Kansas Speedway Casino Proposals May Violate State Law
The battle royale over the casino license to be issued near the Kansas Speedway just became more complicated, if that were possible. A citizen's group which observes government to prevent suspicious dealings has raised a red flag concerning three of the six applicants for the Speedway casino.
Americans for Prosperity-Kansas announced Monday that Pinnacle Entertainment, the Cordish Company, and Legends Sun all should be disqualified from consideration under the state's casino law, which prevents state revenue bonds or tax increment financing to be used to fund gaming enterprises, and also forbids use of eminent domain powers to acquire land for gambling projects.
Legends Sun's proposed casino would be located adjacent to The Legends shopping district, which the watchdog group claims received $80 million in bond benefits. Alan Cobb, state director of Prosperity-Kansas, noted that the casino and shopping area would be marketed and advertised as one entity. Legends denys any plans to construct on land which was bond-aided.
Pinnacle's plan is to build on land originally owned by Schlitterbahn Vacation Village, a theme park which Prosperity said had received $225 million in bond assistance over the last two years. Although the land no longer is on the tax-assisted list, Cobb's association claims Pinnacle will still receive the benfits of artifically cheaper land and development costs.
The Cordish Company's planned hotel-resort is conceived in partnership with the Kansas Speedway, and Prosperity notes that the Speedway has been given $127 million in public assistance, plus land granted by eminent domain.
Kansas lottery director Ed VanPetten promised to have the state attorney general look over the objections, and stated he was taking the claims seriously. “The act isn’t extremely clear whether it’s prospective or retroactive,” VanPetten said. “We’re trying to make that determination. … It does raise an interesting question. If it’s retroactive there obviously would be some issues.”
Perhaps the Speedway casino projects will be narrowed down by more than just bidding; after all, who couldn't be high bidder if they knew their bid would be financed by the public?
