Native OK 1/4 Weekly Newsletter

Downstream Casino Resort, south of Joplin, Missouri

Quapaw Nation and BOK Financial reach an agreement to refinance $300 million in debt

Refinancing deal will be transformational to the tribe's future, saving $55,000 per day in interest

QUAPAW, Oklahoma – In Ottawa County, Oklahoma, the Quapaw Nation Reservation serves as the gateway to Indian Territory, home to 39 tribal nations. For travelers crossing into Oklahoma from Missouri, the first thing they see is the tribe's flagship casino and resort rising from the foothills of the Ozarks, like a small city bustling with activity. The high-rise hotel's architecture represents the tribe's vibrant culture and connection to the waters of the Ohio and Mississippi Rivers. But just as the Quapaws journeyed downstream hundreds of years ago to the fertile lands of present-day Arkansas, travelers today end their journey at the present-day Quapaw Reservation for different reasons. At Downstream Casino Resort, visitors seek relaxation, leisure, and fun.

Over a decade ago, the Quapaw Nation invested more than $300 million into the Las Vegas-style Downstream Casino Resort on the far northeastern corner of the state, where Oklahoma, Missouri, and Kansas meet. It was one of Oklahoma's first full-service resort-style gaming properties with restaurants, bars, and nearly 400 rooms in two impressive high-rise towers. But despite an always busy gaming floor, sold-out hotel rooms every weekend, and the prime location – historic Route 66 begins its longest stretch of highway across any state nearby – the casino historically underperformed with a restricted benefit to the tribe. Downstream Casino Resort undoubtedly paid jackpots to visitors. Still, the investment paid limited dividends to Quapaw Nation citizens due to poor financing terms over the past decade. Thanks to a new refinancing agreement reached between the Quapaw Nation's Downstream Development Authority (DDA) and BOK Financial (BOKF), those days are in the past.

In early December, BOKF closed a $300 million agreement with the DDA to refinance debt incurred over the past decade by former Quapaw Nation leaders. Under previous financing terms, there was no timeline for repaying loans used to finance the gaming and entertainment complex. Instead, the tribe made interest-only payments and rolled the principal balance indefinitely. According to Quapaw Nation Business Committee Chairman Joseph Tali Byrd, this poor financing structure was to the detriment of the Quapaw Nation and potentially to tribal services.

"Debt refinancing isn't exciting, and it's not an issue most first-time elected officials would put near the top of their to-do list. But Downstream Casino Resort is a first-class property and one of the busiest in the state. After more than a decade, it should have been generating revenue to fund tribal services. Instead, we were barely paying the interest on the loan, and our citizens didn't see the full benefit of their asset," Chairman Byrd said. "Under this new financing agreement, our Quapaw people will finally be the beneficiaries of this magnificent facility. It's long overdue, but this strategic business decision will have positive impacts right away and for generations to come."

Under the refinancing deal, the Quapaw Nation reduces its debt, saving around $55,000 per day in interest, roughly the same amount as the median home price in Ottawa County. The tribe also makes principal payments on its loan for the first time ever, a startling fact considering Downstream Casino Resort opened in 2008 and is in a prime location, within minutes of four states, Oklahoma, Kansas, Missouri, and Arkansas.

"It was unfathomable to me that prior leaders financed our flagship property for $300 million, and more than a decade later, we owe more than when we started, with no timeline whatsoever for repayment. Furthermore, our debt was structured as an interest-only loan and indefinitely rolled the principal balance. No person would in good faith accept such inadequate loan terms or make such poor financial decisions unless they completely disregarded the best interests of the tribe, Quapaw Nation citizens, and our solvency as a sovereign tribal nation," said Quapaw Nation Secretary-Treasurer Guy Barker." Thankfully, our tribal citizens were wise enough to recognize what was happening and demanded answers and action. That's why I have been laser-focused on digging our tribe out of this financial pit from the day we took office and made this issue my number one priority.

Barker engaged with BOKF shortly after taking office in the fall of 2020. Developing a new approach to finance and fiscal solvency took months of discussions and strategy sessions, unfolding over the backdrop of a global pandemic and economic uncertainty. Despite the challenges, the Quapaw Nation and team at Downstream Casino Resort implemented changes leading to record profits and an upgraded credit rating by Moody's and S&P in October of 2021. The upgraded credit rating was the final step in securing the most favorable terms to retire Downstream's bad debt.

