Spokane7
50°
June 22, 2011 in Business
Tribal casino promises payout
Pact gives Airway Heights, county millions in impact fees
A second casino on the West Plains
Projected cost: about $160 millionSite: 145 acres on the edge of Airway Heights
Spokane tribal members: about 2,650
Opening: 2013, if approved
If the Spokane Tribe’s proposed West Plains casino opens and turns a profit, the first big payouts will go to Spokane County and the city of Airway Heights.
Both governments have signed agreements with the Spokane Tribe that would provide regular payments by the tribe in lieu of business and property taxes.
Impact fees are commonly paid by tribes that operate casinos in Washington.
Both the county and Airway Heights have been getting payments from the Kalispel Tribe since 2001, the year after the tribe opened Northern Quest Resort and Casino in Airway Heights.
So far, Airway Heights has received $5.5 million from the Kalispels, plus another $3.5 million for the cost of building a new sewer system and connecting the Northern Quest property to city water.
During the past 10 years Spokane County has collected about $270,000 as its share of those impact fees paid by the Kalispels.
The proposed Spokane Tribe casino, which could be built about four miles from Northern Quest, would create an even bigger cash flow for the two governments.
First, the Spokanes need to clear two hurdles: The Interior Department needs to approve the casino plan; then the governor’s office has to give its OK for the project to start. The Spokane Tribe hopes to hear from the federal government later this year, with construction possibly starting next year.
Like the Kalispels, the Spokane Tribe would then pay impact fees that cover fire protection, law enforcement, water and sewer, road repairs and other services.
Instead of a formula using a fixed percentage of total profits, the Spokane Tribe’s proposed payment plan uses a year-by-year payout that increases for seven years, then would grow by 3 percent each year.
Once it opens, the Spokane Tribe casino would generate a $600,000 first-year payment, shared by Airway Heights and Spokane County. The city would get 80 percent, the county 20 percent.
Each year the tribe is committed to increasing the payment by $100,000, with both city and county continuing to split the payments.
By the seventh year after opening a casino, the Spokanes would have paid more than $5.3 million, with Airway Heights getting $4.2 million and Spokane County $1.15 million. From the eighth year on, if it’s making a clear profit, the Spokane Tribe casino fees paid to the city and count would grow by 3 percent each year.
Among those opposing the Spokane Tribal casino is the Kalispel Tribe. Kalispel Tribal Gaming Agency Executive Director Nick Pierre said, “Allowing the Spokane Tribe to build a casino in Airway Heights for market-driven reasons will have significant policy ramifications and devastating impacts on the Kalispel Tribe’s ability to provide services for our members.”
The Kalispels declined to comment on the impact fee formula the Spokane Tribe has established.
Mike Spencer, vice chairman of the Spokane Tribal Business Council, said the impact fee system resulted from negotiations with Airway Heights and the county in which the tribe asked them to estimate their costs for providing needed services. The tribe’s view was: “You tell us what (those costs are) and we’ll agree to pay,” Spencer said.
The payment plan was approved last summer by Spokane County, with Commissioners Bonnie Mager and Mark Richard voting in favor.
Commissioner Todd Mielke opposed the payment deal, saying he disliked a clause in the agreement that required Spokane County to remain neutral on the Spokane Tribe’s application to the Interior Department.
Mielke said the county commissioners were wrong to sign away the county’s option to oppose — or support — the application before reviewing the casino’s specific impacts.
Richard said he doesn’t consider the deal “a huge cash cow” for either the city or county. He said the numbers used in setting the impact fees came out of efforts to calculate how much a private developer would be paying for a similar project.
“We matched the (payment) amounts to what a similarly sized mixed-use project would generate if it was built on private land,” Richard said.
Richard said it’s also not correct to compare the two tribes’ different payment formulas.
“I don’t see this as an apples-to-apples comparison because they are different (tribal) agreements from different times,” he said.
Airway Heights Mayor Patrick Rushing said he and City Council members back the Spokane Tribe’s proposal because it will help the region’s economy. It could be as beneficial for West Plains residents and businesses as the Kalispel casino and hotel have been, he said.
