Roth casino vote passes, again
Published 12:01am Wednesday, April 27, 2011By Emily lane
The Natchez Democrat
NATCHEZ — After lengthy discussion and a plea from one alderman not to do so, the Natchez Board of Aldermen voted again Tuesday to give Roth Hill casino developers six more months to get approval from the gaming commission in exchange for $100,000.
The board voted on the same motion at its last meeting April 12 after an hour-long closed meeting with representatives from the developers, Natchez Enterprises.
The extension and payment is included in a lease amendment, which states Natchez Enterprises will pay the City of Natchez $50,000 to extend its lease for three months and gives the developers a second option to extend the lease for another three months for another $50,000.
Board Attorney Everett Sanders said the amendment voted on at the last meeting was never executed with the mayor’s signature, and some of the amendment’s wording had changed since April 12. Due to the changes, the board voted on the amendment again.
Like last meeting’s vote, the board voted 4-2, with Ward 1 Alderwoman Joyce Arceneaux-Mathis, Ward 3 Alderman Bob Pollard, Ward 4 Alderman Ernest “Tony” Fields and Ward 5 Alderman Mark Fortenbery in support of executing the amendment.
Ward 2 Alderman James “Ricky” Gray and Ward 6 Alderman Dan Dillard voted against the motion, which was made by Arceneaux-Mathis and seconded by Pollard.
Dillard said executing the amendment would demonstrate the city’s validation of the lease-option, on which Dillard believes Natchez Enterprises has defaulted.
“If the board agrees to this amendment, they are reaffirming (the contract),” Dillard said. “Fool me once shame on you, fool me twice shame on me.”
Dillard said Mayor Jake Middleton executed the lease-option in July 2009 without the board’s approval or knowledge.
Dillard pointed out the $50,000 the amendment directs be paid to the city each additional three months would be drawn against the casino’s first month’s rent once the casino opens its doors.
“It’s $50,000 (Natchez Enterprises) is paying (the city) with (the city’s) own money,” Dillard said.
Dillard said he has asked the administration and attorney for six months about the validity of the lease and if the contract is a lease or an option.
“The answer is, if you want it to be a lease, it’s a lease; if you don’t want it to be a lease, it’s not a lease,” Dillard said.
Sanders said the option became a lease under certain conditions, but Natchez Enterprises defaulted when the developers failed to meet the conditions of progress. The amendment would allow Natchez Enterprises to have an extension in exchange for an advance in payment.
Sanders also noted that in the nearly four years since talks began with Natchez Enterprises, many of the extensions delaying the casino’s progress were the fault of the City of Natchez.
Dillard said the lease is one-sided, giving the developer an upper hand.
Sanders said the lease contains incentives for Natchez, such as a $1 million annual payment and a percentage of the casino’s sales once the casino opens.
Dillard said the document is ambiguous and the board would be prudent to file the issue in chancery court and allow a judge to make a determination on the validity of the agreement.
“I strongly urge this board that this is not a good agreement,” Dillard said.
Dillard also noted the board voted March 3 to send a letter to Natchez Enterprises informing the developers they had defaulted on the agreement. The letter, which was received by Natchez Enterprises, gave the developers 30 days to respond.
“They didn’t reply; they came April 12 with an amendment to the agreement,” Dillard said.
Arceneaux-Mathis said she voted in favor of sending the letter to push the developers into some action.
“(The developers) put skin in the game; I wanted it to be more than $50,000, but in discussions that is all I could get,” she said.
Arceneaux-Mathis said she originally voted against entering agreements with The Lane Company (the original Natchez Enterprises investors) under former mayor Phillip West’s administration.
Signing with Lane passed with a 4-2 majority at the time.
She said the city had a number of prospects for the development of Roth Hill in 2007, but now, perhaps as a result of the recession, Natchez Enterprises is the only option.
“Now (Natchez Enterprises) is the only game in town,” Arceneaux-Mathis said.
“Do we like them? I didn’t like them from the start. But can I work with them?” she said rhetorically.
Arceneaux-Mathis said investors native to Natchez, whom she cannot name, will supposedly allow Natchez Enterprises to go to the gaming commission.
“If nothing (happens) by Nov. 31, I don’t want to hear about it. Go back to Georgia, and (the city) will have spent the $100,000.”
The lease amendment will be public today after the mayor executes it with his signature, Sanders said after the meeting.
A copy of the original lease option can be found here. A copy of the amendment will be posted once it is obtained.
In other news from Tuesday’s meeting:
• Natchez National Historical Park Superintendent Kathleen Jenkins updated the board of the National Park Service’s plan to acquire and develop the Historic Forks in the Road.
Jenkins said a boundary study completed of the slave market at the end of last year found the property had the historical significance to become part of the National Parks Service.
“We will work with Sen. (Thad) Cochran and Congressman (Gregg) Harper to acquire land at the Forks of the Road,” Jenkins said.
Jenkins said the city’s short-term plans to develop a garden at the site should not impact the park service’s plans.
Jenkins said she will be asking the city to donate the land, but that the plans will likely need to include more parcels of land than the city owns.
Jenkins said the NPS no longer uses eminent domain to acquire property.
Jenkins said she would like to form a committee to help plan the design and concept of the site. She wants the committee to include representatives from NPS, the Historic Natchez Foundation, friends of Forks of the Road and other organizations.
Jenkins said would like to use an architecture firm from Boston, which designed the Smithsonian and other historical sites, to help with design.
• A public hearing on properties to be adjudicated for overgrown grass, debris or weeds was conducted at the meeting. Nine of the 10 properties listed were declared a nuisance.
Nix said 70 to 80 percent of the properties notified since the last meeting complied with the city planning department’s request to clean up the lots.
• Gray said in his report he has received complaints that some people are not stopping their cars when school buses stop.
“Once (the buses) put that stop sign out, you need to stop on both sides of the street,” Gray said.
“It’s really serious; if you don’t stop, you are going to be in serious trouble.”
