Monday, April 28, 2008

Kansas City Residents Sue To Block Possibility Of Mohegan Casino

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Four residents in Kansas City are suing to block three proposed casino projects in Wyandotte County, alleging that the proposed casinos would benefit from projects that received public financing previously or benefited from the use of eminent domain, which would violate the law that permits those same casinos.

The law, called the Kansas Expanded Lottery Act, allows for a casino in four different regions of the state but it also specifies that no public financing or eminent domain be used for the casino projects.

The three casino proposals that the plaintiffs seek to block are those of Pinnacle Entertainment, Speedway Entertainment and Legends Sun. Legends Sun is a $770 million project proposed by a partnership that includes the Mohegan Tribe.

Legends Sun made a statement in late March to the Kansas City Business Journal, calling the lawsuit "frivolous and without merit."

"The Legends Sun Resort Hotel & Casino development does not utilize (sales tax revenue) bonds, revenue bonds, tax increment financing or similar tax-abated financing, nor will it be located on land financed through these methods or acquired through eminent domain," according to the statement.

The lawsuit says the Legend Sun's casino proposal intends to coordinate marketing efforts of "The Legends" brand name with The Legends at Village West, which is a retail shopping and dining complex and which benefited from public financing for its infrastructure.

See related article:
http://kansascity.bizjournals.com/kansascity/stories/2008/03/24/daily16.html?ana=yfcpc