In Virginia, the Pamunkey Indian has announced not one, but two casino projects: a commercial operation in Norfolk, and a tribal venue in Richmond, close to its reservation in West Point.
The tribe recently reached an agreement with the city of Norfolk, Virginia to purchase 13.4 acres of vacant property for $750,000 per acre, or a total of around $10 million, to build a commercial casino resort. Originally the casino project was estimated at $700 million, but has been scaled back considerably, to $200 million.
The agreement requires the tribe to pay taxes on gaming, lodging, food and beverage and other sales, plus property and admission taxes, as well as costs associated with transportation infrastructure, flood mitigation, offsite utility improvements “and any other infrastructure improvements directly necessary.” The tribe also agreed to pay for construction of the Elizabeth River Trail around the resort.
Norfolk City Manager Dr. Larry “Chip” Filer said, “I am pleased to announce that we have reached mutually agreeable terms with the Pamunkey Indian Tribe to pursue a resort project that will conform and comply with commercial gaming legislation being considered in Virginia.”
The Pamunkey Tribe is partnering with Tennessee billionaire Jon Yarbrough, whose Video Gaming Technologies was acquired by Aristocrat Leisure for nearly $1.3 billion in October 2014.
“I have worked with countless tribes, and I know what it takes for a project like this to be successful,” Yarbrough said. “I am confident that with the Pamunkey tribe’s strategic approach, resolve and sense of community, coupled with our financial strength, they can bring about a number of projects of which the tribe and the commonwealth can be proud.”
The tribe also is in the process of purchasing 36 acres in Manchester near South Richmond, where it would build a $350 million casino resort with a 275-room hotel featuring “stunning views of the James River and downtown,” plus a spa, fitness center, pool, upscale steak and seafood restaurant, sports bar and 1,000-space parking garage, according to a statement from the tribe.
Pamunkey Chief Robert Gray said, “We are very excited about our plans to bring a great resort and casino to Richmond. Not only does this help fulfill the government’s intent to use gaming to help us secure our future, but it will also be a great economic boost for the city of Richmond and its citizens.”
Jim Nolan, a spokesman for Richmond Mayor Levar Stoney, added, “The mayor is excited about the opportunity to bring a resort-style casino to Richmond. We’ll wait to see what happens in the General Assembly and what it means for the city.”
Legislation passed by the General Assembly last year tentatively gave the tribe the right to pursue gambling projects in Richmond. As a federally recognized tribe, it can develop a casino there through the Bureau of Indian Affairs land-trust program, without state approval.
However, last year Virginia lawmakers approved and Governor Ralph Northam signed legislation allowing casino gambling in five specific localities: Richmond, Norfolk, Portsmouth, Danville and Bristol. The bill must pass the General Assembly again this year, followed by a referendum in each locality.
Meanwhile, “dueling casinos” are moving forward in Bristol, Virginia. The Eastern Band of Cherokee Indians has an agreement to develop a casino resort at the Pinnacle retail complex in Washington County, just outside city limits on the Tennessee border. And an investor group wants to build a Hard Rock Bristol Resort and Casino at the former Bristol Mall site, located within the city limits.
Regarding the Cherokee proposal, Tribal Chief Richard Sneed said, “I have visited the site along I-81 and I am impressed with its strategic, gateway location that serves a 5-state area. It is our wish to bring new tax revenue and jobs to Washington County and the Southwest Virginia region in a positive and impactful way.” The tribe owns two North Carolina casinos: Harrah’s Cherokee Resort Hotel and Casino in Cherokee and Valley Rivers Casino in Murphy.
The tribe announced it will partner with developer Steve Johnson, owner of the Pinnacle complex. The proposed facility would include a casino and luxury hotel with an indoor water park, 15,000-seat outdoor concert venue and recreational facilities. “Any municipality would want a project like this,” Johnson said.
He added it’s up to the General Assembly whether a competitive bidding process could extend across city limits. “Again, I can’t help where the locality lines are drawn. To me, it’s not a Washington County–Bristol, Virginia issue. It’s a Southwest Virginia issue. It’s a state of Virginia issue,” Johnson said.
Local businessmen Jim McGlothlin and Clyde Stacy are the lead investors in the Bristol Hard Rock proposal at the former mall site. They recently issued a statement noting they have worked with state and local leaders for 16 months on the project “as a catalyst to boost our local economy in Bristol and Southwest Virginia. We understand, first-hand, what these jobs mean to our community.”
The Cherokee proposal drew criticism from Bristol City Manager Randy Eads. “There is an old saying that imitation is the sincerest form of flattery. And the city appreciates Mr. Johnson recognizing the tremendous effort we have made as a city to revitalize the old Bristol Mall and bring true economic development opportunities to Southwest Virginia by imitating our initiative to bring a resort casino to Bristol, Virginia.”
Eads added the General Assembly authorized a casino in Bristol city limits, not just outside the city’s borders in Washington County. “It’s not even a feasible thing to consider right now,” he said. However, observers said law makers possibly could amend the original legislation to license a casino outside the Bristol city limits.
