TOPEKA — A proposed state-owned casino near Wichita is close to finalization.
Kansas Lottery Executive Director Ed Van Petten said Tuesday that the Lottery has reached an agreement with Chisholm Creek on a $225 million hotel and casino just outside of Mulvane.
“I think we have reached an agreement, at least verbally,” Van Petten said. “We are in the process of putting the final touches on the written document.”
He said that there were two issues that needed addressing before a final deal could be worked out.
One included incorporating Chisholm Creek’s agreement with a third-party builder to construct a hotel. The new deal will allow both the hotel and casino to be constructed together instead of the casino first and hotel thereafter.
The second issue addressed the potential for a tribal casino in Park City, being proposed by the Wyandotte Nation. Van Petten said that the contract will allow for some delays in investment by Chisholm Creek if the tribal casino were to be built.
After the written agreement if finished, Van Petten said that the Lottery Commission will review the proposal — during their meeting today — and approval will send the plans a state review board that will determine whether the project moves forward.
In addition, Van Petten said that the Kansas Entertainment LLC proposal for a casino at the Kansas Speedway has cleared all the necessary hurdles for construction.
“They are going to break ground after May,” Van Petten said. “They are working on design right now, but construction is the next phase.”
In fact, the required $25 million privilege fee was forwarded to the state’s Budget Director Duane Goossen on Monday.
“The Budget Director smiled, just a little,” Van Petten said.
That leaves the Southeast Gaming Zone [Crawford and Cherokee counties], left unresolved.
Van Petten said that there was the prospect of a potential developer during the last round of applications, but the unnamed group responded by telling the Lottery they could not get the financing together.
The Senate Federal and State Affairs committee has heard testimony on a proposed bill that would lower the investment and privilege fee for the zone and, Van Petten said that passage of that measure would help develop the lone remaining zone without a contract in place.
“I think, if that bill were to pass in its present form, it would improve the chances in the southeast, that's for sure,” Van Petten said. “I am not extremely hopeful that it will pass this year because people are reluctant to tinker with the gaming regulations until we get contracts in place.”
But, Van Petten would not say whether he would like to see the new augmentations pass the Kansas Legislature.
“We just don't feel like we have an opinion,” Van Petten said. “We have gaming interest on both sides of the spectrum and there are those that can be hurt by it and those that would benefit, so we have to stay neutral on it.”
Matthew Clark can be reached at matthew.clark@morningsun.net or at 620-231-2600, Ext. 140
