In a significant legal victory for the city, Norfolk has successfully fended off a $100 million lawsuit filed by Cordish Companies, the developer of Waterside District. The lawsuit claimed that Cordish should have had the first right to develop a casino in Norfolk and sought damages over the city’s casino plans with the Pamunkey Indian Tribe.

Norfolk’s Partnership with Pamunkey Tribe Prevails in Casino Lawsuit Appeal

The Court of Appeals of Virginia, in a 12-page ruling issued on February 27, upheld the lower court’s decision to dismiss Cordish’s lawsuit against Norfolk, Norfolk Redevelopment and Housing Authority (NRHA), and city attorney Bernard Pishko, as reported by The Virginian-Pilot. 

Cordish Companies, a Baltimore-based developer that revitalized Waterside in 2013, argued that it should have exclusive rights to develop and operate a casino based on its Waterside development agreement and lease.

Norfolk’s decision to move forward with the Pamunkey Indian Tribe for the HeadWaters Resort and Casino, located less than a mile from Waterside, triggered the legal dispute. Norfolk District Associates, a Cordish-owned LLC, sued in 2021, alleging breach of contract and an active attempt to exclude Waterside from casino site considerations.

The case was initially dismissed by a Richmond Circuit Court judge in 2022, leading Cordish to appeal. In the ruling from February 27, the Court of Appeals affirmed the lower court’s decision, stating that the 2013 lease agreement did not obligate the city and NRHA to use Norfolk District Associates to develop a casino.

Judge AtLee: Casino Deal Unenforceable

Judge Richard Y. AtLee, representing the three-judge panel, explained that they concluded section 10.2.1 of the agreement could not be enforced because it was essentially an agreement to agree, and the agreement did not allow for a casino. This, he said, supported the circuit court’s decision to uphold the demurrers.

Cordish Companies refrained from providing a comment regarding the ruling. In contrast, city attorney Bernard Pishko conveyed satisfaction, expressing that they were pleased with the court’s confirmation that Cordish and John Lynch had filed the lawsuit against the city, city attorney, and NRHA without a basis.

The appeal process included two rounds, with the second round featuring oral arguments in December 2023 after one judge had to recuse themselves due to a conflict of interest.

The judges who participated in the final round of oral arguments and made the ruling were AtLee, Haley, and Dominique A. Callins, with Causey recusing.The legal victory solidifies Norfolk‘s position in moving forward with the HeadWaters Resort and Casino alongside the Pamunkey Indian Tribe.

The post Norfolk Successfully Defends Decision as Appeals Court Rejects Casino Lawsuit appeared first on Keno Wizard.

In a recent twist for the much-anticipated HeadWaters Resort & Casino project in Norfolk, the Pamunkey Indian Tribe, along with their casino development team, has opted to delay the presentation of their latest plans until January 22. 

Norfolk Mayor Unaware of Latest Casino Proposal Issues

Casino spokesperson Jay Smith stated in an emailed communication that the tribe and the developer had engaged in discussions to address concerns and issues pertaining to the project and site before proceeding with the Architectural Review Board presentation, reported by Virginia local media outlet The Daily Press. However, when pressed for specifics on the nature of these issues, Smith refrained from providing further details.

Norfolk Mayor Kenny Alexander expressed his lack of awareness regarding any problems with the latest proposal and redirected inquiries to the developer. The proposed HeadWaters Resort & Casino, situated between the baseball stadium and the Amtrak station near downtown Norfolk, has undergone multiple modifications since gaining approval for construction in 2020.

Initially, the project faced setbacks when plans for a temporary casino within Harbor Park were discarded in 2022 due to non-compliance with the 2020 voter referendum specifications. Subsequently, the developer introduced a two-phase plan for a casino and resort in mid-2023, but it encountered opposition from city leaders and was eventually withdrawn.

HeadWaters Resort & Casino Tackles Construction Challenges in Norfolk

December 2023 witnessed the unveiling of the latest blueprint, featuring a 2025 commencement for gaming activities, while other resort components, such as the hotel and spa, undergo construction. Notably, the once-proposed Elizabeth River marina has been excluded from the updated plans.

The Pamunkey Indian Tribe, as the preferred gaming developer, obtained approval from local voters in 2020 for the $500 million project on the Elizabeth River waterfront, adjacent to Harbor Park Minor League Baseball stadium. Despite this, construction has yet to commence more than three years later.

The Architectural Review Board’s approval is crucial for the project’s advancement, as it is tasked with evaluating new construction projects involving city-owned land. The HeadWaters development, spanning approximately 13.5 acres, is set to be purchased from the city for $10 million, with financing provided by gaming industry veteran Jon Yarbrough.

The project has faced numerous hurdles, including a legal snag over the temporary casino, disagreements over a phased development approach, and design delays linked to a city-funded seawall project along the Elizabeth River. According to the casino development agreement, HeadWaters must be operational by November 2025, a deadline that carries financial implications for both the city and the tribe.

