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— A group hoping to build a casino south of Wichita promised Monday to open a hotel within six months after gambling starts, but a state review board remained skeptical of the project.
The announcement was designed to improve Chisholm Creek's chances of winning approval for its $225 million project from the Kansas Lottery Gaming Facility Review Board. The group said it is making a firm commitment to open a 100-room hotel by March 2012 at its site outside Mulvane, about 20 miles south of Wichita.
Review board members had been troubled because both the Chisholm Creek plan and a proposal for a casino in Kansas City, Kan., hadn't included hotels during the first phase of the projects. Some of the board's consultants said during a daylong hearing Monday that the lack of hotels would hinder the new casinos' ability to draw tourists.
"We're trying to meet the concerns of the board," John Frieden, a Topeka attorney representing Chisholm Creek, said during a break in the hearing, shortly before its public announcement.
Chisholm Creek officials said they have a commitment from Topeka-based Double Down Development LC to build the hotel. That firm, mostly Kansas investors, already is building a new casino in Dodge City.
Board members peppered Chisholm Creek representatives with questions, and Chairman Matt All told the group the board needs more information before deciding whether to allow the project to move forward. The board plans to vote on both the Kansas City and Wichita-area casino plans in December.
"We still have questions about this proposal," All said. "We're late in this process and so we need to have solid information that makes us comfortable."
Earlier, All had said the lack of a hotel would be a key issue for either casino plan, and several board members questioned whether casinos without hotels are true tourist destinations. A 2007 state law allowing the casinos contemplated "destination" projects and directed the board to pick projects to encourage tourism.
Last year, the board had multiple proposals for both Kansas City and the Wichita area and picked a developer for each, only to see them back away from their plans because of the economy. The Kansas Lottery — which will own the new gambling and contract with private developers to build and operate the casinos — then reopened the application process.
The Chisholm Creek group includes Lakes Entertainment Inc., of Minnetonka, Minn., which has been involved in 11 Indian tribal casinos in seven states.
The proposed casino in Kansas City would overlook Kansas Speedway, the NASCAR racetrack already at the center of a tourist-drawing district of shopping, dining and entertainment sites. Kansas Speedway's parent company, International Speedway Corp., is partners with Penn National Gaming Inc., of Wyomissing, Pa., in the $521 million venture.
Penn and ISC have said they expect to begin building a hotel by 2014, two years after opening their casino. They noted Monday that their proposed contract with the lottery penalizes them financially if they don't deliver.
"Once the economy heals, we're committed to build," said speedway President Jeff Boerger.
Some of the board's consultants warned that holding out for better casino proposals — by rejecting either plan and forcing the lottery to take new applications — would be risky.
"I don't think it's worth the wait, frankly," said Bill Lerner, a founder of Las Vegas-based Union Gaming Group, one board consultant.
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On the Net:
Kansas Lottery Gaming Commission: http://ksracing.org/
Information about the casino proposals: http://www.kslottery.com/ExpandedLotteryAct/ExpandedLotteryActInfo.htm
