Two new casinos to be built by Navajo Nation

Total six casino investment at US $300 million

Last Tuesday the Tribal Council's Budget and Finance Committee of the Navajo Nation approved proposed refinancing terms for the Fire Rock Navajo Casino, located in Church Rock; and financing for casinos in Upper Fruitland, Hogback, Chinle, and Twin Arrows, both in Arizona. Sean McCabe, chairman of the board of directors for the Navajo Nation Gaming Enterprise, said that a US $5 million gaming facility in Hogback is scheduled to be completed first, with the grand opening slated for October. A similar facility in Chinle, Arizona, will open the same month with a US $2.5 million investment.

A larger facility in Upper Fruitland, costing an estimated US $80 million is scheduled to open in October 2011 near the reservation border along Navajo Route 36. The facility will be a permanent structure and will be larger than the Fire Rock casino. LoRenzo Bates, Upper Fruitland delegate to the Tribal Council, said: "It will create jobs, which is great. It will provide benefits to the chapter in addition to the jobs. It will also bring issues with it."

Bates added that the Fire Rock casino, which opened in November 2008, came with challenges such as increased traffic and need for law enforcement. This gaming enterprise has yet to form agreements with San Juan County for increased patrol and other governmental duties such as garbage disposal.

The Upper Fruitland facility, a full-sized casino serving the Farmington metropolitan area and will include a hotel and other amenities, and construction is scheduled to begin as early as this fall. Bates said that the chapter is scrambling to be certified under the Local Governance Act, which allows chapters more control of finances and revenues generated within the community; however, if it remains uncertified, the chapter stands to forfeit gaming revenues to the Navajo Nation.

Bates added: "The chapter has to develop itself to be able to capture the opportunities that come with this project. If they don't, all monies that are generated in terms of taxes and leases will end up in the hands of the central government. Upper Fruitland is a growing community. This project means the opportunity to be able to capture its own revenues. If the chapter isn't certified by the time this project opens up in 2011, it will just be more of an uphill battle to get certified. We're talking a lot of money that can, could and should come to the community." Added revenues to the community could mean better services for veterans, elders and youth.

The largest casino, based in Twin Arrows, near Flagstaff, also in Arizona, is scheduled to open in March 2012, but the tribe has yet to secure a land purchase for the site. With an investment of nearly US $180 million, this property will be a major resort. Additional casinos will open in the other areas throughout the next two years, according to the resolution. McCabe said that the price tag for all six casinos tops US $300 million, adding: "When we're done, we'll have three casinos in each state: Arizona and New Mexico. That's a major facility with hotel and everything in each state too." (E-05.24.10)

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