Tribes’ plans for hotel, casino expansion caught in lagging economy

PORT ANGELES — The Jamestown S’Klallam tribe still plans to build a hotel near 7 Cedars Casino, but the tribe isn’t rolling the dice in the current economy.

Jerry Allen, chief executive officer of the Blyn casino, told Port Angeles Regional Chamber of Commerce members Monday the expansion will likely take place mid-decade instead of now, as originally planned.

The Elwha River Casino of the Lower Elwha Klallam tribe also is postponing plans for a larger casino on U.S. Highway 101 west of Port Angeles.

Again, it’s the lagging economy.

“We opened in a down market,” Elwha River Casino General Manager Steve Durkin said.

“So we haven’t seen what it is like yet in an up market.”

‘Beautiful renderings’

“The financial market is what it is,” 7 Cedars’ Allen said at the chamber luncheon at the Port Angeles CrabHouse Restaurant on Monday, “but we’ve done some beautiful renderings.

“We know what we want to do.

“This is yet another piece of where we’re going to see 7 Cedars go to probably in the next five years because the resort component is the next phase of our vision going on.”

After Monday’s presentation, Allen estimated that the 150-room hotel, conference center and restaurant complex in Blyn will cost more than $50 million.

Banks are hesitant to loan to casinos right now because of the recession in Las Vegas and struggles of the larger tribal casinos on the Interstate 5 corridor, Allen added.

The hotel project was originally slated to begin this year.

Moving to highway

Durkin, who joined Allen at Monday’s chamber meeting, said the Lower Elwha Klallam tribe will probably build a larger casino on U.S. Highway 101 in three or four years.

The tribe opened its $4 million slots-only casino on Stratton Road west of Port Angeles in March 2009.

“The tribe also has a vision of moving up on 101 as soon as they can,” Durkin said.

“It’s a little bit hard to give you a definitive timeline, just that fact that it’s high on the priority list.”

The Elwha River Casino has more than 100 slot machines at the nonalcoholic casino on Stratton Road. There are 55 workers on its $1.8 million annual payroll.

Money from the casino is used to fund youth programs and other tribal operations.

“As time goes on, we hope to grow and continue to contribute more to the area,” Durkin said.

Elwha River Casino paid out $575,000 in jackpots in its first year. It uses local vendors whenever possible, Durkin said, and made $3.1 million in its first year.

Stays in community

Allen said most of the money generated by the 7 Cedars Casino stays in the community.

The casino is one of three businesses jointly operated by the Jamestown S’Klallam tribe. The others are the Cedars at Dungeness golf course on Woodcock Road northwest of Sequim and the Longhouse Market & Deli on U.S. Highway 101 just east of the casino in Blyn.

The three businesses have about 465 employees during the peak season in the summer. The tribe has donated to 160 organizations over the past year, Allen told the chamber.

“We like to think that we help as best we can,” said Allen, brother of longtime Jamestown S’Klallam Tribal Chairman Ron Allen.

“We want to be a responsible community partner so we can hold our heads up going through this community.”

The 7 Cedars Casino opened in 1995.

Rather than building a hotel that resembles the popular chains, Allen said the hotel at 7 Cedars will stand out.

“It going to be destination,” he said.

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Reporter Rob Ollikainen can be reached at 360-417-3537 or at rob.ollikainen@peninsuladailynews.com.

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