"As Secretary-Treasurer, I applaud our partners at BOK Financial along with our finance, operations, and so many other teams at Downstream. Over the past year and a half, we've spent countless hours working on cutting expenses, improving our credit rating, and taking all the necessary and strategic steps to secure a deal with the most favorable terms possible," Barker said. "BOK Financial has been a steady partner every step of the way and played a crucial role in the success of this transaction. We are truly grateful for their support, and I could not be prouder to complete this deal alongside them. I'm hopeful we are entering a new era of prosperity for the Quapaw Nation, and the future is bright for generations of Quapaws who come after us."

By implementing simple changes like good corporate governance and sound financial stewardship, coupled with BOKF's experience in the tribal lending market, the Quapaw Nation is closer than ever to being debt-free and self-sustaining. That will lead to significant increases in services across the board, potentially impacting every tribal citizen in some way, from children to elders, college students, and more.

Downstream Casino Resort Chief Financial Officer Ben Blosch, a citizen of the Cherokee Nation, has more than 15 years of experience in finance, tribal gaming operations and audit services. Through Blosch's extensive background with tribal and gaming finance, he predicts this shift in priorities by the Quapaw Nation will impact tribal citizens in ways few tribes have experienced in recent memory.

"The refinance of Downstream Casino Resort is genuinely transformational for the Quapaw Nation. The Quapaw Nation was in a financial rut with no path out. As Downstream eliminates its debt, tribal citizens will be the beneficiaries, as they should have been years ago. I believe this deal will have a greater positive impact on any tribal community than we've seen over the past several years. The investment possibilities in education, health care, and housing in a tribe of the size of the Quapaw Nation is difficult to comprehend," Blosch said. "In terms of what it took to get us here, I credit Chairman Byrd and Secretary-Treasurer Barker for the mandate and leadership to get Downstream's financial house in order, along with a lot of hard work from a very dedicated group of Downstream employees. Every department contributed to achieving record profitability during a pandemic. Without those accomplishments, this deal would not have been possible. Also, Secretary-Treasurer Guy Barker's role cannot be understated. He worked tirelessly to unburden Downstream from financial mismanagement and led an extraordinary team effort to get us here. I'm very fortunate to have been a part of this accomplishment for the Quapaw people, and it's something I'll carry with me forever."

While the Quapaw Nation is one of the smaller tribes in northeast Oklahoma, their impact is substantial. For example, they are the first and only Oklahoma tribe to expand casino gaming outside the state with the Saracen Casino Resort in Pine Bluff, Arkansas and were the first Oklahoma tribe to open a certified USDA beef, pork, and bison processing plant. In addition, they operate a farmer's market, a coffee bean roastery and have a major agreement with the EPA to manage and remediate the Tar Creek Superfund site–the largest superfund site in the United States.

As the tribe continues its path to self-sufficiency, the Quapaw Nation and Downstream Development Authority say they will continue to work with BOKF in search of ways to further benefit the Quapaw people and add value to the Quapaw Nation.

The Pear Tree, by Chickasaw illustrator Madelyn Goodnight

Chickasaw artist illustrates children’s books

By Chickasaw Nation Media Relations Office

OKLAHOMA CITY — Madelyn Goodnight fondly identifies an idyllic childhood as the source of her creativity and desire to illustrate children’s books.

“My mom says I’ve been drawing ever since I could hold a pencil. I think I started drawing as an emotional and creative outlet. As I became a bit older, art was something I realized I wanted to pursue.”

Her maternal grandfather, Harrel McManus, was a sign painter and dabbled in artistic endeavors. Her mother, Karen Goodnight, a Chickasaw Nation legislator, business executive and 2014 Chickasaw Nation Dynamic Woman of the Year, studied art in college before devoting herself to education.

“I grew up in Konawa, then we moved to Goldsby, and I graduated high school in Norman. Art has always been a huge part of my life since a very early age. My parents encouraged it, and art figures prominently in my family, especially on mom’s side.”

Her twin sister, Katie, and brother, Kyle “are every bit as artistic as me but chose other professional career paths,” Goodnight said.

Her parents’ home in Norman has a painting hanging on its wall by her father, Stan, an oilfield executive, cyclist and business entrepreneur.

