The Horseshoe Footprint

(This is part three of my four part post addressing the issue of building a casino/hotel complex in Fort Smith, Arkansas. Please read part one, "Milking The Cobra," and part two, “Brutal Reality,” before tackling this part.)

While in Omaha last week I picked up a copy of the local newspaper. I didn’t have to buy the paper because it was a complimentary copy furnished by the nearby Horseshoe Casino in Council Bluffs. My paper was wrapped in a double-sided-full-color-heavyweight-newsprint advertisement for the Horseshoe. The front side of the page told me I could “indulge without apology” in their 100,000 square foot casino. The back side promised “Five Times the Fun” and a $9.99 all-you-can-eat buffet. A complimentary shuttle would pick me up at my hotel upon request. In case you’re wondering, Council Bluffs http://www.councilbluffsiowa.com/ is in Iowa – just across the Missouri River from Omaha. http://www.visitomaha.com/

The Horseshoe is operated by Harrah’s, the same company that would operate the proposed casino/hotel complex in Fort Smith, and it’s a totally professional set up. Once you’re inside you can’t tell the difference between The Horseshoe and any casino you might visit in Vegas. So Harrah’s does everything possible to get you and your money inside The Horseshoe Casino - and they do just as much to make sure you and your money never have any reason to leave. If you’re actively gambling, your preferred beverage will be delivered to your location on the gaming floor by an attractive cocktail waitress. If you are known to the staff as a frequent gambler, your food will be furnished free of charge at one of the casino’s three gourmet restaurants. And if you leave enough money behind at the tables you’ll find the concierge happy to provide you with a complimentary hotel room, the size and luxury of which are mysteriously connected to the depth of your losses. In fact, it is a fundamental business principal for any successful casino to keep the customer on the property and at the tables as long as possible. And there’s the rub…

No matter what statistics may say, and no matter what positive benefits may be connected with a world-class casino/hotel complex in a town like Fort Smith, I just can’t get past what I’ve seen with my own bad eye. Casinos like the one proposed for Fort Smith do everything in their power to keep people and their money on the casino property. And it will be pretty much impossible to convince me that the future Fort Smith casino operation would be truly pleased if anyone attracted to Fort Smith by that casino spent a single dollar “off the reservation.”

But in the end, although debate on the pros and cons of a casino/hotel complex in Fort Smith may energize those of us wrestling with the issues at hand, it will have little impact on the outcome. Why? For two reasons which represent opposite sides of the same coin. First, there is no support for the idea anywhere within the Arkansas political delegation. Second, the Cherokee and Choctaw tribes have already established nearby casinos from which a Fort Smith based casino/hotel would drain revenue – and those tribes spend millions of dollars every year on political lobbying campaigns to protect their interests.

So here is my conclusion. With all due respect to Bennie Westphal, I do not believe there is a way to complete the Keetowah Casino & Hotel complex before Fort Smith’s Titanic hits the iceberg identified in the TIP Strategies report.

I’ve only met Mr. Westphal once but from what I’ve seen and heard I seriously doubt that he will give up in the face of political opposition. And I am not so arrogant to think that I have all the information available. In fact, I am absolutely certain that Bennie Westphal knows far more about this issue than I ever will. Nevertheless, I can’t imagine what information could come to light that would alter my basic conclusion.

And now it’s time to put up or shut up. If I’m so willing to figure out what can’t be done, I owe it to my community to figure out what can be done - and take whatever action is within my power to help. I’m going to start by suggesting several possibilities here and elaborating in my next post.

1. Recruit members of the Hyper Creative Class and their related businesses to our region.
2. Establish a major intermodal port facility on the Arkansas River.
3. Develop a privately owned and operated multi-sport athletic complex along the riverfront.
4. Permanently locate an active duty Army Brigade at Fort Chaffee.
5. Create an entrepreneurial incubator designed specifically for the Hyper Creative business.
6. Continue to coordinate with and aggressively support UAFS

I guess this means that part four of this post will have six chapters. Look for chapter one in the next few days.

Brutal Reality

(This is part two of my four part post addressing the issue of building a casino/hotel complex in Fort Smith, Arkansas. Please read part one, "Milking The Cobra," before tackling this part.)

