County OKs amendment to casino development agreement

May 10—Vigo County Commissioners approved an amendment to the Terre Haute Casino Resort's Local Development Agreement with Churchill Downs on Friday, creating an escrow account into which the casino will begin depositing money that will go to the county and the city of Terre Haute.

The casino foundation is currently named Queen of Terre Haute Foundation, Inc., after the casino's original name before its change.

The LDA stipulates that the casino will contribute to local government an amount equal to 3% of its adjusted gross revenue up to $175,000,000 per calendar year. That would be $5.25 million.

The casino also would pay in an amount equal to 3.25% of adjusted gross revenue exceeding $175,000,000 per calendar year, as well as an amount equal to 3% of is taxable sports wagering adjusted gross revenue.

"We need to still establish a foundation board of directors which is set forth by the Local Development Agreement that we have signed and we haven't gotten that far with the articles of incorporation yet, but Churchill Downs is still required to make a payment into that account," Commissioner Chris Switzer explained.

"It's the commissioners' obligation to get that [foundation account] rolling," he added. "Since we don't have that account set up yet, we just got an escrow account so this money can be deposited so it's ready for use when we get to that point."

The casino's first payment was due Friday. "So we had to make sure we get [the escrow account] finalized today so they can make a payment to put that money there," Switzer said.

The escrow account is a stopgap measure — money won't be used until the official articles of incorporation are approved to use the money. At that point, there will no longer be an escrow account, but an actual account, Switzer said.

"Things will get juicier as time goes on," he said, "as the board of directors is finalized, the articles of incorporation are finalized and stuff like that."

The foundation's board of directors will include all three commissioners, with the city and casino each getting two seats. Terre Haute Chamber of Commerce Executive Director Kristin Craig also has a seat on the board.

Mike Rich, the casino's vice president and general manager, and Terre Haute Mayor Brandon Sakbun reported Friday that its board members have not been named yet.

The original LDA was approved by commissioners in March 2022.

Commissioner Mark Clinkenbeard was not in attendance for the vote to amend the LDA.

David Kronke can be reached at 812-231-4232 or at david.kronke@tribstar.com.