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12/18/02

Tribe plans second tower

By Don Hendershot


The Cherokee Tribal Council has passed a resolution approving the next phase of expansion of its gaming enterprise — the construction of a second $60 million hotel tower.

The resolution authorized the Tribal Casino Gaming Enterprise (TCGE) to carry out the planning, construction and financing of a second hotel tower.

Rationale for a second tower includes the fact that the current hotel has experienced an average occupancy rate of more than 97 percent since opening in May, and that the average guest is spending in excess of $600 per day. Brenda Oocumma, chairman of the TCGE board of advisors, told The Cherokee One Feather “We feel there’s plenty of market potential out there to keep growing.”

The first 15-story hotel tower opened in May 2002. It is WNC’s tallest building west of Asheville and has 252 rooms, including 244 premium rooms, eight luxury suites and 15,000 square feet of convention space with a seating capacity of 1,400. It includes the 175-seat Selu Garden Cafe plus the Club Cappuccino coffee bar. Other amenities include Kanati’s gift shop, an indoor pool and an indoor waterfall. The $62 million hotel is connected to Harrah’s Cherokee Casino via an enclosed sky bridge.

Larry Blythe, vice-chairman and Wolfetown representative on the council, was the lone dissenting vote. Painttown representative Tommye Saunooke was absent.

“There are some things I would have liked to see in place before going ahead with this project. There are ongoing discussions with the governor regarding gaming and the general economy is not at its strongest now. Is it a good time to incur $60 million in debt?” Blythe asked.

He said the tribe was negotiating with two banks and that if, “we had a commitment in hand, perhaps we could broker a better deal with Harrah’s.”

Big Cove council representative Teresa McCoy supports the second tower.

“I want the tribe to know a lot of money has been placed aside to take care of debt. Low financing rates make it a better business decision to continue paying on the loan.

“My concern is that tribal members should have been informed earlier, to give them the opportunity to learn more about the project,” McCoy said.

Pat Dennehy, general manager of Harrah’s Cherokee Casino, said nothing was official until Chief Jones signed the resolution. He said if the project was a go that design would be very similar to the current tower.

“I would expect at least a 20-month build out once construction began,” Dennehy said.

“The first tower has been a great addition. We get more comments on the Cherokee art than any other aspect of the operation,” he said.

Marie Junaluska, tribal council representative from Painttown and member of the Ani Yun’ wigahi (Principle People) committee who helped coordinate the Cherokee art used to decorate the first tower, said she hopes the committee can be involved in the second tower.

“It’s just too early to say at this point,” Junaluska said.