Norfolk voters approved a $500-million resort-casino next to Harbor Park on November 3. But a day later, Waterside operator Cordish Companies said they would sue the city, claiming they have the rights to build the first casino in the town as part of an agreement to redevelop the Waterside District.
The agreement allowed Cordish to expand its plans into a casino should Virginia legalize gaming. Such a bill was signed into law in the spring, with casinos approved in five cities, Norfolk among them.
“The city breached its exclusive agreement with Cordish initially in 2018 and continued its breach thereafter. Regretfully, the city has left us no choice but to file suit to protect our legal rights and we will be filing suit in due course,” said Zed Smith, spokesperson and partner, Cordish Companies.
The project backed by the Pamunkey Indian Tribe, includes a 300-room hotel, entertainment venue, spa, pool, multiple restaurants and a gaming floor. The tribe says about $30 million will go to the city each year from revenues.
“It wasn’t one part of the city that’s supported or opposed. We won 45 out of the 48 precincts. This is across the board the support of an exciting project,” said the casino project’s spokesman Jay Smith.
The city had no comment on Cordish threats until the suit is filed, according to 10WAVY.com. The Waterside operator first threatened to sue the city in February.
Cordish argues that when Norfolk agreed to help the Pamunkey Indian Tribe bring casino gaming to the city, it mirrored an agreement the developer made with the city in 2013. The city’s attorney said Norfolk is not obligated to help Cordish bring gaming to town.
Cordish was also fueling a group in opposition of the Pamunkey tribe’s project. Cordish hired Red Banyan, a public relations firm that worked with a group opposed to a casino.
Lawsuit notwithstanding, the Norfolk project needs city permits.
“We’re going to be working with local universities, workforce development organizations to find the staff that’s going to actually support the casino and resort. We’re talking 2,500 jobs,” said Jay Smith, who says the groundbreaking is scheduled for early spring with a completion set for the end of 2022.