The Spokane Tribe has estimated the full rollout of its West Plains development, including a resort hotel and nearby businesses, would produce more than 1,000 jobs.
Rushing sees no problem with the city formally agreeing not to oppose the Spokane Tribe’s casino application.
“It wasn’t that (kind of quid pro quo deal) by the tribe,” Rushing said. “I think the Spokane Tribe has seen what they can do to bring more prosperity to the region. And I think they’re very willing to pay a fair amount for those services.”
The agreements also include the potential for decreasing payments, if the project doesn’t earn as much money as projected.
Some opponents of the Spokane Tribe project have stated they don’t see the community being able to support two profitable casinos.
The Kalispels, like all other tribes operating casinos, don’t disclose how much money they generate.
Scott Wheat, a Spokane attorney who represents the Spokane Tribe, said the Spokanes disagree with the view that two casinos will cut into each other’s profits.
Wheat said people can look at Northern Quest and conclude “that the Kalispels are doing extraordinarily well” in generating significant income from entertainment, gambling and destination travel.
Spokane tribal leaders are convinced the market is big enough for two Airway Heights casinos, he said, adding, “We hope to be doing similarly well as the Kalispels in the future.”
Garco awarded $35.8 million Joint Base Lewis-McChord contract 
Dazzeetrader11 on June 22 at 12:59 a.m.
1. Nice Bribery .
2. Kalispels pay only $27 K per year.
3. Spokanes will pay millions to run the game. Must be a lot to that particular disease.
The question should be the money. It should be about if this is good for the INW culture when there’s already a huge complex on the west plains. It’s not always about money Team Spokane.
4. Why not have the Kalispels offer millions?
The whole thing seems a bit corrupt. Save your money for your kids’ education Spokane. Don’t “Gamble their futures away”.
WillyPeter on June 22 at 7:35 a.m.
No mention of the prospects of casino encroachment on Fairchild’s operational requirements - resulting in the USAF base being a prime candidate for addition to the ‘Base Closing List’
If jobs and money are the prime components of this project, know this; losing Fairchild would be a financial disaster for the Inland Northwest
johnclarke on June 22 at 7:44 a.m.
WP, explain. How does a casino impact FAFB ?
voice_of_reason on June 22 at 8:34 a.m.
I’ve never understood why, for the past ten years, that noone has questioned why the Kalispel Tribe have a casino in Airway Heights in the first place. 150 years ago that entire area was part of the Spokane Tribe’s aboriginal land. The city is named after them. The county is named after them. The river is named after them. Even the area’s major sports team is named afer them. Yet the Kalispel Tribe have a casino there?? Really?? The Tribe closer to Canada then Spokane and Airway Heights? The Tribe that came from Northeast Washington, Northern Idaho, and Northwestern Montana? Really? Wouldn’t it be easier to close Northern Quest, send the Kalispel Tribe packing, and move the Spokane Tribe in? Problem solved. Everyone’s happy.
eagleproducer on June 22 at 9:11 a.m.
There used to be a tribe called the Spokane Shock?
jddavis on June 22 at 9:42 a.m.
JC—it impacts Fairchild because of the flight patterns and “crash zones” relative to the runway. The map included in the article doesn’t show that info, however, you are familiar with that area and the east end of the runway.
I am indifferent about another casino in the area. I am concerned developing land in certain areas in relation to Fairchild may very well become a factor in the next BRAC.
greenlibertarian on June 22 at 10:12 a.m.
The supposed voiceofreason parrots numerous questions which have already been answered.
You are not a voiceofreason if you ignore already well known facts.
Personally I think gambling of this sort is stupid, however, Americans have the right to be stupid and throw their money away being oddly entertained to the benefit of the tribes. Red man’s revenge.
I also don’t think the Spokane Tribe will be successful in gaining approval for this project from the Feds, based on previous Interior Department decisions in similar circumstances. But the Spokane Tribe has every right to pursue such, even if in the end such effort is for naught.
voice_of_reason on June 22 at 10:19 a.m.
eagleproducer wrote:
“There used to be a tribe called the Spokane Shock?”
