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Spilyqy Tymoo, Warm Spftngs Oregon February 7. 2002
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The following information has been
prepared by the Tribal Council for the
membership of the Confederated Tribes.
To our people:
We are at a critical moment in our reservation history. After a
long period of prosperity, we are facing an economic downturn that
threatens to change our way of life. No longer can we depend on our
beautiful forests for the revenues they once generated. But neither do
we want to sacrifice tribal programs and services that have brought
comfort and good health to our membership.
It is the Tribal Council's job to lead the exploration of new
ways to bring money and jobs to the reservation. After looking at many
alternatives, we are convinced that the expansion of gaming holds the
most promise for the kind of sustained income our Tribes need. We
also believe that this important issue deserves a tribal discussion and
offers us a chance to focus the long-term vision of the Tribes. What are
the tribal programs that are important to us as a people? What vision of
a future will we pass along to our future generations?
By talking and working together, we can guarantee a future of
growth and self-sufficiency for our children's children. It is up to all of
us to weigh the facts and decide on a direction for our Tribes.
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Why gaming?
Gaming is a natural for Indian people, as tribes all over the
country have proven. Not only is gaming part of our own heritage, but our small-scale
venture into casino gambling at Kah-Nee-Ta has shown us how profitable it can be.
Gaming is a clean industry that has a minimal impact on the environment and relies on
a resource that is never depleted: people.
The expansion of gaming would create more jobs on and off the reservation
and could open the way to other kinds of development in the area of tourism. Most
importantly, the increased revenues from gaming would allow the Tribes to develop
new business opportunities on the reservation, which means more jobs for our young
people.
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Why must we act?
i,. -' xribal income has plunged to a fraction of previous levels, and we are already
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spending our financial reserves and suffering cuts in services as we search for new
sources of revenue. How did this come about?
Our reservation was blessed with rich timber and water resources, which our
leaders have put to work for us during the last fifty years. It once seemed that our i
timber and hydroelectric enterprises would be profitable forever. But now timber
revenues are off due to a 60 reduction in the allowable cut on the reservation, which
means far fewer logs for the mill. r
As you know, last spring Warm Springs Forest Products was forced to lay off
47 employees, over one-half of them tribal members. At the same time, our profits ;
from power generation have flattened out and are not likely to return to year 2000 level
for several years. Clearly we need to look beyond our natural resources to other kinds
of businesses. i
Nearly half our tribal members are under the age of 1 8, which means more
young people are entering the workforce or seeking higher education every year. We .
need to ensure that training and employment are available or we risk losing this
potential talent. We also owe our future leaders the benefits of a strong education in a
positive learning environment.
This all takes secure and long-term funding.
How will gaming affect the funding of tribal
programs?
Your health and well-being are the Tribal Council's primary concern when
seeking new sources of revenue. If our Tribes are financially strong and self
sufficient, we can guarantee the continuation of our needed tribal programs. Careful ,
planning today will pay off not only for our generation but for generations to come.
The Tribal Council believes that expanded gaming would give our reservation a
solid income base to meet tribal needs in education, health care, and future economic
development for years to come.
To that end, we identified and studied three potential sites for a new and larger
casino. One site is on the reservation, along Highway 26. Another, available to us
today, is along the Columbia River on trust land cast of Hood River.
In 1999, after many months of very hard work, our request for a site approval for
the Government Rock site at Cascade Locks was denied by Governor Kitzhabcr.
Since then, Tribal Council has proceeded toward development at the Hood River site.
Unlike Government Rock, the existing I lood River Trust Land is eligible for gaming
development under the federal Indian Gaming Regulatory Act.
The casino that makes the most
profit is going to create the most
jobs for tribal members.
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the casino at Kah-Nee-Ta. In the meantime, it is our job to seek out
the most viable opportunities; in the Gorge we have a chance to earn
four to five times the profits of another location.
What's next?
The Tribal Council asks you to consider the expansion of
gaming as one solution to our economic problems. Please study the,
facts and plan to participate in the upcoming community meetings.