It took me quite a while to process all my conflicting thoughts and feelings on the issue of building a casino in Fort Smith. In my military travels to Nellis Air Force Base I’ve resided in Las Vegas hotel/casinos for weeks at a time and I’ve tried various casino games. I’ve even gone so far as to read a couple of books on poker and craps so I could play those games and not look or play like a knothead. But in the process I discovered that I don’t enjoy gambling. It holds no temptation for me at all. I just don’t get it.

However, I have seen the damage gambling addiction can do on a personal level in the life of a relative. This guy nearly ruined his life using gambling as his “drug of choice.” It is worth noting that my relative lives more than 100 miles from the nearest casino and was a gambling addict long before he ever stepped foot in a legal gambling establishment. Gambling got to him because he - just like you - is surrounded by opportunities to gamble in his smaller-that-average-American-home-town. Just because you can’t or won’t see gambling around you doesn’t mean it’s not there - or that your home town is not already dealing with its negative effects.

On the other hand, I know many people who use gambling responsibly - in the same way they use alcohol responsibly – as an entertaining tool to enhance social interaction and relaxation – without ill effect. And that brings me to a pet peeve – I really detest the practice of managing or governing to the lowest common denominator. Other than weak leadership, there is rarely if ever a valid reason to restrict 100% of those who might enjoy an activity responsibly because 4% of the population can’t handle it. In short, gambling is not a ten commandments issue - it is a personal responsibility issue.

I have recently heard it argued quite persuasively that Christians should not engage in or condone gambling because it is impossible to gamble without breaking the Golden Rule – love others as yourself – and to look out for the interests of others as well as yourself. But if we followed that argument to its logical conclusion we would ban all forms of competition because someone wins and someone loses and because people bet on sports. You can’t have your cake and eat it, too. Perhaps more to the point, when I “lost” money in a casino it never entered my mind that I was someone else’s victim. No one forced me to walk through the doors. No one held a gun to my head and said, “Bet on red.” I am personally responsible for my own actions. I voluntarily participated in a game of chance and skill and, after winning a little and losing my predetermined limit, considered myself to have been sufficiently entertained and walked away just like 96% of people who gamble.

Having established that I believe the use of gambling to be a personal responsibility issue, I am the first to acknowledge that gambling can be – often is - a door to darkness. And some proponents of the Fort Smith casino project decline to acknowledge that reality. Some would even have us believe that hosting a casino is not at all a risky proposition. They avoid the fact that the purveyors of illicit sex, drugs and pornography have a habit of co-locating with casino operations. Although painting a rosy picture of the casino project may build support in the near term, it does nothing to prepare us for the reality we will face when the new wears off or to better cope with the negative effects of gambling we already experience in Fort Smith. Situations like this always reminded of the Stockdale Paradox.

Admiral Stockdale, the senior ranking POW in Vietnam’s Hanoi Hilton prison camp (and the recipient of some of the most brutal torture you can imagine) emerged from that seven year hell-on-earth with a piece of paradoxical advice for us all. He said, “Retain faith that you will prevail in the end, regardless of the difficulties, and at the same time confront the most brutal facts of your current reality, whatever they may be.”

So what constitutes our particular set of “most brutal facts?”

First – and this is a big one for me – building and marketing a casino complex in Fort Smith (and it will be heavily and widely marketed) will cause Fort Smith to be labeled as a gambling destination. Ever hear of Tunica? How about Gulfport? Have you ever tried to overcome a label? Have you ever tried to convince someone you have more to offer than your label indicates? More often than not, weary from the effort to prove otherwise, we reconcile ourselves with our label, make the best of it, and comfort ourselves with the knowledge that those who love us most know better. The reality is that if we build and market a Fort Smith casino the rest of the world will think of us as a gambling entertainment destination with a few worthy side attractions like the Marshals Museum. If we later decide we want to overcome that gambling destination label we'll spend a tremendous amount of money and, ultimately, fail. I realize that some folks have no problem with the “gambling destination” label and even consider it a worthy goal. But, in my gut, I feel like that sells Fort Smith short of its potential. My point here is that we better make our peace with the label before we build the casino.

Second, we can restate the premise with which we started – Fort Smith must change or die. I'm no expert but I'm pretty sure that’s a brutal fact.

Third, there are many people in the Greater Fort Smith Region who will refuse to change if that change includes a casino/hotel complex in Fort Smith. I have spoken to several Fort Smith citizens – people who would argue that they love Fort Smith as much as anyone – who truly and passionately believe it would be better for Fort Smith to die than become Tunica West. I’m not particularly sympathetic with that point of view but I have to acknowledge it as a strongly held opinion among many people I respect who wield significant influence in Fort Smith. In short, this is a polarizing issue.

