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November 27, 2009

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Black Hawk aldermen buy former casino

Wednesday, Nov. 15, 2000 | 8:59 a.m.

Under a 1990 state constitutional amendment allowing gambling in the two towns and Cripple Creek, elected officials in the towns are prohibited from involvement in the gambling industry.

Black Hawk Alderman David Spellman said he did not know whether the law barred him, Alderman Tom Kerr and former Alderman Hal Midcap from operating or leasing a casino in a neighboring town where they had no political ties.

But Colorado Division of Gaming spokeswoman Maren Rubino said it would be illegal.

"The fact that it's in Central City and they are in Black Hawk doesn't make any difference," she said.

Spellman said no decisions had been made Tuesday on how the vacant gambling hall would be used.

A final interpretation of the statute would likely fall to state gaming commissioners, said Tom Kitts, director of the gaming division.

Spellman, Kerr and Midcap are the principals of the Black Hawk North Development investment group. They bought the property for $42 a square foot, or $350,000.

They viewed properties in Leadville and Georgetown but found they would have to pay $80 to $100 per square foot for property that was not improved.

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