Tribal Council passes resolution for major updates to casinos
Thursday, December 19, 2013 10:30 AM
A resolution to borrow up to $145 million to fund the renovation of the Silver Star Hotel and Casino, the reactivation of the Golden Moon Casino and possibly build a casino in the Red Water community was passed Thursday morning by the Choctaw Tribal Council.
The resolution was approved by a majority vote with only one against.
Chief Phyliss J. Anderson urged the board the pass the resolution, saying it was needed to maintain the current level of employment and to improve profitability.
Upon obtaining the loan, Anderson added the plan was to spend approximately $88.1 million over the next two years.
This includes $32.3 million for new slot machines and upkeep, $22.4 million for the hotels, $7.6 million to reactivate the Golden Moon, $7 million to refinance the Dancing Rabbit Inn and $18.8 million for a possibly casino in Red Water.
The loan also came with a 25 percent reduction in the interest rate, which is now at 4 percent, saving the Tribe $1.2 million, Anderson said.
"This is the lowest interest rate ever for the resort," she said.
The possibility of building a fourth casino drew much discussion from the board with many questioning the need.
Board member Kevin Edwards asked that an amendment be added to the resolution saying no funds would be spent on Red Water until further studies had been completed. The amendment was approved.