The proposal for construction of a commercial casino in Norfolk City has been approved by the local City Council, which according to reports was long-awaited. Last year, the Pamunkey Indian tribe forwarded its proposal to the city council to build a commercial casino in Norfolk City, Virginia.
It seems the council was pleased with the details in the proposal because just months after the application was presented it like they unconditionally gave a green light. The tribe gave a statement after the approval saying they had signed an agreement with the city regarding land use and gaming.
The proposed casino resort will rest on a 13-acre piece of land that is located near Harbor Park. The piece of land will be sold the tribe by the city at a rate of $750,000 per acre, which totals $10 million. In the agreement, the tribe is expected to spend a further $200 million on the construction of the project.
In precise and as hinted in a detailed article by the CalvinAyre.com is that the total figure will be way below the $700 million the tribe had earlier expected to spend. The drop in the investment figure could be because it is the first time the Pamunkey as a company is putting its hand in gaming.
However, the tribe has admitted it will not be going in unassisted. It has sorted the help of Jon Yarbrough, a respected personality in the gaming industry. Yarbrough is the founder and former CEO of Video Gaming Technologies (VTG). He is popular for the role he has played in helping many tribes in the state launch casinos and top he’s one of those people with a reputable personality from the authorities as well as to the gaming fraternity.
Therefore, he is well conversant with what it takes to make such a project successful. In a statement to the local media, Yarbrough said that he was confident in the abilities of the Pamunkey tribe. Despite receiving approval from the city, the journey for the Pamunkey tribe might have just begun.
Before they can commence on any construction, the legislators have to first pass the commercial gaming law. Once it has been passed, it will be passed on to the local citizens for approval. However, the city assures that this should not be a cause for alarm for the tribe.
The city manager asserted that the agreement they made is in line with the proposed commercial gaming regulations.
The land and building expenses will not be the only expenses the tribe will incur. The tribe will have to pay for any transportation issues and utility improvements in the area. The improvements will make the venue more accommodating and will protect against floods.
Although the tax rates have not yet been established, the tribe might have to contend with higher rates as it is not a tribal casino.
Besides paying taxes on all its operations, it will also have to pay regular property and admission taxes.