Column: Pay attention to Seminole Tribe's lawsuit

Tuesday, June 6, 2006  

"A freshly minted lawsuit in Florida has huge implications for American Indian tribes — and could cost a company with a huge stake in downtown Kansas City more than $2 billion.

The Seminole Tribe of Florida last month sued Power Plant Entertainment LLC, owned in large part by the Baltimore-based Cordish Co., which is developing Kansas City’s Power & Light entertainment district.

Between 2000 and 2004, tribal authorities signed a series of agreements with Power Plant to advise, advance cash and develop its Seminole Hard Rock Hotel & Casino projects near the Florida cities of Hollywood and Tampa.

The deal entitled Power Plant to a 30 percent share of net gambling and nongambling revenue for 10 years, then 30 percent of net nongambling revenue for 15 more years.

The sprawling casino resorts opened in 2003 and 2004 and have been wildly successful. Through April this year, the tribe said, it has paid the Power Plant partners $310.4 million under the agreements, plus $28.7 million for various development and financing fees associated with the projects.

Over the 25-year life of the agreements, the tribe calculates Power Plant’s cut could reach $2.3 billion."

Get the Story:
Rick Alm: Tribe's case could have big implications (The Kansas City Star 6/6)