KWCH - Kansas News and Weather - Sumner County Casino Adds Hotel

Sumner County Casino Adds Hotel

Update:

TOPEKA, Kan. (AP) - A group hoping to build a casino south of Wichita says it has a firm plan to build a hotel soon after the casino opens.

An attorney representing partners in the Chisholm Creek casino proposal said Monday that a group of mostly Kansas investors has committed to building a 100-room hotel for the project. The attorney, John Frieden, said the hotel would open by March 2012, six months after the casino.

The Chisholm Creek partners expected to outline their plan during a meeting of the Lottery Gaming Facility Review Board, which will determine whether its project outside Mulvane goes forward.

Several board members had expressed concern that neither the original Chisholm Creek proposal nor a plan for a casino in Wyandotte County included a hotel in the first phase of construction.

(Copyright 2009 by The Associated Press. All Rights Reserved.)

By Kim Hynes (SUMNER COUNTY, Kan.)

A Sumner County casino would generate $44 million a year for the the State of Kansas, Sumner and Sedgwick Counties. That's according to a consultant hired by the state to review the proposals. Monday the Lottery Review Board will review the reports in Topeka.

Consultant Reports

There's only one proposal in Sumner County. The Chisholm Creek casino would be built at the Mulvane exit of the turnpike. The consultants are breaking down the proposals to help the Lottery Review Board decide whether the project should be built.

Chishom Creek Proposal

The consultants say this process is not as beneficial for the state since there's only one proposal. The last time around there were three, which made the developers more competitive. At that time, developers were willing to spend more money and build larger projects. But since the economy has down turned, developers don't have as much access to financing. So developers proposes building only a casino, hotels and other amenities are scheduled for later phases.

The Chisholm Creek project would be financed through cash, so it wouldn't have to depend on banks for loans. The consultants say if the developer can build a smaller casino with cash, it's reasonable to expect additional phases once the casino generates revenue.

State law mandates any casino built generate revenue and encourage tourism. The consultants say although the size of the proposed Sumner County casino is not ideal, it's optimal given the economy. They say if the Lottery Review Board chooses to go back out for bids, it's difficult to predict whether the proposals would improve.

The Lottery Review Board will take the information from consultants and question the developer. The board has until December 28th to make a decision on whether the Sumner County project can move forward.