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Proposed Wichita Casino Developers Need To Clear Matters Before Pursuing Plans

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Developers of a proposed casino south of Wichita have asked the Kansas Lottery Gaming Facility Review Board to postpone the board’s decision on the casino proposal until they have settled issues affecting their casino operations in the area.

Owners of the $225 million Chisholm Creek project need to straighten matters concerning zoning and they want to know of the state legislators’ definite plans regarding changes in Kansas’ gambling laws that could have an impact on their profits. On the issue of zoning, Sumner County and the city of Mulvane fought legally over which area would have authority on the casino, and a recent ruling from the Kansas Court of Appeals granted jurisdiction to Mulvane.

As to the matter of competition, a plan by the Wyandotte Nation tribe to seek authorization from the federal government to build a casino in Park City, north of Wichita is a cause for concern for Chisholm Creek. What’s more, state legislators are mulling over the idea of returning the question to allow slot machines at Wichita Greyhound Park for a second vote in Sedgwick County, since the proposal was rejected by voters in 2007 which brought about the closure of the track.

The casino developers have threatened to drop the project if legislators insist on passing the measure. The bill is now pending in the Senate, its fate to be ascertained when lawmakers resume session April 28.

Upon the request of Chisholm Creek, the board, with some hesitation, decided to extend the April 19th deadline for another 60 days to vote on the project, but Kansas law says only the governor has the authority to grant postponement. Gov. Mark Parkinson disapproved the board’s request for respite for the reason that the state badly needs money and Chisholm Creek’s $25 million upfront license fee is already included in the current budget. “The state of Kansas needs a clear understanding of its finances,” Parkinson said in a statement. “It is in everybody’s best interests to move forward with this proposal in a timely manner and to avoid further delays.”

John Frieden, attorney for Chisholm Creek said state law limits the governor’s power to deny deadline extension.”The action of the governor failed to follow the law and consequently has jeopardized state revenues this year and perhaps forever for a state-owned gaming operation in south-central Kansas,” he said. Board Chairman Matt All said the board will decide on a vote before April 19. “We didn’t really see a strong reason to delay it either, but we were trying to be as accommodating to the applicant as possible,” he said. The proposal would allow Chisholm Creek, the state’s only aspirant for a casino license that stayed, to build a facility near Mulvane. The state lottery would own the rights to the new gambling and the gambling equipment, and the state would get 22 percent of the gambling revenues, aside from the $25 million license fee.

Janis Hellard of the county’s economic development office said the economy getting better could open opportunities for more gambling investment even if Chisholm Creek withdraws. “We’re very optimistic about it,” she said.