New Warm Springs casino to open

Published 4:00 am Wednesday, January 25, 2012

Less than a year has passed since the Warm Springs tribes decided to build a $13.5 million casino on U.S. Highway 26 to replace the gambling component of the remote Kah-Nee-Tah resort. But on Feb. 4, the public will be invited into the Indian Head Casino, which sits just across the street from The Museum at Warm Springs. “We’re really proud of that,” said Indian Head Casino Board Chairman Deepak Sehgal of the project’s quick turnaround.

Last month, the tribes closed the casino at Kah-Nee-Tah resort, located about 20 miles from the new casino off state Highway 8. The new, 40,000-square-foot facility will be open around the clock. It includes a restaurant, gift shop, deli and an 18,000-square-foot gaming room with 500 slot machines and eight blackjack tables.

“You are basically looking at a facility about twice the size of Kah-Nee-Ta,” said Sehgal. “At Kah-Nee-Ta, there were about 300 machines out there.”

Sehgal said the tribes still consider the new location temporary. For several years, they have tried to build a casino in the town of Cascade Locks, which is much closer to Portland.

“Our number one goal is still to move (the casino) to the (Columbia River) Gorge,” said Sehgal. “That goal does not go away, because we’ve been stymied by government agencies in the last 10 years.”

Though the casino might relocate eventually, said Sehgal, the new building won’t go to waste.

“It’s a temporary casino, not a temporary building,” he said. “It will most likely have multipurpose uses in the future.”

In the meantime, the tribes expect the new casino to triple or quadruple gambling revenues, said Sehgal.

The casino at Kah-Nee-Ta was grossing between $2 million and $4 million per year, but a site on a busy highway could increase that figure to $8 million to $12 million, he said. The anticipated increase is a function of the traffic passing by the new casino, which sits on a busy corridor between Central Oregon and Portland area.

“Kah-Nee-Ta is so far off the beaten path (visitors) had to make the decision to go there,” Sehgal said. “It was not an ad hoc thing. Indian Head’s easy access encourages people to stop by and take a look.”

The larger, 24-hour facility will bring new jobs to Warm Springs, said General Manager Ken Billingsley.

The new casino will employ 280 people, though Billingsley said he wasn’t sure how many of those will transfer from Kah-Nee-Ta. Between 70 to 80 new jobs will come from the restaurant alone, he said.

The Oregon Department of Transportation expects traffic to increase when the casino opens. Agency spokesman Peter Murphy estimated that the number of vehicles using the road could jump by as many as 1,000 per day within a year. During peak hours on Sundays, the casino could increase road usage by 250 vehicles per hour.

Murphy said the tribes have completed a traffic impact report that contains recommendations on how to absorb that extra traffic safely. For instance, it suggests the addition of turn lanes as well as additional striping, drainage and pedestrian access improvements

“Our concern is the safety of the highway, Murphy said. “We’d like to think they’re walking along the same path together.”

Kah-Nee-Ta General Manager Carlos Smith said that new uses for the space are under consideration now that the casino component has moved.

“There are a lot of ideas that are floating around,” Smith said. “I think it would be a fantastic spa facility.”

Smith said the resort plans to shift its marketing strategy towards families and visitors interested in other forms of recreation.

“Well it’s going to be a change. There’s no doubt about that,” Smith said. “But we’re fortunate in our location to have good weather, a golf course open year round. We’re really well known as a recreation area for Portlanders, and we will focus on that market exclusively.”

A dedication ceremony followed by an exclusive casino opening for tribal members will take place on Feb. 4 at 1 p.m. The casino will open to the general public at 6 p.m.

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