Fourth, building a casino/hotel in Fort Smith will cut a deep trench of resentment, alienation and distrust between those who see gambling as reprehensible and those who see it as recreation. Without knowing with certainty how many people stand passionately on either side of the issue there is no way to responsiblly forecast the degree of damage - but there will be damage. I can’t intelligently suggest that we abandon the casino/hotel project because it will be divisive. But make no mistake – it will be very divisive for many years to come. I believe this to be our “stingray” issue. In the words of Steve Irwin, "Danger, danger, danger!"

In light of all this brutal reality, I have tried hard to develop alternatives to Mr. Westphal’s casino complex plan - ideas that can truly transform Fort Smith. With the help of a few friends I've been able to piece together another option and I’ll write about that in part three of this post.

But there is a logic-of-reality limitation here – those ideas are mine rather than Bennie Westphal’s.

The brute force of reality is that although J.D. Williams may have some great ideas, he is not the guy to lead Fort Smith into the future – that guy is named Bennie Westphal. Mr. Westphal is uniquely qualified to lead Fort Smith away from the Tipping Point. Other people whose opinions I deeply respect have arrived at very different conclusions about the casino project. But the reality is that they do not have the influence – personal, political and financial – necessary to lead the horse called Fort Smith to water – let alone make it drink.

Now at this very moment there are some Friends of Fort Smith who are screaming at their computer screens because they believe with all their heart that Mr. Westphal is leading that horse to a poison well. So, let me assure them that if someone comes up with a better idea that can actually change the course of Fort Smith’s economic future - and the person who champions the idea can command the respect and influence necessary to pull it off - I’ll be “all in.” (So to speak)

But all sides now acknowledge that Fort Smith is withering away and is perilously close to the wrong side of the “tipping point.” How do we know that? The Fort Smith Chamber of Commerce paid an internationally respected consulting company a lot of money to evaluate our city and region. What they learned is that Fort Smith is in decline and will soon die if we do not act decisively and urgently to change – and change dramatically. That report was delivered to our community over three years ago. Since then a few organizations have initiated programs that take positive but small steps in the right direction. UAFS and the 188th BRAC reversal are huge success stories but they represent either an expansion or extension of the status quo. The reality is that in the three years since we received the grim prognosis from the Tip Strategies organization, no one - I repeat – no one besides Bennie Westphal has developed and championed a truly a comprehensive plan to boldly and dramatically lead Fort Smith in a new direction. Mr. Westphal is willing to put his own fortune and reputation on the line to see this casino complex become reality. Why? Why would a man who could today retire quite comfortably be willing to risk so much of his personal wealth and suffer the opposition and ostracism of so many fellow citizens and community leaders? Because he believes that a town can die and that Fort Smith, the boyhood home he loves dearly, is on the road to extinction.

Sometimes the logic of words must yield to - not just the logic - but the brute force of reality. In this situation the brutal reality is this: There is no better idea – let alone someone to champion it – for Fort Smith.

So are we really left with this ultimatum? Build a casino or die? I’m not ready to accept that scenario. I do, however, accept the scenario that Fort Smith must change dramatically or die a slow death. And if I can’t come up with a better idea or find a way to make the best of the available options, I’m part of the problem rather than the solution.

In part three of this post, I’ll attempt to be part of the solution.

Ever heard of Don Quixote?

Milking the Cobra

(This is part one of a four part post to be published over the next few weeks. Part one - this post - is an attempt to establish a premise or two on which the following posts will build. Please do not assume that this post alone reveals where I stand on the issue addressed.)

I am nothing if not a searcher. Always have been.

And so I find myself searching again. This time I’m searching to discover two things – what is best for Fort Smith and what is possible for Fort Smith. Where those two circles intersect is, I believe, where Fort Smith must find its future and make it real. And what happens if those two circles do not intersect? One must then redefine what is best or what is possible - or both. But I'm getting ahead of myself.

First, let’s start with a fundamental premise. The entire complex business organism called Fort Smith, Arkansas must change dramatically or it will soon – very soon – enter a downward economic spiral from which it cannot recover. If you have not accepted that premise don’t waste your time reading this post. If you have accepted that premise, consider this idea on loan from former Supreme Court Justice Louis Brandeis...

The logic of words should yield to the logic of realities.

