Virginia: Norfolk confirms Pamunkey tribe for casino project, but it won’t be on tribal land

Officials in a Virginia city decided Tuesday that a waterfront casino project would move forward, but would no longer be built on Pamunkey Indian Tribe land.

Norfolk City Council voted 7-1 Tuesday evening to select the tribe as the preferred casino gaming operator for a proposed waterfront resort and casino, as required by state legislation. But it also rescinded a previously approved deal with the tribe that would have converted the planned casino site along the Elizabeth River into sovereign tribal territory, The Virginian-Pilot reported.

Under the previous agreement, the Pamunkey Indian Tribe would have received city police, fire and utility services and would have paid an annual rent, but no taxes for the development on the approximately 13-acre (5-hectare) parcel. The Tuesday decision instead makes the project commercial and allows for the city to collect tax revenue.

The Virginia State Lottery Board will then complete a 45-day review of the Pamunkey’s Indian tribes plan and must sign off on it before a citywide vote can be scheduled for Nov. 3, as reported by WAVY.

The decision comes after opponents raised concerns about Norfolk losing its ability to develop the land in the future, and Waterside operators threat to sue the city staking its claim to developing a casino in the area, among other issues with the deal. The city has been working with the tribe for several years to bring a resort casino to land next to Harbor Park. An option to purchase agreement and development agreement were signed in January.

The Pamunkey tribe says the $500-million resort will feature a 300-room full-service hotel, steak and seafood restaurant, sports bar and grill, cafe, spa and 2,500-seat entertainment venue. However, Norfolk voters still have to agree to the project in a November vote, according to legislation that requires a local referendum for casinos to be built.

The city is expected to bring in $26 to $31 million in gaming- and sales-related taxes from the casino project, as well as an estimated 6.2 million casino visitors each year. Under the agreement, the tribe will need to pay for infrastructure, flood mitigation and utility improvements.

The tribe estimates the project will create 2,000-plus construction jobs and about 2,500 full-time jobs when the casino and resort are operational. Employee earnings could total $100 million each year. “The project will have a total economic impact of $850 million for the Commonwealth, including $754 million for the City of Norfolk,” the tribe wrote in a news release.

“As we look ahead to what will be a long economic recovery from the pandemic, this project will be a huge shot in the arm for the local economy,” said Jay Smith, spokesman for the Pamunkey Resort and Casino. “The jobs, investment and general infusion of money into the local economy will have a ripple effect across the City and the region. At a time now when we can likely expect to see a drop in local revenue for the City, this new stream of money – to the tune of tens of millions of dollars annually – will be an important part of the City’s ongoing ability to provide city services to its residents.”