Casino project still on track, gaming head says
By Jason Begay
Navajo Times
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The construction of the Navajo Nation's first casino is back on track after a reported delay that could have pushed the opening date back one month and incurred financial penalties against the Navajo Nation Gaming Enterprise.
During a May 8 meeting of the Budget and Finance Committee, the NNGE legal counsel reported that the opening date might have to be pushed back from Oct. 15 due to unforeseen construction delays.
First, because the casino would be accessed from Route 66, a historic roadway, state officials in Santa Fe would have to approve modifications such as a turnout and parking lot entry that touches on the roadway.
Second, the project had to show it would not harm the arroyo just north of the site by altering runoff patterns or discharging polluted runoff into the waterway.
"We are looking at a November (opening) date," said Raymond Etsitty, the legal counsel for the gaming enterprise during the meeting. "But we are trying to speed that up to October."
Both issues have since been resolved and the project is back on schedule, more or less.
"We think we have a problem that we can correct in a week or so," said Bob Winter, gaming enterprise director. "But it's not any kind of default issue that we can't correct."
Such snags are common for construction projects, Winter said. The contractor's duties include finding ways to fix unforeseen issues that might arise.
"Construction projects are living beings, they have timelines that naturally adjust from time to time," Winter said. "When we have a delay, we have to work it out to get around it."
Research revealed that the Navajo Nation has authority over the strip of land where the casino will be built, including where the highway turnout would be. This eliminates the need for state approval of the paving plans, Winter said.
The drainage issue was resolved by moving the location of the building westward by a couple of acres, Winter said.
Another problem that has cropped up is access to sufficient amounts of potable water. Winter said the casino will be served by the Navajo Tribal Utility Authority and he also expects to meet with the mayor of Gallup about additional water.
"This is not a serious threat to the completion of this facility," Winter said.
The site will hook into the city of Gallup sewage system, he said.
Etcitty told the committee that the enterprise is also working out arrangements with NTUA to provide electric service.
The enterprise has yet to draw on its $35 million loan from the tribe's Land Acquisition Trust Fund, as approved in an agreement with the tribe earlier this year.
Winter said he expects to submit his first request to draw about $2 million to pay for architectural fees, a construction manager and engineering, survey and geological work that has already been done.
LoRenzo Bates (Upper Fruitland), Budget and Finance Committee chairman, noted that the agreement between the gaming enterprise and the nation stipulates that the enterprise could be found in default if the Oct. 15 opening date is not met.
The loan agreement also has strict guidelines as to how the money can be used by the enterprise.
"If there is a problem with them not meeting the October deadline, then that needs to be taken care of before disbursal of any funds," Bates told the tribal controller.
"This might be considered a minor problem in the overall picture," Bates said later in an interview. "Still, it's the Navajo Nation's money and the Navajo people expect the nation to look after its assets to make sure nothing goes wrong."