Citing the near ruination of their businesses by the opening of the ilani Casino by the Cowlitz Tribe in April, the remaining card clubs that have so far survived last week asked the La Center, Washington city council to cut their taxes in half for the last months of this year.
The owners of the Last Friend and Palace casinos made their plea before the council, and also asked that the city consider an alternate tax structure next year.
Mayor Greg Thornton told the council: “This is a very serious situation for our city right now. It’s important that the city consider it and take a serious look at it.’’
At a budget workshop before the regular meeting the council was given a presentation by a consultant who showed a significant dip in card club profits since the tribal casino opened.
Before it opened the city was collecting about $250,000 a month in casino taxes. Since it opened the tax has never surmounted $200,000 a month. Card club revenue saw a 16.7 percent decline for the same period.
The card rooms have other troubles, as well, including a higher minimum wage, higher benefits costs and higher labor costs with fewer operating hour since two card clubs have closed. The most recent, the New Phoenix, closed in March.
George Teeny, who owned the New Phoenix, also owned the Last Frontier.
City officials had projected that card club revenue would fall from $3,136,044 to $1,927,910, but overestimated the loss. The current projections predict nearly $400,000 more than that.
The council will mull a resolution regarding the tax at their October 25 meeting.
One council member, Randy Williams, signaled that he was likely to vote for the decrease. “Compared to what they’ve contributed to the community over the years, it’s not a big chunk to consider,’’ Council Member Randy Williams told Clark County Today. “It seems like a fair thing. If they do better, we do better.’’
Councilmember Heather Birdwell-Currey objected: “I think 5 percent is a lot I think somewhere in the middle, say 3 percent. That might be a more reasonable reduction.’’
The decrease would only be temporary, insisted the mayor.
In a separate but related development, the La Center Road sewer line project, which was funded through a $5 million grant by the Cowlitz tribe, is nearing completion. It is intended to spark future development at the junction where the ilani Casino is.
The project began in August and extensively tore up the road, slowing traffic. The pump station that will power the line is nearly completed as well. All the work should be done by Christmas, say city officials.
