Thursday, Sept. 8, 2005 | 9:42 a.m.
Editor's note: This is part two of a two-day package.
FRENCH LICK, Ind. -- Beyond the reach of cell phone towers and the tangle of heavy traffic, Orange County clings to a rustic splendor that decades ago lured the wealthy with promises of natural spring baths and gambling.
With two palatial hotels, the French Lick Springs Valley counted statesmen and movie stars among its guests until the 1929 stock market crash sent the valley into hard times. Now, nearly eight decades later, investors hope to rekindle that star-studded prosperity with a $250 million casino resort.
But French Lick isn't the only game in town anymore. When the casino opens about 40 miles south of Bloomington in late 2006, it will be one of about a dozen within a day's drive of Kentucky, Ohio and Illinois.
The valley's remote location, long considered its greatest asset, could become the casino's biggest liability.
"The challenge, the way I see it, is how you get people to and from," said Mike Smith, executive director of the Casino Association of Indiana. "Back in its days of glory, there were 17 trains a day that came to French Lick."
That isn't the case now. The area lacks a sizable airport, bus station and major highway access, and casino officials acknowledge the valley is out of the way even for most Indiana travelers.
Officials with Blue Sky Casino LLC, a partnership between Bloomington-based Cook Group and the Lauth Group in Indianapolis, told the Indiana Gaming Commission in July that the resort would be designed to make the tiny town tucked in the folds of tree-lined hills a pre-eminent gambling destination.
The plans include building a championship golf course and a convention hall and restoring the area's two historic hotels, the West Baden Springs Hotel and French Lick Springs Resort & Spa, to a posh elegance that would make location an afterthought.
They'll advertise as far as 250 miles away to make the county the place to come.
That differs from most of the state's 10 other casinos. All but two of those casinos are close to the state's borders and easily accessible by interstate, and they advertise closer to home and attract business from weekend vacationers who have few other gambling options.
Only Casino Aztar, along the Ohio River in Evansville, and Belterra, in Switzerland County, are as off the beaten path as the Orange County casino will be. The three riverboats will compete for the same gamblers and tourists.
Smith, whose association promotes casinos in Indiana, said advertising can do only so much. Out-of-the-way casinos generate less revenue than more accessible ones, he said.
Argosy in Lawrenceburg, about 20 miles west of Cincinnati, has been the state's most lucrative casino since it opened in December 1995. Evansville's Casino Aztar, which was the first in the state, and Belterra, about 50 miles northeast of Louisville, post among the lowest monthly revenue, according to reports filed with the gaming commission. Neither is close to a large metropolitan area, and both lack easy highway access.
For a casino project like Orange County's, which aims to revive an entire economy, the stakes couldn't be higher.
Orange County has long suffered a dearth of industry. The county had a 7.3 percent unemployment rate in 2004, the fourth highest in Indiana and higher than the state average of 5.2 percent, according to state records. That fell to 6.5 percent in June, the most recent reporting period.
"There hasn't been anything about this project that isn't a considerable challenge," said Steve Ferguson, chairman of the Cook Group, whose owner, William Cook, already has invested millions in a partial restoration of the West Baden Springs Hotel. "But when we're through, we'll have something that's not only a treasure for the entire state, the Midwest and the nation, but we will also have something that's a treasure in terms of where people want to come."
Jim Brown, general manager at Casino Aztar, said all casinos promise an economic revival once the roulette wheels begin turning. But few generate enough revenue to completely change the face of a community.
Aztar has returned millions to southern Indiana, but buildings on the Evansville riverfront still remain unused and empty, he noted.
"In some people's minds, a casino is going to open and a community is going to be magically transformed from a frog to a prince overnight," Brown said. "It's not that simple at all. And if anyone believes so, they're fooling themselves."
Many in Orange County are willing to roll the dice.
Mike Hicks, a real estate developer from neighboring Lawrence County, said the valley could be brimming with specialty shops and restaurants within a year of the casino's opening. That's an opportunity he doesn't want to miss.
He has bought three properties to restore in French Lick and has optioned a fourth since the casino was approved.
"From an investment standpoint, it's a chance of a lifetime for someone living in south-central Indiana," Hicks said. "You can buy a property at a reasonable cost and anticipate a return on your investment."
Bob Lauth, chairman of the Lauth Group, acknowledges the Orange County project will be a challenge. The company has hired Majestic Star, which operates casinos in Gary, Ind., and Tunica County, Miss., to run the show, and Lauth says he's confident the casino can thrive in the presence of many.
"As a businessman, I can only say competition is good," Lauth said. "Competition is healthy, and those who are better at what they do usually are rewarded for it."
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