City seeks independent review of casino financials
Published 12:00 am Wednesday, December 15, 2010
NATCHEZ — The Natchez Board of Aldermen plan to get an independent financial review of the development group reportedly working to bring a casino to Roth Hill.
And, pending the results of the review, the aldermen are ready to begin parting ways with the casino company.
Casino developers failed to get on a December gaming commission meeting agenda, something the City of Natchez was hoping would occur.
At Tuesday morning’s regular board of aldermen meeting, Ward 6 Alderman Dan Dillard suggested the city ask their financial advisor, Demery Grubbs, to conduct a financial report of Natchez Enterprises, the lessee.
Dillard said the casino developer’s failure to turn in information to be on the Mississippi Gaming Commission’s December agenda is a sign that the board needs to proceed on its own concerning the issue.
“Actions speak louder than words, and in this case inaction,” Dillard said.
“To put (the issue) in motion, let’s use the resources we have available to us.”
Dillard said Grubbs’ report will independently confirm or deny his suspicions that the developers are not prepared to finance the project.
Ward 2 Alderman James “Ricky” Gray questioned why the board needed more answers from Grubbs.
“I thought we decided if (developers) were not on the December agenda to move on, and I’m ready to move on,” Gray said.
Ward 1 Alderman Joyce Arceneaux-Mathis said Dillard’s suggestion to use Grubbs for an independent financial audit would help to carefully move the process forward.
“We need to get our ducks in a line to move on,” Arceneaux-Mathis said.
“Let’s get back some (paper)work that says the money is not here after all these years, to note on the record that we have ‘1, 2, 3, 4, 5 things’ that have not happened,” she said.
In addition, Dillard said the city should protect its interest in the property and not yield power exclusively to the gaming commission to determine the actual intentions of the developers, which includes Natchez Enterprises, the company that entered the lease; Premier Gaming, the managing company; or The Lane Company, the original managing company with whom the city voted to enter into business.
Ward 3 Alderman Bob Pollard asked board members if involving Grubbs would jeopardize the project if it were to occur.
Dillard said checking out the company independently is simply a responsible move, regardless of the outcome.
Ward 4 Alderman Ernest “Tony” Fields said he agreed with Dillard.
“The more eyes the better; we need to get a clear picture and put this to rest,” he said.
Gray asked if the financial services from Government Consultants, where Grubbs works, would involve a fee.
Mayor Jake Middleton, who did not participate in much of the casino discussion, said the city would be charged a fee, and he offered to call Grubbs soon to inquire about the details of the service and fees.
Middleton amended the motion at the board’s request to include the fees.
Middleton worded a final motion, which was to contact Grubbs and inquire if he is willing and able to do the research, find out what the cost of the report would be, “and then get with the attorney and find out what we need to do,” he said.
The motion passed unanimously.