The $700 million Catawba Two Kings Casino Resort in Kings Mountain, North Carolina, has hit a legal snag. A former development partner has filed a lawsuit accusing the tribe of trespassing and property damage, potentially complicating the ambitious project’s timeline.
Land Dispute Erupts Over Construction Activities
Kings Mountain Land Development Partners LLC (KMLD) alleges that the Catawba Nation overstepped its bounds during construction. According to the lawsuit filed in Cleveland County Civil Superior Court, the tribe has been using KMLD’s land without proper authorization. The claims include removing dirt, crushing rock for road materials, and altering drainage systems, which KMLD says devalued their property.
The suit argues that these actions were deliberate, with the tribe prioritizing speed over legal compliance to accelerate revenue generation from the casino. “The property is being used as if it belonged to the tribe,” reads the complaint.
Lawyer Wally Fayssoux, representing the developer, confirmed that KMLD has revoked an easement previously granted to the tribe in 2021. The lawsuit seeks compensatory, punitive, and treble damages, along with injunctive relief.
Background on the Casino Project
The Catawba Nation, headquartered in Rock Hill, South Carolina, has been operating a temporary casino at the site since 2021. Plans for the permanent 2-million-square-foot facility include an initial phase opening in 2026. The project is expected to bring significant economic benefits to the area.
The casino’s construction stems from years of negotiations and land deals between the tribe and KMLD. In 2018, the Catawba Nation purchased 17 acres from the developer for the project. Additional easements were granted to facilitate construction. However, relations soured when KMLD accused the tribe of breaching agreements.
Notably, the project has attracted high-profile attention. Donald Trump Jr. attended the groundbreaking ceremony in June 2023, underscoring the casino’s potential economic and political significance.
Legal Demands and Potential Impact
The lawsuit requests a jury trial and seeks damages exceeding $125,000. The developers claim the tribe’s actions were aimed at expediting construction, disregarding the agreed-upon easement boundaries.
KMLD’s complaint details specific grievances:
- Unauthorized excavation and removal of dirt and rock.
- Grading and sloping of land without permission.
- Disregard for drainage systems, causing potential environmental and property issues.
While the lawsuit does not explicitly state whether construction delays will result, the legal conflict introduces uncertainty for the casino’s timeline.
Tribal Leadership’s Role and Disputed Agreements
The lawsuit also sheds light on internal disputes within the Catawba Nation. A 2023 payment agreement between the developer and the tribe was approved by the National Indian Gaming Commission but later became contentious. New tribal leadership allegedly refused to honour the agreement unless KMLD sold an additional 9.4-acre parcel to the tribe.
After the sale, KMLD claims the tribe violated the easements granted during the transaction. This led to further tensions, with KMLD accusing the tribe of “trampling” on its property rights.
Broader Implications for Native American Gaming Projects
The Catawba Nation’s project highlights the complexities surrounding Native American casino developments. While such ventures can bring substantial economic benefits, they often involve intricate legal and land-use negotiations.
In this case, the legal dispute could have broader implications for tribal gaming operations, particularly regarding partnerships with private developers.
For now, both sides remain at odds. Tribal lawyer Mike Mitchell has yet to respond publicly, and the outcome of the lawsuit remains uncertain. However, the stakes are high, with millions of dollars and the project’s future hanging in the balance.
