The city commission in Enid, Oklahoma recently voted 5-2 essentially to stop the United Keetoowah Band of Cherokee Indians from opening a casino. Specifically, commissioners voted to deny an agreement “in support of section 20 application and for payment and cooperation and payment in lieu of tax agreement with the United Keetoowah Band of Cherokee Indians in Oklahoma,” according to the meeting agenda.
The proposal consisted of two agreements. First, the tribe would have paid about $11.8 million to the city over seven years, in exchange for the city’s support of the casino during the Section 20 application process. It would have granted a waiver of sovereign immunity by both parties and the UKB would have submitted development plans to the Metropolitan Area Planning Commission and the city commission. Also the city would have had to pay damages of $1,000 per day if, at a later date, it retracted its support of the agreement, if it had been approved.
Under the second part of the agreement, the UKB would have paid the city 4.6 percent of the sales of food, beverage and other non-gaming goods for 25 years, with an option to renew for another 25 years. Also, UKB would have made an annual payment in lieu of ad valorem tax payments.
Ward 3 Commissioner Ben Ezzell made the motion to deny. He said, “We have a legitimate opportunity to stop this thing in its tracks. He said the casino would make a “boatload” of money, mainly from Enid residents and problem gamblers. He added casino revenue would be “dirty money the city doesn’t want,” and although it could generate some income, it also would cost the city money to combat the various potential problems it would cause. Ezzell also stated a casino would “cannibalize” from other sources of sales tax revenue in the city. He noted the governor would have no incentive to approve the casino if the city didn’t support it.
Mayor Bill Shewey also voted for the denial of the agreement. He said the UKB seemed to exaggerate several statistics regarding its benefits to the community.
Ward 1 Commissioner Ron Janzen voted for the agreement. He said he supported the casino if it would generate significant revenue for the city. Ward 5 Commissioner Tammy Wilson also said she favored an Enid casino since residents currently spend money at casinos in other towns.
UKB Corporate Board Executive Director Randall Hendrix said the tribe still could proceed with the casino without the city’s approval but would prefer to have its support. He said the tribe would invest $10 million to renovate an existing building on tribal-owned property into a 20,000 square foot casino, that could open in 2020. Tribal Attorney General Klint A. Cowan told commissioners the tribe could apply to have the land taken into federal trust for gaming purposes with the approval of the governor.
