isn't leaning one way or the other about which firm to choose for the casino license.
"We are going to do our job and do it right," said East.
• Commissioner Mark Lamberth of Batesville said he wasn't party to an agreement with Lieblong not to talk to the press either.
He said he hasn't made a determination about which company would be the best one to get the casino license in Pope County.
"I'm going into it with an open mind," said Lamberth.
He said he wants to look at the numbers presented by each applicant and their recent experience operating during the covid-19 pandemic.
"Our charge is to decide if there is a legitimate and qualified casino operator in Pope County," he said. "A lot of people misunderstand what our role is in this."
GOVERNOR GIVES NO OPINION
Gov. Asa Hutchinson, who has appointed all seven racing commissioners, said Friday in a written statement that "members of my staff and I have met with representatives of both [casino applicants] and the purpose was a courtesy or introductory visit.
"I have not expressed an opinion on which applicant should get the license and I do not intend to express an opinion on the topic," the Republican governor said. "The decision should be based upon the law and the merits of any application."
Asked whether Rutledge, the Republican attorney general, is using legal strategy to bolster the casino application of either Gulfside Casino Partnership or Cherokee Nation Businesses, spokeswoman Priest replied, "Absolutely not."
Cherokee Nation Businesses' registered lobbyists include the law firm of McDaniel, Wolff and Benca, which includes former Attorney General Dustin McDaniel, a Democrat, and JCD Consulting Services, which includes former state Republican Party Executive Director Chase Duggar, according to the Arkansas secretary of state's website.
The website shows that Gulfside Casino Partnership's registered lobbyists include Broadview Strategies -- which includes former Hutchinson aide Robert Moery, who managed Hutchinson's 2018 reelection campaign -- and Eddins & Associates, which includes Blake Eddins, a former University of Arkansas basketball player.
Terry Green, co-owner of Gulfside Casino Partnership, said Friday that "this side-by-side comparison will reaffirm Gulfside is the clear choice to receive the Pope County casino license.
"Our $254-million River Valley Casino Resort will provide 500 more permanent jobs and 50% more annual gaming tax revenue -- all to be kept in state," Green said in a written statement.
"With our proven track record of success as the Mississippi Gulf region's largest gaming facility and leading employer, we strongly believe our resort will become a premier tourist destination and economic engine for the state of Arkansas."
Chuck Garrett, chief executive officer of Cherokee Nation Businesses, said Friday that "we have an impeccable 30-year track record of succeeding by doing business the right way. ...
"We have never closed a casino, declared bankruptcy on a casino or faced tax liens on a casino," he said in a written statement. "The legally-binding Economic Development Agreement we executed with Pope County includes an upfront investment of more than $38 million, as well as guarantees a minimum project investment of $225 million. We believe Cherokee Nation Businesses is not only the right choice for Pope County, but the reliable, no-risk option."
