Harrah’s Cherokee Casino Resort, owned by the Eastern Band of Cherokee Indians, opened in Cherokee, North Carolina nearly 20 years ago. Since then, half of the net casino profits have been set aside for per capita payments–semi-annual distributions to tribal members. The payments for those under 18 years of age are put into an investment account, the Minors’ Trust Fund, until they turn 18 and graduate from high school. At that time they receive a lump-sum payment, which currently is about 0,000, resulting in a tax bill of about ,000.
To avoid such massive tax payments, the Tribal Council recently approved making the per capita payments to 18-year olds in three installments, at age 18, 21 and 25, resulting in a $109,000 increase in the net payout over time. The changes were suggested by the Junaluska Leadership Council—high-school-age tribal members who devoted years to researching the issuing, creating and executing a survey, speaking with Tribal Council members and finally crafting the proposed legislation. Principal Chief Patrick Lambert said, “What the Junaluska Leadership Council is proposing here is really about tax savings and being able to utilize that for the young people rather than giving it to the federal government.”
Originally the JLC proposed per capital payments in four installments, with the last at age 30. However, that was amended by the Tribal Council to three payments with the last one dispersed at age 25. EBCI Finance Director Erik Sneed said, “The goal was to try and find some balance however age-wise, and holding the final until 30 seemed too long for most.”
Council members discussed ways to help people in special situations who may require financial assistance sooner. But the majority decided the staggered payments would serve most tribal members. Vice Chief Richie Sneed said, “It’s impossible to craft something that’s going to fit every situation, so we have to look at what will be better for the whole.”
Following the amendment of trust documents and internal processes to enact the legislation, the new per capita payment plan is expected to begin June 1, 2017.
Lambert also recently announced the tribe’s plans for an outlet mall, convention center and new hotel at Harrah’s Cherokee, in partnership with the Cordish Company of Baltimore. He said, “By partnering with the Cordish company, we have a leg up on getting this ‘new’ type of business development to kick into gear here in our town. And, without their partnership we have nearly a zero chance of attracting these type retail businesses to locate here. This will not only provide us with new jobs and a new diversified tax base for our Tribal Levy, but will also add a newer and higher quality of life to our overall community by providing the type of amenities in shopping and retail that we have all come to need and expect.”
Lambert also stated, since the casino lacks convention space, the tribe “loses out on at least $15 million dollars annually.” Therefore, tribal leaders are “beginning to draw up plans on the development of a new convention center and hotel that will be capable of hosting large conferences. The new convention/hotel center is important because it helps us prepare and stay ahead of potential competition that could come to our south or east. If we can capture some of that market and turn them into our loyal customers now, we will have a better chance of holding our market share if competition does arrive in the Atlanta market or other areas.”
Lambert added the new convention center also could host major sports events. “With the increased hotel room space we can start inviting our sister tribes and other communities to major sporting tournaments and actually be able to offer them a room.” Lambert said in the next two months, the NAYO tournament and the Annual USET Conference will be held, “and neither of these events can be housed at our current hotel due to the demand just from our gaming customers.”
