IN THE CIRCUIT COURT OF POPE COUNTY, ARKANSAS DIVISION FOUR JAMES KNIGHT rLanyrie VS. ‘Case No. S8CV-18-768, 3 z JIM ED GIBSON, in his INDIVIDUAL CAPACITY, C BEN CROSS, in his OFFICIAL CAPACITY as COUNTY JUDGE of POPE COUNTY, ARKANSAS, 2 and the ARKANSAS STATE RACING COMMISSION ‘DEFENDANTS: BRIEF IN SUPPORT OF MOTION TO DISMISS Separate Defendant, Jim Ed Gibson, respectfully submits this bien support of his Motion ‘to Dismiss the Plaintf’s Second Amended Complaint, pursuant to Rule 12(6)(6) ofthe Arkansas INTRODUCTION On November 6, 2018, the People ofthe Stat of Arkanses passed Amendment 10) the ‘Arkansas Constitution, know as te Arkansas Casino Gaming Amendment of 2018, Amesiment 100 went into effect on November 14, 2018, and it empowered the Askansts tite Racing Commission (*ASRC") to “administer and regulate casino licenses, including their asuoee and ‘enewal. "and to “adopt rules necessary to carry out the purposes of [the] Amendnest...” ‘Atl Const, Amend. 100, §§4(a) and (c). Amendment 100 further mandated that the ASRC*shall sue four casino licenses” and “shall award a casino license to casino applicant fora eino to be located in Pope County within two miles of the city limits ofthe county seat.” Ark Const ‘Amend. 100, §§4() and (k). Amendment 100 requires an applicant for a casino license in Pope ‘County to submit “either alter of support from the county judge ora resolution from the quorumcourt in the county where the proposed casino is to be located ...” Ark. Const. Amend. 100, §§ 4), ‘im Bd Gibson was elected as County Judge of Pope County in 1998, and he was elected ‘0 consecutive two-year terms until his retirement on December 31, 2018. Judge Gibson id not seek reelection in 2018. On December 21, 2018, when Judge Gibson was the duly eladed and acting County Judge, he issued a leter in support of Gulfside Casino Partnership LLC, (*Gulfide") which stated, “Ia license is issued fora casino in Pope County Arkansas live my ‘support for Gulfside Casino Partnership.” (See 4 23 of the Second Amended Compliat, and [Exhibit “A" to the Second Amended Complaint, pe, 3.) ‘Before issuing this leter, Judge Gibson exercised extensive due diligence into Gulkide, as contemplated by Amendment 100, He found that Gulfsde owns and operates a cesino in Oalfport, Mississippi, where it employs 1,900 people, He confirmed that Gulfsde hs an unblemished record of regulatory compliauce. He received and considered endorsements from community leaders in Gulfport, who vouched for Gulfide’s reputation as a responsible corporate ciizea and ' generous contributor to the community, in add to the millions of dollar it pays in ste and local tenes, He secured a commitment from Gulf to build a resort style casino, ining & Hotel restaurants, ad an entrsinment venue, in adton to gang as well as Gulfie' pledge {0 invest $150 milion inthe intl phase ofthe project, with plans to inves an adiionl $100 millon, He considered that Gulfside’s proposal included more thn 1,500 pematenthoyitalty jobs and a otal annual payroll of $605 milion. He also foo into aesount the more thn $28 rillion in gaming taxes that wll goto the county, state, and Arkansas Racing Comission, es ll asad valorem, propety, sles, and other taiona tas. Dating Judge Gibson's dscsions with Gulfside representatives, they expressed their interest in supporting local education, which isevidenced by Gulfside’s recent commitinent to donate $20 million to the Pope County Bieation Foundation to benefit local schools, if granted a license, Based upon all of these facto, Fudge Gibson gave his support to Gulfside. (On Novenber 6, 2018, Pope County adopted an Amendment to its Code of Orliances, tiled the “Pope County Locel Control for Casino Gaming Amendment of 2018. (the “Pope County Ordinance”) (See $Y 20-21 of the Second Amended Complaint, and Exhibit “Ato the Second Amended Complaint, pg. 2.) The Pope County Ordinance purports to prohibit the County Judge from issuing a letter of support without first referring the question to local election where ‘it must be approved by a majority of the registered voters of Pope County, Arkansas I (Emphasis added.) Plsintif's Second Amended Complaint seeks (1) an order of ths Court Seclaring Judge Gibson's letter of support invalid and (2) writs of certiorari and mendanms declaring the letter of support improper and invalid ‘The Second Amended Complaint should be dismissed because the Pope County Oninance, ‘upon which itis based, is clearly unconstitutional. The Pope County Ordnance is unconstiutionsl for at least two reasons, First, i reates an additional qualification for obtaining a casino leense, not found in Amendment 100, and second, it places a heightened burden upon passage of @ referendum, in violation of Article V, Section 1 ofthe Arkansas Constitution, Further, the Second ‘Amended Complaint makes no allegation against Judge Gibson in his individual capaci. The ‘elif it seeks can only be obtained agenst a siting goverment official, which Indge Gitson is ‘not. For all of these reasons, the Second Amended Complaint should be dismissed, LEGAL STANDARD ‘The Second Amended Complaint should be dismissed for failure to state a claim upon which relict can be granted, pursuant to Rule 12(6)(6), Arkansas Rules of Civil Procedure. Tn