Coquille Indians hope hotel will complement casino

Thursday, June 1, 2000 | 9:45 a.m.

Still, the tribe is confident that some of the casino's 2,000 daily visitors will stay the night - eventually bringing a small profit, said Brady Scott, president of Coquille Economic Development Corp.

Since the tribe began its economic development corporation eight years ago, it has faced controversy within its ranks and obstacles from outside. But it has persevered, continuing to develop its economic base and earning praise from regional economists.

"Most people need an excuse to visit a casino," said Robert Whelan, an economist for ECONorthwest in Portland, who has studied casinos for years.

Whelan said the two businesses compliment each other - the casino brings hotel guests and the hotel bolsters casino visitors. For some, it's the buffet or live entertainment. For others, staying in a new hotel with a bay view helps to rationalize a visit to the gambling machines.

The three-story alpine hotel with natural wood siding, a green metal roof and a 500-foot-long riverside deck incorporates Coquille history. In the lobby, there is a dugout canoe, crafted by tribe members, a freestanding stone fireplace and a photographic history display.

The 115-room hotel is the tribe's fourth project in six years.

The tribe started with Heritage Place, an assisted-living center in Bandon for $5 million. The casino followed in 1995 when the Coquille purchased and converted a former plywood mill along U.S. 101 in North Bend for $16 million, then added $9 million in improvements. The next year, the tribe founded Coquille Cranberries and began growing organic cranberries on tribal lands near Coos Bay.

The Mill Casino gamblers and diners have helped keep all the businesses alive, Scott said. The casino is the only one making a profit, and the revenues help pay for the others.

Scott expects to rely on casino revenues to compensate for the hotel's losses the first few years as well. Scott would not divulge the casino's profit, but said nearly $1 million was returned to the tribe to fund projects such as college scholarships, tribal housing loans and an education mentor program.

The tribe secured $17.5 million in loans for the projects several years ago. It refinanced the loans to add the hotel and now owes $19 million. Until this year, most of the money generated by the casino has gone toward the debt, Scott said.

But the businesses appear to be turning around, he said. Heritage Place and Coquille Cranberries started paying for themselves this year.

"I think it's going very well now. It's taken us a little while to get some momentum," Scott said.

The tribe employs 500 tribal and non-tribal workers, making it the second-largest employer in the Coos Bay and North Bend area. The casino and hotel have 380 workers with an expected payroll of $8 million annually.

The tribe also created several programs for its members, ranging from health insurance and housing loan assistance to a requirement that all Coquille students take college classes that teach skills needed to run casinos and hotels.

Future business projects remain uncertain for the tribe, but a convention center at the casino and a marina near the hotel could be next.