Construction can proceed on new Kansas casino

? Construction of the newest casino in Kansas has cleared several regulatory hurdles, but two state officials are now raising questions about the contract given to the developer.

The Mulvane City Council approved a zoning change, a special use permit, a development plan and a developer’s agreement on Monday for the Kansas Star casino near the Mulvane exit on the Kansas Turnpike, The Wichita Eagle reported.

Iowa-based Peninsula Gaming is building the casino and will manage it for the state. Approval of the ordinances will allow Peninsula to get building permits and begin construction.

But Kansas Attorney General Derek Schmidt is considering questions about Peninsula’s contract raised by House Speaker Mike O’Neal and Rep. Vince Wetta, a Democrat from Wellington.

O’Neal has asked Schmidt to see if the contract can be challenged in court. O’Neal, a Hutchinson Republican and attorney who opposed the 2007 law allowing the state-owned casino, cited a misdemeanor criminal case in Iowa against Peninsula and its two top officials over campaign finance allegations. Peninsula officials have repeatedly said there was no wrongdoing and expect the Iowa case to be resolved in their favor.

Wetta sent Schmidt a letter last month questioning whether the contract complies with the state’s gambling law without including plans to resolve infrastructure issues such as drainage, sewage and traffic. Peninsula officials have said the company does have plans to resolve the issues.

Schmidt is reviewing both requests, a spokesman told the newspaper.

Peninsula has already done preparation work on the site, including building access roads, putting in trailers for engineers and subcontractors and building a staging area.

A temporary casino is scheduled to open in February 2012, with a permanent casino opening in January 2013.

The entire project is expected to open in 2015, with 2,000 slot machines, 50 gaming tables, a 300-room hotel, a park for recreation vehicles, a gift shop and an expanded convention center equipped to host equestrian events and other gatherings.