I want to use that statement as a framework to examine the issue of the proposed casino complex in Fort Smith, Arkansas.

Logic of Words: Gambling does not exist in Fort Smith, Arkansas
Logic of Reality: Gambling is almost everywhere in Fort Smith and, although largely underground, is easily accessible. Don’t believe me? Ask around. If you want to gamble in Fort Smith - especially on sports - it is incredibly easy to do so. The majority of the negative side effects created by the presence of gambling are already in Fort Smith - and have been for a long, long time. In fact, we’ve already learned to cope with those effects. And the reality is that we're already equipped to deal with the downside of casino gambling because, for all practical purposes, casino gambling already exists in Fort Smith.

Logic of Words: Casino gambling does not exist in Fort Smith, Arkansas.
Logic of Reality: Any able bodied resident of Fort Smith can literally walk to two different casinos. I live within the city limits of Fort Smith and my kids can be in the parking lot of an Indian Casino in 10 minutes – riding their bikes. And those casinos are filled with cars belonging to residents of the Greater Fort Smith Region. In fact, my neighborhood casino just tripled the size of its parking lot and it's still full more often than not. In reality, preventing the building of a casino on the Fort Smith riverfront will at best only slow – not reduce or eliminate - the increase in the negative effects created by existing local casinos and gambling.

Logic of Words: Casinos are always completely bad for a community.
Logic of Reality: Let me be clear - I oppose the entire idea of a stand-alone casino. I would campaign against the construction of a typical Indian casino in Fort Smith. If the proposed casino operation in Fort Smith does not include carefully planned and expertly managed development of a first class hotel/casino resort facility along with the associated businesses and amenities designed to draw out the significant potential benefits of such an operation to the host city, I will actively campaign against it. But what the Westphal Group has designed cannot be even remotely described as a stand-alone casino. It is a complex of interrelated business activities designed to enhance the potential positive economic impact and community benefits of the casino/hotel that anchors it. That, in turn, would provide a counterbalance to the negative effects Fort Smith already experiences due to existing underground gambling and nearby stand-alone casinos. Why? Because a professionally operated casino/hotel is an economic engine which can – I emphasize the word “can” - drive elaborate and wisely designed networks of surrounding business concerns, community enhancements, and tourist attractions. Are there negative effects from hosting a casino of any kind in our community? Of course! But the majority of those negative effects are already present in our city. The increase in those effects created by the casino/hotel proposal would be offset by the increase in the positive results of building it – if it is operated on terms favorable to Fort Smith. The reality is that a well planned business and community complex developed around a tightly integrated and professionally managed casino operation can provide positive benefits that outweigh the negative effects already present. Two examples of how this can happen are Davenport, Iowa and Omaha, Nebraska. Check it out.

OK - I’m hung up on that word, “can.” Again, the logic of words will yield to the logic of reality and what can happen in a situation like this and what actually does happen are rarely the same. I think building and hosting a casino/hotel in Fort Smith would be like milking a cobra – the snake must never be in control of the situation, the handler must know exactly what he’s doing, and you need antivenom in the Frigidaire - uh - I mean, the Whirlpool side-by-side.

Don't get me wrong - I'm not averse to danger. I love watching Steve Irwin wrangle a deadly snake. Man Versus Wild is must-see-TV in my house. And once upon a time I was a steely-eyed-fighter-pilot sitting on a 300 kiloton thermo-nuclear weapon staring down the bad guys (who then became the good guys and are now becoming the bad guys again). In fact, Danger is my middle name. But I digress...

It occurs to me that the story of Steve Irwin might have a moral within it from which Fort Smith should learn. Irwin did all sorts of crazy things that were incredibly risky. I'll never forget the first time I watched The Crocodile Hunter and saw this insane Aussie climb into a tree with an angry Black Mamba. Even thinking of it now gives me the willies! But as I watched him I realized that whenever Irwin caught a snake or wrestled a croc he was incredibly careful because he knew there was great "danger, danger, danger" in those situations. But in the end it was something Irwin didn't expect that killed him. And I suspect that the greatest risk of building and hosting a casino in Fort Smith lies not in what we expect - but in the unexpected.

Does the Westphal Group offer a genuine solution to the un-retouched picture of Fort Smith’s doubtful future?

And because what can happen is so rarely what actually does happen, can we milk the casino cobra without getting bit?

And what do we not expect - but better plan for - before we go swimming with the stingrays?

Glad you asked...