Gulfside sues JPs, Racing Commission, Cherokee

LITTLE ROCK — Gulfside Casino Partnership filed suit Tuesday in Pulaski County Circuit Court against members of the Pope County Quorum Court, Judge Ben Cross, the Arkansas Racing Commission, Cherokee Nation Business (CNB) and Cherokee Nation Entertainment (CNE).

The case will be heard by Circuit Judge Tim Fox.

According to court documents, Gulfside’s rights, status, and legal obligations are impaired by the Cherokee “contract,” or economic development agreement (EDA).

“The exclusive 2019 agreement between the Cherokees and Pope County leadership blocked consideration of Gulfside Casino Partnership, Churchhill Downs or any other potential applicant,” Lucas Rowan, counsel for Gulfside Casino Partnership, said in an email Thursday.

“When you examine the two proposals, Gulfside’s was superior in every way – economic development, jobs, total investment, square footage, slots and games, hotel rooms and amenities.

“The unlawful agreement deprived Pope County officials of their constitutional power to give support to other operators and from acting in the best interests of the citizens of Pope County and Arkansas.”

According to court documents, Gulfside Casino pointed out that the EDA would be constructed to pay an “economic development fee” to towns and cities within Pope County, other governmental entities, and specific private and public institutions and entities.

“The discretion of the County Judge and Quorum Court cannot be bought, to the exclusion of all other interested operators, with funds denominated “Economic Development” funds; thus, the CNB EDA, the letter of support, and the resolution of support issued in conformity with it are invalid and should be so declared,” the lawsuit stated.

Last month, CNE received a letter of support from Cross and the Quorum Court after it voted 7-5 against a resolution during its last regular meeting to support Gulfside.

According to court documents, Gulfside has sought a declaratory judgment on the basis that CNE “unlawfully coerced” the Quorum Court and the county judge to choose its offer “irrespective of the merits of Gulfside’s or any other applicant’s proposal.” According to the Mississippi- based vendor, Gulfside’s proposal to build a casino resort was 15 percent more lucrative than the economic development agreement submitted by Cherokee Nation Business.

Gulfside stated in court documents that the Circuit Court should declare invalid a “contract” referred to as the agreement, as well as all letters and resolutions of support that were “coercively issued” to meet the requirements of Cherokee’s economic development agreement.

Though Gulfside applied for the Pope County casino gaming license in 2019, its award was met and reversed by the Arkansas Supreme Court due to contention with the issuance of the letter by Cross.

Last month, Cherokee Nation Entertainment and Gulfside Casino Partnership submitted proposals by the Racing Commission’s, but commissioners deemed the Gulfside proposal incomplete because it did not

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include a letter of support from the county judge or the Quorum Court, as required by rules governing the process.

On June 27, the commission voted unanimously to award the Pope County casino license to CNE after scoring its application 651 points out of a possible 700.

“This unfortunate round of litigation from a rejected operator only stands to further delay the economic benefits and jobs associated with the state’s fourth casino license approved by voters in 2018,” said Bart Calhoun, legal counsel for Cherokee Nation Entertainment, in an email Thursday. “We will continue to evaluate and defend Cherokee Nation Entertainment’s position as the casino license holder and as Pope County’s operator of choice.”

“I would like to say I’m surprised, but in all reality this litigation was fully anticipated,” Pope County Judge Ben Cross said in an email Thursday. “The plaintiff’s assertion in this filing that I, or members of the quorum court, were somehow coerced into exclusively supporting Cherokee Nation Entertainment, is not only factually false, it is a fundamentally flawed allegation in respect to how Amendment 100 afforded local control.

“I have always stated the local support provision of Amendment 100 is designed to allow Pope County to have a say in who we are partnered with for decades to come. The plaintiff’s complaint implies that every potential casino operator who came to town should have received a letter or resolution of support, thereby relinquishing our right of local control to a state commission governing body,… none of whom reside in Pope County.

“I am confident that while this case will undoubtedly have to traverse all the way through to the appellate process, we will successfully overcome this frivolous attempt to thwart Pope County’s economic realization and job creation opportunities.”

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Arkansas ends fiscal year with $698 million surplus

LITTLE ROCK — Arkansas has ended its fiscal year with a $698.4 million surplus.

The Arkansas Department of Finance and Administration said the state's net available revenue for the fiscal year that ended on Sunday totaled $6.9 billion. The state's individual income-tax collections came in below the previous year's numbers and above forecast, while corporate income-tax collections were below last year and below forecast.

Sales-tax collections came in above last year's numbers but below forecast.

Arkansas has reported its four highest surpluses over the past four years. The state last year reported a $1.1 billion surplus, its second highest ever, and its highest surplus, $1.6 billion, in 2022.

The surplus figures come weeks after Gov. Sarah Huckabee Sanders signed legislation cutting income and property taxes in a special session.

The cuts are the third time the Republican governor has signed income-tax cuts into law since taking office last year.

Lawmakers have cited the state's surpluses in the push for further tax cuts in recent years, while advocacy groups have urged the Legislature to put money toward other needs.

Under the latest tax-cut measure, $290 million of the state's surplus will be set aside for the state's reserves in case of an economic downturn. Department of Finance and Administration Secretary Jim Hudson said that will bring the state's reserves to nearly $3 billion.