RACING PANEL

to wait for outcome of lawsuits.

The Arkansas Racing Commission on Thursday decided to wait until after the outcome of two lawsuits tied to bids for a state casino license in Pope County before deciding to consider applicants for that casino license.

“My recommendation to the commission is that the commission wait until you hear what the court does on Nov. 25 and on Oct. 29 before you take any action on granting or rejecting an application for a casino license in Pope County,” Byron Freeland, an attorney for the commission, told the seven-member commission.

“These lawsuits are pending and the hearings are close enough that really it is really kind of immaterial as far as the number of days later that we will have a lot more information about what the courts consider to be the proper procedure and the law in this case,” he said.

“I’m confident that the commission has followed the law to this point, followed Amendment 100 and the commission’s position will prevail,” Freeland said. “But the fact remains there are challenges to those positions that are pending before the courts in the state of Arkansas and I am telling you that I think it will be a prudent thing to do to wait before you make a ruling on an application in Pope County until the process at the local court level has been resolved.”

If there are appeals of the circuit judges’ rulings, “we will have to make a determination on whether to wait on those appeals,” he said.

On Nov. 25, Pulaski County Circuit Judge Tim Fox is scheduled to hold a hearing in a lawsuit filed by Gulfside Casino Partnership challenging the rejection of a casino license application by the state Racing Commission, Freeland said.

Gulfside filed the suit Aug. 15, the same day the commission denied an appeal from the Mississippi casino operator to reverse a denial of its application in May for a Pope County casino license.

Gulfside also is challenging the commission’s assertion Gulfside’s application was incomplete because it didn’t contain an endorsement from current local officials. Four other applicants — Cherokee Nation Businesses of Oklahoma, Kehl Management of Iowa, Warner Gaming of Nevada, and Choctaw Nation Division of Commerce of Oklahoma — were rejected by the commission in June for the same reason. Unlike the others, Gulfside’s application include letters of endorsement from local officials issued right before they left office in December.

On Oct. 29, a circuit judge in Pope County is slated to hold a hearing in a suit by James Knight, on behalf of Citizens for a Better Pope County, against the Pope County Quorum Court and County Judge Ben Cross, said Freeland.

The lawsuit claims the Quorum Court’s Aug. 13 resolution supporting Cherokee Nation Businesses for a casino license is in direct contradiction to an initiated county ordinance passed by voters saying an election must be called to allow voters to decide if they want local officials to back a casino license.

The suit also asked no casino be endorsed without first holding an election as required by the ordinance.

Cross negotiated an 11-page Economic Development Agreement with the Cherokees that included a $38.8 million “economic development fee” to be disbursed among the county, some cities and nonprofit organizations.

The commission, after denying Gulfside’s appeal, opened a 90-day window to accept applications for a Pope County casino gaming license. That window closes Nov. 18.

In other action Thursday, the commission approved transferring the casino license granted to Downstream Development Authority of the Quapaw Tribe to Saraceno Development for a casino in Jefferson County.

“It has been 126 days since y’all approved my license,” said John Berry, who’s chairman of Downstream Development Authority of the Quapaw Tribe and also will serve on the Saraceo Development board. “Things are going very well,” he said.

Berry said he wants the commission to transfer the casino license because “we want to be in line with the other gaming facilities” at Southland Racing Casino in west Memphis and Oaklawn Racing Casino Resort in Hot Springs.

“Currently, the Downstream Development Authority is based in Oklahoma. We want to have a domiciled LLC within the state of Arkansas. That’s what this does,” he said.

Transferring the license to Saracen Development also “clearly separates the tribal, tribe facility,” Berry said. “It gives a better delineation with a tribal facility, which has issues of sovereignty and tribal law.”

Freeland said the Jefferson County Judge Gerald Robinson and Pine Bluff Mayor Shirley Washington have submitted letters supporting transferring the license.

On Thursday evening, Russellville’s City Council’s finance committee tabled a proposal for the city to support Kehl Management of Dubuque, Iowa, for a Pope County casino license.

Kehl was chosen by the city’s gaming committee after three proposals were received by the committee earlier this month. The committee was set up in early September as an “open and transparent” answer to the Quorum Court’s surprise endorsement of Cherokee Nation Businesses.

Council Member Mark Tripp said the resolution should be tabled because the spreadsheet prepared by the committee which compared the proposals had some incorrect numbers.

“I’ve had a few people ask me questions on it so I’d like a little more time,” Tripp said after the meeting. “I would like time to study the numbers more, time to do research and ask questions if needed. I hope it is addressed sooner than the next regularly scheduled finance meeting if possible.”

The resolution was supposed to be heard by the council Thursday, but an endorsement by the city is moot because it must come from the county, regardless of whether a casino is built in the city.

Mayor Richard Harris has said he’ll stand by his campaign promise to follow the will of the people and wouldn’t say if he would issue an endorsement letter.

Robert McLarty, spokesman for Kehl Management, said the selection of Kehl by the committee “validated that Elite Casinos Resorts is the best community partner for Russellville and Pope County.”

“They specially highlighted out that our economic offer was the clear winner. We have 32 days to get a letter of support from the Quorum Court leaders and will work diligently towards that goal,” McLarty said. “In light of the review of the committee a second letter from the quorum court just makes good sense.”

Cross said while he respects Kehl owner Dan Kehl and his group “immensely as to their business model and practice,” he does “not anticipate the court nor myself entertaining any additional vendor prospects, or issuing any additional letters of support.”