Idiot.
voice_of_reason on June 22 at 10:23 a.m.
greenlibertarian wrote:
“The supposed voiceofreason parrots numerous questions which have already been answered.
You are not a voiceofreason if you ignore already well known facts.”
Since they are so well known, and have already been answered - Then please, by all means, answer them. I’d love to see you profess your vast knowledge in this area.
jddavis on June 22 at 10:39 a.m.
Tom Sowa—
A key consideration for the proposed casino is its location relative to Fairchild. Perhaps you could include that information as well as have Ms Quinn update the included map identifying the location of the proposed casino, Fairchild, and Fairchild’s runway.
In the past, the SR has used graphics in articles showing the critical areas around Fairchild. I believe that information would be helpful in this article.
greenlibertarian on June 22 at 11:31 a.m.
The S/R provides a helpful feature on every story for the not willfully ignorant.
It’s called “Related Stories” within which you who are not ignorant can learn how and why it is the Kalispel were allowed to have an off-Res casino, and a whole bunch of related information on local and national Indian gaming.
Of course, you can lead the ignorant to information, but you can’t make them learn.
SMARTGUY on June 22 at 12:19 p.m.
The Kalispel casino has already sucked over $ 200,000,000 out of the city of Spokane. Enough to make every one of the 249 members of this tribe wealthy, when does it stop. How many college funds, and how many millions of our tax dollars, paid out in social security, are we going to flush down this usless toilet. Why can’t they pay a 50% tax to offset the damage this casino does to our community. Gambling is highly addictive, ever been out there, and watched the “losers” pump money into these machines, like lab rats trying to get cocaine. It would be funny, if it wasn’t so pathetic. They claim we need the jobs, but sucking up second hand smoke, while you serve drinks, and pick up garbage does not create many skilled employees. Also all employees run the risk of being addicted themselves. The smaller tribal casinos are filled with tribal members, losing twice what they gain in payouts from the tribe, and drinking and smoking. The very idea that these machines are not illegal slot machines, but “very fast lotto machines” is Ludicrous, and false.
CougarGold on June 22 at 12:34 p.m.
Regarding encroachment around FAFB, here is the Joint Land Use Study that illustrates zoning and land use requirements as they relate to the base and SIA. I believe the casino falls within the requirements of the study.
http://www.spokanecounty.org/BP/data/JLUS-STUDY/FairchildJLUSpresentation.pdf
voice_of_reason on June 22 at 1:18 p.m.
greenlibertarian writes:
“The S/R provides a helpful feature on every story for the not willfully ignorant.
It’s called “Related Stories” within which you who are not ignorant can learn how and why it is the Kalispel were allowed to have an off-Res casino, and a whole bunch of related information on local and national Indian gaming.
Of course, you can lead the ignorant to information, but you can’t make them learn.”
So your only facts are from S/R news stories? I guess I’ll stop here, because your idiocy obviously has no boundaries. You wouldn’t know a ‘fact’ if it bit you in the xxx. Better yet, go sit down with Kalispel Tribal Chairman Glen Nenema - then sit down with Spokane Tribal Chairman Greg Abrahamson and see if you can realize the facts yourself. You may know a lot about something, but in this area you know a lot about nothing.
Dazzeetrader11 on June 22 at 2:54 p.m.
Heck..with that type of money, I’d build my own casino..
Except for those pesky taxes white folks have to pay. Not fair.
SMARTGUY on June 22 at 6:23 p.m.
Your casino would go broke, because unless you are a tribal member slot machines are illegal
greenlibertarian on June 22 at 10:31 p.m.
One needn’t personally sit down with the Chief’s of the local tribes when they are forthcoming with their thoughts about their Tribal gaming issues and express such to the press and in other avenues.
If you don’t understand how the Kalispel were successful in securing non-tribal land in order to build a Casino, you are completely and utterly ignorant.
voice_of_reason on June 23 at 10:03 a.m.
Last word to greenlibertarian:
You can assume anything you want, but I GUARANTEE that I know more about this issue, both currently and historically, then you do. You will never believe that, because you are an ignorant idiot. So be it, the world needs people like you too.