The post Norfolk Casino Developer Postpones Blueprint Presentation appeared first on Keno Wizard.

The funding has proven a tall order, with local authorities scrambling to secure money from different sources. The federal government has paid the bulk, and the city and state of Virginia will provide the rest, or around $910 million.

Virginia Happy to Pour More into Seawall Project on One Condition

Virginia Gov. Glenn Youngkin has outlined an additional $21 million that the state would provide to the Coastal Storm Risk Management Project in the new budget on top of the $74 million that his administration already earmarked for the project. Yet, this comes with a condition – the construction of a $500-million commercial casino developed by Jon Yarbrough and the Pamunkey Indian Tribe.

This is a major undertaking that will seek to shield Norfolk from heavy elements by providing advanced engineering. It’s also why the US Army Corps of Engineers is going to get involved in designing and executing the project as well, and the undertaking would be a major technical feat in its own right as there will be safeguards and contingencies to hopefully ward off overflooding.

The project already includes barriers, stations, and seawalls to help curb a potential influx of water. Gov. Youngkin is very much in favor of this project, and he is happy to put forward additional funding tied to the realization of the casino but needs some insurance that the local economy would continue to thrive, and tax receipts – grow.

The idea behind the mulled HeadWaters Resort & Casino, which has suffered multiple setbacks in gaining an official go-ahead, is to provide an additional source of revenue for Norfolk which would in turn make the local economy stronger, or so the governor’s office seems to think.

The Coastal Storm Risk Management Project has already been kickstarted with a first tranche in November with the federal government forwarding $400 million to lay the groundwork. A few of the setbacks plaguing the casino projects have to do with local opposition, and others with the hastiness of the investors, who wanted to go ahead and open a casino first, and only then start adding the resort parts of the project.

However, this is a no-go with local authorities who want, if HeadWaters Resort & Casino is to be released, to come as a full project and not be constructed and opened piece by piece. The updated budget by the governor just wants to ensure that there will be a way for Norfolk to repay the treasury loan through the additional tax windfall from the casino project.

The post Norfolk Upcoming Casino to Help Bankroll Seawall Project appeared first on Keno Wizard.

The Pamunkey Indian Tribe has decided to exercise its option to delay the purchase of land adjacent to Harbor Park for their proposed HeadWaters Resort and Casino until January 2025. 

Norfolk Casino Project Receives Extension for Meticulous Planning

City spokesperson Chris Jones confirmed the extension, emphasizing that it does not indicate a definite delay in the project but rather allows additional time for meticulous planning and approval processes, reported The Virginian Pilot. The Pamunkey Tribe, in partnership with Golden Eagle Consulting II, aims to construct the HeadWaters Resort and Casino between the baseball stadium and the Amtrak station near downtown Norfolk, Virginia.

Originally securing a three-year option in January 2020, the tribe utilized its first extension last year, setting the final contracted deadline for land purchase at nearly $10 million. There are specific benchmarks outlined in the contract related to licensing and contracting that the tribe must fulfill before the city approves the sale.

Jay Smith, a spokesperson for HeadWaters, stated that they anticipated offering additional updates in the coming weeks. He mentioned that these updates would highlight the tribe’s steadfast dedication to initiating the project’s construction promptly. The aim is to generate employment opportunities and tax revenue, meeting the expectations of both the City of Norfolk and the Commonwealth of Virginia, from their proposed destination resort and casino.

City Leaders Challenge Two-Phase Plan, Insist on Original Agreements for Norfolk Casino

The casino project has faced hurdles, including disagreements over the construction approach. Initially proposing a temporary casino while the permanent structure was built, developers later opted for a two-phase plan. 

However, city leaders expressed their opposition to this approach, insisting on a single-phase project to align with the original agreements and voter expectations. Accusations have been made by both sides, with the tribe and developers claiming mixed messages from city officials regarding project expectations.

Meanwhile, city leaders have demanded clarity and adherence to the promises made to voters during the 2020 referendum, where Norfolk residents overwhelmingly supported casino development.

The city has been keen on ensuring that the proposed resort and casino meet the standards outlined in the initial agreements, emphasizing the importance of delivering the development as envisioned during the public vote.

Virginia experienced a significant surge in tax revenue from sports betting and casinos, surpassing earlier projections. In fiscal year 2023, Virginia’s casino sector exceeded expectations, with the temporary Hard Rock Casino in Bristol generating $157 million in net gambling revenue, Rivers Casino Portsmouth reporting $120 million, and Caesars casino in Danville recording $31 million in just two months. Virginia’s gambling sector is rapidly expanding, with the casino in Norfolk and an upcoming referendum for a casino venture in Richmond.

The post Norfolk Casino Project Gets Land Purchase Extension until 2025 appeared first on Keno Wizard.