Navajo Council to consider gaming credit

By Karen Francis
Staff writer

WINDOW ROCK — The pressure is on for Navajo Nation Council delegates to make a decision on the $100 million line of credit for gaming development on the Navajo Nation.

The Council tabled the legislation authorizing the line of credit during a special session on Sept. 28 pending a work session.

The work session, which is mostly an informational session where delegates can study a particular subject in-depth and ask questions of presenters, was held yesterday. A special session is being conducted today to consider the legislation approving the line of credit.

Thursday the delegates received a letter from President Joe Shirley urging them to vote in favor of the legislation and reiterating what was said by presenters during yesterday’s work session.

In his letter to the Council, Shirley said the Navajo Nation is now at a point where financing is necessary to implement gaming development.

“The funds from the line of credit will be used for the development and construction of at least two gaming facilities,” Shirley wrote. “We have received the financial pro forma containing information that the general areas identified will generate significant gaming profits for the Nation.”

In the letter to the delegates, the president explained that approval of the line of credit allows for the bank to set aside the funds for the Nation to use and that the Nation would not pay interest on the entire $100 million, but only the portion of the loan that it is borrowing.

He also said that under the terms of the agreement the Nation will provide security for the amount borrowed in the form of “legally available liquid assets” of the Nation.

According to the president, this secured line of credit results in a lower rate of interest on the amount borrowed by the Nation than under a standard loan agreement.

“This type of arrangement gives the Nation more flexibility to plan construction and operating costs by providing ready access to capital as needed,” Shirley wrote.

He states that the line of credit is “absolutely essential” to engage in negotiations with potential developers.

The president said with the approval of the legislation “the Nation can finally begin to realize the revenue-generating potential from gaming, services to more of our people will be able to increase and dire needs will be lessened.”

The president’s spokesman, George Hardeen, said the president is following the will of the people based on the 2004 Navajo Nationwide referendum that decriminalized gaming.

“The president campaigned on ensuring that we would have casino gaming, and he was re-elected and he is trying to fulfill what the people wanted since 2004,” Hardeen said.