Casino heads vie for license in Russellville
Residents, committee vet operators for endorsement
— About 100 members of the public listened Monday as three contenders for a Pope County casino license presented their proposals to the city’s gaming committee.
Each presenter was given 30 minutes, followed by a 15-minute question-and-answer session from the city’s Community Gaming Evaluation Committee. At the end of all presentations in the cafeteria of Russellville High School, the audience peppered the casino executives with questions ranging from the makeup of nonprofit boards proposed by the applicants to how the casinos would preserve the area’s natural resources.
The city’s committee was set up in early September after two casino operators urged Russellville Mayor Richard Harris to have the city conduct its own “open and transparent” vetting process as operators vie for the license to be awarded by the state Racing Commission.
On Aug. 13, the Pope County Quorum Court — amid allegations of secret meetings — passed a resolution supporting Cherokee Nation Businesses. Ben Cross, county judge of Pope County, had negotiated an economic development agreement that included an upfront $38.8 million payment that would be distributed to the county as well as some municipalities — but not Russellville — and nonprofit organizations.
The endorsement of the county is required under Amendment 100, approved by voters in November 2018, for new casinos in Pope and Jefferson counties. If built in a city, the city must also endorse it. But the Cherokees propose to build their casino outside the city limits.
Casino operators Warner Gaming, Choctaw Nation and Kehl Management each submitted applications last week to the city’s gaming committee — comprised of City Council member Eric Westcott along with Russellville School District Superintendent Mark Gotcher, Arkansas Tech University Chief of Staff Mary Gunter, businessman Bart Langley, and former city councilman Nathan George.
The committee will recommend one applicant to the City Council by Oct. 14 and present a report to the council Oct. 17.
Each operator was similar in their presentations, with each including a video montage of the proposal’s amenities and attractions. All were presented by company executives.
And all included a detailed explanation of the monetary benefit that Russellville and the county would receive upfront and beyond the required tax proceeds. The initial cash promises were $43.8 million from Choctaw Nation, $18 million from Warner Gaming and $40 million from Kehl Management.
Warner Gaming CEO Bill Warner said Hard Rock’s community support package could total $133.7 million “over time.”
“You can get a lump sum today, but 20 years from now, where are you?” Warner said.
Langley questioned what would happen to the community support dollars promised by Warner if the property is sold after 10 years.
“We will make it a commitment of that license,” Warner said.
Dan Kehl of Kehl Management spoke of his company’s casino beginnings on an Iowa riverboat and how his company partners with communities.
The company will offer a local ownership option of up to 20% in the Pope County casino if awarded the license, Kehl said.
A group of women in the audience cheered and Russellville resident Kim Lovely threw a triumphant fist in the air when Kehl talked about the lengths to which the company is going to be environmentally conscious in its construction as well as operations.
“I am super concerned about the impact these casinos will have on our natural resources,” Lovely said after the meeting. “This is a great opportunity for them to live up to the name of the Natural State.”
Janie Dillard, senior executive officer with Choctaw Nation, told the group that the most important thing the committee should consider in its decision is the financial stability of the applicant. The Choctaws, Dillard said, have $3.6 billion in net assets and $2.1 billion in cash and cash equivalents.
“That should say it all,” Dillard said.
Several questions from committee members and the public concerned the details of the Choctaw’s proposed $2.8 million annual scholarship program for Pope County high school graduates to attend Arkansas Tech University.
The scholarship dollars would pick up tuition expenses after the student has exhausted all other scholarships and financial aid.
Jane McGregor, a Pope County resident, asked if the scholarship would eventually cover other expenses, like room and board.
“Right now, it does not contain room and board,” Dillard said, but added that future uses of the scholarship money was “something we could look into.”
After the meeting, members of the public stood in line to talk to the company executives and ask more questions.
Russellville resident Mary Cahoon, who took notes during the presentations, said she considers growth a “necessary evil” and worries about Russellville.
“I’m not enamored with growth,” Cahoon said. “You know a community’s gotten too big when you go to the grocery store and don’t run into anybody you know.”