Cherokee County, Kansas lost its request for a temporary injunction that would have stopped construction on a new state-owned casino in Crawford County in southeast Kansas. District Court Judge Larry Hendricks wrote, “It is clear the selection process was a thorough process,” noting the Lottery Gaming Facility Review Board held several public hearings and sought independent experts’ advice.
After the state awarded a contract to Kansas Crossing Hotel & Casino, to be built south of Pittsburg in the state’s Southeast Gaming Zone, Cherokee County sued the review board, the Kansas Racing and Gaming Commission, the Kansas Lottery and its executive director and the investor group behind Kansas Crossing Casino and Hotel.
Cherokee County claimed the gaming board violated state law, which required them to award the bid to the proposal that would “best maximize revenue, encourages tourism and otherwise serves the best interest of the people of Kansas,” by awarding the contract to the $70 million Kansas Crossing, the smallest of three proposals, which estimated it would bring in 500,000 visitors annually. The largest proposal, the $145 million Castle Rock, which would be located in Cherokee County, projected it would have the highest revenue, most amenities and most jobs and attract 1 million visitors annually.
But Union Gaming, hired by the gaming commission to conduct the review of the three proposals submitted, said Castle Rock most likely would not make projected earnings or have enough cash to pay off its debt on an annual basis. The Union Gaming review also “questioned Castle Rock’s ability to operate as a going concern.”
Cherokee County Chairman Richard Hilderbrand said commissioners were evaluating the judge’s decision and planned to move forward with the lawsuit, which has been joined by Castle Rock. “We just want the same thing we’ve always hoped for. We just want them to follow the state statute and follow the law,” he said, adding the county will lose at least $8.5 million in taxes and other economic benefits if the court does not stop the Kansas Crossing project.
Bruce Christenson, the lead investor for Kansas Crossing, which is expected to open in June 2016, said, “I hope the parties can all move forward together now, knowing that Kansas Crossing will have significant positive impact throughout the region.”
The Kansas Lottery owns casinos in Dodge City, south of Wichita and in Kansas City, Kansas. The state will receive at least 22 percent of the gambling profits.
Meanwhile, the Pittsburg Board of Zoning Appeals unanimously approved Kansas Crossing’s request to build a four-story, 123-room Hampton Inn & Suites.