Once you have looked at the pros and cons of casino expansion and
had the opportunity to air your concerns and ideas, we will draft a
referendum question to put on the ballot in May. Then it will be up
to you, the tribal members, to make the final decision. ; -.jd'
Together we will be strong. ; v
As your elected representatives, we have worked hard to secure
the financial future of our reservation. We all know that the stronger ,.
our economic base, the stronger we will be as a sovereign nation. Let :
us act together, in unity, on behalf of the generations to come. ;
Watch Spilyay Tymoo for a schedule of community meetings on
gaming, and please contact one of us at the Tribal Council office
(541-553-3257) with your questions or concerns. ( j
Respectfully,
Your Tribal Council
Above is a conceptual drawing of a potential tribal casino at the Columbia River Gorge.
How much revenue would each of these sites
generate? ,f
There are advantages and disadvantages to each location. While a casino on
the reservation would provide job opportunities, a Gorge casino would bring higher .
profits. r
A look at the bottom line shows where the greatest profits would be made. The'
following figures are the projected annual cash remaining after operating expenses '
and construction debts are paid: ,J
Hood River ;.v $13.3 - $15.5 million " v
Reservation $4.1 - $4.5 million
Indian Head $4.0 million
These projections are based on an analysis of gross gaming revenues by " ' '
EconNorthwest, a firm that has extensively studied all gaming activities in Oregon. '""
Their studies include survey research, census data, road traffic counts and drive time.
Indian I lead Casino figures are today's current operating numbers.
Profits are tied closely to the numbers of projected visitors. The following are
estimates of how many people each site would draw per year: '
Hood River 2,000,000 visitors
Reservation 550,000 visitors
Indian Head 225,000 visitors ....
Estimate of Annual Visitors
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1,000,000
500,000
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Hood River Reserr"
Numbers for Indian Head are Based on Current Visitations
A casino in the Columbia River Gorge has the advantage of attracting
customers from the Portland-Vancouver metropolitan area.
How much would it cost to build a casino?
Investing in our future will require borrowing money. For a casino at Hood
River, we would need a construction loan of about $165 million, which would cost $27
miljion a year to repay. For the Warm Springs site, the construction loan would be
$30-$35 million, with annual payments of about $5.5 million. Both loans would take
ten years to pay off.
What is the bottom line?
The financial bottom line is this: a casino in the Columbia River Gorge would
generate about three to four times the net cash that we currently generate at Indian
I lead Casino. A new casino at Warm Springs would only net a few hundred thousand
dollars more than Indian Head, yet it would cost many millions of dollars to construct.
Which expansion option would provide more jobs for
our tribal members?
A more profitable casino would create more jobs, both at the casino and in
enterprises started with gaming profits. Understandably, many tribal members may
not want to drive or relocate to the Gorge for a job, and feel that a casino on the
reservation would be more convenient for employment. Tribal Council is committed to
providing all tribal members who wish to work with training and job opportunities to
meet their life goals. This can best be done if the Tribes use
gaming profits to encourage tribal member business startups
and create new employment opportunities and services here
at home.
The casino site that makes the most profit is going to
create the most jobs for tribal members. We must have the
resources, the will, and the guidance of tribal members to
develop the best economic opportunities for all of us.
Why is Tribal Council pursuing a
Columbia River Gorge site even
though it is not popular with Hood
River residents?
The Columbia River is important to our people as a
tradition. 1 olacc of commerce and culture, and the Tribal
Council believes it is a fitting place for a tribal casino.
We were extremely disappointed when Governor
Kitzhabcr refused to cooperate with our proposal to build a
casino in Cascade Locks, where the locals support us
wholeheartedly. Out because the Tribal Council feels
strongly about our right to be in the Gorge area, we have
moved ahead with plans to develop our trust land just cast of
I lood River.
Will we be forced to give up the casino
at Kah-Nee-Ta if we build another,
larger casino?
This is an issue we are working on. We arc proud of
Indian Head Casino, which is a profitable and well-loved part
of our community. We do not agree with the Governor's "one
casino policy" and will negotiate for the Tribes to maintain
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A view from the tribes' property at Hood River.
District Meetings Scheduled
To Discuss Gaming Expansion
Simnasho - February 1 1
Seekseequa - February 18
Agency - To be Announced
Follow the Spilyay Tymoo's continuing coverage of gaming expansion for
additional meeting dates. 4
This advertisement provided by Tribal Gaming