Central City, Colo. — Officials in the town of Black Hawk, where gamblers spend millions of dollars every year, misspent tax money and abused their authority by blocking construction of a road to a rival gambling town, a grand jury concluded.
The Denver Post reported Friday that it had obtained a copy of the report, which accuses Black Hawk of using any means possible to block the building of a road linking Central City with Interstate 70. The proposed 8.7-mile road is still unbuilt.
Colorado voters approved limited-stakes gambling in 1990 in the historic towns of Central City, Black Hawk and Cripple Creek to help them stay alive economically.
Since then, Black Hawk and Central City have waged a bitter war for customers and revenue. At its peak, Central City boasted 17 casinos, but the number has dwindled to six. Meanwhile, nearby Black Hawk, which is easier to get to from Denver, is home to 19 casinos and brings in more than $40 million a year in gambling revenue, more than twice as much as the other two towns combined.
In its 10-page report, the grand jury for Gilpin and Jefferson counties said the years-long delay in construction has "caused serious financial injury to Central City." The actions of Black Hawk officials constituted "misfeasance or malfeasance," it said.
The grand jury issued no criminal indictments, saying state law does not address Black Hawk's actions. It recommended changing the law and suggested the state gaming commission may want to investigate.
Among other things, the report said, city officials used $50,000 in tax money to buy mining claims in the area where the road would have been built. A stake in the claims was then transferred to the Black Hawk casino interests, who used the stake to block Central City's annexation of the land, the report said.
"I can't talk about (the report)," Black Hawk Mayor Kathryn Eccker said Thursday. "It's supposed to be under lock and key."
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