North Carolina Governor Pat McCrory’s office revealed its negotiations with the South Carolina-based Catawba Nation regarding a proposed casino in Kings Mountain went much farther than the public had been aware of. A draft gambling compact between the administration and the tribe would have allowed the tribe to offer live table games in exchange for giving the state at least 4 percent of the gambling earnings. Also, the governor’s senior economic advisers visited the proposed casino site, and advisers briefed him twice on the project and regularly communicated with two attorneys representing the tribe.
The endeavor, with the code name “Project Schoolhouse,” first was floated last April. But when the project was revealed publicly in August as a Catawba Indian casino and resort, eliciting fierce opposition from state lawmakers and other officials, McCrory’s office initially refused to comment, and later called the deal a “local initiative.” An internal McCrory administration memo directed officials to emphasize that “the governor’s office has not actively engaged this project” and “never had any direct contact with the Catawba tribe.”
South Carolina attorney Butch Bowers first pitched the project April 16 to McCrory jobs advisor Blannie Cheng, telling her he had a “business client who has an intriguing jobs and economic development proposal for North Carolina.” He followed up with an email mentioning ” under the compact the parties can establish the amount of the revenues to be directed to the state under this proposal,” and included letters from local officials who supported the Catawba casino.
Later, McCrory’s top economic adviser, Tony Almeida, received a document from the Cleveland County chamber detailing the project. Chamber officials asked the governor’s office to negotiate a gambling compact to help improve the tribe’s application for having the land put into trust for gaming. The document said the $340 million project, which would include a 220,000 square foot gaming facility, two hotels, shopping and entertainment venues, would create more than 4,000 permanent jobs in a high-unemployment area. An economic analysis prepared for the Catawba tribe said the state could receive gaming revenues above $100 million a year.
McCrory was briefed about the project soon after Almeida received the document from Cleveland County. McCrory’s spokeswoman, Kim Genardo, said he raised “serious objections” to the project and refused to sign a letter supporting the tribe’s application. But he sent Almeida and Cheng to visit the site and learn more about the proposal. They went there on July 3.
On August 23, McCrory was briefed again about the project. By then the public learned about the casino project amid political fallout and Republican denunciation. At the briefing, Genardo said, McCrory gave staff members “clear instructions not to proceed.” On September 9, his spokespersons said he “remains unconvinced that any new casino proposal is in the best interest of North Carolina.”
For now, the origin of the draft compact is unclear. Genardo said, “It’s not from us.” She added, communications and meetings with the attorneys for tribal interests represented a thorough review of the project, not necessarily interest in it.
Catawba Nation attorneys said they can open a gambling operation without North Carolina’s consent, although the state would not receive a percentage of gambling revenues without a compact. The tribe is awaiting a decision on its August 30 federal land trust application.
Catawba spokeswoman Elizabeth Harris said, “The tribe is very serious about doing a compact with the state, although it can engage in gaming without a compact. As the land-into-trust application is a matter for the federal government, the governor’s position at this time is of minimal concern.”
The Catawbas would not be the first Indian tribe to operate a casino in a state where it has no reservation. Because of its historical link to Kansas City, Kansas, the Wyandotte Nation of Oklahoma was granted federal approval to open a casino there, following a lengthy court battle.
