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Murphy – A large expansion Harrah’s Cherokee Vally River Casino & Hotel can move forward following the approval of loan documents at the Eastern Band of Cherokee Indians Tribal Council meeting Nov. 4.
After hearing from Tribal Casino Gaming Enterprise Chairman Tommy Lambert and loan facilitator attorney Gina Jacobs, the council voted in favor of approving the loan documents for the planned $275 million expansion of the Murphy casino. About 1,000 residents work at the casino, making it the area’s largest employer.
Jacobs said there were two loan facilities under the tribe’s agreement, including a $526 million revolving credit facility for operating purposes as well as a $330 million to finance the construction of the new hotel tower and convention facility.
“What we’re looking at now is adding a $275 million facility,” Jacobs said. “We’re looking at a delayed draw term. We’ll draw that money down as construction progresses on the Valley River expansion, and we’ll start paying that loan back when construction is completed.”
The council approved the plan for the Valley River expansion in July, clearing the Tribal Council Gaming Enterprise Board to begin work on financing the project.
Lambert said the groundbreaking on the expansion would likely take place in spring 2022. He added that the council would receive quarterly updates once the project was underway.
“The only thing we’ve done up to this point is we have engaged with Caesar’s Design & Construction to review the construction documents, and we’ve engaged with JCJ to do all the architecture and the design documents,” Lambert said. “We haven’t went out for bids or anything yet. We’re still in the design phase.”
Jacobs emphasized that no construction on the expansion could take place until the loan documents were approved.
At one point during Jacobs’ presentation, Councilman Robert “Bo” Crowe, who represents the Big Y and Wolfetown communities, called for a work session to take a closer look at the documents. However, Birdtown and 3,200-Acre Tract Councilman Boyd Owle said he believed Jacobs should be allowed to finish her presentation before the council decided what to do.
Owle emphasized that there was some sense of urgency to get the documents approved so construction could begin in a timely manner.
“This needs to be passed, you know?” Owle asked. “How soon an we afford a work session to hold it off for?”
Jacobs also spoke to the importance of approving the loans sooner, rather than later, saying it would be better if construction were started before the weather became too cold.
Tribal Council vice chairman Albert Rose, who represents Birdtown, also expressed concerns, saying that there were new member on the council who needed more time to familiarize themselves with the loan documents, as well as the possibility of the project going over budget.
“We have some new tribal council members back, and this is a ton of information – I mean a ton,” Rose said.
Still, Yellowhill Councilman David Wolfe made a motion to vote after Crowe made a motion to table the measure.
“It kind of gives them direction to do it and get into it and gives us a mechanism to make it happen,” Wolfe said.
The measure passed 9-3 with Crowe, Rose and Wolfetown and Big Y community Councilman Dennis “Bill” Taylor opposed.
“On these big projects it seems like we’ve gone over budget, and they’ve been rushed a little bit,” Rose said.