Goodnight is working on two books while celebrating completion of two others: “Look, Grandma! Ni, Elisi” (author Art Coulson, publisher Charlesbridge 2021) and “The Pear Tree” (author Luli Gray, publisher Penny Candy Books 2019). Both are available at Amazon and Barnes & Noble.

“‘The Pear Tree’ was the happiest coincidence because Penny Candy Books reached out to ask if I would illustrate it. Unbeknownst to my studio, the publisher was based in Oklahoma City,” Goodnight said.

At the time, Goodnight was working in New York City, having completed higher education at the Rhode Island School of Design.

It marked Goodnight’s first illustrations for a book publishing company. Forays from New York to Oklahoma accorded her the opportunity to collaborate with executives and – more importantly – visit family.

The book’s author, Luli Gray, died in 2017, and the OKC firm acquired publishing rights to “The Pear Tree,” a folk tale that introduces young readers to themes such as life and death, sorrow, joy and hope.

From her Oklahoma City studio/home – she and Katie moved back home from New York City at the height of the COVID-19 outbreak in March 2020 – Goodnight’s schedule is dizzying.

She is a freelance illustrator. Her “day job” is with Dotdash, an online media firm with endless opportunities for her to contribute art. Additionally, she is associated with Studio Goodwin-Sturges promoting her expertise as an illustrator.

She credits her mother’s vast collection of children’s books with inspiring her appreciation for detail.

“Of the many books my mom would read to me, my favorites were those that were filled with art you could go back to again and again, to see something new. Those are the illustrations I love the most. I can go back and be just as tickled looking at them at age 25 as I was at 7 seeing them for the first time.”

Caddo elders invited to apply for wood for heating homes

Eligible Caddo Nation AoA participants who use a fireplace or wood stove to heat their homes can apply for the supplementary wood program.

The service is available to Caddo Nation AoA elder participants, 55 and older, and will be available until all funds set aside have been dispersed.

This program provides one rick of wood per month, as needed, during the months of January through March.

Caddo Nation AoA remains devoted to the health and wellbeing of its elders by offering programs and services focused on all aspects of their lives, according to a news release from the Caddo Nation.

Applications can be picked up at the Caddo Nation AoA in the Fritz Hendrix Memorial Building at the Caddo Nation Complex. Once the application is complete, a contract worker will set up a time for delivery. Call Genevieve Moore for more information at (405) 345-9869.

EPA plans to revisit state request for tribal land oversight

BY THE ASSOCIATED PRESS

OKLAHOMA CITY (AP) — The U.S. Environmental Protection Agency announced Wednesday it plans to withdraw and reconsider a decision made under the Trump administration that allowed the state, not tribal nations, to regulate environmental issues in Indian Country.

Oklahoma Gov. Kevin Stitt, a Republican, had requested the authority last year, shortly after the U.S. Supreme Court determined in a landmark ruling known as the McGirt decision that a large swath of eastern Oklahoma remains a Muscogee (Creek) Nation Indian reservation. Since then, the tribal reservations of five other Native American tribes stretching across virtually the entire eastern half of the state have been determined by courts to remain intact.

The EPA said in a press release that its decision was made after extensive consultation with Oklahoma's 38 federally recognized tribal nations and the concerns many of them had with the agency's previous decision.

“Today's action reflects careful consideration of their concerns and our commitment to ensuring robust consultation on all policy deliberations affecting tribal nations," said Jane Nishida, EPA's assistant administrator for international and tribal affairs.

The agency said it would seek public comment on the proposed withdrawal and reconsideration through Jan. 31. While the process is ongoing, the agency said the state's authority will remain in place.

Neither the governor's office nor the Office of Attorney General John O'Connor immediately responded Wednesday to a request for comment.

Stitt, himself a Cherokee Nation citizen, has had a strained relationship with many of the tribal nations in Oklahoma that began with his attempt to seek a greater share of tribal casino revenue.

Cherokee Nation Principal Chief Chuck Hoskin Jr. on Wednesday applauded the EPA's decision.

“All Oklahomans benefit when we can work together in the spirit of mutual respect," Hoskin said in a statement. “Tribal nations such as the Cherokee Nation have been good stewards of our land, water and other natural resources since time immemorial, but all Oklahomans, Native or otherwise, play an important role in protecting our environment."